STANDARD MANUAL 
 OF THE INCOME TA) 
 
 1919 
 
 PUBLiSHED BY 
 STA NDARD STAT IS TIGS CO.. In 
 NEW YORK. U.S.A. 
 
Standard Manual 
 
 of the 
 
 Income Tax 
 
 1919 
 
 Published by 
 
 ATisncs 
 
 47 West Street, New York 
 
 STANDARD STATISTICS COMPANY, Inc. 
 

 Copyright 1919 
 
 STAITDARD STATISTICS CO., Inc. 
 
 New York 
 
Table of Contents 
 
 SECTION I. 
 
 Page 
 Condensed Digest and Changes of the War Revenue Law 
 
 of 1918 11 
 
 Full Text of the Act with Marginal Notations 51 
 
 General Index .— Buff pages 
 
 Detailed Digest of the Law-_ 177 
 
 SECTION II. 
 
 Page 
 
 High and Low Prices of Securities as of March 1, 1913— 1003 
 
 Treasury Decisions, Court Decisions and Other Income 
 
 Tax Data 1201 
 
 Collection Districts — Complete List 1365 
 
 Additional Income Tax Schedules for Previous Years 1371 
 
 d 1 i'rOA t 
 
The information contained here- 
 in, while not guaranteed, has 
 been carefully compiled, and is 
 believed to be correct. 
 
Section I 
 
 CONTENTS. 
 
 Condensed Digest of Law. 
 Full Text of Act. 
 General Index. 
 Detailed Digest of Law. 
 
[On the following pages will bb foui»d a digest «f'th*«. 
 New Revenue Law. This digest wa's prejpatfed to 'familiar-' 
 ize the user of this book with the general provisions of the 
 Act, particularly the changes therein, and to serve as a 
 groundwork for utilizing the more detailed information 
 which begins on page 177.] 
 
 DIGEST AND CHANGES 
 
 OF THE 
 REVENUE ACT OF 1918 
 
 INDIVIDUALS. 
 
 The first taxable year shall be the calendar year 1918 or any fiscal 
 year ending within the taxable year. 
 
 Individuals, partnerships, and certain personal service corporations 
 are exempt from the Excess Profits Tax. 
 
 Members of partnerships are liable for Income Tax on the net 
 profits of the partnership whether distributed to them or not. This 
 same provision applies to the stockholders of a personal service cor- 
 poration. 
 
 Every individual having a net income for the taxable year of 
 $1,000 or over, if single or if married and not living with husband 
 or wife, or the head of a family; or $2,000 or over if married and 
 living with husband or wife, will be required to render a return. 
 Therefore, every single individual with a net income of $19,24 per 
 week or over, or a married individual with a net income of $38.47 per 
 week or over, must make a return. 
 
 In the year 1917 there were two income tax laws in force. Under 
 the Act of September 8, 1916, as amended, the exemption for a 
 single person was $3,000, and for a married person $4,000. Under 
 the Act of October 3, 1917, the exemption for a single person was 
 $1,000, and for a married person $2,000. 
 
 Husband and Wife. 
 
 If the combined net income of husband and wife, living together, 
 and dependent children equaled or exceeded $2,000, all such income 
 must be reported, either on one return or on separate returns. If 
 separate returns are made, the exemption of $2,000 may be divided 
 between them or the husband can take the full exemption and the 
 wife pay the tax on her entire net income, or vice versa. The 
 combined amount of exemption taken must not exceed $2,000. If 
 the individual net income of either the wife or husband exceeds 
 $5,000, separate returns must be filed as the additional tax of each 
 is computed separately. Separate returns must also be filed if the 
 husband and wife are not living together and the net income of 
 either is $1,000 or more. 
 
 11 
 
Individual Liability to Make ReturiL 
 
 WhtDever,i^ the judgment of the Commissioner necessary, he may 
 require any person, by notice served upon him, to make a return 
 or such statements as he deems sufficient to show whether or not 
 such person is liable to tax. 
 
 Returns may be made to the collector of internal revenue for the 
 district in which the taxpayer has his legal residence or in the 
 district in which is located his principal place of business. (Under 
 the previous Act the taxpayer was requested for administrative 
 purposes to file the leturn in the district in which he resided.) 
 
 STATUS OF TAXES DUE THE UNITED STATES. 
 
 The tax due on income has the status of a debt due to the United 
 States, and persons receiving property charged with such indebted- 
 ness must answer for the debt. 
 
 PAYMENT OF TAX. 
 Payment of Tax in Installments. 
 
 The tax may be paid in four installments, covering the entire 
 year, up to December 15th, 1919. The first payment is due at the 
 time of filing the return, that is, March 15th, 1919,* if the return 
 is made on the basis of the calendar year 1918. The second payment 
 is to be made on June 15th, the third payment on September 15th 
 and the fourth and final payment on December 15th. 
 
 ♦Unless this date is automatically extended <?ue to delay in the passage 
 of the Act. 
 
 Extension of Time for Installment Payments. 
 
 If an extension of time for filing the return is requested and 
 granted, the time for the payment of the first installment shall be 
 postponed until the date of the expiration of the extension; but the 
 time for payment of the other installments shall not be postponed 
 unless the Commissioner of Internal Revenue so provides in granting 
 the extension. 
 
 When the time for the payment of any installment is thus post- 
 poned at the request of the taxpayer there shall be added as part of 
 such installment interest at the rate of one -half of one per cent per 
 month from the date of installment would have been due if no 
 extension had been granted, until paid; thus, if a taxpayer whose 
 tax ii $500 secures an extension of 30 days from March 15th to April 
 15th for filing the return, the first installment of $125 would be due 
 on April 15th, and if paid on that date there must be added interest 
 at the rate of one-half of one per cent, or 03 cents, to the payment; 
 the second payment of $125 would then be due June 15th on which 
 no interest would be paid, the third payment of $125 on September 
 15th and the fourth or final payment of $125 on December 15th. If 
 the date of each of the four installments were set back 30 days there 
 would be added to each installment interest at the rate of one half 
 of one per cent per month from the time they would hare been due 
 without the extension, until paid.^ 
 
 13 
 
If any installment is not paid wlreto due, the whole amount of the 
 tax unpaid becomes due and payable upon notice and demand from 
 the collector and if not paid within ten days, a 5 per cent, penalty 
 accrues with interest at the rate of 1 per cent, per month for each 
 full month until paid. 
 
 Payment of the Tax in Full. 
 
 If the taxpayer desires, the tax may be paid in full on or before 
 the date fixed for filing the return, March 15, unless this date is 
 automatically extended due to delay in the passage of the Act. 
 
 In this case the full amount of the tax becomes due and payable 
 on the date the return is due, and if it is not paid on this date, a 
 notice and demand is issued by the colllector and if not paid within 
 ten days from the date of the notice and demand, a 5 per cent, pen- 
 alty accrues with interest at the rate of 1 per cent, per month for 
 each full month until paid. 
 
 If an extension of time has been granted in which to file the re- 
 turn, the date of the expiration of the extension shall be the due 
 date of the tax. 
 
 (This differs from the previous law in the fact that payment 
 had to be made on June 15th of the year following that for which 
 the return was made and a discount was allowed for any advance 
 payment at the rate of 3 per cent, for 365 days for any payment 
 made in advance of the due date, and in the case of instalment pay- 
 ments the first instalment was due not later than 30 days after the 
 expiration of the taxable year. 
 
 Payment of Taxes by Uncertified Checks or U. S. Certificates of 
 Indebtedness. 
 
 Payment of all taxes except those payable by stamps may be 
 made by uncertified checks or by United States certificates of in- 
 debtedness. Certificates of indebtedness may be purchased at any 
 Federal Reserve or other bank and are, in effect, short term loans 
 to the Government bearing interest at rates varying from 4% 
 to 41/3%. 
 
 Only certain issues of these certificates are acceptable in payment 
 of taxes. A list of the certificates which have been issued for the 
 purpose of paying taxes may be secured from any collector of inter- 
 nal revenue or Federal Reserve Bank. 
 
 When taxes are paid by these certificates, the taxpayer is given 
 credit for the accrued interest from the date of issuance of the 
 certificates or upon coupons attached maturing on or before the date 
 the tax is due. 
 
 If taxpayers are located in a district which is distant from the 
 district in which they are required to pay the tax, they may 
 deposit the certificates of indebtedness in the Federal Reserve Bank 
 in the district in which they are located after first securing the 
 permission of the collector for the district in which the tax is 
 payable. The Federal Reserve Bank will deposit the certificates to 
 the credit of the Treasurer of the United States and forward a 
 copy of the certificate of deposit to the collector for the district 
 
 13 
 
in which the tax is payable, setting forth the name and address of 
 the taxpayer and a statement that this deposit has been made in 
 payment of income or excess-profits taxes. 
 
 The taxpayer should detach from the certificates any coupons 
 maturing on or before the date the tax is due. Any accrued interest 
 to the date the tax is due not covered by coupons detached will be 
 remitted to the taxpayer by the Federal Reserve Bank by check. 
 
 NORMAL TAX AND ADDITIONAL TAX. 
 
 NORMAL TAX. 
 
 The normal tax is 6 per cent, on the first $4,000 over the per- 
 sonal exemption and 13 per cent, upon the net income in excess 
 of the first $4,000. 
 
 (The normal tax under the old law consisted of two taxes of 
 2 per cent, each; there being two laws in force — the Act of Sep- 
 tember 8th, 1916, as amended, and the Act of October 3rd, 1917.) 
 
 To illustrate, assume that a citizen who is married and living with 
 his wife, has an income of $8,000 for the calendar year 1918; his tax 
 would be as follows: 
 
 Net Income $8,000 
 
 Exemption 2,000 
 
 Amount subject to normal tax $6,000 
 
 —CALCULATION OF NORMAL TAX: 
 
 6% on first $4,000 $240 
 
 12% on balance of $2,000 240 
 
 Total normal tax $480 
 
 —ADDITIONAL TAX: 
 
 Net Income $8,000 
 
 Exemption 5,000 
 
 Amount subject to additional tax $3,000 
 
 —CALCULATION OF ADDITIONAL TAX: 
 
 From $5,000 to $6,000 — $1,000 @ 1% $10 
 
 From $6,000 to $8,000 — $2,000 @ 2% 40 
 
 Total $50 
 
 -AMOUNT OF NORMAL AND ADDITIONAL 
 TAXES PAYABLE: 
 
 Normal $480 
 
 Additional 50 
 
 Total - $530 
 
 14 
 
RETURN OF HUSBAND AND WIFE. 
 
 If, in the case of this same taxpayer, the income was divided 
 as follows, the tax would be materially different: 
 
 Assume that John Doe and his wife, living together, had a joint 
 income of $8,000, but of this amount, $5,000 was his income and 
 $3,000 was his wife's income. The tax then would be as follows: 
 In the form of a joint return: 
 
 Income of John Doe and wife $8,000 
 
 Marital exemption 2,000 
 
 Net income subject to normal tax $6,000 
 
 Amount of normal tax (6% on first $4,000) $240 
 
 12% on balance of $2,000 240 
 
 Total normal tax $480 
 
 In the form of separate returns. 
 
 Wife— $3,000. Husband— $5,000. 
 
 Husband and wife dividing the exemption of $2,000. ($1,000 each.) 
 
 Wife $3,000 Husband $5,000 
 
 Share of exemption 1,000 Share of exemption 1,000 
 
 Amount taxable $2,000 Amount taxable $4,000 
 
 Wife or husband first $4,000 @ 6% $240 
 
 Balance of wife or husband's net income — $2,000 @ 12% 240 
 
 $480 
 
 No Additional Tax Liability. 
 
 The surtax is actually an additional tax, being levied in addition 
 to the normal tax, and when referred to as either additional or sur- 
 tax, has the same meaning. 
 
 As the husband's income is $5,000, he is not liable for any ad- 
 ditional tax, his income not being in excess of $5,000. As the 
 wife's income is only $3,000, no additional tax is due unless her 
 income exceeds $5,000; therefore, no additional tax would be paid 
 upon the joint income of the husband and wife, only the normal 
 tax being assessable. 
 
 No additional tax is due upon the joint income of husband and 
 wife unless either his or her income exceeds $5,000 individually. 
 
 ADDITIONAL TAX RATES. 
 
 The additional tax rates are, from $5,000 to $6,000 — 1%; from 
 $6,000 to $8,000—2%, and upon every $2,000 additional up to 
 $100,000 the rate increases 1%, the rate between $98,000 and $100,- 
 000 being 48%; from $100,000 to $150,000—52%; from $150,000 to 
 $200,000—56%; from $200,000 to $300,000—60%; from $300,000 to 
 $500,000—63%; from $500,000 to $1,000,000—64%, and upon any 
 income in excess of $1,000,000 — 65%. 
 
 U 
 
Th« additional tax on amounts (a« 
 income up to $1,000,000 follows: 
 
 Amount 
 
 Net Income Taxable 
 
 A B C 
 
 $5,000 to $6,000 $1,000 
 
 6,000 to 8,000 2,000 
 
 8,000 to 10,000 2,000 
 
 10,000 to 12,000 2,000 
 
 12,000 to 14,000 2,000 
 
 14,000 to 16,000 2,000 
 
 16,000 to 18,000 2,000 
 
 18,000 to 20,000 2,000 
 
 20,000 to 22,000 2,000 
 
 22,000 to 24,000 2,000 
 
 24,000 to 26.000 2,000 
 
 26,000 to 28,000 2,000 
 
 28,000 to 30,000 2,000 
 
 30,000 to 32,000 2,000 
 
 32,000 to 34,000 2,000 
 
 34,000 to 36,000 2,000 
 
 36,000 to 38,000 2,000 
 
 38,000 to 40,000 2,000 
 
 40,000 to 42,000 2,000 
 
 42,000 to 44,000 2,000 
 
 44,000 to 46,000 2,000 
 
 46,000 to 48,000 2,000 
 
 48,000 to 60,000 2,000 
 
 60,000 to 62,000 2,000 
 
 62,000 to 64,000 2,000 
 
 64,000 to 66,000 2,000 
 
 66,000 to 68,000 2,000 
 
 68,000 to 60,000 2,000 
 
 60,000 to 62,000 2,000 
 
 62,000 to 64,000 2,000 
 
 64,000 to 66,000 2,000 
 
 66,000 to 68,000 2,000 
 
 68,000 to 70,000 2,000 
 
 70,000 to 72,000 2,000 
 
 72,000 to 74,000 2,000 
 
 74,000 to 76,000 2,000 
 
 76,000 to 78,000 2,000 
 
 78.000 to 80,000 2,000 
 
 80,000 to 82,000 2,000 
 
 82,000 to 84,000 2,000 
 
 84,000 to 86,000 2,000 
 
 86,000 to 88,000 2,000 
 
 88,000 to 90,000 2,000 
 
 90,000 to 92,000 2,000 
 
 92,000 to 94,000 2,000 
 
 94,000 to 96,000 _ 2,000 
 
 96,000 to 98,000 2,000 
 
 98,000 to 100,000 2,000 
 
 100,000 to 150,000 60,000 
 
 160,000 to 200,000 60,000 
 
 1« 
 
 shown in column B) of net 
 
 
 
 Total 
 
 
 
 Additional 
 
 
 Amount 
 
 Tax on 
 
 Taxed 
 
 Additional 
 
 Am'ntin 
 
 At 
 
 Tax 
 
 Column B 
 
 D 
 
 E 
 
 F 
 
 1% 
 
 $10 
 
 $10 
 
 2% 
 
 40 
 
 60 
 
 3% 
 
 60 
 
 110 
 
 4% 
 
 80 
 
 190 
 
 5% 
 
 100 
 
 290 
 
 6% 
 
 120 
 
 410 
 
 7% 
 
 140 
 
 660 
 
 8% 
 
 160 
 
 710 
 
 9% 
 
 180 
 
 890 
 
 10% 
 
 200 
 
 1,090 
 
 11% 
 
 220 
 
 1,310 
 
 12% 
 
 240 
 
 1,550 
 
 13% 
 
 260 
 
 1,810 
 
 14% 
 
 280 
 
 2,090 
 
 15% 
 
 300 
 
 2,390 
 
 16% 
 
 320 
 
 2,710 
 
 17% 
 
 340 
 
 3,050 
 
 18% 
 
 360 
 
 3,410 
 
 19% 
 
 380 
 
 3,790 
 
 20% 
 
 400 
 
 4,190 
 
 21% 
 
 420 
 
 4,610 
 
 22% 
 
 440 
 
 6,050 
 
 23% 
 
 460 
 
 5,610 
 
 24% 
 
 480 
 
 6,990 
 
 26% 
 
 600 
 
 6,490 
 
 26% 
 
 620 
 
 7,010 
 
 27% 
 
 640 
 
 7,560 
 
 28% 
 
 660 
 
 8,110 
 
 29% 
 
 680 
 
 8,690 
 
 30% 
 
 600 
 
 9,290 
 
 31% 
 
 620 
 
 9,910 
 
 32% 
 
 640 
 
 10,560 
 
 33% 
 
 660 
 
 11,210 
 
 34% 
 
 680 
 
 11,890 
 
 36% 
 
 700 
 
 12,590 
 
 36% 
 
 720 
 
 13,310 
 
 37% 
 
 740 
 
 14,050 
 
 38% 
 
 760 
 
 14,810 
 
 39% 
 
 780 
 
 16,690 
 
 40% 
 
 800 
 
 16,390 
 
 41% 
 
 820 
 
 17,210 
 
 42% 
 
 840 
 
 18,050 
 
 43% 
 
 860 
 
 18,910 
 
 44% 
 
 880 
 
 19,790 
 
 46% 
 
 900 
 
 20,690 
 
 46% 
 
 920 
 
 21,610 
 
 47% 
 
 940 
 
 22,550 
 
 48% 
 
 960 
 
 23,610 
 
 62%- 
 
 26,000 
 
 49,610 
 
 66% 
 
 28,000 
 
 77,610 
 
Total 
 Additional 
 Amount Tax on 
 Amount Taxed Additional Am'nt in 
 Net Income Taxable At Tax Column B 
 
 A • B C D E F 
 
 200,000 to 300,000 100,000 ^'60% 60,000 137,510 
 
 300,000 to 500,000 200,000 63% 126,000 263,510 
 
 500,000 to 1,000,000 500,000 64% 320,000 683,510 
 
 Exceeding 1,000,000 65% 
 
 The total surtax as shown in the above table is 58 3/10 per cent, 
 on an income of $1,000,000. 
 
 Under the previous Act the rate per cent, of the surtax on an 
 income of $1,000,000 was 43 5/10 per cent. 
 
 DEFINITION OF GROSS INCOME. 
 
 (jrross income includes gains, profits and income derived from 
 salaries, wages or compensation for personal service (including in 
 the case of the President of the United States, the judges of the 
 Supreme and inferior courts of the United States, and all other 
 officers and employees, whether elected or appointed, of the United 
 States, Alaska, Hawaii, or any political subdivision thereof, or the 
 District of Columbia, the compensation received as such), of what- 
 ever kind and in whatever form paid, or from professions, vocations, 
 trades, businesses, commerce, or sales, or dealings in property 
 whether real or personal, growing out of the ownership or use of or 
 interest in such property; also from interest, rent, dividends, secur- 
 ities, or the transaction of any business carried on for gain or profit, 
 or gains or profits and income derived from any source whatever. 
 
 SALARIES PAID BY STATES AND MUNICIPALITIES. 
 
 The present law does not specifically exempt the salaries of State 
 or municipal employees; therefore unless this exemption is corrected 
 by appropriate Treasury decision all State officials and employees 
 such as governors, county officials, etc., as well as municipal officials 
 and employees such as mayors, judges, etc., will be required to file 
 returns and pay the tax. 
 
 Unconstitutionality of Taxing State, County or Municipal Salaries. 
 
 Under a decision handed down by the United States Supreme Court 
 in the year 1871, in the case of the Collector vs. Day, it was held 
 that Congress did not hare the power to levy a tax upon State or 
 municipal salaries under the Constitution and it is possible that in 
 the absence of a precedent under existing law that the department 
 will administer the present Act in such a manner as to eliminate 
 the necessity of litigation and refunding which would result if this 
 taxing power is assumed under the provisions of the Revenue Act of 
 1918. This Act is authorized by the 16th amendment to the Con- 
 stitution, which does not empower Congress to levy a tax of this 
 nature, and which is, in the words of a former Attorney General 
 "repugnant to the Constitution." 
 
 17 
 
INCOME EXEMPT FROM TAX. 
 
 The following items should not be included in gross income: 
 
 (1) Proceeds of life insurance policies paid upon the death of 
 the insured to individual beneficiaries or to the estate of the insured. 
 
 (2) The amount received by the insured as a return of premium 
 or premiums paid by him under life insurance, endowment or 
 annuity contracts either during the term or at the maturity of 
 the term mentioned in the contract or upon surrender of the 
 contract. 
 
 (3) The value of property acquired by gift, bequest, devise, or 
 descent (biit the income from such property shall be included in 
 g^oss income). 
 
 (4) Interest upon the obligations of a State, Territory, or any 
 political subdivision thereof, or the District of Columbia; or seciir- 
 ilies issued under the provisions of the Federal Farm Loan Act of 
 July 17th, 1916, or obligations of the United States or its posses- 
 sions; or bonds issued by the AVar Finance Corporation. 
 
 In the case of obligations of the United States issued after 
 September 1st, 1917, and bonds issued by the War Finance Cor- 
 poration, the interest shall be exempt only if and to the extent 
 provided in the respective Acts authorizing the issue thereof. 
 
 All Liberty Bond interest is exempt from the normal taxes of 6 
 per cent, and 12 per cent., but is subject to the additional taxeS. 
 
 Liberty Bonds. 
 
 The exemption of interest received after January 1, 1918, upon 
 Liberty Bonds is as follows: 
 
 Interest upon the first issue of SVgS is totally exempt. If bonds 
 of the first non -taxable issue have been converted into the second, 
 third or fourth issues, they then have the status of "obligations of 
 the United States issued after Sept. 1, 1917" and the interest 
 received upon the converted bonds and the bonds of the second, 
 third, and fourth issues is exempt from taxation to the following 
 extent: If the taxpayer holds no bonds of the fourth issue, the 
 interest on an aggregate amount of the second and third issues. 
 not exceeding $5,000 of principal, is exempt. 
 
 As an example, assume the taxpayer has $10,000 of the second 
 issue upon which he receives $400 interest and $10,000 of the third 
 issue upon which he receives $425; the interest upon a total of 
 $5,000 of the entire holding of the first and second issues or $206.25 
 of the total of $825 interest received would be exempt. 
 
 If the taxpayer holds any of the fourth issue, then the interest 
 on an amount of bonds of this issue, the principal of which docs 
 not exceed $30,000, is exempt from tax. The interest on bonds of 
 the second and third issues, either converted or unconverted, is 
 exempt up to one and one-half times the amount of the bonds of 
 the fourth issue originally subscribed for and held by the taxpayer 
 at the time of making his income tax return, not to exceed an 
 aggregate principal amount of $45,000. 
 
 Upon bonds of the first issue of SVgS which have been converted 
 into the fourth issue for the purpose of securing any of the ex- 
 emption privileges arising out of the ownership of bonds of the 
 
 18 
 
fourth issue, the interest is exempt from taxation to an amount 
 of principal not exceeding $30,000. 
 
 The above exemptions are in addition to the exemption of an 
 aggregate amount of $5,000 of principal of the second, third, and 
 fourth issues, which is provided for in the Acts authorizing the 
 respective issues. ^^ 
 
 These privileges will remain in effect until two years after the 
 date of the termination of the present war with Germany as fixed 
 by proclamation of the President and are accorded to all taxpayers 
 whether individuals, partnerships, associations or corporations. 
 
 As set forth in the above explanation, it is possible for a tax- 
 payer to secure exemptions on Liberty Bonds to a total of $110,000 
 principal amount, as follows: 
 
 Fourth issue $30,000 
 
 Second and Third 45,000 
 
 First converted into Fourth , 30,000 
 
 Original exemption on Second, Third, Fourth 5,000 
 
 Total $110,000 
 
 If the owner of the bonds holds less than $30,000 worth of the 
 fourth issue, the amount of the second and third issues exempt 
 is one and one-half times the amount of the fourth issue held, plus 
 the further privileges as outlined above. 
 
 Foreign Government Income Exempt. 
 
 (5) Income of foreign governments received from investments 
 in the United States owned by such foreign governments, or from 
 interest on deposits in banks in the United States of moneys belong 
 to such foreign governments, or from any other source within the 
 United States. 
 
 Accident or Health Insurance Exempt. 
 
 (6) Amounts received through accident or health insurance, or 
 under Workmen's Compensation Acts as compensation for personal 
 injuries or sickness plus the amount of any damages received 
 whether by suit or a claim on account of such injury or sickness. 
 
 (Amounts received through accident or health insurance were held 
 to be taxable income under the previous Act.) 
 
 Soldiers' and Sailors' Salaries Exempt. 
 
 (7) So much of the amount received during the present war by a 
 person in the military or naval forces of the United States as salary 
 or compensation in any form from the United States for active serv- 
 ices in such forces, as does not exceed $3,500. 
 
 (Under the previous Act soldiers and sailors and all others in 
 military or naval forces were taxable upon all income received, 
 in excess of their personal exemption.) 
 
 19 
 
Credits Allowed. 
 
 The following credits are allowed from net income before the 
 normal tax is computed: 
 
 (1) Amounts received as dividends from corporations which are 
 taxable upon their net income. 
 
 (2) Amounts received as interest upon obligations of the United 
 States and bonds issued by the War Finance Corporation which 
 have been included in gross income. 
 
 (3) Single person, $1,000; or if head of the family, that is, 
 actually supporting one or more persons, $2,000. 
 
 (4) Married person living with husband or wife, $2,000. 
 
 (5) Dependents — $200 for each person receiving the chief support 
 from the taxpayer if such dependent is under 18 years of age or 
 incapable of self-support. 
 
 (In the case of the $200 exemption for dependents, under the 
 previous Act this further exemption was only allowed if the tax- 
 payer was the sole support of the dependent. Under the present 
 Act the taxpayer is allowed the exemption for dependents if he is 
 the chief support.) 
 
 (6) Non-resident aliens are allowed the personal exemptions of 
 citizens only if the country of which they are residents allows a 
 similar credit to citizens of the United States. 
 
 Non-resident aliens were not allowed the personal exemption un- 
 der the previous Act. 
 
 Items Not Deductible from Gross Income. 
 
 In arriving at net income for the purposes of the tax, the fol- 
 lowing items must not be deducted from gross income: 
 
 (1) Personal living or family expenses, such as cost of main- 
 taining a home, servants' wages, family life insurance premiums, 
 allowances made as gifts to dependents, cost of purchase and 
 upkeep of pleasure automobiles, chauffeurs' hire, railroad commu- 
 tation fares to and from place of business and similar items. 
 
 (2) Any amount paid out for new buildings, or for permanent 
 improvements or betterments made to increase the value of any 
 property or estate. 
 
 (3) Any amount expended in restoring property or in making 
 good the exhaustion thereof for w^hich an allowance is or has been 
 made. 
 
 (4) Premiums paid on any life insurance policies covering the 
 life of any officer or employe or of any person financially inter- 
 ested in any trade or business carried on by the taxpayer when 
 the taxpayer is directly or indirectly a beneficiary under such 
 policy. 
 
 (5) Interest paid or accrued within the year on money borrowed to 
 purchase or carry securities or obligations, the income from which is 
 wholly exempt from tax, such as State or municipal bonds, etc., Is 
 not an allowable deduction. 
 
Deductions Allowed. 
 
 In arriving at net income, the taxpayer is allowed as deductions 
 all the ordinary and necessary expenses paid or incurred during 
 the taxable year in carrying on any trade or business, including 
 a reasonable allowance for salaries or compensation for personal 
 services actually rendered, and also^ rentals or other necessary 
 payments. 
 
 All interest paid or accrued on money borrowed within the year 
 to purchase or carry securities or obligations, the income from which 
 IS subject to tax, is a proper deduction. 
 
 All interest paid or accrued within the year on money borrowed to 
 purchase or carry obligations of the United States such as Liberty 
 Bonds, Certificates of Indebtedness, etc., issued after September 24th, 
 1917, is an allowable deduction. 
 
 All taxes paid or accrued within the taxable year imposed by 
 the authority of the United States or any of its possessions, ex- 
 cepting income, war-profits and excess -profits taxes, or taxes as- 
 sessed against local benefits of a kind tending to increase the 
 value of the property assessed. 
 
 All Losses Deductible. 
 
 Losses sustained during the taxable year, if not compensated 
 by insurance or otherwise, are proper deductions in arriving at 
 net income for the purposes of the tax whether such losses were 
 incurred in the taxpayer's regular trade or business, or whether 
 they were incurred in transactions entered into for profit though 
 not connected with the taxpayer's regular trade or business; also, 
 loss of property whether or not such property is connected with 
 the taxpayer's regular trade or business. 
 
 This is of specific interest to investors and brokers who have 
 sustained losses in investment or speculative accounts. 
 
 Under the previous law an individual was only allowed to deduct 
 losses incurred in his own particular business. Any net loss he sus- 
 tained in transactions entered into for profit but not connected 
 with his regular business were not deductible from income for the 
 purposes of the tax, but on the other hand, any gains resulting from 
 these outside transactions had to be included in his statement as 
 income. Thus, if the taxpayer was a lawyer, manufacturer oi 
 merchant and personally invested in securities in the year 1917 and 
 his own business showed a profit for the year of $100,000 while 
 his personal investments showed a net loss of $120,000, he was 
 required to report the $100,000 profit from his business for taxa- 
 tion and was not allowed to deduct the loss incurred in his in- 
 vestments, as they were consistently held to be losses incurred in 
 transactions entered into for profit but not connected with his 
 regular trade or business and thus not deductible. General business 
 was of the opinion that this appeared to be putting a tax upon 
 losses. 
 
 War Losses Deductible Against Prior Year's Income. 
 
 A. new departure in Federal legislation is disclosed in Section 204 
 of the Act which allows the net losses of one year to be deducted 
 
 21 
 
from the net income of the preceding year. Under all previous 
 Acts the losses of one year were confined to the year in which 
 they were incurred. 
 
 If the taxpayer, whether individual, partnership, or corporation 
 can produce evidence satisfactory to the Commissioner of Internal 
 Revenue that during the calendar or taxable year beginning on or 
 after November 1, 1918, and ending prior to January 1, 1920, he 
 (or it) sustained a net loss from the operation of his regular busi- 
 ness or through the bona fide sale of plant, buildings, machinery 
 or other equipment installed or acquired on or after April 6, 1917 
 (the date of declaration of the present war), for the production of 
 articles contributing to the prosecution of the present war, the 
 amount of the loss will be allowed as a deduction in computing the 
 net income of the preceeding year. If the taxpayer, individual, part- 
 nership, corporation has sustained such a loss in any taxable year, 
 beginning after October 31, 1918, and ending prior to January 1, 
 1920, he (or it) may upon the production of satisfactory evidence 
 secure the permission of the Commissioner of Internal Revenue to 
 make a new return for the year 1918 and take credit for the loss 
 incurred as a deduction against the income for the year 1918 and 
 have the tax for that year redetermined; and any amount found to 
 be due the taxpayer by reason of this new computation shaU be 
 credited or refunded, or if the amount of the loss incurred is found 
 to be in excess of the net income for that year, the balance or excess 
 of the loss may be deducted from the net income for the succeeding 
 year before the taxes for that year are computed, and if there re- 
 mains any balance or excess of loss, it shall be refunded to the tax- 
 payer. 
 
 These benefits shall be accorded to the members of partnerships 
 or the beneficiaries of estates or trusts in proportion to their dis- 
 tributive interests, if such partnerships or estates shall have sus- 
 tained losses of this character. 
 
 FISCAL YEAR. 
 
 Individual taxpayers are now allowed the privilege of filing their 
 returns on the basis of a fiscal year instead of the calendar year 
 as they were required to do under previous law. In order to avail 
 themselres of this privilege, the following method must be observed: 
 
 Assume that John Doe, a merchant, is the sole proprietor of his 
 business and for trade reasons desires to keep the accounts of his 
 business, as well as his own personal accoimts, on the basis of a 
 fiscal year beginning July 1, 1918, and ending June 30, 1919. Ho 
 must first secure tJhe permission of the Commissioner of Internal 
 Revenue through the collector for the district in which he intends 
 to file his return. To establish the fiscal year ending June 30, 1919, 
 the notification of his intention must be sent to the collector not 
 later than thirty days prior to the time his return would be due 
 if filed on the basis of the calendar year. As the return on the basis 
 of the calendar year is due March 15, 1919 (unless this date is 
 automatically extended due to delay in the passage of the Act), the 
 notice must be given on or before February 13, 1919. If the date 
 for filing returns is extended to April 15 the notice would then be 
 given before March 15. 
 
 The return must then be made on or before March 15, 1919, for 
 the period from January 1, 1918, to June 30, 1918. The return for 
 
 22 
 
the period of the fiscal year would not then be due to be filed until 
 September 15, 1919, and payments of the tax due for the period 
 from January 1, 1918, to Jime 30, 1918 (the six months period prior 
 to the beginning of the new fiscal year) would be made as follows: 
 One-fourth of the total tax on March 15, 1919, the time of filing the 
 return; one-fourth on June 15, 1919; one-fourth on September 15, 
 1919, and the balance on December l^th, 1919. 
 
 The payments of the tax based on the fiscal year from July 1, 
 1918, to June 30, 1919, w^ould be made as follows: One-fourth on 
 September 15, 1919, the time of filing the return; one-fourth on 
 December 15, 1919; one-fourth on March 15, 1920, and final pay- 
 ment on June 15, 1920. 
 
 The obvious advantage of this may be seen in the fact that the 
 taxpayer has nine months in which to pay the tax upon the six 
 months' income for the period from January 1, 1918, to June 30, 
 1918, the final payment on the taxes for this period being made 
 on December 15th, 1919, and the taxes due upon the period of the 
 fiscal year ending June 30, 1919, are payable in four installments 
 extending over a period of nine months from September 15. 1919, 
 to June 15th, 1920. 
 
 The taxes for the two separate periods embracing 18 months may 
 be made in eight payments, extending over a period of 15 months — 
 March 15th, 1919, to June 15, 1920. 
 
 When a taxpayer's fiscal year falls within two calendar years in 
 which the rates of tax are different, any personal exemption or other 
 specific exemption that has already been allowed in the preceding 
 year shall not be again allowed against that portion of the net in- 
 come for the fiscal year which is subject to the rates of the preced- 
 ing calendar year. 
 
 Extension of Time for Filing Returns. 
 
 If for any rea»on the return cannot be made by the due date 
 (March 15th), upon application to the collector of internal revenue 
 for the district in which the taxpayer is located, setting forth the 
 facts as to the taxpayer's inability to file on or before the due date, 
 upon a reasonable excu»e, such as absence, sickness, etc., the col- 
 lector will grant an extension of time not exceeding thirty days in 
 which to file the return. If a further extension of time is required, 
 application is to be made to the Commissioner of Internal Revenue 
 at Washington, D. C, in the same manner. The collector of internal 
 revenue only has the power to grant an extension of time not ex- 
 ceeding thirty days. 
 
 When an extension of time has been granted, the date of the 
 expiration of the period of extension shall be deemed to be the 
 time fixed by law for filing the return. In any case in which the 
 time for the payment of any installment is thus postponed because 
 of an extension of time for filing the return, there shall be added 
 as a part of such installment interest thereon at the rate of one -half 
 of 1 per cent, per month from the time it w^ould have been due, if 
 no extension had been granted, until paid. 
 
 If an extension of time is granted for making payment of the 
 first installment, the time for the payment of the subsequent install- 
 ments is not postponed unless the Commissioner so specifies in 
 granting the extension. 
 
FIDUCIARIES. 
 
 Executors, Guardians, Trustees, Administrators, Receivers, etc.— 
 
 In tlie case of income received by estates or income on any property 
 
 held in trust, the estate becomes a taxable entity in itself and as 
 
 such is subject to the same provisions of the income tax law as 
 
 a single individual with specific exemption of $1,000. 
 
 Every fiduciary such as executors, guardians, trustees, adminis- 
 trators, receivers or conservators shall make a return for the indi- 
 vidual or the estate or trust for which he acts if the gross income 
 of such individual is $1,000 or more if single or if married and not 
 living with husband or wife; or $2,000 or over if married and living 
 with husband or wife; or if the gross mcome of such estate or 
 trust is $1,000 or over, or if any beneficiary of such estate oi 
 trust is a non-resident alien. 
 
 A return made by any one of two or more joint fiduciaries shall 
 be sufficient. The tax is payable by the fiduciary when the estate 
 or trust is undistributed and is taxable to the beneficiary if dis- 
 tributed. 
 
 DIVIDENDS. 
 
 Dividends received (excepting dividends of a personal service cor- 
 poration paid out of profits accumulated since December 31, 1917), 
 while exempt from all normal tax, are taxable to the recipient at 
 the surtax rates for the year in which received. 
 
 Personal service corporations have the same status under the law 
 as partnerships for any period beginning on or after January 1, 1918 ; 
 therefore any amount paid as dividends by them out of earnings 
 or profits accumulated since December 31, 1917, are not to be treated 
 as dividends but as partnership profits, and any distribution made 
 shall be deemed to have been made from the most recently accumu- 
 lated earnings or profits. 
 
 Any distribution made by a corporation shall be deemed to have 
 been made from earnings or profits accumulated since February 28, 
 1913, but any earnings or profits accumulated prior to March Ist, 
 1913, may be distributed free of tax provided the earnings or profits 
 accumulated since February 28th, 1913, have first been uistributed. 
 
 DIVIDENDS PAID IN STOCK. 
 
 Dividends paid in stock are taxable to the recipient at the rates 
 in effect for the years in which the earnings or profits were accumu- 
 lated by the corporation, if the dividends were received by the 
 stockholder between January 1st and November 1st, 1918, both dates 
 inclusive, or if the stock dividends were authorized or declared by 
 the corporation during the period from January Ist to November 
 Ist, 1918, and are received by the stockholder after November 1st, 
 1918, and before the expiration of 30 days after the passage of the 
 present Act. 
 
 Stock dividends authorized or declared by a corporation after 
 November 1, 1918, are taxable to the recipient at the rates in effect 
 for the year in which received. 
 
Allocation of Dividends. 
 
 Any distribution made by a corporation during the first 60 days 
 of any taxable year shall be deemed to have been made from earn- 
 ings or profits accumulated during the preceding taxable years; but 
 any distribution made during the remainder of the taxable year 
 shall be deemed to have been made fjpm earnings or profits of the 
 current taxable year up to the date of distribution. If the books 
 of the corporation do not show the amount of such earnings or 
 profits the earnings or profits shall be deemed to have been accumu- 
 lated ratably over the accounting period within which the distribu- 
 tion was made. 
 
 The above provision does not effect the rate of tax to be paid 
 by the stockholder in the case of dividends paid in cash, or dividends 
 paid in stock of a corporation other than the distributing cor- 
 poration; but in the case of dividends paid in stock of the distribut- 
 ing corporation it serves to allocate the earnings or profits to the 
 years in which the corporation accumulated the earnings distributed, 
 as the stock dividends if received within the period above men- 
 tioned are taxable to the recipient, not at the rates in effect for the 
 year in which received, but at the rates in effect for the years in 
 which the earnings were accumulated by the corporation. 
 
 This differs from the previous law in the fact that all dividends 
 received diuing the taxable year were taxable at the rates in effect 
 for the years in which the profits or surplus were accumulated by 
 the corporation and any distribution made was deemed to have been 
 made from the most recently accumulated profits or surplus. 
 
 COURT DECISIONS IN REGARD TO STOCK DIVIDENDS. 
 
 Under the decision handed down on January 23, 1919, by Judge 
 Mayer of the United States District Court for the Southern District 
 of New York, it was held that the provision in the Revenue Act of 
 1916 taxing dividends paid in stock was unconstitutional on the 
 theory that stock dividends do not constitute taxable income and to 
 tax such dividends is to tax principal or capital. 
 
 The provision in the present Act is, in effect, the same as in the 
 Revenue Act of 1916 and specifically taxes stock dividends. 
 
 Until this decision is upheld by the United States Supreme Court, 
 dividends paid in stock will have to be returned as taxable income in 
 accordance with the provisions of the present Act; and in the event 
 of the decision being upheld, the taxes paid upon any stock dividends 
 will be refunded upon the submission of proper claims. 
 
 In the decision handed down by the United States Supreme Court 
 on January 7th, 1918, it was held that stock dividends paid during 
 the years 1913, 1914 and 1915 under the Act of October 3rd, 1913, 
 did not constitute taxable income. 
 
 NON-RESIDENT ALIENS. 
 
 Non-resident aliens who derive any income from sources within 
 the United States will be required to file returns, and if the coun- 
 try of which they are citizens or subjects imposes an income tax 
 and allows a credit similar to the marital exemption of $2,000 and 
 
 25 
 
the $200 exemption for dependents to American citizens who are 
 not reiidents of such country, then the above credits will be allowed 
 to such non-resident aliens. 
 
 Under the previous law, non-resident aliens were not allowed the 
 above exemptions and were taxed upon the entire amount of income 
 derived from sources within the United States. 
 
 Non-resident aliens are not allowed the benefit of the 6 per cent. 
 rate of tax on the first $4,000 over the specific exemption of $1,000 
 or $2,000 as in the case of citizens or residents, but are taxable at 
 the flat rate of 12 per cent, on all income in excess of the credits 
 allowed. 
 
 CITIZENS OF UNITED STATES POSSESSIONS. 
 
 Any individual who is a citizen of any possession of the United 
 States, such as Porto Rico or llu' Phii'Ppine Islands (and not other- 
 wise a citizen of the U. S.), shall be ou! joot to income tax only 
 upon income derived from sources within the Ignited States and 
 shall be subject to the same provisions as non-resident aliens. 
 
 Porto Rico and Philippine Islands. 
 
 Any individual who is a resident or a citizen of, or who derives 
 any income from sources within Porto Rico or the Philippine Islands, 
 or any corporation organized in or which derives income from Porto 
 Rico or the Philippine Islands, shall be taxed in these possessions 
 under the provisions of the Revenue Act of 1916, as amended, and 
 the respective legislatures of Porto Rico or the Philippine Islands 
 shall have the power to amend, alter, modify or repeal the income 
 tax laws in force in Porto Rico or the Philippine Islands. 
 
 INFORMATION RETURNS. 
 
 Every person, corporation or partnership making payments of 
 gains, profits or income of any description, which are either fi^ed or 
 determinable, to any other person, corporation or partnership, 
 amounting to $1,000 or more in any year, is required to make a 
 return of such information to the Commissioner of Internal Rev- 
 enue, giving the amounts of siuh payments and the names and 
 addresses of the recipients. 
 
 This does not apply to the payments of dividends to stockhold- 
 ers by a corporation or the payments by a broker to customers of 
 profits on transactions. These statements, such as dividends and 
 payments of profits by brokers, are only required when requested 
 by the Commissioner of Internal Revenue, in order to check up indi- 
 vidual returns. 
 
 Under the previous law these returns of information were required 
 in the case of payments during the year amounting to $800 or more. 
 
 PENALTIES. 
 
 There are two distinct penalties provided for failure to file returns 
 or pay the tax. One is a specific penalty and the other a penalty 
 measured by the amount of the tax. For failure to file the return 
 
 26 
 
within the time prescribed by law, Section 3176 of the Revised 
 Statutes provides a penalty of 25 per cent, of the amount of the tax 
 shown to be due upon the return, and in the case of a fraudulent 
 return, wilfully made, a penalty of 50 per cent, of the tax is to be 
 added. 
 
 In the case of a return filed after the due date, if it can be 
 shown that the delinquency was due"to a reasonable cause and not 
 to wilful negligence, the amount of the penalty will be waived. 
 
 In addition to the above penalties. Section 252 of the Revenue Act 
 of 1918 prescribes a specific penalty of not more than $1,000 for fail- 
 ure to make a return or pay the tax at the time specified, and in 
 the case of a taxpayer who wilfully refuses to make a ret'irn or pay 
 the tax, a penalty of not more than $10,000. 
 
 Under the previous Act the penalty measured by the amount of 
 tax for failure to file the return on or before the due date was 60 
 per cent, of the tax, and the penalty in the case of a fraudulent 
 return was 100 per cent, of the tax and the specific penalty imposed 
 was from $20 to $1,000. 
 
 PRIVACY OF RETURNS. 
 
 The information contained in any return made imder the Act is 
 to be treated as inviolably confidential by all internal revenue offi- 
 cers under severe penalty and is not open to inspection by any 
 person excepting upon order of the President of the United States, 
 and under rules and regulations prescribed by the Secretary of the 
 Treasury, and approved by the President. 
 
 The proper officers of any State, imposing an income tax upon 
 request of the Governor thereof, may have access to the returns of 
 any corporation in such manner as the Secretary of the Treasury 
 may prescribe. 
 
 Stockholders' Privileges. 
 
 All bona fide stockholders of record, owning 1 per cent, or more of 
 the outstanding stock of any corporation, shall, upon making request 
 of the Commissioner of Internal Revenue, be allowed to examine 
 the annual income returns of such corporation and its subiidiaries. 
 This privilege was not accorded stockholders under any of the 
 previous Acts. 
 
 Penalty for Disclosing Information. 
 
 Any stockholder who examines the return of a corporation pur- 
 suant to the above privilege and who makes knov/n in any manner 
 not provided by law any particular of such return, shall be guilty 
 of a misdemeanor and be punished by a fine not exceeding $1,000 or 
 by imprisonment not exceeding one year, or both. 
 
 COPARTNERSHIPS AND PERSONAL SERVICE CORPORATIONS. 
 
 Every copartnership must make a return showing the gross 
 income, the deductions allowed by law and the net income; also 
 the distributive interest of each partner whether such profits have 
 
 27 
 
been distributed or not, with the names and addresses of the per- 
 sons who would be entitled to such profits if distributed. The 
 return may be sworn to by any one partner. 
 
 Partnership Contributions. 
 
 The partnership itself shall not be subject to either excess profits, 
 war profits, or the income tax. In computing the net income of the 
 partnership, no deductions shall be made for contributions or gifts 
 made by the partnership. The partners shall take credit in their 
 individual returns of their proportionate share of any such contribu- 
 tions or gifts so made by the partnership, not to exceed 15 per 
 cent, of the individual's net income. 
 
 PERSONAL SERVICE CORPORATIONS DEFINED. 
 
 A personal service corporation is a corporation whose income is 
 due primarily to the activities of the principal owners or stock- 
 holders who are themselves regularly engaged in the active conduct 
 of the affairs of the corporation and in which capital (whether in- 
 vested or borrowed) is not a material income producing factor; for 
 instance, a corporation composed of commission merchants or adver- 
 tising men where the principal owners or stockholders are them- 
 selves actively engaged in the conduct of the business and the 
 income is due principally to their personal services and the only 
 capital employed is for the purposes of paying for office equipment 
 and employes* salaries. 
 
 In the case of a personal service corporation, if 50 per cent, or more 
 of the gross income consists of gains, profits or commissions derived 
 from Government contracts, made between April 6, 1917, and No- 
 vember 11, 1918, both dates inclusive, it shall not be treated as a 
 person service corporation subject to the provisions which apply to 
 a partnership, but shall be taxed as a corporation. 
 
 Every personal service corporation, although not subject to the 
 tax, must file a return showing the gross income, the deductions 
 allowed by law, the net income and the amounts distributed, with 
 the names and addresses of the recipients. Where a part of the 
 net income has not been distributed the names and addresses of the 
 stockholders who would be entitled to the profits if distributed must 
 be given, with the portion assignable to each. 
 
 Foreign personal service corporations shall not be accorded the 
 privileges of domestic personal service corporations, bmt shall be 
 taxed as corporations. 
 
 Stockholders Taxable as Partners. 
 
 The individual stockholders of personal service corporations shall 
 be taxed in the same manner as the members of partnerships and 
 all the provisions of the Act relating to partnerships and members 
 shall, so far as practicable, apply to personal service corporations 
 and the stockholders. Any portion of the net income remaining 
 undistributed at the close of its taxable year shall for the purpose 
 of taxation be assigned to the stockholders in proportion to their 
 respective shares. 
 
 28 
 
Partners' Credits Allowable. 
 
 A partner shall for the purpose of the normal tax be allowed as 
 credits, in addition to the specific exemption of $1,000 if single, or 
 $2,000 if married, his proportionate share of the dividends, or interest 
 upon obligations of the United States and bonds issued by the War 
 Finance Corporation as are received by the partnership. If the fiscal 
 year of a partnership ends during a calendar year for which the 
 rates of tax differ from those for the preceding calendar year, the 
 rates for such preceding calendar year shall apply to an amount 
 of every partner's share of such partnership net income equal to 
 the proportion which the part of such fiscal year falling within such 
 calendar year bears to the full fiscal year, and the rates for the 
 calendar year during which such fiscal year ends shall apply to the 
 remainder. 
 
 Taxes Paid Under the Revenue Act of 1917. 
 
 If a partnership or a personal service corporation has paid a tax 
 under Title II. of the Revenue Act of 1917 for any period beginning 
 on or after January 1, 1918, they should immediately file a claim for 
 the refund of the amount of tax paid for such period. 
 
 Partnership Fiscal Year Taxes. 
 
 If a partnership or a personal service corporation makes return 
 for a fiscal year beginning in 1917 and ending in 1918, it shall pay 
 the same proportion of a tax for the entire period computed under 
 Title II of the Revenue Act of 1917 which the portion of such 
 period falling within the calendar year 1917 is of the entire period. 
 
 WAR CONTRACT REQUIREMENTS. 
 
 That every person who on or after April 6, 1917, has entered into 
 any contract, undertaking, or agreement with the United States, 
 or with any department, bureau, officer, commission, board or agency 
 under the United States or acting in its behalf, or with any other 
 person having contract relations with the United States, for the 
 performance of any work or the supplying of any materials or 
 property for the use of or for the account of the United States, 
 shall, within thirty days after a request of the Commissioner 
 therefor, file with the Commissioner a true and correct copy of 
 every such contract, undertaking, or agreement. 
 
 Whoever fails to comply with such request of the Commissioner 
 shall be guilty of a misdemeanor and shall be punished by a fine 
 of not more than $1,000, or by imprisonment for not more than 
 one year, or both. 
 
 The Commissioner shall (when not violative of the technical mili- 
 tary or naval secrets of the Government) have access to all in- 
 formation and data relating to any such contract, undertaking, or 
 agreement, in the possession, control or custody of any department, 
 bureau, board, agency, officer or commission of the United States 
 
and may call upon any such department, bureau, board, agency, 
 officer or commission for a full statement and description of any 
 allowance for amortization, obsolescence, depreciation or loss, or of 
 any valuation, appraisal, adjustment or final settlement, made in 
 pursuance of any such contract, undertaking or agreement. 
 
 CORPORATIONS. 
 
 Corporations are subject to three separate and distinct taxes 
 under the Act — The War Excess Profits, the Corporation Income 
 and the Special Excise Tax based on the fair value of the capital 
 stock for the preceding year ending June 30, 1918. 
 
 Personal service corporations are exempt from the above taxes. 
 
 Under the Revenue Act of 1916 which was effective for the years 
 1916 and 1917 there was no distinction made between "personal 
 service corporations and other corporations, all being taxable under 
 the Excess Profits and the Corporation Income Tax." 
 
 Method of Taking Inventory. 
 
 Inventories are to be taken according to rules and regulations 
 prescribed by the Commissioner with the approval of the Secretary 
 and on such basis as conforms as nearly as may be to the best 
 accounting practice in the trade or business and as most clearly 
 reflects the income. 
 
 Under the previous Act, a taxpayer was allowed to take inventory 
 at cost of market value, whichever was lowest. 
 
 Reduction In Value of Inventory Not Due to Temporary Fluctuation. 
 
 If the taxpayer considers that a loss has been sustained in the 
 taxable year 1918 by a reduction in the value of the inventory not 
 due to temporary fluctuation, whether or not actually realized by 
 sale or other disposition, he may file a claim for abatement of the 
 amount of such loss at the time of filing the return; or, if no such 
 claim is filed, but if it is shown to the satisfaction of the Commis- 
 sioner that a loss of this character was sustained in 1918 or 1919, 
 the tax for the year aff'ected shall be redetermined and any amount 
 found to be due the taxpayer, shall be credited or refunded. 
 
 If a claim for abatement of the loss is filed with the return, a 
 bond in double the amoimt of the tax covered by the claim, with 
 sureties satisfactory to the Commissioner, shall accompany the 
 claim. This will automatically suspend payment of the amount 
 of tax covered by the claim, but in case the amount of the claim 
 is disallowed by the Commissioner, interest at the rate of 1 per 
 cent, per month will be added to the amount from the time the 
 tax would have been due had no such claim been filed. 
 
 Under the previous Act, this reduction of inventory was not al- 
 lowed except as reflected in ultimate sales and losses of one year 
 could not offset profits of another. 
 
 30 
 
Corporations Availed of to Prevent Imposition of Surtax Upon 
 Stockholders. 
 
 If a corporation is availed of for the purpose of preventing tiie 
 imposition of the surtax upon its stockholders through the medium 
 of permitting its gains and profits to accumulate instead of being 
 divided or distributed, when the Commissioner is satisfied that in 
 his opinion such accumulation is unreasonable for the purpose of 
 the business and is for the sole purpose of preventing the surtax 
 being levied upon the stockholders, the earnings or profits so ac?- 
 cumulated shall first be subject to the Excess Profits Tax imposed 
 under Title III. of the present Act, and the balance of the net in- 
 come shall be assigned to the stockholders in proportion to their 
 holdings and shall be accounted for by them in their individual 
 returns; and shall not be taxed as corporation dividends exempt 
 from the normal tax, but shall be taxed as a distribution of part- 
 nership profits subject to both the normal and additional taxes. 
 
 Exempt Corporations. 
 
 In addition to person service corporations the following cor- 
 porations are exempt from all three of the above taxes: 
 
 (1) Labor, agricultural or horticultural organizations. 
 
 (2) Mutual savings banks not having a capital stock represented 
 by shares. 
 
 (3) Fraternal beneficiary societies, orders, etc., operating for the 
 exclusive benefit of members. 
 
 (4) Domestic building and loan associations and co-opere,tive banks 
 without capital stock operated for mutual purposes and without 
 profit. 
 
 (5) Cemetery companies operated exclusively for the benefit of 
 members. 
 
 (6) Corporations operated exclusively for religious, charitable, 
 scientific, or educational purposes, or for the prevention of cruelty 
 to children or animals where no profit inures to the benefit of 
 stockholders. 
 
 (7) Business leagues, chambers of commerce, or boards of trade 
 not organized for profit. 
 
 (8) Civic leagues operated exclusively for the promotion of social 
 welfare. 
 
 (9) Clubs operated for pleasure, recreation and other non -profit- 
 able purposes. 
 
 (10) Farmers' or other mutual hail, cyclone or fire insurance 
 companies, mutual ditch or irrigation companies, mutual or co- 
 operative telephone companies, etc., the income of which consists 
 solely of assessments and dues collected for the purpose of meeting 
 expenses. 
 
 (11) Farmers', fruit growers' or like associations, or co-operative 
 societies operated for the purpose of marketing the products of mem- 
 bers, as defined in the Act. 
 
 (12) Corporations organized for the exclusive purpose of holding 
 title to property and turning over the income thereof to organiza- 
 tions which are exempt from the tax. 
 
 31 
 
(13) Federal land banks and national farm loan associations 
 created under the Act of July 17, 1916, to provide capital for agri- 
 cultural development. 
 
 WAR EXCESS-PROFITS TAX. 
 
 The war excess-profits tax is imposed upon corporations only; 
 individuals and partnerships being exempt. 
 
 Personal service corporations are also exempt unless 50 per cent, 
 or more of the gross income is derived from Government contracts, 
 in which case the corporation is subject to the tax. 
 
 A corporation whose net income for the taxable year is less than 
 $3,000 is exempt from the excess-profits tax, although a return must 
 be filed. 
 
 In the case of a corporation engaged in the business of mining gold, 
 the net income derived from such business is exempt. 
 
 A corporation which is organized for religious, educational or 
 charitable purposes and not for profit is also exempt. 
 
 Where Returns Are to be Filed. 
 
 Returns shall be made in the internal revenue district in which 
 the principal office or agency of the corporation is located and if it 
 has no principal office or agency in the United States,, then to the 
 collector of internal revenue at Baltimore, Md. 
 
 When Returns Are to be Filed. 
 
 If the return is made on the basis of the calendar year 1918, it 
 must be filed on or before March 15th, 1919, unless this date is auto- 
 matically extended, due to the delay in the passage of the Act; if 
 on the basis of a fiscal year, it must be filed on or before the fif- 
 teenth day of the third month following the close of the fiscal year. 
 
 When Taxes Are Payable. 
 
 Payment of the tax may be made in the same manner as applies 
 to individuals, namely, in four quarterly installments, or in full. 
 
 If payment is made in full, it must be made on or before the date 
 fixed for filing the return, and if payment is made in installments, 
 the first installment of one-quarter of the tax must be made on or 
 before the date fixed for filing the retuin; second payment on or 
 before the fifteenth day of the third month following; the third pay- 
 ment on or before the fifteenth day of the sixth month, and the 
 fourth or final payment on or before the fifteenth day of the ninth 
 month following the date of filing the return. 
 
 The tax is levied upon net income and is computed by the use of 
 percentages of tho invested capital and specific credits known as the 
 "Excess-Profits" adn the **War-Profits" credits as ratios to determine 
 at what rates the difTerent portions of the net income shall be taxed. 
 
 The total amount of tax payable under the combined war excess- 
 
 38 
 
profits and corporation income taxes ranges approximately from a 
 33.2 per cent, minimum to a maximum of about 70 per cent, of the 
 net income ; in some cases exceeding 70 per cent. The rate percentage 
 of tax depends entirely upon the proportion of the n«t income to the 
 invtsted capital and the pre-war earnings. 
 
 In order to simplify the interpretation of the method of comput- 
 ing the tax, two practical illustrations' are given in subsequent para- 
 graphs showing the method of calculation, step by step, with each 
 progression plainly indicated. 
 
 COMPUTATION OF TAX. 
 
 (The text of the law is given first and the method of computing 
 each bracket immediately follows.) 
 
 For the'purpose of comparison, we are assuming that the two cor- 
 porations used in the following illustrations were organized in the 
 year 1917 and the taxes shown are for the calendar year 1918. 
 
 Corporation "A" with a capital invested of $100,000 and a net in- 
 come of $20,000; and Corporation "B" with a capital invested of 
 $100,000 and a net income of $50,000. 
 
 Corporation "A." 
 
 Invested capital $100,000 
 
 Net income 20,000 
 
 FIRST BRACKET. 
 
 30 per centum of the amount of the net income in excess of the 
 excess-profits credit (determined under Section 312) and not in ex- 
 cess of 20 per centum of the invested capital. 
 
 Section 312 — That the excess-profits credit shall consist of a speci- 
 fic exemption of $3,000 plus an amount equal to 8 per centum of the 
 invested capital for the taxable year. 
 
 A foreign corporation sliall not be entitled to the specific exemption 
 of $3,000. 
 
 Invested capital $100,000 
 
 8% 
 
 8% of invested capital $8,000 
 
 Specific exemption 3,000 
 
 Excess-profits credit $11,000 
 
 Net income 20,000 
 
 Excess-profits credit ^ 11,000 
 
 Amount taxable $9,000 
 
 Invested capital $100,000 
 
 20% 
 
 20% of Invested capital $20,000 
 
 33 
 
Excess -profits credit 11,000 
 
 Amount of net income in excess of the excess-profits 
 credit and not in excess of 20% of the invested capi- 
 tal (taxable at 30%) $9,000 
 
 30% 
 
 Amount of tax under First Bracket ^ $2,700 
 
 SECOND BRACKET. 
 
 65 per centum of the amount of the net income in excess of 20 
 per centum of the invested capital. 
 
 Net income $20,000 
 
 20% of invested capital 20,000 
 
 Amt. of net income in excess of 20% of invested capital None 
 
 Amount of tax under Second Bracket None 
 
 THIRD BRACKET. 
 
 The sum, if any, by which 80 per centimi of the amount of the 
 net income in excess of the war -profits credit (determined under 
 Section 311) exceeds the amount of the tax computed under the 
 First and Second Brackets. 
 
 Section 311 — (a) That the war -profits credit shall consist of the 
 sum of: 
 
 (1) A specific exemption of $3,000; and 
 
 (2) An amount equal to the average net income of the corporation 
 for the pre-war period, plus or minus, as the case may be, 10 per 
 centum of the difference between the average invested capital for 
 the pre-war period and the invested capital for the taxable year. 
 If the tax is computed for a period of less than twelve months, 
 such amount shall be reduced to the same proportion thereof as the 
 number of months in the period is of twelve months. 
 
 (b) If the corporation had no net income for the pre-war period, 
 or if the amount computed under paragraph (2) of subdivision (a) 
 is less than 10 per centum of its invested capital for the taxable 
 year, then the war-profits credit shall be the sum of: 
 
 (1) A specific exemption of $3,000; and 
 
 (2) An amount equal to 10 per centum of the invested capital 
 for the taxable year. 
 
 (c) If the corporation was not in existence during the whole of 
 at least one calendar year during the pre-war period, then except 
 as provided in subdivision (d) the war-profits credit shall be the sum 
 of: 
 
 (1) A specific exemption of $3,000; and 
 
 (2) An amount equal to the same percentage of the invested 
 capital of the taxpayer for the taxable year as the average per- 
 centage of net income to invested capital, for the pre-war period, 
 of corporations engaged in a trade or business of the same general 
 class as that conducted by the taxpayer; but such amount shall in 
 no case be less than 10 per centum of the invested capital of the 
 taxpayer for tlio taxable year. Such average percentage shall be 
 
 34 
 
determined by the Commissioner on the basis of data contained in 
 returns made* under Title II. of the Revenue Act of 1917, and the 
 average known as the median shall be used. If such average per- 
 centage has not been determined and published at least 30 days 
 prior to the time when the return of the taxpayer is due, then 
 for purposes of such return 10 per centum shall be used in lieu 
 thereof, but such average percentage "v^hen determined shall be used 
 for the purposes of Section 250 in determining the correct amount 
 of the tax. ,:; 
 
 (d) The war-profits credit shall be determined in the manner pro- 
 vided in subdivision (b) instead of in the manner provided in sub- 
 division (c), in the case of any corporation which was not in exist- 
 ence during the whole of at least one calendar year during the 
 pre-war period, if (1) a majority of its stock at any time during 
 the taxable year is owned or controlled, directly or indirectly, by 
 a corporation which was in existence during the whole of at least 
 one calendar year during the pre-war period, or if (3) 50 per centum 
 or more of its gross income (as computed under section 233 for 
 income tax purposes) consists of gains, profits, commissions, or other 
 income, derived from a government contract or contracts made 
 between April 6, 1917, and November 11, 1918, both dates inclusive. 
 
 (e) A foreign corporation shall not be entitled to a specific exemp- 
 tion of $3,000. 
 
 War-profits credit consists of: 
 
 Specific exemption $3,000 
 
 10% of capital for taxable year 10,000 
 
 War-profits credit $13,000 
 
 Net income ___ $20,000 
 
 War-profits credit 13,000 
 
 Net income in excess of war -profits credit $7,000 
 
 80% 
 
 80% of net income in excess of war-profits credit $5,600 
 
 Total tax under First and Second Brackets 2,700 
 
 The sum by which 80% of the amount of the net income 
 in excess of the war-profits credit exceeds the amount 
 of the tax computed under the First and Second 
 Brackets (to be added to the tax) 
 
 Total tax under First and Second Brackets 
 
 Addition to the tax to be made under Third Bracket 
 
 Total tax under First, Second, and Third Brackets 
 
 $2,900 
 
 52,700 
 2,900 
 
 $5,600 
 
 LIMITATION BRACKET. 
 
 Section 302 provides that the tax computed under the Third 
 Bracket shall not exceed the sum of the following: 
 
 30 per centum of the amount of the net income in excess of $3,000 
 and not in excess of $20,000 plus 80 per cent of the net income 
 in excess of $20,000, and that nothing in this section shall be con- 
 strued in such a manner as to increase the tax. 
 
 35 
 
Amount of taxable net income not in excess of $20,000 $30,000 
 
 3,000 
 
 Amount of net income in excesi of $3,000 and not in 
 
 excess of $20,000 _ $17,000 
 
 30% 
 
 30% of the amount of net income in excess of $3,000 and 
 
 not in excess of $20,000 $5,100 
 
 Total tax as shown by the Ist, 2nd, and 3rd Brackets $5,600 
 
 Tax must not exceed amount shown by computation 
 under Section 302 (Limiting Bracket) 5,100 
 
 As the amoirnt of tax as computed under the brackets exceeds 
 the amount shown under Section 302, the amount of war excess 
 profits payable is $5,100. 
 
 Corporation Income Tax. 
 
 For the calendar year 1918, 12 per centum of the amount of th» 
 net income in excess of the credits provided in Section 236 (interest 
 on obligations of the United States and specific exemption of $2,000). 
 
 Net income $20,000 
 
 War excess-profits tax (credit) 5,100 
 
 Amount subject to corporation income tax $14,900 
 
 Less specific exemption 2,000 
 
 Net amount subject to corporation income tax $12,900 
 
 Rate of tax 12% 
 
 Amount of corporation income tax $1,548 
 
 Amount of war-excess profits tax 5,100 
 
 Total war-excess profits and corporation income tax — $6,648 
 
 The total amount of the combined war excess-profits and corpo- 
 ration income taxes in the above case is $6,648 on a net income 
 of $20,000, which is 33.2 per cent of the earnings. 
 
 Corporation '*B." 
 
 Invested capital _' — $100,000 
 
 Net income $50,000 
 
 FIRST BRACKET. 
 
 Invested capital — $100,000 
 
 8% 
 
 8% of invested capital $8,000 
 
 Specific exemption 3,000 
 
 Excess profits-credit $11,000 
 
 Net income — $50,000 
 
 36 
 
Excess-profits credit 11,000 
 
 Amount taxable $39,000 
 
 Invested capital __ $100,000 
 
 20% 
 
 20% of invested capital $20,000 
 
 Excess-profits credit 11,000 
 
 Amount of net income in excess of excess-profits credit 
 
 and not in excess of 20% of invested capital $9,000 
 
 Rate of tax 30% 
 
 Amount of tax under First Bracket $2,700 
 
 SECOND BRACKET. 
 
 Net income $50,000 
 
 20% of invested capital 20,000 
 
 Amount of net income in excess of 20% of invested cap- 
 ital (taxable at 65 per cent.) $30,000 
 
 65% 
 
 Tax under Second Bracket $19,500 
 
 Plus tax under First Bracket—^ 2,700 
 
 Total tax under First and Second Brackets $22,200 
 
 THIRD BRACKET. 
 
 War -profits credit consists of: 
 
 Specific exemption $3,000 
 
 10% of capital for taxable year 10,000 
 
 War-profits credit $13,000 
 
 Net income — $50,000 
 
 War profits credit 13,000 
 
 Net income in excess of war-profits credit $37,000 
 
 80% 
 
 80% of the amount of the net income in excess of the 
 
 war-profits credit $29,600 
 
 Total tax under the First and Second Brackets 22,200 
 
 The sum by which 80% of the amount of the net income 
 in excess of the war -profits credit exceeds the amount 
 of the tax computed under the First and Second 
 
 Brackets (this amount to be added to the tax) $7,400 
 
 Tax under the First and Second Brackets $22,200 
 
 Amount to be added under Third Bracket 7,400 
 
 Total war excess-profits tax $29,600 
 
 37 
 
LIMITATION BRACKET. 
 
 Amount of taxable net income not in excess of $20,000 $20,000 
 
 3,000 
 
 Amount of net income in excess of $3,000 and not in 
 
 excess of $20,000 $17,000 
 
 30% 
 
 30% of the net income in excess of $3,000 and not in 
 excess of $20,000 $5,100 
 
 Net income $50,000 
 
 20,000 
 
 Net income in excess of $20,000 $30,000 
 
 80% 
 
 80% of the net income in excess of $20,000 $24,000 
 
 30% of net income in excess of $3,000 and not in excess 
 
 of $20',000 $5,100 
 
 80% of the net income in excess of $20,000 24,000 
 
 Total $29,100 
 
 Limit of tax as computed under Section 302 $29,100 
 
 As the tax computed under the three brackets is $29,600, which 
 is in excess of the limiting amount under Section 302, the amount of 
 tax payable is the latter amount, or $29,100. 
 
 Corporation Income Tax. 
 
 Net income $50,000 
 
 War excess-profits tax (credit) 29,100 
 
 Amount subject to corporation income tax $20,900 
 
 Specific exemption 2,000 
 
 Net amount subject to tax $18,900 
 
 Rate of tax 12% 
 
 Corporation income tax $2,268 
 
 War excess-profits tax 29,100 
 
 Total taxes $31,368 
 
 The total amount of the combined war excess-profits and cor- 
 poration income taxes in the above case is $31,368 on a net income 
 of $50,000, which is 62.7 per cent, of the earnings. 
 
 It will be noted in the foregoing examples that Corporation "A" 
 pays a tax equal to 33.2 per cent, of its net income, while Cor- 
 poration "B" pays a tax amounting to 62.7 per cent., both having 
 the same invested capital. This is due to the fact that in the case 
 of Corporation "A" the not income is 20 per cent, of the invested 
 capital, while in the casi; of Corporation **B," the net income is 
 
 38 
 
50 per cent, of the invested capital. This increase of 30 per cent, 
 in earnings results in an increase of 29.5 per cent, in the rate per- 
 centage of tax. 
 
 INVESTED CAPITAL. 
 
 The invested capital consists of -two classes of assets: those 
 known as "admissible assets/' and those known as "inadmissible 
 assets." Admissible assets are those which produce income that 
 is subject to taxation. Inadmissible assets are those which produce 
 income that is exeinpt from taxation; for instance, cash, real estate, 
 bills receivable and other tangible assets which produce income 
 that is subject to the tax are admissible assets and assets such as 
 stocks, state or municipal bonds which produce income that is 
 exempt from tax are inadmissible assets. 
 
 For the purpose of computing lEne tax, only the admissible assets 
 including any profits or undivided surplus earned prior to the tax- 
 able year shall constitute invested capital. Any profits or surplus 
 earned during the taxable year shall not be included in invested 
 capital. 
 
 Net Income for Excess Profits Tax. 
 
 The net income for the pre-war period (1911, 1912 and 1913) 
 shall be computed in the following manner: 
 
 For the years 1911 and 1912 under the provisions of the Act of 
 August 5, 1909, except that taxes imposed by such section and paid 
 by the corporation within the year shall be included. 
 
 For the calendar year l'>13 under the provisions of the Act of 
 October 3, 1913, except that the taxes imposed under the Act of 
 August 5, 1909, and paid by the corporation within the year shall be 
 included, and except that the amounts received by it as dividends 
 upon the stock, or from the net earnings of other corporations sub- 
 ject to the tax imposed by the Act of October 3, 1913, shall be 
 deducted. 
 
 For the taxable year upon the same basis and in the same manner 
 as provided for income tax purposes under Title IT. of the present 
 Act. 
 
 Average Net Income for Pre- War Period. 
 
 The average net income for the pre-war period shall be determined 
 by dividing the number of years within that period during the 
 whole of which the corporation was in existence, into the sum of 
 the net income for such years, even though there may have been 
 no net income for one or more of such years. 
 
 ADVANTAGE OF ASCERTAINING PRE-WAR INCOME. 
 
 As the present Act provides that a part of the war profits credit 
 shall be the amount of the average net income of the corporation 
 for the pre-war period, in no case to be less than 10 per cent, of 
 the amount of the invested capital for the taxable year, it naturally 
 follows that if the average earnings of the corporation for the years 
 
 39 
 
1911, 1912 and 1913 were substantially larger than an amount equal 
 to 10 per cent of the invested capital for the taxable year, it would 
 be decidedly advantageous to the corporation to determine this pre- 
 war average, thereby increasing the war profits exemption tending 
 to reduce the amount of tax payable under the third bracket. 
 
 Liberty Bonds. 
 
 Liberty bonds of all issues shall be included in invested capital 
 if purchased with profits or surplus earned prior to the taxable 
 year. Liberty bonds purchased with earnings of the taxable year 
 cannot be included in invested capital. 
 
 Inadmissible Assets. 
 
 Inadmissible assets in addition to those which produce income that 
 is not subject to the tax includes borrowed capital and any assets 
 which represent earnings of the taxable year. 
 
 There shall be deducted from invested capital that proportion of 
 the total assets which the inadmissible assets is of the admissible 
 and inadmissible assets held during the year. In other words, if 
 the total assets are $100,000, of which $25,000 are inadmissible assets 
 such as mimicipal bonds, etc., the invested capital would be $75,000. 
 
 Admissible Assets. 
 
 Admissible assets, that is those which constitute invested capital, 
 includes: 
 
 (1) Actual cash bona fide paid in for stock or shares; 
 
 (2) Cash value of tangible property paid in for stock or shares 
 at the time of such payment, but in no case to exceed the par value 
 of the original stock or shares specifically issued therefor, \mless it 
 is shown to the satisfaction of the Commissioner that the actual 
 cash value of such property was really and substantially in excess 
 of the par value of the stock or shares at the time paid in; 
 
 (3) Paid-in or earned surplus or profits earned prior to the 
 taxable year; 
 
 (4) Intangible property bona fide paid in for stock or shares prior 
 to March 3, 1917, in an amount not exceeding either the actual 
 cash value of such property at the time paid in on the par value of 
 the stock or shares issued therefor or in the aggregate not exceeding 
 25 per cent of the par value of the total stock or shares of . the 
 corporation outstanding on March 3, 1917, whichever is lowest. 
 
 (5) Intangible property bona lid e paid in for stock or shares on 
 or after March 3, 1917, in an amount not exceeding either the actual 
 cash value of the property at the time paid in or the par value of 
 the stock or shares issued therefor or in the aggregate not exceeding 
 25 per cent of the par value of the total stock or shares of the 
 corporation outstanding at the beginning of the taxable year, which- 
 ever is lowest. 
 
 In no case shall the value of intnngible property paid in for stock 
 or shares, whether paid in prior to or subsequent to March 1, 1913 
 
 40 
 
(the date of inception of the lirst income tax Act), exceed 25 per 
 cent of the par value of the total stock or shares of the corporation 
 outstanding at the beginning of the taxable year. 
 
 When Inadmissible Assets May Be Included. 
 
 If a corporation owns inadmissible assets, such as stocks, munici- 
 pal bonds, etc., the dividends or interest upon which are not subject 
 to the tax and the income derived from these assets consists partly 
 of profits realized from their sale or other disposition, which have 
 been included in net income, then a corresponding amount of the 
 capital invested in such assets shall be included as invested capital. 
 
 If money is borrowed to purchase inadmissible assets. Section 234, 
 Subdivision "A," Paragraph 2, provides that the interest on this 
 indebtedness is not allowable as a deduction from net income. As 
 the interest on this borrowed capital is an actual expense to the 
 corporation, and the interest is not allowable as a deduction from 
 net income, it naturally follows that the corporation is paying a 
 tax upon so much dividends or interest received from the stocks, 
 municipal bonds or other inadmissible assets which were purchased 
 with the borrowed money, as equals the amount of interest paid 
 upon the capital borrowed to purchase them. In this case, if the 
 corporation is actually paying a tax upon the income received from 
 inadmissible assets because of the deduction of interest being lim- 
 ited by Section 234, a corresponding part of the capital invested 
 in such inadmissible assets shall be included in invested capital. 
 
 Excess of Inadmissible Assets Over Indebtedness. 
 
 The excess of the average amount of inadmissible assets for the 
 year over the average indebtedness for the year shall be deducted 
 from invested capital. 
 
 The probable theory of this deduction is to prevent a corporation 
 from borrowing capital to invest in tax-free securities; the income 
 from the tax-free securities being exempt from tax, and the interest 
 on the indebtedness being deductible as an expense. 
 
 When Invested Capital Cannot be Satisfactorily Determined. 
 
 In cases where the invested capital cannot satisfactorily be de- 
 termined due to any of the following reasons enumerated below 
 as items (1) to (5), the tax shall be the amount which bears the 
 same ratio to the net income (in excess of the specific exemption 
 of $3,000) as the average tax of representative corporations en- 
 gaged in a like or similar trade or business bears to the average 
 net income if representative corporations Avhose invested capital has 
 been satisfactorily determined by the Commissioner and which are, 
 as nearly as may be, similarly circumstanced with respect to gross 
 income, net income, profits per unit of business transacted and 
 capital employed, the amount and rate of war-profits or excess- 
 profits, and all other relevant facts and circumstances. 
 
 (1) Where the Commissioner is unable to determine the invested 
 capital as provided in Section 326; 
 
 41 
 
(2) In the case of a foreign corporation; 
 
 (3) Where a mixed aggregate of tangible property and intangible 
 property has been paid in for stock or for stock and bonds and the 
 Commissioner is unable satisfactorily to determine the respective 
 values of the several classes of property at the time of payment, 
 or to distinguish the classes of property paid in for stock and for 
 bonds, respectively; 
 
 (4) Where upon application by the corporation the Commissioner 
 fineds and so declares of record that the tax if determined without 
 benefit of this section would, owing to abnormal conditions affecting 
 the capital or income of the corporation, work upon the corpora- 
 tion an exceptional hardship evidenced by gross disproportion 
 between the tax computed without benefit of this section and the 
 tax computed by reference to the representative corporations speci- 
 fied in section 328. This subdivision shall not apply to any case (1) 
 in which the tax (computed without benefit of this section) is high 
 merely because the corporation earned within the taxable year a 
 high rate of profits upon a normal invested capital, nor (2) in which 
 50 per centum or more of the gross income of the corporation for 
 the taxable year (computed under section 233 of Title II) consists 
 of gains, profits, commissions, or other income, derived on a cost- 
 plus basis from a Government contract or contracts made between 
 April 6, 1917, and November 11, 1918, both dates inclusive. 
 
 CONSOLIDATED RETURNS BY AFFILIATED CORPORATIONS. 
 
 Corporations shall be deemed to be affiliated and required to make 
 consolidated returns both for the purpose of the war excess-profits 
 and corporation income taxes if one corporation owns directly or 
 controls through closely affiliated interests or by a nominee or 
 nominees substantially all the stock of the other or others; or if 
 substantially all the stock of two or more corporations is owned or 
 controlled by the same interests. 
 
 That there shall be taken out of such consolidated net income and 
 invested capital, the net income and invested capital of any such 
 affiliated corporation organized after August 1, 1914, and not succes- 
 sor to a then existing business, 50 per centum or more of whose 
 gross income consists of gains, profits, commissions, or other income, 
 derived from a Government contract or contracts made between 
 April 6, 1917, and November 11, 1918, both dates inclusive. In such 
 case the corporation so taken out shall be separately assessed on 
 the basis of its own invested capital and net income and the re- 
 mainder of such affiliated group shall be assessed on the basis of 
 the remaining consolidated invested capital and net income. 
 
 Wlien the tax is assessed upon the basis of a consolidated return, 
 the tax shall be computed in the first instance as a unit and shall 
 then be assessed upon the respective affiliated corporations in such 
 proportion as may be agreed upon among them; or in the absence 
 of any such agreement, then on the basis of the net income assign- 
 able to each. 
 
 In computing the tax, there shall only be allowed one ipeciflc 
 credit of $3,000 for the purpose of computing the excess -profits credit 
 and one specific credit of $3,000 for the purpose of the war-profits 
 credit and one specific credit of $2,000 for the purpose of the cor- 
 poration income tax. 
 
 42 
 
THE CORPORATION INCOME TAX. 
 
 In addition to the war-excess profits tax, Section 230 of the Act, 
 levies a corporation income tax of 12% on the net income of 
 corporations. 
 
 Returns are to be filed at the same time as for the war excess- 
 profits tax and payment is to be made 'in the same manner. 
 
 Every corporation "subject to taxation under this Title" is re- 
 quired to make a return. As the Corporation Income Tax under 
 Section 230 allows domestic corporations a specific exemption of 
 $2,000, it is assumed in the absence of a ruling, that corporations 
 whose net income is less than $2,000 are not required to file a return. 
 
 Credits Allowed. 
 
 In arriving at the amount of net income that is subject to this 
 tax, there must first be deducted as credits the amount of the 
 excess-profits tax paid or payable for the same taxable year, the 
 interest received upon obligations of the United States and bonds 
 of the War Finance Corporation which has been included in gross 
 income and the specific exemption of $2,000 allowed to all domestic 
 corporations. 
 
 FOREIGN CORPORATIONS. 
 
 Foreign corporations are taxable only upon income derived from 
 sources within the United States, including the interest on bonds, 
 notes or other interest-bearing obligations of residents, corporate or 
 otherwise, dividends from resident corporations and including all 
 amounts received (although paid under a contract for the sale of 
 goods or otherwise) representing profits on the manufacture and 
 disposition of goods within the United States. 
 
 Foreign corporation are not allowed the specific exemption of 
 $2,000. 
 
 WHAT CONSTITUTES GROSS INCOME. 
 
 The gross income of a corporation has the same meaning as defined 
 in the case of an individual; namely, all gains, profits and income 
 derived from salaries, wages or compensation for personal service 
 of whatever kind and in whatever form paid; or from professions, 
 vocations, trades, businesses, commerce or sales, or dealings in prop- 
 erty, whether real or personal, growing out of the ownership or use 
 of or interest in such property; also, from interest, rent, dividends, 
 securities or the transaction of any business carried on for gain 
 or profit or gains or profits and income derived from any source 
 whatever. 
 
 INSURANCE ON LIVES OF OFFICERS OR EMPLOYEES. 
 
 Amounts received as insurance upon the lives of officers or em- 
 ployees, by a corporation, upon the death of the insured constitutes 
 taxable income to the corporation. 
 
 The amount of premiums paid may be deducted from the total 
 received and the tax paid on the net amount. 
 
 43 
 
DEDUCTIONS ALLOWABLE FROM GROSS INCOME. 
 
 AH the ordinary and necessary expenses paid or accrued during 
 tlie taxable year in carrying on any trade or business, including a 
 reasonable allowance for salaries or other compensation for personal 
 services actually rendered and including rentals or other payments 
 required to be made as a condition to the continued use or possession 
 of property. 
 
 Payments of Interest by Domestic or Foreign Corporations. 
 
 All interest paid or accrued within the taxable year on indebted- 
 ness. In the case of a foreign corporation only the proportion of 
 such interest which the amount of its gross income from sources 
 within the United States bears to the amount of its gross income 
 from all sources within and without the United States. 
 
 All taxes paid or accrued within the taxable year, except Income, 
 War-Profits and Excess -Profits taxes and those assessed against local 
 benefits of a kind tending to increase the value of the property 
 assessed. 
 
 Foreign Corporation Taxes. 
 
 In the case of a foreign corporation, all taxes imposed by the 
 authority of any foreign country (except Income, War-Profits and 
 Excess-Profits taxes and taxes assessed against local benefits of t, 
 kind tending to increase the value of the property assessed) upon 
 the property or business. 
 
 LOSSES AND DIVIDENDS DEDUCTIBLE. 
 
 All losses sustained during the taxable year and not compensated 
 for by insurance or otherwise; all debts ascertained to be worth- 
 less and charged off within the taxable year and all dividends re- 
 ceived from corporations which are taxable upon their net incomes. 
 
 Obsolescence, and Amortization of War Material. 
 
 A reasonable allowance for the exhaustion, wear and tear of prop- 
 erty used in trade or business, including a reasonable allowance for 
 obsolescence. In the case of buildings, machinery, equipment ac- 
 quired or vessels constructed or acquired on or after April 6th, 1917, 
 contributing to the prosecution of the present war, there shall be 
 allowed a reasonable deduction for the amortization of such part of 
 the cost of such facilities or vessels as has been borne by the tax- 
 payer. 
 
 Re-examination Within Three Years. 
 
 At any time within three years after the termination of the pres- 
 ent war, the Commissioner of Internal Revenue may, at the request 
 of the taxpayer, make a re-examination of the returns in order to 
 determine if proper allowance has been made for this item of amor- 
 
 44 
 
tization, and if upon re- examination it is found that the original 
 deduction allowed was incorrect, the amount of taxes for the years 
 affected will be redetermined and any tax which may be found to 
 have been overpaid, will be refunded or credited to the taxpayer. 
 
 Depletion of Oil and-Gas Wells. 
 
 In the case of mines, oil and gas wells, other natural deposits or 
 timber, the reasonable allowance for depletion and depreciation of 
 improvements will be allowed according to the peculiar conditions 
 in each case, based upon cost, including cost of development not 
 otherwise 'deducted. 
 
 Market Value of Mines, Oil and Gas Wells. 
 
 In tlie case of the above properties discovered by the taxpayer 
 on or after March 1st, 1913, where the fair market value of the 
 property is materially disproportionate to the cost of depletion, 
 allowance shall be based upon the fair market value of the property 
 at the time of discovery or within 30 days thereafter. 
 
 These allowances are to be made in accordance with rules and 
 regulations to be prescribed by the Commissioner with the approval 
 of the Secretary. 
 
 Lessor and Lessee Apportionment. 
 
 In the case of leases, the deductions allowed by this Section shall 
 be equitably apportioned by the lessor and lessee. 
 
 Net Losses Applicable to Other Years. 
 
 In the case of net losses discovered for the first time during the 
 period between November 1st, 1918, and January 1st, 1930, if the facts 
 are sustained by evidence which is satisfactory to the Commissioner, 
 such losses may be credited against the net income of the preceding 
 year and the taxes redetermined accordingly, as outlined in a fore- 
 going paragraph entitled "War Losses Deductible Against Prior 
 Year's Income." 
 
 Indebtedness Incurred to Purchase Liberty Bonds. 
 
 Interest paid or accrued on indebtedness incurred or continued to 
 purchase or carry obligations of the United States issued after Sep- 
 tember 24th, 1917, is an allowable deduction. 
 
 DEDUCTIONS NOT ALLOWABLE, 
 
 Premiums paid on any life insurance policy covering the life of 
 any official or employe of or any person financially interested in 
 any trade or business carried on by the taxpayer, when the tax- 
 
 45 
 
payer is directly or indirectly a beneficiary under such policy. Any 
 amount expended in restoring property or in making good the ex- 
 istence thereof, for which an allowance is or has been made. 
 
 Improvements and Betterments. 
 
 Any amount paid out for new buildings or for permanent improve- 
 ments where betterments are made to increase the value of any 
 property or estate. 
 
 Taxes Paid on Bond Interest Not Deductible. 
 
 In the case of corporations issuing bonds or other obligations which 
 contain a tax-free covenant, that is, a contract or provision by 
 which the corporation agrees to pay any portion of the tax imposed 
 upon the bondholder or to reimburse the bondholder for any tax 
 which he may be required to pay, the amount of tax withheld and 
 paid pursuant to this contract or provision shall not be allowed as 
 a deduction from net income by the corporation. 
 
 Interest on Indebtedness Incurred to Purchase Tax Exempt Securities 
 
 Any amount of interest paid or accrued within the taxable year 
 to purchase or carry obligations or securities, the income from which 
 is wholly exempt from taxation, shall not be allowed as a de- 
 duction. 
 
 Interest paid or accrued on indebtedness incurred or continued to 
 purchase or carry obligations of the United States issued prior to 
 September 24th, 1917, shall not be an allowable deduction. 
 
 WITHHOLDING TAX ON BOND INTEREST AT THE SOURCE 
 WHERE BONDS CONTAIN A TAX-FREE CLAUSE. 
 
 In any case where bonds, mortgages, or deeds of trust, or other 
 similar obligations of a corporation, contain a contract or provision 
 by which the obligor agrees to pay any portion of the tax imposed 
 by this title upon the obligee, or to reimburse the obligee for any 
 portion of the tax, or to pay the interest without deduction for any 
 tax which the obligor may be required or permitted to pay thereon, 
 or to retain therefrom under any law of the United States, the 
 obligor shall deduct and withhold a tax equal to 2 per cent of the 
 interest upon such bonds, mortgages, deeds of trust or other obliga- 
 tions, whether such interest is payable annually or at short or 
 longer periods, and whether payable to a non-resident alien individual 
 or to an individual citizen or resident of the United States, or to a 
 partnership: Provided, That the Commissioner may authorize such 
 tax to be deducted and withheld in the case of interest upon any 
 such bonds, mortgages, deeds of trust or other obligations, the 
 owners of which are not known to the withholding agent. In the 
 case of a citizen or resident entitled to receive such interest, the 
 withholding shall not be required if he files with the withholding 
 
 46 
 
agent on or before February 1st a signed notice in writing claiming 
 the benefits of the exemption of either $1,000 or $2,000, according 
 to his marital status. 
 
 Filing of Withholding Returns. 
 
 The returns by corporations of any- -tax so withheld upon bonds 
 containing a tax-free clause, shall be made with the Collector of In- 
 ternal Revenue on or before March 1st of each year and payment 
 must be made on or before June 15th. 
 
 Owing to the fact that the present Act was not passed until the 
 latter part of February the filing date of the withholding returns 
 above mentioned will probably be extended. 
 
 Contract Between Issuing Corporation and Bondholder. 
 
 The Government has consistently held that the so-called tax-free 
 covenant in bonds is a contract between the issuing corporation and 
 its bondholders with which the Government has no concern. Inas- 
 much, however, as the great majority of the tax-free covenants in 
 bonds are to the effect that the issuing corporation "will pay coupons, 
 etc., without deduction for any Federal income taxes which the cor- 
 poration is obliged by law to retain and pay" the provision limiting 
 the amount to be retained and paid at the source to 2% was prob- 
 ably designed as a measure of relief to minimize the obligation of 
 the issuing corporation to its bondholders. 
 
 The 2% tax on bond interest to be withheld and paid at the source 
 in the case of bonds containing a tax-free covenant is only a part 
 of the tax assessed on interest from bonds, the bondholder being 
 liable for tax on such interest at the full normal and super- tax 
 rates prescribed by law. 
 
 PAYMENTS TO NON-RESIDENT ALIEN INDIVIDUALS. 
 
 All individuals, corporations and partnerships making payments of 
 interest, rent, salaries, wages, premiums, annuities, compensations, 
 remunerations, emoluments or other fixed or determinable annual or 
 periodical gains, profits, or income to any non-resident alien individ- 
 ual, shall deduct and withhold from such payments a tax equal to 
 8% thereof. 
 
 Withholding of 8 Per Cent Tax on Payments to Non-Resident Aliens. 
 
 The foregoing docs not apply to payments of dividends by cor- 
 porations taxable upon their net income, or payments of interest 
 upon bonds or other corporate obligations containing a tax-free 
 clause. 
 
 BONDS NOT CONTAINING A TAX-FREE CLAUSE. 
 
 If the bonds do not contain a tax-free clause, the Government 
 imposes no obligation upon the corporation for payment of the tax 
 at the source, when paid to citizens or residents, the tax in this 
 case being paid by the bondholder. 
 
 47 
 
BOND INTEREST PAID TO NON-RESIDENT ALIENS. 
 
 In the case of bond interest paid to non -resident alien individuals 
 or non-resident alien corporations, the tax is to be withheld by the 
 issuing corporation in every case whether or not the bonds contain 
 a tax-free clause. 
 
 When the bonds contain a tax-free clause the amount to be with-, 
 held from non-resident aliens is 2 per cent. When the bonds do 
 not contain the tax-free clause the amount to be withheld is 8 per 
 cent. 
 
 BOND INTEREST PAID TO NON-RESIDENT ALIEN 
 CORPORATIONS. 
 
 When the bonds do not contain a tax-free clause the amount 
 to be withheld from non-resident alien corporations is 10%. 
 
 License For Collection of Foreign Items. 
 
 That all individuals, corporations, or partnerships undertaking 
 as a matter of business or for profit the collection of foreign pay- 
 ments of interest or dividends by means of coupons, checks, or 
 bills of exchange shall obtain a license from the Commissioner and 
 shall be subject to such regulations enabling the Government to 
 obtain the information required under this title as the Commissioner, 
 with the approval of the Secretary, shall prescribe; and who- 
 ever knowingly undertakes to collect such payments without having 
 obtained a license therefor, or without complying with such reg- 
 ulations, shall be guilty of a misdemeanor and shall be fined not 
 more than $5,000, or imprisoned for not more than one year, or 
 both. 
 
 Licenses Under Previous Acts. 
 
 Any person, corporation, individual, or partnership holding a 
 license secured under previous Acts will not be required to take 
 out a license under the present Act. 
 
 Licenses For Branch Offices. 
 
 If licenses are required for branch offices the collector for the 
 district in which the home office is located, if so notified, will 
 issue the necessary authority to the collectors of the districts in 
 which are located any branch offices for which any additional 
 licenses are required. 
 
 The Special Excise Tax On Corporations. 
 
 Every corporation shall pay annually a special excise tax with 
 respect to carrying on or doing business equivalent to $1.00 for 
 each $1,000 of so much of the fair average value of its capital stock 
 for the preceding year ending June 30th as is in excess of $5,000. 
 
 48 
 
In estimating the value of capital stock the surplus and undi- 
 vided profits shall be included. This tax shall not apply to any 
 corporation which was not engaged in business during the pre- 
 ceding year ending June 30th nor to any corporation which is 
 exempt from the corporation income tax or the war excess -profits 
 tax, nor to any foreign corporation not engaged in business in 
 the United States during the preceding year ending June 30th. 
 
 Special Excise Tax On Foreign Corporation. 
 
 Every foreign corporation shall pay annually a special excise tax 
 with respect to carrying on or doing business in the United States 
 equivalent to $1.00 for each $1,000 of the average amount of capital 
 employed in the transaction of its business in the United States 
 during the preceding year ending June 30th (without the specific 
 exemption of $5,000 accorded to domestic corporations). 
 
 ADDENDA 
 
 Bonds That Do Not Contain a Tax-Free Covenant. 
 
 The Commissioner has ruled that under the law, a corporation 
 issuing bonds without a tax-free covenant is not permitted to de- 
 duct or pay tax at the source with respect to the interest thereon; 
 except in cases where bonds are owned by a non-resident individual 
 or corporation not having an office or place of business in the 
 United States. 
 
 The withholding provisions of the law apply to the normal income 
 tax derived from interest payments upon bonds which do not con- 
 tain a tax-fi'ee covenant clause only in cases where the bondholders 
 are non-resident alien corporations or individuals. 
 
 If interest payments are made to citizens or residents of the 
 United States from bonds which are not tax-free, such income must 
 be reported on Form 1001,* Revised, as there is no provision for 
 reporting this income as subject to withholding. 
 
 Should a corporation desire to reimburse its bondholders in such 
 cases, it may do so, as this is a matter wholly between the parties 
 concerned and one in which the Government is not interested. How- 
 ever, such income should not be reported as subject to withholding 
 and this office will not accept tax deducted in such cases by the 
 withholding agent. 
 
 *0r its equivalent under any new regulations. 
 
 49 
 
The Revenue Act of 1918 
 
 AN ACT 
 
 To provide revenue, and for other purposes. 1 
 
 Be It enacted by the Senate and House of Representa- 2 
 
 tlves of the United States of America in Congress 3 
 
 assembled, 4 
 
 '^ B 
 
 6 
 
 TITLE I.— GENERAL DEFINITIONS. 7 
 
 8 
 
 SECTION 1. That when used in this Act — 9 
 
 The term "person" Includes partnerships and cor- lo "Person" 
 porations as well as Individuals; 11 
 
 The term "corporation", includes associations, joint- 12 "Corporation" 
 stock companies, and Insurance companies; 13 
 
 The term "domestic" when applied to a corporation or 14 "Domestic" 
 partnership means created or organized in the United 15 
 States; 16 
 
 The term "foreign" when applied to a corporation 17 "Foreign" 
 or partnership means created or organized outside the 18 
 United States; 19 
 
 The term "United States" when used in a geographl- 20 "United States" 
 cal sense includes only the States, the Territories of 21 
 Alaska and Hawaii, and the District of Columbia; 22 
 
 The term "Secretary" means the Secretary of the 23 "Secretary" 
 Treasury; 24 
 
 The term "Commissioner" means the Commissioner 25 "Commissioner' 
 of Internal Revenue; 26 
 
 The term "collector" means collector of Internal 27 "Collector" 
 revenue; 28 
 
 The term "Revenue Act of 1916" means the Act en- 29 "Revenue Act 
 titled "An Act to increase the revenue, and for other 30 of 1916" 
 purposes," approved September 8, 1916; 3a 
 
 The term "Revenue Act of 1917" means the Act en- 32 "Revenue Act 
 titled "An Act to provide revenue to defray war ex- 33 of 1917" 
 penses, and for other purposes," approved October 3,34 
 1917; 35 
 
 The term "taxpayer" Includes any person, trust or 36 "Taxpayer" 
 estate subject to a tax imposed by this Act; 37 
 
 The term "Government contract" means (a) a con- 38 "Government 
 tract made with the United States, or with any depart- 39 Contract" 
 ment, bureau, officer, commission, board, or agency, un- 40 
 der the United States and acting in its behalf, or with 41 
 any agency controlled by any of the above If the con- 42 
 tract is for the benefit of the United States, or (b) a sub- 43 
 contract made with a contractor performing such a con- 44 
 tract if the products or services to be furnished under 45 
 the subcontract are for the benefit of the United States. 46 
 
 The term "Government contract or contracts made 47 
 
 51 
 
'Military or 
 Naval Forces 
 
 1 between April 6, 1917, and November 11, 1918, both 
 
 2 dates inclusive" when applied to a contract of the 
 
 3 kind referred to in clause (a) of this paragraph, in- 
 
 4 eludes all such contracts which, although entered into 
 6 during such period, were originally not enforceable, 
 
 6 but which have been or may become enforceable by 
 
 7 reason of subsequent validation in pursuance of law; 
 
 8 The term "taxable year" mens the calendar year, 
 
 9 States" includes the Marine Corps, the Coast Guard, 
 
 of the United 10 the Army Nurse Corps, Female, and the Navy Nurse 
 States" 11 Corps, Female, but this shall not be deemed to exclude 
 
 12 other units otherwise included within such term; 
 'Present War" 13 The term "present war" means the war in which the 
 
 14 United States is now engaged against the German Gov- 
 
 15 ernment. 
 
 16 P'or the purposes of this Act the date of the termina- 
 
 17 tion of the present war shall be fixed by proclama- 
 
 18 tion of the President. 
 19 
 
 21 
 22 
 
 TITLE II.— INCOME TAX. 
 PART Z.-~ GENEBAI^ PROVISIONS. 
 
 'Taxable Year' 
 
 Federal Year' 
 
 Fiduciary" 
 
 'Withholding 
 Agent" 
 
 'Personal 
 Service 
 Corporation' 
 
 26 Definitions. 
 26 
 
 27 SECTION 200. That when used in this title— 
 
 28 The term "taxable year" means the calendar year, 
 
 29 or the fiscal year ending during such calendar year, 
 
 30 upon the basis of which the net income is computed 
 
 31 under section 212 or section 232. 
 
 32 The term "fiscal year" means an accounting period 
 
 33 of twelve months ending on the last day of any month 
 
 34 other than December. The first taxable year, to be 
 
 35 called the taxable year 1918, shall be the calendar year 
 
 36 1918 or any fiscal year ending during the calendar year 
 871918; 
 
 38 The term "fiduciary" means a guardian, trustee, ex- 
 
 39 ecutor, administrator, receiver, conservator, or any 
 
 40 person acting in any fiduciary capacity for any per- 
 
 41 son, trust or estate; 
 
 42 The term "withholding agent" means any person re- 
 
 43 quired to deduct and withhold any tax under the pro- 
 
 44 visions of section 221 or section 237; 
 
 46 The term "personal service corporation"' means a 
 
 46 corporation whose Income is to be ascribed primarily 
 
 47 to the activities of the principal owners or stockhold- 
 
 48 ers who are themselves regularly engaged in the active 
 
 49 conduct of the affairs of the corporation and in which 
 
 60 capital (whether invested or borrowed) is not a mate- 
 
 61 rial income-producing factor; but does not include any 
 
 62 foreign corporation, nor any corporation 50 per centum 
 
 63 or more of whose gross income consists either (1) of 
 
 64 gains, profits, or income derived from trading as a 
 
 65 principal, or (2) of gains, profits, commissions, or 
 
 66 other income, derived from a Government contract or 
 57 contracts made between April 6, 1917, and November 11, 
 68 1918, both dates inclusive; 
 
 52. 
 
The term "paid," for the purposes of the deductions 1 "Paid," 
 and credits under this title, means "paid or accrued" 2 "Paid or 
 or "paid or incurred," and the terms "paid or incurred" 3 Accrued," 
 and "paid or accrued" shall be construed according to 4 "Paid or 
 the method of accounting upon the basis of which the S Incurred" 
 net Income is computed under Section 212. 6 
 
 7 
 
 8 
 
 Dividends. 9 
 
 10 
 
 SECTION 201. (a) Tliat the term "dividend" when 11 Dividends 
 used In this title (except in paragraph (10) of subdivl- 12 Definition 
 sion (a) of Section 234) means (1) any distribution 13 
 made by a corporation, other than a personal serv- 14 
 Ice corporation, to Its shareholders or members, 15 
 whether In cash or In other property or In stock 16 
 of the corporation, out of Its earning or profits 17 
 accumulated since February 28, 1913, or (2) any such IB 
 distribution made by a personal service corporation 19 
 out of Its earnings or profits accumulated since Feb- 20 
 ruary 28, 1913, and prior to January 1, 1918. 21 
 
 (b) Any distribution shall be deemed to have been 22 
 made from earnings or profits unless all earnings and 23 
 
 profits have first been distributed. Any distribution 24 Dividends Paid 
 
 made In the year 1918 or any year thereafter shall be 25 in Year 1918 
 
 deemed to have been made from earnings or profits 26 
 
 accumulated since February 28, 1913, or, in the , case of 27 
 
 a personal service corporation, from the most recently 28 
 
 accumulated earnings or profits; but any earnings or 29 
 
 profits accumulated prior to March 1, 1913, may be dis- 30 
 
 tributed in stock dividends or otherwise, exempt from 31 
 
 the tax, after the earnings and profits accumulated 32 
 
 since February 28, 1913, have been distributed. 33 
 
 (c) A dividend paid in stock of the corporation shall 34 Stock 
 
 be considered income to the amount of the earnings 35 Dividends 
 
 or profits distributed. Amounts distributed in the llq- 36 
 
 uidatlon of a corporation shall be treated as payments 37 
 
 in exchange for stock or shares, and any gain or profit 38 
 
 realized thereby shall be taxed to the distributee as 39 
 
 other gains or profits. 40 
 
 (d) If any stock dividend (1) Is received by a tax- 41 
 payer between January 1 and November 1, 1918, both 48 
 dates inclusive, or (2) Is during such period bona fide 43 
 authorized or declared, and entered on the books of the 44 
 corporation, and is received by a taxpayer after No- 45 
 vember 1, 1918, and before the expiration of thirty 46 
 days after the passage of this Act, then such dividend 47 
 shall, in the manner provided in Section 206, be taxed to 48 
 the recipient at the rates prescribed by law for the years 49 
 in which the corporation accumulated the earnings or 50 
 profits from which such dividend was paid, but the 51 
 dividend shall be deemed to have been paid from the 52 
 most recently accumulated earnings or profits. 53 
 
 (e) Any distribution made during the first sixty days 54 Dividends Paid 
 of any taxable year shall be deemed to have been made 55 in First 60 
 from earnings or profits accumulated during preceding 56 Days of 
 taxable years; but any distribution made during the 57 Taxable Tear 
 remainder of the taxable year shall be deemed to have 58 
 
 53 
 
1 been made from earnings or profits accumulated be- 
 
 2 tween the close of the preceding taxable year and the 
 8 date of distribution, to the extent of such earnings or 
 4 profits, and if the books of the corporation do not show 
 
 6 the amount of such earnings or profits, the earnings or 
 • profits for the accounting period within which the dls- 
 
 7 tributlon was made shall be deemed to have been ac- 
 
 8 cumulated ratably during such period. 
 
 Gain or Loss 
 
 Property Ac- 
 quired Before 
 Mar. 1, 1913 
 
 Property Ac- 
 quired Since 
 Mar. 1, 1913 
 
 Exchange of 
 Property 
 
 Reorganization, 
 Consolidation 
 
 Inventories 
 
 37 
 
 40 
 41 
 
 4M 
 43 
 44 
 45 
 46 
 47 
 48 
 49 
 60 
 51 
 52 
 53 
 54 
 65 
 56 
 67 
 
 Basis for Determining' Gain or Iioss. 
 
 SECTION 202. (a) That for the purpose of ascer- 
 taining: the gain derived or loss sustained from the 
 sale or other disposition of property, real, personal, or 
 mixed, the basis shall be — 
 
 (1) In the case of property acquired before March 
 1, 1913, the fair market price or value of such property 
 as of that date; and 
 
 (2) In the case of property acquired on or after that 
 date, (a) the cost thereof; or (b) the Inventory value, if 
 the inventory is made in accordance with section 203. 
 
 (b) When property is exchanged for other property, 
 the property received in exchange shall for the pur- 
 pose of determining gain or loss be treated as the 
 equivalent of cash to the amount of its fair market 
 value, if any; but when in connection with the reor- 
 ganization, merger, or consolidation of a corporation a 
 person receives in place of stock or securities owned 
 by him new stock or securities of no greater aggre- 
 gate par or face value, no gain or loss shall be deemed 
 to occur from the exchange, and the new stock or se- 
 curities received shall be treated as taking the place 
 of the stock, securities, or property exchanged. 
 
 When in the case of any such reorganization, merger 
 or consolidation the aggregate par or face value of the 
 new stock or securities received is in excess of the ag- 
 gregate par or face value of the stock or securities 
 exchanged, a like amount in par or face value of the 
 new stock or securities received shall be treated as tak- 
 ing the place of the stock or securities exchanged, and 
 the amount of the excess In par or face value shall be 
 treated as a gain to the extent that the fair market 
 value of the new stock or securities Is greater than the 
 cost (or If acquired prior to March 1, 1913, the fair 
 market value as of that date) of the stock or securities 
 exchanged. 
 
 Inventories. 
 
 SECTION 203. That whenever in the opinion of the 
 Commissioner the use of inventories is necessary in 
 order clearly to determine the Income of any taxpayer. 
 Inventories shall be taken by such taxpayer upon such 
 basis as the Commissioner, with the approval of the 
 Secretary, may prescribe as conforming as nearly as 
 may be to the best accounting practice In the trade or 
 business and as most clearly reflecting the Income. 
 
 54 
 
Net ZiOBsei. 1 
 
 2 
 
 SECTION 204. (a) That as used in this section the 3 "Net Losses" 
 term "net loss" refers only to net losses resulting from 4 Definition 
 either (1) the operation of any business regularly car- 5 
 rled on by the taxpayer, or (2) the bona fide sale by 6 
 the taxpayer of plant, buildings, machinery, equipment 7 
 or other facilities, constructed, installed or acquired by 8 
 the taxpayer on or after April 6, 1917, for the produc- 9 
 tion of articles contributing to the prosecution of the 10 
 present war; and when so resulting means the excess 11 
 of the deductions allowed by law (excluding in the 12 
 case of corporations amounts allowed as a deduction 13 
 under paragraph (6) of subdivision (a) of section 234) 14 
 over the sum of the gross income plus, any interest 15 
 received free from taxation both under this title and 16 
 under Title III. 17 
 
 (b) If for any taxable year beginning after October 18 Readjustment 
 31, 1918, and ending prior to January 1, 1920, it appears 19 of Losses 
 upon the production of evidence satisfactory to the 20 
 Commissioner that any taxpayer has sustained a net 21 
 
 loss, the amount of such net loss shall under regula- 22 
 tions prescribed by the Commissioner with the approval 23 
 of the Secretary be deducted from the net income of 24 
 the taxpayer for the preceding taxable year; and the 25 
 taxes imposed by this title and by Title III for such 26 
 preceding taxable year shall be redetermined accord- 27 
 ingly. Any amount found to be due to the taxpayer 28 
 upon the basis of such redetermination shall be credited 29 
 or refunded to the taxpayer in accordance with the 30 
 provisions of section 252. If such net loss is in excess 31 
 of the net income for such preceding taxable year, the 32 
 amount of such excess shall under regulations pre- 33 
 scribed by the Commissioner with the approval of the 34 
 Secretary be allowed as a deduction in computing the 35 
 net income for the succeeding taxable year. 36 
 
 (c) The benefit of this section shall be allowed to the 37 Benefits 
 members of a partnership and the beneficiaries of an 38 Allowed 
 estate or trust under regulations prescribed by the 39 Parnerships 
 Commissioner with the approval of the Secretary. 40 and Estates 
 
 41 
 Fiscal Year With Different Rates. 42 
 
 43 
 SECTION 205. (a) That if a taxpayer makes return 44 Fiscal Year 
 for a fiscal year beginning in 1917 and ending in 1918, 45 Other Than 
 his tax under this title for the first taxable year shall 46 Calendar 
 be the sum of: (1) The same proportion of a tax for 47 Year for 
 the entire period computed under Title I of the Revenue 48 1917-18 
 Act of 1916 as amended by the Revenue Act of 1917 and 49 
 under Title I of the Revenue Act of 1917, which the 60 
 portion of such period falling within the calendar year 51 
 
 1917 is of the entire period, and (2) the same propor- 52 
 tion of a tax for the entire period computed under thiE 63 
 title at the rates for the calendar year 1918 which the 64 
 portion of such period falling within the calendar year 55 
 
 1918 is of the entire period: Provided, That in the case 56 
 of a personal service corporation the amount to be paid 57 
 shall be only that specified in clause (1). 68 
 
How Tax 1 Any amount heretofore or hereafter paid on account 
 
 Rate Is 2 of the tax imposed for such fiscal year by Title I of the 
 
 Apportioned 3 Revenue Act of 1916 as amended by the Revenue Act 
 
 4 of 1917, and by Title I of the Revenue Act of 1917, 
 
 6 shall be credited towards the payment of the tax im- 
 
 6 posed for such fiscal year by this Act, and if the amount 
 
 7 so paid exceeds the amount of such tax imposed by this 
 
 8 Act, or, in the case of a personal service corporation, 
 
 9 the amount specified in clause (1), the excess shall be 
 
 10 credited or refunded in accordance with the provl- 
 
 11 sions of section 252. 
 
 Fiscal Year 12 (b) If a taxpayer makes a return for a fiscal year 
 
 1918-19 13 beginning in 1918 and ending In 1919, the tax under 
 
 14 this title for such fiscal year shall be the sum of: (1) 
 
 15 the same proportion of a tax for the entire period com- 
 
 16 puted under this title at the rates specified for the 
 
 17 calendar year 1918 which the portion of such period 
 
 18 falling within the calendar year 1918 is of the entire 
 
 19 period, and (2) the same proportion of a tax for the 
 
 20 entire period computed under this title at the ratea 
 
 21 specified for the calendar year 1919 which the portion 
 
 22 of such period falling within the calendar year 1919 is 
 
 23 of the entire period. 
 
 Partnerships 24 (c) If a fiscal year of a partnership begins in 1917 
 Fiscal Year 25 and ends in 1918 or begins in 1918 and ends in 1919, 
 Other Than 26 then notwithstanding the provisions of subdivision (b) 
 Calendar 27 of section 218, (1) the rates for the calendar year dur- 
 
 Year 28 ing which such fiscal year begins shall apply to an 
 
 29 amount of each partner's share of such partnership 
 
 30 net income (determined under the law applicable to 
 
 31 such year) equal to the proportion which the part of 
 
 35 such fiscal year falling within such calendar year 
 
 33 bears to the full fiscal year, and (2) the rates for the 
 
 34 calendar year during which such fiscal year ends shall 
 30 apply to an amount of each partner's share of such 
 
 36 partnership net income (determined under the law ap- 
 
 37 plicable to such calendar year) equal to the propor- 
 
 38 tion which the part of such fiscal year falling within 
 
 39 such calendar year bears to the full fiscal year: Pro- 
 
 40 vided. That in the case of a personal service corporation 
 
 41 with respect to a fiscal year beginning in 1917 and end- 
 
 48 ing in 1918, the amount specified in clause (1) shall 
 43 not be subject to normal tax. 
 
 44 
 Income Subject 45 Parts of Income Subject to Bates for Different Years, 
 to Rates for 46 
 
 Different 47 SECTION 206. That whenever parts of a taxpayer's 
 
 Years 48 income are subject to rates for different calendar years, 
 
 49 the part subject to the rates for the most recent cal- 
 
 50 endar year shall be placed in the lower brackets of 
 81 the rate schedule provided in this title, the part sub- 
 53 ject to the rates for the next preceding calendar year 
 
 53 shall be placed in the next higher brackets of the rate 
 
 54 schedule applicable to that year, and so on until the 
 
 55 entire net income has been accounted for. In determin- 
 58 ing the Income, any deductions, exemptions or credits 
 
 57 of a kind not plainly and properly chargeable against 
 
 58 the income taxable at rates for a preceding year shall 
 
 56 
 
first be applied against the income subject to rates for 1 
 the most recent calendar year; but any balance thereof 2 
 shall be applied against the income subject to the rates 3 
 of the next preceding year or years until fully allowed. 4 
 
 5 
 
 6 
 
 PART XZ.— ZNDIVIDVAl^S. 7 
 
 8 
 Normal Tax. 9 
 
 10 
 SECTION 210. That, in lieu of the taxes Imposed by 11 Individuals 
 subdivision (a) of section 1 of the Revenue Act of 1916 12 Normal Tax 
 and by section 1 of the Revenue Act of 1917, there shall 13 Year 1918 
 be levied, collected, and paid for each taxable year upon 14 
 the net income of every individual a normal tax, at the 15 
 following rates: ^ IS 
 
 (a) For the calendar year 1918, 12 per centum of the IV 
 amount of the net Income in excess of the credits pro- 13 
 vided in section 216: Provided, That in the case of a 19 
 citizen or resident of the United States the rate upon 23 
 the first $4,000 of such excess amount shall be 6 per 21 
 centum; 22 
 
 (b) For each calendar year thereafter, 8 per centum 23 Year 1919 an I 
 of the amount of the net income in excess of the credits 24 Thereafter 
 provided in section 216: Provided, That in the case of 25 
 
 a citizen or resident of the United States the rate upon 26 
 the fix'st $4,000 of such excess amount shall be 4 per 27 
 centum. 28 
 
 29 
 Surtax. 30 
 
 31 
 SECTION 211. (a) That, in lieu of the taxes Im- 32 Surtax 
 posed by subdivison (b) of section 1 of the Revenue 33 Schedules 
 Act of 1916 and by section 2 of the Revenue Act of 34 of Rates 
 1917, but in addition to the normal tax imposed by sec 35 
 tion 210 of this Act, there shall be levied, collected, and 36 
 paid for each taxable year upon the net income of every 37 
 individual, a surtax equal to the sum of the followlng-j 38 
 
 1 per centum of the amount by which the net in- 39 
 come exceeds $5,000 and does not exceed $6,000; 40 
 
 2 per centum of the amount by which the net Incomtj 41 
 exceeds $6,000 and does not exceed $8,000; 42 
 
 3 per centum of the amount by which the net income 43 
 exceeds $8,000 and does not exceed $10,000; 44 
 
 4 per centum of the amount by which the net Income 45 
 exceeds $10,000 and does not exceed $12,000; 46 
 
 5 per centum of the amount by which the net income 47 
 exceeds $12,000 and does not exceed $14,000; 43 
 
 6 per centum of the amount by which the net Income 49 
 exceeds $14,000 and does not exceed $16,000; 50 
 
 7 per centum of the amount by which the net income 51 
 exceeds $16,000 and does not exceed $18,000; 52 
 
 8 per centum of the amount by which the net Income 53 
 exceeds $18,000 and does not exceed $20,000; 54 
 
 9 per centum of the amount by which the net Income 55 
 exceeds $20,000 and does not exceed $22,000; 56 
 
 10 per centum of the amount by which the net Income 57 
 exceeds $22,000 and does not exceed $24,000; 58 
 
 57 
 
1 11 per centum of the amount by wliich the net income 
 
 2 exceeds $24,000 and does not exceed $26,000; 
 
 3 12 per centum of the amount by which the net income 
 
 4 exceeds $26,000 and does not exceed $28,000; 
 
 5 13 per centum of the amount by which the net Income 
 
 6 exceeds $28,000 and does not exceed $30,000; 
 
 7 14 per centum of the amount by which the net income 
 
 8 exceeds $30,000 and does not exceed $32,000; 
 
 9 15 per centum of the amount by whicli the net income 
 
 10 exceeds $32,000 and does not exceed $34,000; 
 
 11 16 per centum of the amount by which the net income 
 
 12 exceeds $34,000 and does not exceed $36,000; 
 
 13 17 per centum of the amount by whicli the net income 
 
 14 exceeds $36,000 and does not exceed $38,000; 
 
 15 18 per centum of the amount by which the net income 
 
 16 exceeds $38,000 and does not exceed $40,000; 
 
 17 19 per centum of the amount by which the net income 
 
 18 exceeds $40,000 and does not exceed $42,000; 
 
 19 20 per centum of the amount by whicli the net income 
 
 20 exceeds $42,000 and does not exceed $44,000; 
 
 21 21 per centum of the amount by which the net income 
 
 22 exceeds $44,000 and does not exceed $46,000; 
 
 23 22 per centum of the amount by which the net income 
 
 24 exceeds $46,000 and does not exceed $48,000; 
 
 25 23 per centum of the amount by which the net income 
 
 26 exceeds $48,000 and does not exceed $50,000; 
 
 27 24 per centum of the amount by which the net income 
 
 28 exceeds $50,000 and does not exceed $52,000; 
 
 29 25 per centum of the amount by which the net income 
 
 30 exceeds $52,000 and does not exceed $54,000; 
 
 31 26 per centum of the amount by which the net income 
 
 32 exceeds $54,000 and does not exceed $56,000; 
 
 33 27 per centum of tlie amount by which the net income 
 
 34 exceeds $56,000 and does not exceed $58,000; 
 
 35 28 per centum of the amount by which the net income 
 
 36 exceeds $58,000 and does not exceed $60,000; 
 
 37 29 per centum of the amount by which the net Income 
 
 38 exceeds $60,000 and does not exceed $62,000; 
 
 39 30 per centum of the amount by which the net Income 
 
 40 exceeds $62,000 and does not exceed $64,000; 
 
 41 31 per centum of the amount by which the net income 
 
 42 exceeds $64,000 and does not exceed $66,000; 
 
 '^ 32 per centum of the amount by w^hich the net income 
 
 44 exceeds $66,000 and does not exceed $68,000; 
 
 45 33 per centum of the amount by which the net income 
 
 46 exceeds $68,000 and does not exceed $70,000; 
 
 47 34 per centum of the amount by which the net income 
 
 48 exceeds $70,000 and does not exceed $72,000; 
 
 49 35 per centum of the amount by wliicli the net income 
 
 50 "xceeds $72,000 and does not exceed $74,000; 
 
 51 36 per centum of the amount by which the net income 
 
 52 exceeds $74,000 and does not exceed $76,000; 
 
 53 37 per centum of the amount by which the net income 
 
 54 exceeds $76,000 and does not exceed $78,000; 
 
 55 38 per centum of the amount by which the net income 
 
 56 exceeds $78,000 and does not exceed $80,000; 
 
 B7 39 per centum of the amount by which the net income 
 5S exceeds $80,000 and does not exceed $82,000; 
 
 58 
 
40 per centum of the amount by which the net Income "* 
 exceeds $82,000 and does not exceed $84,000; 2 
 
 41 per centum of the amount by which the net income 3 
 exceeds 84,000 and does not exceed $86,000; 4 
 
 42 per centum of the amount by which the net Income 6 
 exceeds $86,000 and does not exceed $88,000; 6 
 
 43 per centum of the amount by whioh the net income 7 
 exceeds $88,000 and does not exceed $90,000; 8 
 
 44 per centum of the amount by which the net Income 9 
 exceeds $90,000 and does not exceed $92,000; 10 
 
 45 per centum of the amount by which the net Income 11 
 exceeds $92,000 and does not exceed $94,000; 12 
 
 46 per centum of the amount by which the net Income 13 
 exceeds $94,000 and does not exceed $96,000; 14 
 
 47 per centum of the amount by wliich the net income 15 
 exceeds $96,000 and does not exceed $98,000; 16 
 
 48 per centum of the amount by which the net Income 17 
 exceeds $98,000 and does not exceed $100,000; 18 
 
 52 per centum of the amount by which the net income 19 
 exceeds $100,000 and does not exceed $150,000; 20 
 
 56 per centum of the amount by which the net Income 21 
 exceeds $150,000 and does not exceed $200,000; 22 
 
 60 per centum of the amount by which the net income 23 
 exceeds $200,000 and does not exceed $300,000; 24 
 
 63 per centum of the amount by which the net income 25 
 exceeds $300,000 and does not exceed $500,000; 26 
 
 64 vev centum of the amount by which the net income 27 
 exceeds $500,000 and does not exceed $1,000,000; 28 
 
 65 per centum of the amount by which the net income 29 
 exceeds $1,000,000. 30 
 
 (b) In the case of a bona fide sale of mines, oil or 31 Limitation of 
 gas wells, or any interest therein, where the principal 32 Surtax 
 value of the property has been demonstrated by pros- 33 on Income 
 pecting or exploration and discovery work done by the 34 from Mines, 
 taxpayer, the portion of the tax imposed by this section 35 Oil and Gas 
 attributable to such sale shall not exceed 20 per centum 36 
 of the selling price of such property or interest. 37 
 
 38 
 Net Income Defined. 39 
 
 40 
 
 SECTION 212. (a) That in the case of an individual 41 Net Income 
 the term "net income" means the gross income as de- 42 Definition 
 fined in section 213, less the deductions allowed by sec- 43 How 
 tion 214. 44 Computed 
 
 (b) The net income shall be computed upon the basis 45 
 of the taxpayer's annual accounting period (fiscal year 46 
 or calendar year, as the case may be) in accordance 47 
 with the method of accounting regularly employed in 48 
 keeping the books of such taxpayer; but if no such 49 
 method of accounting has been so employed, or if the 50 
 method employed does not clearly reflect the income, the 51 
 computation shall be made upon such basis and in such 52 
 manner as In the opinion of the Commissioner does 53 
 clearly reflect the income. If the taxpayer's annual 54 
 accounting period is other than a fiscal year as defined 55 
 in section 200 or if the taxpayer has no annual ac- 56 
 counting period or does not keep books, the net Income 57 
 shall be computed on the basis of the calendar year. B8 
 
 59 
 
Change of 
 Accounting 
 Period 
 
 G-roMS Xnoome 
 Definition 
 
 EKempt Income 
 
 Life Insurance 
 Policies 
 
 Return of 
 Premium 
 
 Gifts and 
 Bequests 
 
 Interest from 
 Obligations 
 of State and 
 Political 
 Subdivisions 
 
 Federal 
 
 Farm Loans 
 Obligation 
 of United 
 States 
 
 1 If a taxpayer changes his accounting period from 
 
 2 fiscal year to calendar year, from calendar year to fiscal 
 
 3 year, or from one fiscal year to another, the net Income 
 
 4 shall, with the approval of the Commissioner, be com- 
 6 puted on the basis of such new accounting period, sub- 
 6 ject to the provisions of section 226. 
 
 7 
 
 8 G-ros« Xncoxue Defined. 
 
 9 
 
 10 SECTION 213. That for the purposes of this title 
 
 11 (except as otherwise provided In section 233) the term 
 
 12 "gross income" — 
 
 13 (a) Includes gains, profits, and income derived from 
 
 14 salaries?, wag'es, or compensation for personal service 
 16 (including in the case of the President of the United 
 16 States, the judges of the Supreme and Inferior courts of 
 IT the United States, and all other ofl^icers and employees, 
 
 18 Avhether elected or appointed, of the United States, 
 
 19 Alaska, Hawaii, or any political subdivision thereof, or 
 
 20 the District of Columbia, the compensation received as 
 
 21 such) of whatever kind and In whatever form paid, or 
 
 22 from professions, vocations, trades, businesses, com- 
 
 23 merce, or sales, or dealings In property, whether real or 
 tf« personal, growing out of the ownership or use of or In- 
 
 25 terest in such property; also from interest, rent, divi- 
 
 26 dends, securities, or the transaction of any business 
 
 27 carried on for gain or profit, or gains or profits and In- 
 
 28 come derived from any source whatever. The 
 
 29 amount of all such items shall be Included in the gross 
 
 30 income for the taxable year In which received by the 
 
 31 taxpayer, unless, under methods of accounting per- 
 
 32 mitted under subdivision (b) of section 212, any such 
 
 33 amounts are to be properly accounted for as of a dlf- 
 
 34 ferent period; but 
 
 35 (b) Does not Include the following Items, which shall 
 
 36 be exempt from taxation under this title: 
 
 37 < I) The proceeds of life insurance v'olicies paid upon 
 
 38 the death of the insured to individual beneficiaries or 
 
 39 to the estate of the insured; 
 
 40 (2) The amount received by the insured as a return 
 
 41 of premium or premiums paid by him under life insur- 
 
 42 ance, endowment, or annuity contracts, either during 
 
 43 the term or at the maturity of the term mentioned In 
 
 44 the contract or upon surrender of the contract; 
 
 45 (3) The value of property acquired by gift, bequest, 
 
 46 devise, or descent (but the Income from such property 
 
 47 shall be included In gross Income) ; 
 
 48 (4) Interest upon (a) the obligations of a State, 
 
 49 Territory, or any political subdivision thereof, or the 
 60 District of Columbia; or (b) securities issued under the 
 
 51 provisions of the Federal Farm Loan Act of July 17, 
 
 52 1916; or (c) the obligations of the United States or Its 
 
 63 possessions; or (d) bonds Issued by the War Finance 
 
 64 Corporation: Provided, That every person owninq- any of 
 55 the obligations, securities or bonds enumerated In 
 66 clauses (a), (b), (o), and (d) shall, In the return re- 
 57 quii-ed by this title, submit a statement showing the 
 68 number and amount of such obligations, securities and 
 
 GO 
 
bonds owned by him and the Income received there- 1 
 from, In such form and with such Information as the 2 
 Commissioner may require. In the case of obligations 3 
 of the United States issued after September 1, 1917, and 4 
 in the case of bonds issued by the War Finance Cor- 5 
 poratlon, the interest shall be exempt only If and to the 6 
 extent provided in the respective Acts authorizing the 7 
 issue thereof as amended and supplemented, and shall 8 
 be excluded from gross income only if and to the extent 9 
 it is wholly exempt from taxation to the taxpayer both 10 
 under this title and under Title III; 11 
 
 (5) The income of foreign governments received 12 Income of 
 from investments in the United States in stocks, bonds, 13 Foreign 
 
 or other domestic securities, owned by such foreign 14 Governments 
 governments, or from interest on deposits in banks in 15 
 the United States of moneys belonging to such foreign 16 
 governments, or from any other source within the 17 
 United States; 18 
 
 (6) Amounts received, through accident or health in- 19 Accident, 
 surance or under workmen's compensation acts, as 20 Health and 
 compensation for personal injuries or sickness, plus the 21 Compensation 
 amount of any damages received whether by suit or 22 Insurance 
 agreement on account of such injuries or sickness; 23 
 
 (7) Income derived from any public utility or the 24 Income 
 exercise of any essential governmental function and 25 Accruing 
 accruing to any State, Territory, or the District of 26 to State 
 Columbia, or any political subdivision of a State or 27 
 Territory, or income accruing to the government of 28 
 
 any possession of the United States, or any political 29 
 subdivision thereof. 30 
 
 Whenever any State, Territory, or the District of 31 
 Columbia, or any political subdivision of a State or 32 
 Territory, prior to September 8, 1916, entered in good 33 
 faith into a contract with any person, the object and 34 
 purpose of which is to acquire, construct, operate, or 35 
 maintain a public utility, no tax shall be levied under 36 
 the provisions of this title upon the income derived 37 
 from the operation of such public utility, so far as 38 
 the payment thereof will impose a loss or burden upon 39 
 suoh State, Territory, District of Columbia, or political 40 
 subdivision; but this provision is not intended to confer 41 
 upon such person any financial gain or exemption or to 42 
 relieve such person from the payment of a tax as pro- 43 
 vided for in this title upon the part or portion of such 44 
 income to which such person is entitled under such con- 45 
 tract; 46 
 
 (8) So much of the amount received during the pres- 47 Income of 
 
 ent war by a person in the military or naval forces of 48 Military and 
 the United States as salary or compensation io any 49 Naval Forces 
 form from the United States for active services In such 50 
 forces as does not exceed $3,500. 51 
 
 (c) In the case of non-resident alien individuals, 52 Non-fes^L^eut 
 gross income includes only the gross income from 53 Alien — Gro^s 
 sources within the United States, including interest on 54 Income 
 bonds, notes, or other interest-bearing obligations ojl 65 Defined 
 residents, corporate or otherwise, dividends from resi- 56 
 dent corporations, and including all amounts received 57 
 (although paid under a contract for the sale of goods 58 
 
 61 
 
1 or otherwise) representing profits on the manufacture 
 
 a and disposition of goods within the United States. 
 
 3 
 
 4 
 
 6 
 
 6 Seductions AUowed. 
 
 7 
 Deductions 8 SECTION 214. (a) That In computing net income 
 
 9 there shall be allowed as deductions: 
 Expenses 10 (1) All the ordinary and necessary expenses paid or 
 
 II incurred during the taxable year in carrying on any 
 la trade or business, including a reasonable allowance for 
 
 13 salaries or other compensation for personal services 
 
 14 actually rendered, and including rentals or other pay- 
 
 15 ments required to be made as a condition to the con- 
 
 16 tinued use or possession, for purposes of the trade or 
 
 17 business, of property to which the taxpayer has not 
 
 18 taken or is not taking title or In which he has no 
 
 19 equity; 
 
 Interest on 20 (2) All interest paid or accrued within the taxable 
 
 Indebtedness 21 year on indebtedness, except on indebtedness incurred 
 
 22 or continued to purchase or carry obligations or securi- 
 
 23 ties (other than obligations of the United States Issued 
 
 24 after September 24, 1917), the interest upon which Is 
 
 25 wholly exempt from taxation under this title as In- 
 
 26 come to the taxpayer, or, in the case of a non-resident 
 
 27 alien Individual, the proportion of such Interest which 
 
 28 the amount of his gross Income from sources within 
 
 29 the United States bears to the amount of his gross In- 
 
 30 come from all sources within and without the United 
 
 31 States; 
 
 Taxes 32 (3) Taxes paid or accrued within the taxable year 
 
 33 imposed (a) by the authority of the United States, ex- 
 
 34 cept income, war profits and excess-profits taxes; or 
 
 35 (b) by the authority of any of its possessions, except 
 
 36 the amount of Income, war profits and excess-profits 
 
 37 taxes allowed as a credit under section 222; or (c) by 
 
 38 the authority of any State or Territory, or any county, 
 89 school district, municipality, or other taxing subdlvl- 
 
 40 sion of any State or Territory, not Including those 
 
 41 assessed against local benefits of a kind tending to in- 
 
 42 crease the value of the property assessed r or (d) In the 
 
 43 case of a citizen or resident of the United States, by the 
 
 44 authority of any foreign country, except the amount 
 
 45 of income, war-profits and excess-profits taxes allowed 
 
 46 as a credit under section 222; or (e) In the case of a 
 
 47 non-resident alien Individual, by the authority of any 
 
 48 foreign country (except income, war-profits and excess< 
 
 49 profits taxes, and taxes assesed against local benefits of 
 60 K. kind tending to increase the value of the property 
 51 assessed), upon property or business; 
 
 Cosset 62 (4) Losses sustained during the taxable year and not 
 
 XsOsses In 63 compensated for by Insurance or otherwise. If Incurred 
 
 Trade 64 In trade or business; 
 
 Losses Not 65 (5) Losses sustained during the taxable year and 
 
 Connected 56 not compensated for by insurance or otherwise. If In- 
 With 57 curred In any transaction entered into for profit, though 
 
 Business 68 not connected with the trade or business; but In the 
 
case of a nonresident alien individual only as to such 
 transactions within the United States; 
 
 (6) Losses sustained during- the taxable year of prop- 
 erty not connected with the trade or business (but in 
 the case of a non-resident alien individual only prop- 
 erty within the United States) if arising from fires, 
 storms, shipwreck, or other casualty,- ^r from theft, 
 and if not compensated for by insurance or otherwise; 
 
 (7) Debts ascertained to be worthless and charged 
 off within the taxable year; 
 
 (8) A reasonable allowance for the exhaustion, wear 
 and tear of property used in the trade or business, in- 
 cluding a reasonable allowance for obsolescence; 
 
 (9) In the case of buildings, machinexT. equipment, 
 or other facilities, constructed, erected, installed, or 
 acquired, on or after April 6, 1917, for the production 
 of articles contributing to the prosecution of the pres- 
 ent war, and in the case of vessels constructed or ac- 
 quired on or after such date for the transportation of 
 articles or men contributing to the pi'osecution of the 
 present war, there shall be allowed a reasonable deduc- 
 tion for amortization of such part of the cost of such 
 facilities or vessels as has been borne by the tax- 
 payer, but not again including any amount otherwise 
 allowed under this title or previous Acts of Congi-est. 
 as a deduction in computing net income. At any time 
 within three years after the termination of the pres- 
 ent war, the Commissioner may, and at the request ot 
 the taxpayer shall, re-examine the return, and if he 
 then finds as a result of an appi'aisal or from other evi- 
 dence that the deduction originally allowed was incoi- 
 rect, the taxes imposed by this title and by Title 111 
 for the year or years affected shall be redetermined; 
 and the amount of tax due upon such redetermination, 
 if any, shall be paid upon notice and demand by tlie 
 collector, or the amount of tax overpaid, if any, shall 
 be credited or refunded to the taxpayer in accordance 
 with the provisions of section 252;. 
 
 (10) In the case of mines, oil and gas wells, other 
 natural deposits, and timber, a reasonable allowance 
 for depletion and for depreciation of improvements, ac- 
 cording to the peculiar conditions in each case, based 
 upon cost including cost of development not otherwise 
 deducted: Provided, That in the case of such properties 
 acquired prior to March 1, 1913, the fair market value 
 of the property (or the taxpayer's interest therein) on 
 that date shall be taken in lieu of cost up to that date: 
 Provided further, That in the case of mines, oil and gas 
 wells, discovered by the taxpayer, on or after March 
 1, 1913, and not acquired as the result of purchase of 
 a proven tract or lease, where the fair market vahu 
 of the property is materially disproportionate to the 
 cost, the depletion allowance .shall be based upon thf 
 fair market value of the property at the date of the 
 discovery, or within thirty days thereafter; such rea- 
 sonable allowance in all the above cases to be made 
 under rules and regulations to be prescribed by the 
 Commissioner with the approval of the Secretary. In 
 
 Losses from 
 Fires, Storm, 
 Shipwrecks 
 
 Bad Debts 
 Depreciation 
 
 Depreciation of 
 Property, etc. 
 Constructed 
 or Acquired 
 in Connection 
 With War 
 
 Mines, Oil and 
 Gas Wells- 
 Depletion, 
 Depreciation 
 
 63 
 
1 the case of leases the deductions allowed by this para- 
 
 2 graph shall be equitably apportioned between the lessor 
 8 and lessee; 
 
 Gifts to 4 (11) Contributions or gifts made within the taxable 
 
 Religious, 6 year to corporations organized and operated exclusively 
 
 Charitable, 6 for religious, charitable, scientific, or educational pur- 
 
 Scientific and 7 poses, or for the prevention of cruelty to children or 
 Educational 8 animals, no part of the net earnings of which inures to 
 Corporations 9 the benefit of any private stockholder or individual, or 
 
 10 to the special fund for vocational rehabilitation au- 
 
 11 thorized by section 7 of the Vocational Rehabilitation 
 la Act, to an amount not in excess of 15 per centum of 
 
 13 the taxpayer's net income as computed without the 
 
 14 benefit of this paragraph. Such contributions or gifts 
 
 15 shall be allowable as deductions only if verified under 
 
 16 rules and regulations prescribed by the Commissioner, 
 
 17 with the approval of the Secretary. In the case of a 
 
 18 nonresident alien individual this deduction shall be 
 
 19 allowed only as to contributions or gifts made to 
 
 20 domestic corporations, or to such vocational rehablli- 
 
 21 tation fund; 
 
 Losses from 22 (12) (a) At the time of filing return for the taxable 
 Decreased 23 year 1918 a taxpayer may file a claim in abatement 
 
 Value of 24 based on the fact that he has sustained a substantial 
 
 Inventory, 25 loss (whether or not actually realized by sale or other 
 Rebates, etc. 26 disposition) resulting from any material reduction (not 
 
 27 due to temporary fluctuation) of the value of the In- 
 
 28 ventory for such taxable year, or from the actual pay- 
 
 29 ment after the close of such taxable year of rebates 
 
 30 In pursuance of contracts entered into during such year 
 
 31 upon sales made during such year. In such case pay- 
 
 32 ment of the amount of the tax covered by such claim 
 
 33 shall not be required until the claim is decided, but the 
 
 34 taxpayer shall accompany his claim with a bond In 
 
 35 double the amount of the tax covered by the claim, with 
 
 36 sureties satisfactory to the Commissioner, conditioned 
 
 37 for the payment of any part of such tax found to be 
 
 38 due, with Interest. If any part of such claim Is dis- 
 89 allovved then the remainder of the tax due shall on 
 
 40 notice and demand by the collector be paid by the tax- 
 
 41 payer with Interest, at the rate of 1 per centum per 
 
 42 month from the time the tax would have been due had 
 48 no such claim been filed. If it Is shown to the satls- 
 44 faction of the Commissioner that such substantial less 
 46 has been sustained, then in computing the tax imposed 
 
 46 by this title the amount of such loss shall be deducted 
 
 47 from the net income, (b) If no such claim Is filed, but 
 
 48 it is shown to the satisfaction of the Commissioner that 
 40 during the taxable year 1919 the taxpayer has sus- 
 50 tained a substantial loss of the character above de- 
 
 61 scribed then the amount of such loss shall be deducted 
 
 62 from the net income for the taxable year 1918 and the 
 
 63 tax imposed by this title for such year shall be re- 
 Non-resident 54 determined accordingly. Any amount found to be due 
 
 Alien 55 to the taxpayer upon the basis of such redetermination 
 
 Individuals — 66 shall be credited or refunded to the taxpayer In ac- 
 Deductions 57 cordance with the provisions of Section 252. 
 Allowed 68 (b) In the case of a nonresident alien individual the 
 
 64 
 
deductions allowed in paragraphs (1), (4), (7), (8), (9), 1 
 (10), (12) and clause (e) of paragraph (3), of subdivi- 2 
 sion (a) shall be allowed only if and to the extent that G 
 they are connected with income arising from a source 4 
 within the United States; and the proper apportionment 5 
 and allocation of the deductions with respect to sources 6 
 of income within and without the United States shall be 7 
 determined under rules and regulations' prescribed by 8 
 the Commissioner with the approval of the Secretary. 9 
 
 10 
 Ztems Not Deductible. 11 
 
 12 
 SECTION 215. That in computing net income no 13 Items Not 
 deduction shall in any case be allowed in respect of — 14 Deductible 
 
 (a) Personal, livingr, or family expenses; 15 
 
 (b) Any amount paid out for new buildings or for 16 
 permanent improvements or betterments made to in- 17 
 crease the value of any property or estate; 18 
 
 (c) Any amount expended in restoring property or in 19 
 making good the exhaustion thereof for which an al- 20 
 lowance is or has been made; or 21 
 
 (d) Premiums paid on any life insurance policy cov- 22 
 ering the life of any officer or employee, or of any per- 23 
 son financially interested in any trade or business car- 24 
 Tied on by the taxpayer, when the taxpayer is directly 25 
 or indirectly a beneficiary under such policy, 26 
 
 27 
 Ci'edits Allowed. 28 
 
 29 
 SECTION 216. That for the purpose of the normal 30 Credits 
 tax only there shall be allowed the following credits: 31 Allowed — 
 
 (a) The amount received as dividends from a cor- 32 Dividends 
 poration which is taxable under this title upon its 33 
 
 net income, and amounts received as dividends from a 34 
 personal service corporation out of earnings or profits 35 
 upon which income tax has been imposed by Act of 36 
 Congress; 37 
 
 (b) The amount received as interest upon obligations 38 Obligations of 
 of the United States and bonds issued by the War 39 U. S. — ^When 
 Finance Corporation, which is Included in gross income 40 
 
 under section 213; 41 
 
 (c) In the case of a single person, a personal ex- 42 Personal 
 emptlon of $1,000, or in the case of the head of a 43 Exemption 
 family or a married person living with husband or wife, 44 
 
 a personal exemption of $2,000. A husband and wife 46 
 living together shall receive but one personal exemption 46 
 of $2,000 against their aggregate net income; and In 47 
 case they make separate returns, the personal ex- 48 
 emption of $2,000 may be taken by either or divided 49 
 between them; 60 
 
 (d) $200 for each person (other than husband or 61 
 wife) dependent upon and receiving his chief support 62 
 from the taxpayer, if such dependent person Is under 53 
 eighteen years of age or is incapable of self-support 54 
 because mentally or physically defective. 55 
 
 (e) In the case of a nonresident alien individual who 56 Non-resident 
 Is a citizen or subject of a country which Imposes an 57 Aliens 
 Income tax, the credits allowed In subdivisions (c) and 68 
 
 65 
 
1 (d) shall be allowed only If such country allows a 
 a similar credit to citizens of the United States not reald- 
 3 Ing in such country. 
 
 Non-resident 
 Aliens — 
 Deductions 
 and Credits 
 Allowed 
 
 Partnerships 
 and Personal 
 Service 
 Corporations 
 
 Fiscal Year 
 Other Than 
 Calendar 
 Year 
 
 6 Nonresident Aliens — Allowance of Dednctlons and 
 
 6 Credits. 
 
 7 
 
 8 SECTION 217. That a nonresident alien individual 
 
 9 shall receive the benefit of the deductions and credits 
 
 10 allowed in this title only by filing or causing to be 
 
 11 filed with the collector a true and accurate return of 
 
 12 his total income received from all sources corporate or 
 
 13 otherwise in the United States, in the manner pre- 
 
 14 scribed by this title, including therein all the informa- 
 16 tion which the Commissioner may deem necessary for 
 
 16 the calculation of such deductions and credits: Pro- 
 
 17 vided, That the benefit of the credits allowed in sub- 
 
 18 divisions (c) and (d) of section 216 may, in the dis- 
 
 19 cretion of the Commissioner, and except as otherwise 
 
 20 provided in subdivision (e) of that section, be received 
 ai by filing a claim therefor with the withholding agent. 
 
 22 In case of failure to file a return, the collector shall 
 
 23 collect the tax on such income, and all property be- 
 
 24 longing to such nonresident alien individual shall be 
 
 25 liable to distraint for the tax. 
 26 
 
 27 Partnerships and Personal Service Corporations. 
 28 
 
 29 SECTION 218. (a) That individuals carrying on 
 
 30 business in partnership shall be liable for Income tax 
 
 31 only in their individual capacity. There shall be In- 
 
 32 eluded in computing the net income of each partner 
 38 his distributive share, whether distributed or not, of 
 
 34 the net income of the partnership for the taxable year, 
 
 35 or, if his net income for such taxable year is computed 
 
 36 upon the basis of a period different from that upon the 
 
 37 basis of which the net income of the partnership is 
 
 38 computed, then his distributive share of the net income 
 89 of the partnership for any accounting period of the 
 
 40 partnership ending within the fiscal or calendar year 
 
 41 upon the basis of which the partner's net income is 
 
 42 computed. 
 
 43 The partner shall, for the purpose of the normal 
 
 44 tax, be allow^ed as credits, in addition to the credits 
 
 45 allowed to him under section 216, his proportionate 
 
 46 share of such amounts specified in subdivisions (a) and 
 
 47 (b) of section 216 as are received by the partnership. 
 
 48 (b) If a fiscal year of a partnership ends during a 
 
 49 calendar year for which the rates of tax differ from 
 
 50 those for the preceding calendar year, then (1) the 
 
 51 rates for such preceding calendar year shall apply to 
 
 52 an amount of each partner's share of such partnership 
 
 53 net Income equal to the proportion which the part of 
 
 54 such fiscal year falling within such calendar year bears 
 
 55 to the full fiscal year, and (2) the rates for the cal- 
 
 56 endar year during which such fiscal year ends shall 
 
 57 apply to the remainder. 
 
 58 (c) In the case of an individual member of a part- 
 
 66 
 
nership which makes return for a fiscal year beginning 1 
 in 1917 and ending in 1918, his proportionate share of 2 
 any excess profits tax imposed upon the partnership 3 
 under the Revenue Act of 1917 with respect to that 4 
 part of such fiscal year falling in 1917, shall, for the a 
 the purpose of determining the tax imposed by this C 
 title, be credited against that portion of the net income 7 
 embi-aced in his personal return for the taxable year 8 
 1918 to which the rates for 1917 apply. 9 
 
 (d) The net income of the partnership shall be com- 10 Partnership 
 puted in the same manner and on the same basis as 11 Income — 
 provided in section 212, except that the deduction 12 How 
 provided in paragraph (11) of subdivision (a) of sec- 13 Computed 
 tion 214 shall not be allowed. 14 
 
 (e) Personal service corporations shall not be sub- 15 Personal 
 ject to taxation under this title, but the individual 16 Service 
 stockholders thereof shall be taxed in the same manner 17 Corporation — 
 as the members of partnerships. All the provisions 13 Individual 
 
 of this title relating to partnerships and the members 19 Stockholders 
 thereof shall so far as practicable apply to personal 20 Taxed the 
 service corporations and the stockholders thereof: 21 Same as 
 Provided, That for the purpose of this subdivision 22 Partnerships 
 amounts distributed by a personal service corporation 23 
 during Its taxable year shall be accounted for by the 24 
 distributees; and any portion of the net Income remain- 25 
 ing undistributed at the close of its taxable year shall £6 
 be accounted for by the stockholders of such corpora- 27 
 tion at the close of its taxable year in proportion to £3 
 their respective shares. £9 
 
 Estates and Trusts. 31 
 
 S2 
 SECTION 219. (a) That the tax Imposed by sections 33 Estates and 
 210 and 211 shall apply to the Income of estates or of 34 Trusts — 
 any kind of property held In trust, inoluding — 35 Taxable 
 
 (1) Income received by estates of deceased persons 36 Income 
 during the period of administration or settlement of 37 Defined 
 the estate; 33 
 
 (2) Income accumulated in trust for the benefit of 39 
 unborn or unascertained persons or persons with con- 40 
 tlngent Interests; 41 
 
 (3) Income held for future distribution under the 43 
 terms of the will or trust; and 43 
 
 (4) Income which is to be distributed to the bene- 44 
 flciaries periodically, whether or not at regular Inter- 15 
 vals, and the Income collected by a guardian of an -13 
 infant to be held or distributed as the court may ^I7 
 direct. 43 
 
 (b) The fiduciary shall be responsible for making 49 Returns — 
 the return of Income for the estate or trust for which 50 Computation 
 he acts. The net Income of the estate or trust shall 51 of locome 
 be computed In the same manner and on the same basis 52 
 as provided In section 212, except that there shall also bS 
 be allowed as a deduction (in lieu of the deduction au- £4 
 thorlzed by paragraph (11) of subdivision (a) of sec- £;;3 
 tion 214) any part of the gross income which, pursuant £G 
 to the terms of the will or deed creating the trust, is 57 
 during the taxable year paid to or permanently set 53 
 
 67 
 
1 aside for the United States, any State, Territory, or any 
 
 2 political subdivision thereof, or the District of Co- 
 
 3 lumbia, or any corporation organized and operated ex- 
 
 4 clusively for religious, charitable, scientific, or educa- 
 
 5 tional purposes, or for the prevention of cruelty to 
 
 6 children or animals, no part of the net earnings of 
 
 7 which inures to the benefit of any private stockholder 
 
 8 or Individual; and in cases under paragraph (4) of sub- 
 
 9 division (a) of this section the fiduciary shall include 
 
 10 in the return a statement of each beneficiary's dls- 
 
 11 tributive share of such net income, whether or not dis- 
 
 12 tributed before the close of the taxable year for which 
 
 13 the return is made. 
 
 Tax to Be Paid 14 (c) In cases under paragraph (1), (2), or (3) of 
 by Fiduciary 15 subdivision (a) the tax shall be imposed upon the 
 
 16 net Income of the estate or trust and shall be paid 
 
 17 by the fiduciary, except that in determining the net 
 
 18 Income of the estate of any deceased person during 
 
 19 the period of administration or settlement there may be 
 
 20 deducted the amount of any income properly paid or 
 ai credited to any legatee, heir or other beneficiary. In 
 
 22 such cases the estate or trust shall, for the purpose of 
 
 23 the normal tax, be allowed the same credits as are 
 2^ allowed to single persons under section 216. 
 
 Income of 25 (d) In cases under paragraph (4) of subdivision 
 
 Estate 26 (a), and in the case of any income of an estate during 
 
 During 27 the period of administration or settlement permitted 
 
 Period of Ad- 28 by subdivision (c) to be deducted from the net income 
 ministration 29 upon which tax is to be paid by the fiduciary, the tax 
 
 30 shall not be paid by the fiduciary, but there shall be 
 
 31 Included in computing the net income of each bene- 
 38 ficiary his distributive share, whether distributed or 
 
 33 not, of the net income of the estate or trust for the 
 
 34 taxable year, or, if his net Income for such taxable 
 
 35 year Is computed upon the basis of a period different 
 38 from that upon the basis of which the net income of 
 
 37 the estate or trust is computed, then his distributive 
 
 38 share of the net income of the estate or trust for any 
 89 accounting period of such estate or trust ending within 
 
 40 the fiscal or calendar year upon the basis of which 
 
 41 such beneficiary's net income is computed. In such 
 
 42 cases the beneficiary shall, for the purpose of the 
 
 43 normal tax, be allowed as credits In addition to the 
 
 44 credits allowed to him under section 216, his propor- 
 46 tlonate share of such amounts specified In subdivisions 
 
 46 (a) and (b) of section 216 as are received by the 
 
 47 estate or trust. 
 48 
 
 49 Profits of CorporationB Taza1)l« to Stockholders. 
 60 
 Accumulated 51 SECTION 220. That if any corporation, however 
 Profits of 52 created or organized. Is formed or availed of for the 
 
 Corporation 53 purpose of preventing the Imposition of the surtax 
 Taxable to 54 upon its stockholders or members through the medium 
 Stockholders 53 of permitting its gains and profits to accumulate 
 
 56 instead of being divided or distributed, such corpora- 
 
 57 tion shall not be subject to the tax Imposed by section 
 68 230, but the stockholders or jnembers thereof shall be 
 
 68 
 
subject to taxation under this title in the same manner 1 
 as provided in subdivision (e) of section 218 in the case 2 
 of stoclcholders of a personal service corporation, except 3 
 that the tax imposed by Title III shall be deducted 4 
 from the net income of the corporation before the com- 5 
 putation of the pz'oportionate share of each stockholder 6 
 or member. The fact that any corporation is a mere 7 
 holding company, or that the gains and profits 8 
 are permitted to accumulate beyond the reasonable 9 
 needs of the business, shall be prima facie evidence of 10 
 a purpose to escape the surtax; but the fact that the 11 
 gains and profits are in any case permitted to accumu- 13 
 late and become surplus shall not be construed as 13 
 evidence of a purpose to escape the tax in such case 14 
 unless the Commissioner certifies that In his opinion 15 
 such accumulation Is unreasonable for the purposes 16 
 of the business. When requested by the Commissioner. 17 
 or any collector, every corporation shall forward to 18 
 him a correct statement of such gains and profits and 19 
 the names and addresses of the individuals or share- 20 
 holders who would be entitled to the same if divided 21 
 or distributed, and of the amounts that would be 22 
 payable to each. 23 
 
 24 
 Payment of Tax at Source. 25 
 
 26 
 
 SECTION 221. (a) That all Individuals, corpora- 27 PaymentB of 
 tions and partnerships, in whatever capacity acting. 28 Tax at 
 including lessees or mortgagors of real or personal 29 Source — Tax 
 property, fiduciaries, employers, and all ofEicers and 30 on Income of 
 employees of the United States, having the control, 31 Non-resident 
 receipt, custody, disposal, or payment, of Interest, rent, 32 Alien 
 salaries, wages, premiums, annuities, compensations, 33 Individual 
 remunerations, emoluments, or other fixed or determin- 34 to Be 
 able annual or periodical gains, profits, and Income, 35 Withheld 
 of any nonresident alien individual (other than Income 36 
 received as dividends from a corporation which If 37 
 taxable under this title upon Its net Income, shall (ex- 38 
 cept in the cases provided for in subdivision (b) and 39 
 except as otherwise provided In regulations prescribed 40 
 by the Commissioner under section 217) deduct and 41 
 withhold from such annual or periodical gains, profits^ 42 
 and income a tax equal to 8 per centum thereof: Pro- 43 
 vided. That the Commissioner may authorize such tax 44 
 to be deducted and withheld from the interest upon 45 
 any securities the owners of which are not known tc 46 
 the withholding agent. 47 
 
 (b) In any case where bonds, mortgages, or deeds of 48 Bonds 
 trust, or other similar obligations of a corporation 49 Oontaiaxingr 
 contain a contract or provision by which the obligor 50 Tax-free 
 agrees to pay any portion of the tax Imposed by this 51 Covenant- 
 title upon the obligee, or to reimburse the obligee for 52 Tax on 
 any portion of the tax, or to pay the interest without 53 Interest at 
 deduction for any tax which the obligor may be re- 54 Rate of 2% 
 quired or permitted to pay thereon or to retain there- 55 to Be 
 from under any law of the United States, the obligor 56 Withheld and 
 shall deduct and withhold a tax equal to 2 per centum 67 Paid for 
 of the Interest upon such bonds, mortgages, deeds of 58 Citizens and 
 
 69 
 
Residents, 
 
 1 
 
 Partnerships, 
 
 2 
 
 Nonresident 
 
 3 
 
 and Allen 
 
 4 
 
 inaividuals 
 
 6 
 
 
 6 
 
 
 7 
 
 
 i> 
 
 
 9 
 
 
 10 
 
 
 11 
 
 
 12 
 
 
 13 
 
 
 1-5 
 
 
 15 
 
 
 16 
 
 
 17 
 
 Returns of 
 
 18 
 
 Taxes 
 
 19 
 
 Withheld 
 
 20 
 
 
 21 
 
 
 22 
 
 
 23 
 
 
 24 
 
 
 25 
 
 
 20 
 
 
 27 
 
 
 28 
 
 Credit for Tax 
 
 29 
 
 Withheld 
 
 30 
 
 
 31 
 
 
 32 
 
 
 33 
 
 
 34 
 
 
 35 
 
 
 36 
 
 
 37 
 
 
 38 
 
 
 39 
 
 
 40 
 
 
 41 
 
 
 42 
 
 
 43 
 
 
 44 
 
 
 45 
 
 
 48 
 
 Credit for 
 
 47 
 
 Taxes — 
 
 48 
 
 Citizen 
 
 49 
 
 
 ro 
 
 
 PI 
 
 
 na 
 
 
 C3 
 
 Resident 
 
 64 
 
 
 55 
 
 
 F .' 
 
 Allen 
 
 B7 
 
 Resident 
 
 58 
 
 trust, or other obligations, whether such interest is 
 payable annually or at shorter or longer periods and 
 whether payable to a nonresident alien individual or 
 to an individual citizen or resident of the United States 
 or to a partnership: Provided, That the Commissioner 
 may authorize such tax to be deducted and withheld 
 in the case of Interest upon any such bonds, mort- 
 gages, deeds of trust or other obligations, the owners 
 of which are not known to the withholding agent. Such 
 deduction and withholding shall not be required in the 
 case of a citizen or resident entitled to receive such 
 interest, if he files v/ith the withholding agent on or 
 before February 1, a signed notice in writing claiming 
 the benefit of the credits provided in subdivisions (c) 
 and (d) of section 216; nor in the case of a nonresident 
 alien Individual if so provided for In regulations pre- 
 scribed by the Commissioner under section 217. 
 
 (c) Every individual, corporation, or partnership re- 
 quired to deduct and withhold any tax under this sec- 
 tion shall make return thereof on or before March first 
 of each year and shall on or before June 15th pay 
 the tax to the oflicial of the United States Govern- 
 ment authorized to receive it. Every such individual, 
 corporation, or partnership is hereby made liable for 
 such tax and is hereby indemnified against the claims 
 and demands of any individual, corporation, or part- 
 nership for the amount of any payments made In ac- 
 cordance with the provisions of this section. 
 
 (d) Income upon which any tax is required to be 
 withheld at the source under this section shall be In- 
 cluded In the return of the recipient of such income, 
 but any amount of tax so withheld shall be credited 
 against the amount of income tax as computed In such 
 return. 
 
 (e) If any tax required under this section to be de- 
 ducted and withheld is paid by the recipient of the 
 income, it shall not be re-collected from the withhold- 
 ing agent; nor in cases in which the tax is so paid 
 shall any penalty be imposed upon or collected from 
 the recipient of the income or the withholding agent 
 for failure to return or pay the same, unless such 
 failure was fraudulent and for the purpose of evading 
 payment. 
 
 Credit for Taxes. 
 
 SECTION 222. (a) That the tax computed under 
 Part II of this title shall be credited with: 
 
 (1) In the case of a citizen of the United States, the 
 amount of any Income, war-profits and excess-profits 
 taxes paid during the taxable year to any foreign 
 country, upon income derived from sources therein, or 
 to any possession of the United States; and 
 
 (2) In the case of a resident of the United States, 
 the amount of any such taxes paid during the taxable 
 year to any possession of the United States; and 
 
 (3) In the case of an alien resident of the United 
 States who Is a citizen or subject of a foreign country. 
 
 70 
 
the amount of any such taxes paid or accrued during 
 tlie taxable year to such country, upon income derived 
 from sources therein, if such country, in imposing such 
 taxes, allows a similar credit to citizens of the United 
 States residing in such country; and 
 
 (4) In the case of any such individual who is a mem- 
 ber of a partnership or a beneficiary of an estate or 
 trust, his proportionate share of such" taxes of the 8 
 partnership or the estate or trust paid during the tax- 9 
 able year to a foreign country or to any possession of 10 
 the United States, as the case n»ay be. H 
 
 (b) If accrued taxes when paid differ from the 12 
 amounts claimed as credits by the taxpayer, or if any 13 
 tax paid is refunded in whole or in part, the taxpayer 14 
 shall notify the Commissioner who shall redetermine 15 
 the amount of the tax due under Part II of this title 16 
 for the year or years affected, and the amount of 17 
 tax due upon such redetermination, if any, shall be 18 
 paid by the taxpayer upon notice and demand by the 19 
 collector, or the amount of tax overpaid, if any, shall 20 
 be credited or refunded to the taxpayer in accordance 21 
 with the provisions of Section 252. In- the case of 22 
 such a tax accrued but not paid, the Commis«5ioner as 23 
 a condition precedent to the allowance of this credit 24 
 may require the taxpayer to give a bond with sureties 25 
 satisfactory to and to be approved by the Commissioner 26 
 in such penal sum as the Commissioner may require, 27 
 conditioned for the payment by the taxpayer of any 28 
 amount of tax found due upon any such redetermine • 29 
 tion; and the bond herein prescribed shall contain 30 
 such further conditions as the commissioner may re- 31 
 quire. 32 
 
 (c) These credits shall be allowed only If the tax- 33 
 payer furnishes evidence satisfactory to the Commls- 34 
 sioner showing the amount of Income derived from 35 
 sources within such foreign country or such possession 36 
 of the United States, and all other information nece»- 37 
 sary for the computation of such credits. 38 
 
 39 
 
 40 
 
 41 
 
 Individual Retnrns. 42 
 
 43 
 SECTION 223. That every individual having a net 44 
 Income for the taxable year of $1,000 or over If single '^5 
 or if married and not living with husband or wife, 46 
 or of ?2,000 or over If married and living with hus- 47 
 band or wife, shall make under oath a return stating 48 
 specifically the items of his gross income and the 49 
 deductions and credits allowed by this title. If a hus- BO 
 band and wife living together have an aggregate net 61 
 income of $2,000 or over, each shall make such a return 52 
 unless the income of each Is included In a single joint 53 
 return. 54 
 
 If the taxpayer Is unable to make his own return, 55 
 the return shall be made by a duly authorized agent 56 
 or by the guardian or other person charged with the 57 
 care of the person or property of such taxpayer. 58 
 
 Individual 
 Partner, 
 Beneficiary 
 
 When 
 
 Amount of 
 Tax Differs 
 From 
 Amount 
 Claimed as 
 Credit 
 
 Satisfactory 
 Evidence 
 Required 
 
 Retnms — 
 Individual 
 
 Return by 
 Agent 
 
 fc^ ca 
 
 i 
 
 71 
 
Partnership Returns. 
 
 1 
 2 
 Partnership 3 SECTION 224. That every partnership shall make 
 
 Returns 4 a return for each taxable year, stating specifically the 
 
 6 Items of its gross Income and the deductions allowed 
 
 6 by this title, and shall include in the return the names 
 
 7 and addresses of the Individuals who would be entitled 
 
 8 to share in the net income if distributed and the 
 
 9 amount of the distributive share of each individual. 
 
 10 The return shall be sworn to by any one of the 
 
 11 partners. 
 
 12 Fiduciary Returns. 
 13 
 
 Fiduciary 14 SECTION 225. That every fiduciary (except re- 
 
 Returns 15 ceivers appointed by authority of law in possession of 
 
 16 part only of the property of an individual) shall make 
 
 17 under oath a return for the individual, estate or trust 
 
 18 for which he acts (1) if the net income of such 
 
 19 individual is $1,000 or over if single or if married and 
 
 20 not living with husband or wife, or $2,000 or over if 
 
 21 married and living with husband or wife, or (2) if tlie 
 
 22 net Income of such estate or trust is $1,000 or over 
 
 23 or if any beneficiary of such estate or trust is a non- 
 24 resident alien, stating specifically the items of the 
 
 26 gross income and the deductions and credits allowed 
 28 by this title. Under such regulations as the Com- 
 
 27 missioner with the approval of the Secretary may 
 
 28 prescribe, a return made by one of two or more joint 
 
 29 ^duciaries and filed in the office of the collector of the 
 
 30 Ustrict where such fiduciary resides shall be a suffi- 
 
 31 cient compliance with the above requirement. The 
 
 32 fiduciary shall make oath that he has sufficient knowl- 
 
 33 edge of the affairs of such individual, estate or trust 
 
 34 to enable him to make the return, and that the same 
 
 35 is, to the best of his knowledge and belief, true and 
 
 36 correct. 
 
 37 Fiduciaries required to make returns under this Act 
 
 38 shall be subject to all the provisions of this Act 
 
 39 which apply to individuals. 
 
 41 Returns When Accounting' Period Changed. 
 
 42 
 
 Return When 43 SECTION 226. Tliat if a taxpayer, with the ap- 
 Accounting 44 proval of the Commissioner, changes the basis of corn- 
 Period 45 puting net income from fiscal year to calendar year 
 Changed '^" a separate return shall be made for the period be- 
 
 47 Lween the close of the last fiscal year for which return 
 
 48 was made and the following December 31. If the 
 
 49 change is from calendar year to fiscal year, a separate 
 
 50 return shall be made for the period between the close 
 
 51 of the last calendar year for which return was made 
 
 52 and the date designated as the close of the fiscal year. 
 
 53 If the change is from one fiscal year to another fiscal 
 
 54 year a separate return shall be made for the period 
 
 55 between the close of the former fiscal year and the 
 
 56 date designated as the close of the new fiscal year. If 
 
 57 V taxpayer making his first rettirn for income tax keeps 
 
 58 his accounts on the basis of a -fiscal year he shall make 
 
 72 
 
a separate return for the period between the beginning 1 
 of the calendar year in whicli such fiscal year ends 2 
 and the end of such fiscal year. 3 
 
 In all of the above cases the net Income shall be 4 
 computed on the basis of such period for which sep- 5 
 arate return Is made,, and the tax shall be paid thereon 6 
 at the rate for the calendar year in which such period 7 
 is included; and the credits provided in subdivisions 8 
 (c) and (d) of section 216 shall be reduced respec- 9 
 tively to amounts which bear the same ratio to the 10 
 full credits provided in such subdivisions as the num- 11 
 ber of months in such period bears to twelve months. 12 
 
 18 
 Time and Place for Filing' Returns. 14 
 
 16 
 SECTION 227. (a) That returns shall be made on 16 Time nad 
 or before the fifteenth day of the third month follow- 17 Place for 
 ing the close of the fiscal year, or, if the return is 13 Filing 
 made on the basis of the calendar year, then the return 19 Returns 
 shall be made on or before the fifteenth day of March. 20 
 The Commissioner may grant a reasonable extension 21 
 of time for filing returns whenever in his judgment 22 
 good cause exists and shall keep a record of every 23 
 such extension and the reason therefor. Except in the 24 
 case of taxpayers who are abroad, no such extension 25 
 shall be for more than six months. 26 
 
 (b) Returns shall be made to the collector for the 27 
 district in which is located the legal residence or 28 
 principal place of business of the person making the_29 
 return, or, if he has no legal residence or principal 30 
 place of business in the United States, then to the 31 
 collector at Baltimore, Maryland. 32 
 
 33 
 Vnaerstatement in Returns. 34 
 
 35 
 SECTION 228. That if the collector or deputy col- SS Under- 
 lector has reason to believe that the amount of any 37 statement in 
 income returned is understated, he shall give due 38 Return 
 notice to the taxpayer making the return to show 39 
 cause why the amount of the return should not De 40 
 increased, and upon proof of the amount understated, 43 
 may Increase the same accordingly. Such taxpayer 42 
 may furnish sworn testimony to prove any relevant 43 
 facts and if dissatisfied with the decision of the col^44 
 lector may appeal to the Commissioner for his de-45 
 clsion, under such rules of pi'ocedure a.s may be pre- 46 
 scribed by the Commissioner with the approval of 47 
 the Secretary. 48 
 
 49 
 PART ZIZ.— CORPORATIONS. 50 
 
 61 
 Tax on Corporations. 52 Corporations — 
 
 53 Taxes on 
 SECTION 230. (a) That, In lieu of the taxes im- 54 
 posed by section 10 of the Revenue Act of 1916, as 55 
 amended by the Revenue Act of 1917, and by section 56 
 i of the Revenue Act of 1917, there shall be levied, 57 
 collected, and paid for each taxable year upon the net 58 
 
 ~ 73 , .. 
 
Year 1918 
 
 Year 1919 and 
 Thereafter 
 
 Systems Under 
 Federal 
 Control 
 
 Exempt 
 Corporations 
 
 Labor, 
 
 Agricultural 
 Mutual Savings 
 
 Banks 
 Fraternal 
 
 Organizations 
 
 Building and 
 Loan 
 
 Cemetery 
 
 Religious, 
 Charitable 
 Educational, 
 etc. 
 
 Chambers of 
 Commerce, 
 etc. 
 
 Civic Leagues 
 
 Clubs 
 
 Insurance 
 Telephone 
 
 1 income of every corporation a tax at the following 
 
 2 rates: . ■"*. ^iSPt 
 
 3 (1) For the calendar year 1918, 12 per centum of 
 
 4 the amount of the net Income in excess of the credits 
 
 5 provided In section 236; and 
 
 6 (2) For each calendar year thereafter, 10 per centum 
 
 7 of such excess amount. 
 
 8 (b) For the purposes of the Act approved March 21, 
 
 9 1918, entitled "An Act to provide for the operation of 
 
 10 transportation systems while under Federal control, for 
 
 11 the Just compensation of their owners and for other 
 
 12 purposes," flve-slxths of the tax Imposed by paragrapn 
 
 13 (1) of subdivision (a) and four-fifths of the tax 
 
 14 imposed by paragraph (2) of subdivision (a) shall be 
 
 15 treated as levied by an Act In amendment of Title I 
 
 16 of the Revenue Act of 1917. 
 17 
 
 18 Conditional and Other Exemptions. 
 
 19 
 
 20 SECTION 231. That the following organizations 
 
 21 shall be exempt from taxation under this title — 
 
 22 (1) Labor, agricultural, or horticultural organlza- 
 
 23 tions; 
 
 24 (2) Mutual savings banks not having a capital stock 
 
 25 represented by shares; 
 
 26 (3) Fraternal beneficiary societies, orders, or asso- 
 
 27 ciatlons, (a) operating under the lodge system or for 
 
 28 the exclusive benefit of the members of a fraternity 
 
 29 Itself operating under the lodge system, and (b) pro- 
 
 30 viding for the payment of life, sick, accident, or other 
 
 31 benefits to the members of such society, order, or asso- 
 
 32 elation or their dependents; 
 
 33 (4) Domestic building and loan associations and co- 
 
 34 operative banks without capital stock organized and 
 
 35 operated for mutual purposes and without profit; 
 
 36 (5) Cemetery companies owned and operated exclu- 
 
 37 sively for the benefit of their members; 
 
 38 (6) Corporations organized and operated exclusively 
 
 39 for religious, charitable, scientific, or educational pur- 
 
 40 poses, or for the prevention of cruelty to children or 
 
 41 animals, no part of the net earnings of which Inures to 
 
 42 the benefit of any private stockholder or individual; 
 
 43 (7) Business leagues, chambers of commerce, or 
 
 44 boards of trade, not organized for profit and no part 
 
 45 of the net earnings of which inures to the benefit of 
 4&any private stockholder or individual; 
 
 47 (8) Civic leagues or organizations not organized for 
 
 48 profit but operated exclusively for the promotion of 
 
 49 social welfare; 
 
 50 (9) Clubs organized and operated exclusively for 
 
 51 pleasure, recreation, and other nonprofitable purposes, 
 
 52 no part of the net earnings of which Inures to the 
 
 53 benefit of any private stockholder or member; 
 
 54 (10) Farmers' or other mutual hall, cyclone, or fire 
 
 55 Insurance companies, mutual ditch or irrigation com- 
 
 56 panics, mutual or cooperative telephone companies, or 
 
 57 like organizations of a purely local character, the In- 
 68 come of which consists solely of assessments, dues. 
 
 74 
 
and fees collected from members for the sole purpose % 
 of meeting expenses; 8 
 
 (11) Farmers', fruit growers', or like associations, 3 Fruit Growers 
 organized and operated as sales agents for the purpose 4 
 
 of marketing the products of members and turning 5 
 back to them the proceeds of sales, less the necessary 6 
 selling expenses, on the basis of the quantity of produce 7 
 furnished by them; 8 
 
 (12) Corporations organized for the exclusive pur- 9 Special 
 pose of holding title to property, collecting income 10 
 therefrom, and turning over the entire amount thereof, 11 
 
 less expenses, to an organization which itself is ex- 12 
 empt from the tax imposed by this title; 13 
 
 (13) Federal land banks and national farm-loan as- 14 Federal Land 
 sociations as provided in section 26 of the Act ap- 15 Banks — 
 proved July 17, 1916, entitled "An Act to provide cap- 16 Farm Loan 
 ital for agricultural development, to create standard 17 Associations 
 forms of investment based upon farm mortgage, to 18 
 
 equalize rates of interest upon farm loans, to furnish 19 
 a market for United States bonds, to create Govern- 20 
 ment depositaries and financial agents for the United 21 
 States, and for other purposes"; 22 
 
 (14) Personal service corporations. 28 
 
 24 
 Net Income Defined. 25 
 
 26 
 SECTION 232. That in the case of a corporation 27 Net Income 
 subject to the tax imposed by section 230 the term 28 Defined 
 "net income" means the gross income as defined in 29 
 section 233 less the deductions allowed by section 234, 30 
 and the net income shall be computed on the same 31 
 basis as is provided in subdivision (b) of section 212 32 
 or in section 226. 33 
 
 34 
 Gross Income Defined. 35 
 
 36 
 
 SECTION 233. (a) That in the case of a corporation 37 Gross Income 
 
 subject to the tax imposed by section 230 the term 38 
 
 "gross income" means the gross Income as defined 39 
 
 in section 213, except that: 40 
 
 (1) In the case of life Insurance companies there 41 Life Ins. Go's 
 shall not be included in gross income such portion 42 
 
 of any actual premium received from any individual 43 
 policyholder as is paid back or credited to or treated as 44 
 an abatement of premium of such policyholder within 45 
 the taxable year. 46 
 
 (2) Mutual marine Insurance companies shall Include 47 Mutual Marine 
 in gross Income the gross premiums collected and re- 48 Ins. Go's 
 ceived by them less amounts paid for reinsurance. 49 
 
 (b) In the case of a foreign corporation gross Income 50 Foreign Corp. 
 includes only the gross income from sources within 51 
 the United States, including the Interest on bonds, 52 
 notes, or other Interest-bearing obligations of resi- 53 
 dents, corporate or otherwise, dividends from resident 54 
 corporations, and including all amounts received (al 55 
 though paid under a contract for the sale of goods 56 
 or otherwise) representing profits on the manufacture 57 
 and disposition of goods within the United States. 68 
 
 75 
 
Ddduotlons 
 
 Expenses 
 
 Dednotiong Allowed. 
 
 Interest 
 
 Taxes 
 
 Losses 
 Bad Debts 
 Dividends 
 
 3 SECTION 234. (a) That in computing the net in- 
 
 4 come of a corporation subject to the tax imposed by 
 6 section 230 there shall be allowed as deductions: 
 
 6 (1) All the ordinary and necessary expenses paid 
 
 7 or Incurred during the taxable year in carrying on any 
 
 8 trade or business, including a reasonable allowance for 
 8 salaries or other compensation for personal services 
 
 10 actually rendered, and including rentals or other pay- 
 
 11 ments required to be made as a condition to the con- 
 IS tinned use or possession of property to which the cor- 
 
 13 poration has not taken or is not taking title, or In which 
 
 14 it has no equity; 
 
 15 (2) All interest paid or accrued within the taxable 
 
 16 year on its indebtedness, except on indebtedness In- 
 
 17 curred or continued to purchase or carry obligations 
 
 18 or securities (other than obligations of the United 
 
 19 States Issued after September 24, 1917) the interest 
 80 upon which is wholly exempt from taxation under this 
 ai title as Income to the taxpayer, or, in the case of a 
 22 foreign corporation, the proportion of sUch interest 
 83 which the amount of its gross income from sources* 
 24 within the United States bears to the amount of Its 
 26 gross income from all sources within and without the 
 
 26 United States; 
 
 27 (3) Taxes paid or accrued within the taxable year 
 
 28 imposed (a) by the authority of the United States, 
 
 29 except income, war profits and excess-profits taxes; or 
 
 30 (b) by the authority of any -of its possessions, except 
 
 31 the amount of income, war profits and excess-profits 
 
 32 taxes allowed as a credit under section 238; or (c) by 
 
 33 the authority of any State or Territory, or any county, 
 
 34 school district, municipality, or other taxing subdi- 
 
 35 vision of any State or Territory, not Including those 
 
 36 assessed against local benefits of a kind tending to 
 
 37 increase the value of the property assessed; or (d) in 
 
 38 the case of a domestic corporation, by the authority 
 89 of any foreign country, except the amount of Income, 
 
 40 war-profits and excess-profits taxes allowed as a credit 
 
 41 under section 238; or (e) in the case of a foreign cor- 
 
 42 poration, by the authority of any foreign country 
 
 43 (except income, war-profits and excess-profits taxes, 
 
 44 and taxes assessed against local benefits of a kind 
 
 45 tending to increase the value of the property assessed), 
 
 46 upon the property or business: Provided, That In the 
 
 47 case of obligors specified In subdivision (b) of section 
 
 48 221 no deduction for the payment of the tax imposed by 
 
 49 this title or any other tax paid pursuant to the con- 
 60 tract or provision referred to In that subdivision, shall 
 
 51 be allowed; 
 
 52 (4) Losses sustained during the taxable year and 
 
 53 not compensated for by Insurance or otherwise; 
 
 54 (5) Debts ascertained to be worthless and charged 
 
 55 off within the taxable year; 
 
 56 (6) Amounts deceived as dividends from a corpora- 
 
 57 tion which Is taxable under this title upon Its net 
 
 58 Income, and amounts received as dividends from a per- 
 
 76 
 
sonal service corporation out of earnings or profits upon 
 which income tax has been imp'osed by Act of Congress; 
 
 (7) A reasonable allowance for the exhaustion, wear 
 and tear of property used in the trade or business, in- 
 cluding a reasonable allowance for obsolescence; 
 
 (8) In the case of buildings, machinery, equip- 
 ment, or other facilities, constructed, erected, installed, 
 or acquired, on or after April 6, 1917, for the produc- 
 tion of articles contributing to the prosecution of the 
 present war, and in the case of vessels constructed or 
 acquired on or after such date for the transportation 
 of articles or men contributing to the prosecution of 
 the present war, there shall be allowed a reasonable 
 deduction for the amortization of such part of the 
 cost of such facilities or vessels as has been borne 
 by the taxpayer, but not again including any amount 
 otherwise allowed under this title or previous acts of 
 Congress as a deduction in computing net Income. At 
 any time within three years after the termination of 
 the present war the Commissioner may, and at the 
 request of the taxpayer shall, re-examine the return, 
 and if he then finds as a result of an appraisal or 
 from other evidence that the deduction originally al- 
 lowed was Incorrect, the taxes imposed by this title 
 and by Title III for the year or years affected shall 
 be redetermined; and the amount of tax due upon such 
 redetermination, If any, shall be paid upon notice and 
 demand by the collector, or the amount of tax over- 
 paid, if any, shall be credited or refunded to the tax- 
 payer in accordance with the provisions of section 252; 
 
 (9) In the case of mines, oil and gas wells, other 
 natural deposits, and timber, a reasonable allowance 
 for depletion and for depreciation of improvements, 
 according to the peculiar conditions in each case, based 
 upon cost including cost of development not otherwise 
 deducted: Provided, That In the case of such prop- 
 erties acquired prior to March 1, 1913, the fair market 
 value of the property (or the taxpayer's interest there- 
 in) on that date shall be taken in lieu of cost up to 
 that date: Provided further, That in the case of 
 mines, oil and gas wells, discovered by the taxpayer, 
 on or after March 1, 1913, and not acquired as the re- 
 sult of purchase of a proven tract or lease, where the 
 fair market value of the property Is materially dis- 
 proportionate to the cost, the depletion allowance shall 
 be based upon the fair market value of the property 
 at the date of the discovery, or within 30 days there- 
 after; such reasonable allowance In all the above cases 
 to be m.ade under rules and regulations to be pre- 
 scribed by the Commissioner with the approval of the 
 Secretary. In the case of leases the deductions allowed 
 by this paragraph shall be equitably apportioned be- 
 tween the lessor and lessee; 
 
 (10) In the case of insurance companies, in addi- 
 tion to the above: (a) The net addition required by 
 law to be made within the taxable year to reserve 
 funds (including in the case of assessment Insurance 
 companies the actual deposit of sums with State or 
 
 1 
 
 2 
 
 3 Depreciation 
 
 4 
 
 5 
 
 6 Special War 
 
 7 Loss and 
 
 8 Depreciation 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 1.9 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 32 
 
 33 
 
 34 
 
 35 
 
 36 
 
 37 
 
 38 
 
 39 
 
 40 
 
 41 
 
 42 
 
 43 
 
 44 
 
 45 
 
 46 
 
 47 
 
 43 
 
 49 
 
 50 
 
 51 
 
 52 
 
 53 
 
 54 Insurance Co's 
 
 55 
 
 56 
 
 57 
 
 58 
 
 77 
 
Life, Health, 
 Accident 
 
 Mutual Marine 
 Ins. Co. 
 
 Mutual Ins. 
 Other Than 
 Life or 
 Mutual 
 Marine 
 
 Deductions 
 for Special 
 Losses 
 
 1 Territorial officers pursuant to law as additions to 
 
 2 guarantee or reserve funds) ; and (b) the sums other 
 
 3 than dividends paid within the taxable year on policy 
 
 4 and annuity contracts; 
 
 B (11) In the case of corporations Issuing policies cov- 
 
 6 ering life, health and accident insurance combined in 
 
 7 one policy issued on the weekly premium payment plan 
 
 8 continuing for life and not subject to cancellation, in 
 
 9 addition to the above, such portion of the net addition 
 
 10 (not required by law) made within the taxable year to 
 
 11 reserve funds as the Commissioner finds to be required 
 19 for the protection of the holders of such policies only; 
 
 13 (12) In the case of mutual marine insurance com- 
 
 14 panics, there shall be allowed, in addition to the deduc- 
 
 15 tlons allowed In paragraphs (1) to (10), Inclusive, 
 
 16 amounts repaid to policyholders on account of premiums 
 
 17 previously paid by them, and interest paid upon such 
 
 18 amounts between the ascertainment and the payment 
 
 19 thereof; 
 
 20 (13) In the case of mutual insurance companies 
 
 21 (other than mutual life or mutual marine Insurance 
 
 22 companies) requiring their members to make premium 
 
 23 deposits to provide for losses and expenses, there shall 
 
 24 be allowed, in addition to the deductions allowed In 
 
 25 paragraphs (1) to (10), inclusive (unless otherwise al- 
 86 lowed under such paragraphs), the amount of premium 
 27 deposits returned to their policyholders and the amount 
 98 of premium deposits retained for the payment of losses, 
 
 29 expenses, and reinsurance reserves; 
 
 30 (14) (a) At the time of filing return for the taxable 
 
 31 year 1918 a taxpayer may file a claim in abatement 
 
 32 based on the fact that he has sustained a substantial 
 
 33 loss (whether or not actually realized by sale or other 
 
 34 disposition) resulting from any material reduction (not 
 
 35 due to temporary fluctuation) of the value of the in- 
 
 36 ventory for such taxable year, or from the actual pay- 
 
 37 ment after the close of such taxable year of rebates 
 
 38 in pursuance of contracts entered Into during such 
 89 year upon sales made during such year. In such case 
 ^ payment of the amount of the tax covered by such 
 
 41 claim shall not be required until the claim Is decided, 
 
 42 but the taxpayer shall accompany his claim with a bond 
 
 43 in double the amount of the tax covered by the claim, 
 
 44 with sureties satisfactory to the Commissioner, con- 
 
 45 ditloned for the payment of any part of such tax found 
 
 46 to be due, with Interest. If any part of such claim is 
 
 47 disallowed then the remainder of the tax due shall on 
 
 48 notice and demand by the Collector be paid by the tax- 
 
 49 payer with interest at the rate of 1 per centum per 
 
 50 month from the time the tax would have been due had 
 81 no such claim been filed. If it is shown to the satls- 
 88 faction of the Commissioner that such substantial loss 
 83 has been sustained, then in computing the taxes Im- 
 64 posed by this title and by Title III the amount of such 
 
 55 loss shall be deducted from thtf net Income, (b) If no 
 
 56 such claim is filed, but it Is shown to the satisfaction 
 
 57 of the Commissioner that during the taxable year 1919 
 
 58 the taxpayer has sustained a substantial loss of the 
 
 78 
 
character above described then the amount of such 1 
 loss shall be deducted from the net income for the tax- 2 
 .Die year 1918 and the taxes imposed by this title and 3 
 by Title III for such year shall be redet-ermined accord- 4 
 Ingly. Any amount found to be due to the taxpayer 6 
 upon the basis of such redetermination shall be cred- 6 
 Ited or refunded to the taxpayer in accordance with the 7 
 provisions of section 252. 8 
 
 (b) In the case of a foreign corporation the deduc- 9 Foreign 
 tion allowed in subdivision (a), except those allowed 10 Corporation 
 in paragraph (2) and in clauses (a), (b), and (c) of H Deductions 
 paragraph (3), shall be allowed only if and to the ex- 12 
 tent that they are connected with income arising from 13 
 a source within the United States; and the proper ap- 14 
 portionment and allocation of the deductions with re- 15 
 spect to sources of income within and without the 16 
 United States shall be determined under rules and regu- 1^ 
 latlons prescribed by the Commissioner with the ap- 1« 
 proval of the Secretary. 19 
 
 20 
 Items Hot Deductible 21 Items Not 
 
 22 Deductible 
 SECTION 235. That in computing net income no 23 
 deduction shall in any case be allowed In respect of 24 
 any of the Items specified in section 215. 25 
 
 26 
 Credits Allowed. 27 Credits 
 
 28 Allowed 
 SECTION 236. That for the purpose only of the 29 
 tax Imposed by section 230 there shall be allowed the 30 
 following credits: 31 
 
 (a) The amount received as Interest upon obligations 32 Interest 
 of the United States and bonds Issued by the War 33 
 Finance Corporation, which Is included In gross Income 34 
 
 under section 233; 35 
 
 (b) The amount of any taxes imposed by Title III 36 Taxes 
 for the same taxable year: Provided, That In the case 37 
 
 of a corporation which makes return for a fiscal year 38 
 beginning in 1917 and ending in 1918, in computing the 39 
 tax as provided In subdivision (a) of section 205, the 40 
 tax computed for the entire period under Title II of 41 
 the Revenue Act of 1917 shall be credited against the 42 
 net Income computed for the entire period under Title I 43 
 of the Revenue Act of 1916 as amended by the Revenue 44 
 Act of 1917 and under Title I of the Revenue Act of 45 
 1917, and the tax computed for the entire period under 46 
 Title III of this Act at the rates prescribed for the 47 
 calendar year 1918 shall be credited against the net 43 
 Income computed for the entire period under this title; ^^ 
 and FO 
 
 (c) In the case of a domestic corporation, $2,000. 51 Exemption 
 
 Payment of Tax At Source. 53 
 
 54 
 SECTION 237. That In the case of foreign corpo- 55 Foreigfn Corp. 
 rations subject to taxation under this title not en- 56 Tax on 
 gaered In trade or business within the United States 57 Income to Be 
 pnd not having any office or place of business therein, 58 Withheld 
 
 79 
 
and Paid 
 at Source 
 
 Credit for 
 Income, 
 War-Proflts 
 and Excess- 
 Profits Taxes 
 
 Satisfactory 
 Evidence 
 Required 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 34 
 38 
 36 
 37 
 38 
 39 
 40 
 41 
 42 
 43 
 44 
 48 
 
 3\ln 
 
 VMiere Fiscal 47 
 Year is Other 48 
 Tlian 49 
 
 Calendar Year 50 
 
 there shall be deducted and withheld at the source 
 the same manner and upon the same items of inconwf 
 as is provided in section 221 a tax equal to 10 per 
 centum thereof, and such tax shall be returned and 
 paid in the same manner and subject to the same con- 
 ditions as provided in that section: Provided, That 
 in the case of interest described in subdivision (b) 
 of that section the deduction and withholding shall 
 he at the rate of 2 per centum. 
 
 Credit for Taxes. 
 
 SECTION 238. (a) That in the case of a domestic 
 corporation the total taxes imposed for the taxable 
 year by this title and by Title III shall be credited 
 with the amount of any income, war-proflts and excess- 
 profits taxes paid during the taxable year to any for- 
 eign country, upon income derived from sources there- 
 in, or to any possession of the United States. 
 
 If accrued taxes when paid differ from the amounts 
 claimed as credits by the corporation, or if any tax 
 paid is refunded in whole or in part, the corporation 
 shall at once notify the Commissioner who shall re- 
 determine the amount of the taxes due under this title 
 and under Title III for the year or years affected, and 
 the amount of taxes due upon such redetermination, if 
 any, shall be paid by the corporation upon notice and 
 demand by the Collector, or the amount of taxes over- 
 paid, if any, shall be credited or refunded to the cor- 
 poration in accordance with the provisions of section 
 252. In the case of such a tax accrued but not paid, 
 the Commissioner as a condition precedent to the al- 
 lowance of this credit may require the corporation to 
 give a bond with sureties satisfactory to and to be 
 approved by him in such penal sum as he may require, 
 conditioned for the payment by the taxpayer of any 
 amount of taxes found due upon any such redetermina- 
 tlon: and the bond herein prescribed shall contain such 
 further conditions as the Commissioner may require. 
 
 (b) This credit shall be allowed only if the taxpayer 
 furnishes evidence satisfactory to the Commissioner 
 showing the amount of Income derived from sources 
 within such foreign country or such possession of the 
 United States, as the case may be, and all other in- 
 formation necessary for the computation of such 
 credit. 
 
 (c) If a domestic corporation makes a return for a 
 fiscal year beginning In 1917 and ending in 1918, only 
 that proportion of this credit shall be allowed which 
 the part of such pei'iod within the calendar year 191S 
 bears to the entire period. 
 
 63 Oorporatlon Returns. 
 
 54 
 
 Returns 65 SECTION 239. That every corporation subject to 
 
 60 taxation under this title and * every personal service 
 
 67 corporation shall make a return, stating specifically 
 
 68 the items of its gross income and the deductions and 
 
credits allowed by this title. The return shall be 1 ^ 
 
 sworn to by the president, vice-president, or other 2 ^ 
 
 principal officer and by the treasurer or assistant 3 
 treasurer. If any foreign corporation has no office or 4 
 place of business in the United States but has an 5 
 agent in the United States, the return shall be made 6 
 by the agent. In cases where receivers, trustees in 7 
 bankruptcy, or assignees are operating the property or 8 
 business of corporations, such receivers, trustees, or 9 
 assignees shall make returns for such corporations 10 
 in the same manner and form as corporations are re- 11 
 quired to make returns. Any tax due on the basis of 12 
 such returns made by receivers, trustees, or assignees 13 
 shall be collected in the same manner as if collected 14 
 from the corporations of whose business or property 15 
 they have custody and control. 16 
 
 Returns made under this section shall be subject 17 
 to the provisions of sections 226 and 228. 18 
 
 When return is made under section 226 the credit 19 
 provided in subdivision (c) of section 236 shall be 20 
 reduced to an amount which bears the same ratio to 21 
 the full credit therein provided as the number of 22 
 months in the period for which such return is made 23 
 bears to twelve months. 24 
 
 25 
 Consolidated Betnms. 26 
 
 27 
 
 SECTION 240. (a) That corporations which are af- 28 Consolidated 
 filiated within the meaning of this section shall, under 29 Returns of 
 regulations to be prescribed by the Commissioner with 30 Income and 
 the approval of the Secretary, make a consolidated re- 31 Invested 
 turn of net Income and Invested capital for the pur- 32 Capital, 
 poses of this title and Title III, and the taxes there- 33 
 under shall be computed and determined upon the 34 
 basis of such return: Provided, That there shall be 35 
 taken out of such consolidated net Income and Invested 36 
 capital, the net Income and Invested capital of any 37 
 such affiliated corporation organized after August 1, 38 
 1914, and not successor to a then existing business, 50 39 
 per centum or more of whose gross Income consists of 40 
 gains, profits, commissions, or other income, derived 41 
 from a government contract or contracts made between 42 
 April 6, 1917, and November 11, 1918, both dates inclu- 43 
 sive. In such case the corporation so taken out shall 44 
 be separately assessed on the basis of Its own invested 45 
 capital and net income and the remainder of such af-46 
 filiated group shall be assessed on the basis of the re- 47 
 maining consolidated invested capital and net income. 43 
 
 In any case In which a tax is assessed upon the 49 
 basis of a consolidated return, the total tax shall be SO 
 computed In the first Instance as a unit and shall then 51 
 be assessed upon the respective affiliated corporations 52 
 in such proportions as may be agreed upon among 53 
 them, or, in the absence of any such agreement, then 54 
 on the basis of the net Income properly assignable to 55 
 each. There shall be allowed In computing the Income 56 
 tax only one specific credit of $2,000 (as provided in 57 
 section 236); in computing the war-profits credit (as 58 
 
 81 
 
Affiliated 
 
 Corporations 
 
 Domestic 
 Corporation 
 Owning 
 Majority 
 stock of 
 Foreign 
 Corporation 
 
 1 
 
 a 
 
 3 
 
 4 
 
 6 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 16 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 24 
 
 
 26 
 
 
 27 
 
 
 28 
 
 
 29 
 
 
 80 
 
 
 31 
 
 
 82 
 
 Time and 
 
 33 
 
 Place for 
 
 34 
 
 Filing 
 
 35 
 
 Returns 
 
 36 
 
 87 
 
 40 
 41 
 48 
 
 provided in section 311) only one specific exemption 
 $3,000; and in computing the excess-profits credit (a 
 provided in section 312) only one specific exemption of 
 $3,000. 
 
 (b) For the purpose of this section two or more do- 
 mestic corporations shall be deemed to be affiliated (1) 
 if one corporation owns directly or controls through 
 closely affiliated interests or by a nominee or nominees 
 substantially all the stock of the other or others, or (2) 
 if substantially all the stock of two or more corpora- 
 tions is owned or controlled by the same interests. 
 
 (c) For the purposes of section 238 a domestic cor- 
 poration which owns a majority of the voting stock of 
 a foreign corporation shall be deemed to have paid the 
 same proportion of any income, war-profits and excess- 
 profits taxes paid (but not including taxes accrued) by 
 such foreign corporation during the taxable year to any 
 foreign country or to any possession of the United 
 States upon income derived from sources without the 
 United States, which the amount of any dividends (not 
 deductible under section 234) received by such domes- 
 tic corporation from such foreign corporation during 
 the taxable year bears to the total taxable income of 
 such foreign corporation upon or with respect to whicii 
 such taxes were paid: Provided, That in no such case 
 shall the amount of the credit for such taxes exceed 
 the amount of such dividends (not deductible under sec- 
 tion 234) received by such domestic corporation during 
 the taxable year. 
 
 Time and Place for Filing Retoms. 
 
 SECTION 241. (a) That returns of corporations 
 ;^hall be made at the same time as is provided in sun- 
 division (a) of section 227. 
 
 (b) Returns shall be made to the collector of the 
 listrict in which is located the principal place of 
 business or principal office or agency of the corpora- 
 tion, or, if it has no principal place of business or 
 itrincipal office or agency in the United States, then to 
 the collector at Baltimore, Maryland. 
 
 Payment of 
 Taxes 
 
 to be Paid 
 In Four 
 Installments 
 
 Extension of 
 Time for 
 Filinir 
 Returns 
 
 44 PAST ZV — ADMINZSTBATIVi: PROVISIONS. 
 
 48 
 
 46 Payment of Taxes. 
 
 47 
 
 48 SECTION 250. (a) That except as otherwise pro- 
 
 49 vlded in this section and sections 221 and 237 the tax 
 
 50 shall be paid In four installments, each consisting of 
 61 one-fourth of the total amount of the tax. The first 
 68 Installment shall be paid at the time fixed by law for 
 
 63 filing the return, and the second installment shall be 
 
 64 paid on the fifteenth day of the third month, the third 
 
 65 Installment on the fifteenth day of the sixth month, 
 
 66 and the fourth Installment on the fifteenth day of the 
 
 57 ninth month, after the time fixed by law for filing 
 
 58 the return. Where an extension of time for filing a 
 
return is granted the time for payment of the first in- 1 
 stallment shall be postponed until the date of the ex- 2 
 piration of the period of the extension, but the time 3 
 for payment of the other installments shall not be post- 4 
 poned unless the Commissioner so provides in granting 5 
 the extension. In any case in which the time for the 6 
 payment of any installment is at the request of the tax- 7 
 payer thus postponed, there shall be added as part 8 
 of such installment interest thereon at the rate of i^ of 9 
 1 per centum per month from the time it would have 10 
 been due if no extension had been granted, until paid. 11 
 If any installment is not paid when due, the whole 12 
 amount of the tax unpaid shall become due and pay- 13 
 able upon notice and demand by the collector. 14 
 
 The tax may at the option of the taxpayer be paid 15 
 in a single payment instead of in installments, in 16 
 which case the total amount shall be paid on or before 17 
 the time fixed by law for filing the return, or, where an 18 
 extension of time for filing the return has been granted, 19 
 on or before the expiration of the period of such ex- 20 
 tension. 21 
 
 (b) As soon as practicable after the return is filed, 22 
 the Commissioner shall examine it. If it then appears 23 
 that the correct amount of the tax is greater or less 23 
 than that shown in the return, the installments shall 26 
 be recomputed. If the amount already paid exceedsj26 
 that which should have been paid on the basis of the! 27 
 
 Tax May be 
 Paid in 
 Single 
 Payment 
 
 Excess 
 
 Installment 
 Payment 
 
 installments as recomputed, the excess so paid shall 
 
 When 
 
 Installment 
 Payment is 
 Too Small 
 
 be credited against the subsequent installments; and 29 
 If the amount already paid exceeds the correct amount 30 
 of the tax, the excess shall be credited or refunded tO|31 
 the taxpayer in accordance with the provisions of[32 
 section 252. 
 
 If the amount already paid is less than that which 
 should have been paid, the difference shall, to the 
 extent rot covered by any credits then due to the 36 
 taxpayer under section 252, be paid upon notice and[37 
 demand by the collector. In such case if the return 
 is made in good faith and the understatement of the 
 amount in the return is not due to any fault of the 
 taxpayer, there shall be no penalty because of such 
 understatement. If the understatement is due to negli- 
 gence on the part of the taxpayer, but without intent to 
 defraud, there shall be added as part of the tax 5 per 
 centum of the total amount of the deficiency, plusi45 
 interest at the rate of 1 per centum per month on. 46 
 the amount of the deficiency of each installment fi'om.47 
 the time the Installment was due. {48 
 
 If the understatement is false or fraudulent with 49 False or 
 intent to evade the tax, then, in lieu of the penalty 50 Fraudulent 
 provided by section 3176 of the Revised Statutes, as 51 Understate- 
 Rmended, for false or fraudulent returns willfully 52 ment 
 made, but in addition to other penalties provided by 53 
 law for false or fraudulent returns, there shall be 64 
 added as part of the tax 50 per centum of the amount 66 
 of the deficiency. 56 Payment on 
 
 (c) If the return is made pursuant to section 3176 67 Notice and 
 of the Kevised Statutes as amended, the amount of 68 Demand 
 
 28 
 
 83 
 
1 tax determined to be due under such return shall be 
 
 2 paid upon notice and demand by the collector. 
 Assessment May 3 (d) Except In the case of false or fraudulent re- 
 Be Made 4 turns with Intent to evade the tax, the amount of 
 Within Five 5 tax due under any return shall be determined and 
 Years 6 assessed by the Commissioner within five years after 
 
 7 the return was due or was made, and no suit or pro- 
 
 8 ceeding for the collection of any tax shall be begun 
 
 9 after the expiration of five years after the date when 
 10 the return was due or was made. In the case of such 
 H false or fraudulent returns, the amount of tax due 
 
 12 may be determined at any time after the return Is 
 
 13 filed, and the tax may be collected at any time after 
 
 14 it becomes due. 
 
 Unpaid taxes 15 (e) If any tax remains unpaid after the date when 
 
 16 it Is due, and for ten days after notice and demand 
 
 17 by the collector, then, except In the case of estates 
 
 18 of Insane, deceased, or Insolvent persons, there shall 
 
 19 be added as part of the tax the sum of 5 per centum 
 
 20 on the amount due but unpaid, plus Interest at the 
 
 21 rate of 1 per centum per month upon such amount from 
 
 22 the time It became due: Provided, That as to any 
 
 23 such amount which Is the subject of a bona fide claim 
 
 24 for abatement such sum of 5 per centum shall not 
 
 25 be added and the Interest from the time the amount 
 
 26 was due until the claim Is decided shall be at the rate 
 
 27 of % of 1 per centum per month. 
 
 28 In the case of the first Installment provided for In 
 
 29 subdivision (a) the Instructions printed on the return 
 
 30 shall be deemed sufficient notice of the date when 
 
 31 the tax Is due and sufficient demand, and the tax- 
 
 32 payers' computation of the tax on the return shall 
 
 33 be deemed sufficient notice of the amount due. 
 
 34 (f) In any case In which In order to enforce pay- 
 
 35 ment of a tax It is necessary for a collector to cause 
 
 36 a warrant of distraint to be served, there shall also 
 87 be added as part of the tax the sum of $5. 
 
 Evasion of tax 38 (g) If the Commissioner finds that a taxpayer de- 
 89 signs quickly to depart from the United States or to 
 
 40 remove his property therefrom, or to conceal himself 
 
 41 or his property therein, or to do any other act tending 
 
 42 to prejudice or to render wholly or partly Ineffectual 
 
 43 proceedings to collect the tax for the taxable year 
 
 44 then last past or the taxable year then current unless 
 
 45 such proceedings be brought without delay, the Com- 
 
 46 missioner shall declare the taxable period for such 
 
 47 taxpayer terminated at the end of the calendar month 
 
 48 then last past and shall cause notice of such finding 
 
 49 and declaration to be given the taxpayer, together 
 60 with a demand for Immediate payment of the tax for 
 51 the taxable period so declared terminated and of the 
 68 tax for the preceding taxable year or so much of said 
 53 tax as Is unpaid, whether or not the time otherwise 
 64 allowed by law for filing return and paying the tax 
 
 55 has expired: and such taxes shall thereupon become 
 
 56 immediately due and payable. Ifi any action or suit 
 
 57 brought to enforce payment of taxes made due and 
 68 payable by virtue of the provisions of this sub 
 
 84 
 
division the finding of the Commissioner, made as 1 
 herein provided, whether made after notice to the tax- 2 
 payer or not, shall be for all purposes presumptive 3 
 evidence of the taxpayer's design. A taxpayer who 4 
 is not in default in making any return or paying in- 6 
 come, war profits, or excess-profits tax under any Act 6 
 of Congress may furnish to the United States, under 7 
 regulations to be prescribed by the Commissioner with 8 
 the approval of the Secretary, security approved by 9 
 the Commissioner that he will duly make the return 10 
 next thereafter required to be filed and pay the tax 11 
 next thereafter required to be paid. The Commissioner 12 
 may approve and accept in like manner security for 13 
 return and payment of taxes made due and payable 14 
 by virtue of the provisions of this subdivision, pro- 15 
 vided the taxpayer has paid in full all other income, 16 
 war profits, or excess-profits taxes due from him under 17 
 any Act of Congress. If security is approved and 18 
 accepted pursuant to the provisions of this subdivision 19 
 and such further or other security with respect to the 20 
 tax or taxes covered thereby is given as the Commis- 21 
 sioner shall from time to time find necessary and 22 
 require, payment of such taxes shall not be enforced 23 
 by any proceedings under the provisions of this sub- 24 
 division prior to the expiration of the time otherwise 25 
 allowed for paying such respective taxes. 26 
 
 27 
 Receipts for Taxes. 28 
 
 29 
 
 SECTION 251. That every collector to whom any 30 Receipts for 
 payment of any tax is made under the provisions of 31 Taxes Given 
 this title shall upon request give to the person mak- 32 Upon 
 Ing such payment a full written or printed receipt, 33 Request 
 stating the amount paid and the particular account for 34 
 which such payment was made; and whenever any 35 
 debtor pays taxes on account of payments made or to 36 
 be made by him to separate creditors the collector shall, 37 
 if requested by such debtor, give a separate receipt for 38 
 the tax paid on account of each creditor in such form 39 
 that the debtor can conveniently produce such receipts 40 
 separately to his several creditors in satisfaction of 41 
 their respective demands up to the amounts stated in 42 
 the receipts; and such receipt shall be sufficient evi- 43 
 dence in favor of such debtor to justify him in with- 44 
 holding from his next payment to his creditor the 45 
 amount therein stated; but the creditor may, upon 46 
 giving to his debtor a full written receipt acknowledg- 47 
 Ing the payment to him of any sum actually paid and 48 
 accepting the amount of tax paid as aforesaid (specify- 49 
 ing the same) as a further satisfaction of the debt to 50 
 that amount, require the surrender to him of such col- 51 
 lector's receipt. 52 
 
 Refunds. 63 
 
 64 
 
 SECTION 252. That if, upon examination of any re- 55 Refund of Tax 
 turn of Income made pursuant to this Act, the Act of 56 
 August 5, 1909, entitled "An Act to provide revenue, 57 
 equalize duties, and encourage the industries of the 58 
 
 85 
 
Penalties 
 
 1 
 
 a 
 s 
 
 4 
 
 6 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 16 
 
 16 
 
 17 
 
 18 
 
 19 
 
 ao 
 
 21 
 22 
 23 
 24 
 26 
 26 
 27 
 28 
 29 
 30 
 31 
 
 37 
 
 United States, and for other purposes," the Act of Oc- 
 tober 3, 1913, entitled "An Act to reduce tariff duties 
 and to provide revenue for the Government, and for 
 other purposes," the Revenue Act of 1916, as amended, 
 or the Revenue Act of 1917, it appears that an amount 
 of income, war profits or excess-profits tax has been 
 paid in excess of that properly due, then, notwithstand- 
 ing the provisions of section 3228 of the Revised Stat- 
 utes, the amount of the excess shall be credited against 
 any income, war profits or excess-profits taxes, or in- 
 stallment thereof, then due from the taxpayer under 
 any other return, and any balance of such excess shall 
 be immediately refunded to the taxpayer: Provided, 
 That no such credit or refund shall be allowed or made 
 after five years from the date when the return was due, 
 unless before the expiration of such five years a claim 
 therefor is filed by the taxpayer. 
 
 Penalties. 
 
 SECTION 253. That any Individual, corporation, or 
 partnership required under this title to pay or collect 
 any tax, to make a return or to supply information, 
 who fails to pay or collect such tax, to make such re- 
 turn, or to supply such information at the time or 
 times required under this title, shall be liable to a 
 penalty of not more than $1,000. Any individual, cor- 
 poration, or partnership, or any officer or employee of 
 any corporation or member or employee of a partner- 
 ship, who willfully refuses to pay or collect such tax, 
 to make such return, or to supply such information at 
 the time or times required under this title, or who will- 
 fully attempts in any manner to defeat or evade the 
 tax imposed by this title, shall be guilty of a mis- 
 demeanor and shall be fined not more than $10,000 or 
 imprisoned for not more than one year, or both, to- 
 gether with the costs of prosecution. 
 
 39 Returns of Payments of Dividends. 
 
 40 
 
 Return of 41 SECTION 254. That every corporation subject to the 
 
 Payments of 42 tax imposed by this title and every personal service 
 Dividends 43 corporation shall, when required by the Commissioner, 
 
 44 render a correct return duly verified under oath, of its 
 
 45 payments of dividends, stating the name and address 
 
 46 of each stockholder, the number of shares owned by 
 
 47 him, and the amount of dividends paid to him. 
 48 
 
 ^^ Betnms of Broilers. 
 
 50 
 Brokern— bi SECTION 255. That every individual, corporation, or 
 
 Returns of 52 partnership doing business as a broker shall, when re- 
 
 63 quired by the Commissioner, render a correct return 
 
 64 duly verified under oath, under such rules and regula- 
 
 65 tlons as the Commissioner, with the approval of the 
 
 66 Secretary, may prescribe, showing the names of cus- 
 
 67 tomers for whom such Individual, corporation, or part- 
 
 68 nership has transacted any business, with such details 
 
 86 
 
as to the profits, losses or other information which the 
 Commissioner may require, as to each of such cus- 
 tomers, as will enable the Commissioner to determine 
 whether all income tax due on profits. X)r gains ot such 
 customers has been paid. 
 
 Information at Source. 
 
 1 
 2 
 3 
 4 
 6 
 6 
 7 
 8 
 SECTION 256, That all individuals, corporations, 9 
 and partnerships, in whatever capacity acting, includ- 10 
 ing lessees or mortgagors of real or personal property, 11 
 fiduciaries, and employers, making payment to another 12 
 individual, corporation, or partnership, of interest, rent, 13 
 salaries, wages, premiums, annuities, compensations, re- 14 
 munerations, emoluments, or other fixed, or determin- 15 
 able gains, profits, and income (other than payments 16 
 described in sections 254 and 255), of $1,000 or more in 17 
 any taxable year, or, in the case of such payments made 18 
 by the United States, the officers or employees of the 19 
 United States having information as to such payments 20 
 and required to make returns in regard thereto by the 21 
 regulations hereinafter provided for, shall render a true 22 
 and accurate return to the Commissioner, under such 23 
 regulations and in such form and manner and to such 24 
 extent as may be prescribed by him with the approval 25 
 of the Secretary, setting forth the amount of such 26 
 gains, profits, and income, and the name and address 27 
 of the recipient of such payment. 23 
 
 Such returns may be required, regardless of amounts, 29 
 (1) in the case of payments of interest upon bonds, 30 
 mortgages, deeds of trust, or other similar obligations 31 
 of corporations, and (2) in the case of collections of 32 
 items (not payable in the United States) of interest 33 
 upon the bonds of foreign countries and interest upon 34 
 the bonds of and dividends from foreign corporations 35 
 by individuals, corporations, or partnerships, undertak- 36 
 Ing as a matter of business or for profit the collection 37 
 of foreign payments of such interest or dividends by 38 
 means of coupons, checks, or bills of exchange. 39 
 
 When necessary to make effective the provisions of 40 
 this section the naine and address of the recipient of 41 
 income shall be furnished upon demand of the Individ 42 
 ual, corporation, or partnership paying the income. 43 
 
 The provisions of this section shall apply to the cal- 44 
 endar year 1918 and each calendar year thereafter, but 45 
 shall not apply to the payment of interest on obliga- 46 
 tions of the United States. 47 
 
 48 
 Returns to be Fulilic Records. 49 
 
 50 
 SECTION 257. That returns upon which the tax has 51 
 been determined by the Commissioner shall constitute 52 
 public records; but they shall be open to inspection only 53 
 upon order of the President and under rules and regu- 54 
 lations prescribed by the Secretary and approved by 55 
 the President: Provided, That the proper officers of 56 
 any State Imposing an income tax may, upon the re- 57 
 quest of the governor thereof, have access to the re- 58 
 
 Information 
 Source 
 Return of 
 Required 
 
 at 
 
 Payments of 
 Interest on 
 Bonds, 
 Mortgages 
 Etc. 
 
 Returns to be 
 Public 
 Records 
 
 87 
 
1 turns of any corporation, or to an abstract thereof 
 
 2 showing the name and income of the corporation, at 
 
 3 such times and in such manner as the Secretary may 
 Examination of 4 prescribe: Provided further, That all bona fide stock- 
 Returns by B holders of record owning 1 per centum or more of the 
 Stockholders 6 outstanding stock of any corporation shall, upon mak- 
 
 7 ing request of the Commissioner, be allowed to examine 
 
 8 the annual income returns of such corporation and of 
 
 9 its subsidiaries. Any stockholder who pursuant to the 
 
 10 provisions of this section is allowed to examine the re- 
 
 11 turn of any corporation, and who makes known in any 
 
 12 manner whatever not provided by law the amount or 
 
 13 source of income, profits, losses, expenditures, or any 
 
 14 particular thereof, set forth or disclosed in any such 
 
 15 return, shall be guilty of a misdemeanor and be pun- 
 
 16 ished by a fine not exceeding $1,000, or by imprison- 
 
 17 ment not exceeding one year, or both. 
 
 List of Persons 18 The Commissioner shall as soon as practicable in 
 Making 19 each year cause to be prepared and made available to 
 
 Returns 80 public inspection in such manner as he may determine, 
 
 81 in the office of the collector in each internal-revenue 
 88 district and in such other places as he may determine, 
 88 lists containing the names and the post-office addresses 
 84 of all individuals making income-tax returns in such 
 86 district. 
 
 86 Publication of Statistics. 
 
 27 
 Publication of 88 SECTION 258. That the Commissioner, with the ap- 
 Statistics 89 proval of the Secretary, shall prepare and publish an- 
 
 80 nually statistics reasonably available with respect to 
 31 the operation of the income, war profits and excess- 
 88 profits tax laws, including classifications of taxpayers 
 83 and of income, the amounts allowed as deductions, ex- 
 •4 emptions, and credits, and any other facts deemed per- 
 86 tlnent and valuable. 
 
 86 
 
 97 Collection of Poreign Items. 
 
 88 
 
 Collection of 39 SECTION 259. That all individuals, corporations, or 
 
 Foreign 40 partnerships undertaking as a matter of business or 
 
 Items 41 for profit the collection of foreign payments of Interest 
 
 4ii or dividends by means of coupons, checks or bills of 
 
 48 exchange shall obtain a license from the Commissioner 
 
 44 and shall be subject to such regulations enabling the 
 
 *S Government to obtain the information required under 
 
 48 this title as the Commissioner, with the approval of the 
 
 47 Secretary, shall prescribe; and whoever knowingly un- 
 
 48 dertakes to collect such payments without having ob- 
 48 tained a license therefor, or without complying with 
 M such regulations, shall be guilty of a misdemeanor and 
 
 81 shall be fined not more than $5,000, or imprisoned for 
 88 not more than one year, or both. 
 
 68 
 
 64 Citizens of United States Possessions. 
 
 60 
 Citizens of U. S. 56 SECTION 260. That any individual who is a citizen 
 Possessions 57 of any possession of the United States (but not other- 
 58 wise a citizen of the United States) and who Is not 
 
 88 
 
a resident of the United States, shall be subject to 1 
 taxation under this title only as to income derived from 2 
 sources with the United States, and,, in such case the 3 
 tax shall be computed and paid in the same manner 4 
 and subject to the same conditions as In the case of 5 
 other persons who are taxable only as to income derived 6 
 from such sources. 7 
 
 8 
 Porto Rico and Philippine Islands. 9 
 
 10 
 SECTION 261. That in Porto Rico and the Philip- 11 Porto Rico, 
 pine Islands the income tax shall be levied, assessed, 12 Philippine 
 collected, and paid in accordance with the provisions of 13 Islands 
 the Revenue Act of 1916 as amended. 14 
 
 Returns shall be made and taxes shall be paid under 15 . 
 Title I of such Act in Porto Rico or the Philippine 16 
 Islands, as the case may be, by (1) every Individual 17 
 who is a citizen or resident of Porto Rico or the Philip- 18 
 pine Islands or derives Income from sources therein, 13 
 and ( 2 ) every corporation created or organized In Porto 20 
 Rico or the Philippine Islands or deriving income from 21 
 sources therein. An Individual who Is neither a citizen 22 
 nor a resident of Porto Rico or the Philippine Islands 23 
 but derives income from sources therein, shall be taxed 24 
 In Porto Rico or the Philippine Islands as a non-resi- 25 
 dent alien individual, and a corporation created or or- 26 
 ganized outside Porto Rico or the Philippine Islands 27 
 and deriving income from sources therein shall be taxed 28 
 In Porto Rico or the Philippine Islands as a foreign 29 
 corporation. For the purposes of section 216 and of 30 
 paragraph (6) of subdivision (a) of section 234 a tax 31 
 Imposed in Porto Rico or the Philippine Islands upon 32 
 the net Income of a corporation shall not be deemed 33 
 to be a tax under this title. 34 
 
 The Porto Rican or Philippine Legislature shall have 85 
 power by due enactment to amend, alter, modify, or re- 36 
 peal the Income tax laws In force in Porto Rico or the 37 
 Philippine Islands, respectively. 38 
 
 89 
 
 40 
 TITLE III.— WAR-PROFITS AND EXCESS-PROFITS 41 War-Profits & 
 TAX. 42 Bxcess- 
 
 43 Profits Tax 
 PART Z.— aSNERAZ. DEPINXTZOITS. 44 
 
 45 
 SECTION 300. That when used in this title the 46 Definitions 
 terms "taxable year," "fiscal year," "personal service 47 
 corporation," "paid or accrued," and "dividends" shall 48 
 have the same meaning as provided for the purposes 49 
 of Income tax in sections 200 and 201. The first tax- 50 
 able year for the purposes of this title shall be the 51 
 same as the first taxable year for the purposes of the 52 
 income tax under Title II. 53 
 
 54 
 PART ZZ.— -IMPOSITZOIT OP TAX. 55 Imposition of 
 
 56 Tax 
 SECTION 301. (a) That In lieu of the tax Imposed 57 
 by Title II of the Revenue Act of 1917, but In addi- 58 
 
1 tlon to the other taxes imposed by this Act, there shall 
 
 2 be levied, collected, and paid for the taxable year 1918 
 
 3 uDon the net income of everv corooration a tax equal 
 
 4 to the sum of the following: 
 6 
 
 First Bracket 6 Pirst Bracket. 
 
 7 
 
 8 30 per centum of the amount of the net income in 
 
 9 excess of the excess-profits credit (determined under 
 
 10 section 312) and not in excess of 20 per centum of the 
 
 11 invested capital; 
 
 Second Bracket 12 Second Bracket. 
 
 13 
 
 14 65 per centum of the amount of the net income in 
 
 15 excess of 20 per centum of the invested capital; 
 16 
 
 Third Bracket 17 Third Bracket. 
 
 18 
 
 19 The sum, if any, by which 80 per centum of the 
 
 20 amount of the net income in excess of the war-profits 
 
 21 credit (determined under section 311) exceeds the 
 
 22 amount of the tax computed under the first and second 
 
 23 brackets. 
 
 24 (b) For the taxable year 1919 and each taxable year 
 26 thereafter there shall be levied, collected, and paid upon 
 
 26 the net income of every corporation (except corpora- 
 
 27 tions taxable under subdivision (c) of this section) a 
 
 28 tax equal to the sum of the following: 
 29 
 
 First Bracket 30 Pirst Bracket. 
 
 31 
 
 32 20 per centum of the amount of the net income in 
 
 33 excess of the excess-profits credit (determined under 
 
 34 r-;ection 312) and not in excess of 20 per centum of the 
 
 35 invested capital'; 
 
 Second Bracket 36 Second Bracket. 
 
 37 
 
 38 40 per centum of the amount of the net income in ex- 
 
 39 crss of 20 per centum of the invested capital. 
 
 Year 1919 40 (c) For the taxable year 1919 and each taxable year 
 
 41 thereafter there shall be levied, collected, and paid upon 
 
 42 the net income of every corporation which derives in 
 
 43 such year a net income of more than $10,000 from any 
 
 44 fovernment contract or contracts made between April 
 
 45 6. 3917, and November 11, 1918, both dates inclusive, a 
 
 46 tax equal to the sum of the following: 
 
 47 (1) Such a portion of a tax computed at the rates 
 
 48 specified in subdivision (a) as the part of the net in- 
 
 49 come attributable to such government contract or con- 
 
 50 tracts bears to the entire net income. In computing 
 81 such tax the excess-profits credit and the war-profits 
 52 credit applicable to the taxable year shall be used; 
 
 88 (2) Such a portion of a tax computed at the rates 
 
 54 specified In subdivision (b) as the part of the net In- 
 
 55 come not attributable to such government contract or 
 
 66 contracts bears to the entire net income. 
 
 67 For the purpose of determining the part of the net 
 
 68 income attributable to such government contract or 
 
 90 
 
contracts, the proper apportionment and allocation of 1 
 the deductions with respect to gross income derived 2 
 from such government contract or contracts and from 3 
 other sources, respectively, shall be determined under 4 
 rules and regulations prescribed by the Commissioner 5 
 with the approval of the Secretary. 6 
 
 (d) In any case where the full amount of the excess- 7 
 profits credit is not allowed under the first bracket of 8 
 subdivision (a) or (b), by reason of the fact that such 9 
 credit is in excess of 20 per centum of the invested 10 
 capital, the part not so allowed shall be deducted from 11 
 the amount in the second bracket. 12 
 
 (e) For the purposes of the Act approved March 21, 13 
 1918, entitled "An Act to provide for the operation of 14 
 transportation systems while under Federal control, for 15 
 the just compensation of their owners and for other 16 
 purposes," the tax imposed by this title shall be treated 17 
 as levied by an Act in amendment of Title II of the 18 
 Revenue Act of 1917. 19 
 
 SECTION 302. That the tax imposed by subdivision 20 Limitation of 
 (a) of section 301 shall in no case be more than 30 per 21 Amount of 
 centum of the amount of the net income in excess of 22 Tax 
 $3,000 and not in excess of $20,000, plus 80 per centum 23 
 of the amount of the net income in excess of $20,000; 24 
 the tax imposed by subdivision (b) of section 301 25 
 shall in no case be more than 20 per centum of the 26 
 amount of the net income in excess of $3,000 and not 27 
 in excess of $20,000, plus 40 per centum of the amount 28 
 of the net income in excess of $20,000; and the above 29 
 limitations shall apply to the taxes computed under 30 
 subdivisions (a) and (b) of section 301, respectively, 31 
 when used in subdivision (c) of that section. Nothing 32 
 in this section shall be construed in such manner as to 33 
 increase the tax imposed by section 301. 34 
 
 SECTION 303. That if part of the net income of a 35 Separate 
 corporation is derived (1) from a trade or business (or 36 Corporation 
 a branch of a trade or business) in which the employ- 37 Where Part 
 ment of capital Is necessary, and (2) a part (constltut- 38 of Business 
 ing not less than 30 per centum of Its total net Income) 39 Requires No 
 is derived from a separate trade or business (or a dis- 40 Capital 
 tinctly separate branch of the trade or business) which 41 
 if constituting the sole trade or business would bring 42 
 it within the class of "personal service corporations," 43 
 then (under regulations prescribed by the Commissioner 44 
 with the approval of the Secretary) the tax upon the 45 
 first part of such net income shall be separately com- 46 
 puted (allowing in such computation only the same 47 
 proportionate part of the credits authorized In sec- 48 
 tions 311 and 312), and the tax upon the second part 49 
 shall be the same percentage thereof as the tax so com- 50 
 puted upon the first part is of such first part: Provided, 51 
 That the tax upon such second part shall In no case be 52 
 less than 20 per centum thereof, unless the tax upon the 53 
 entire net Income, if computed without benefit of this 54 
 section, would constitute less than 20 per centum of 55 
 such entire net income, in which event the tax shall be 56 
 determined upon the entire net income, without refer- 57 
 ence to this section, as other taxes are determined 58 
 
 91 
 
Exempt 
 Corporations 
 
 Gold Mining 
 Corporations 
 Exempt to 
 Certain 
 Extent 
 
 New 
 Corporations 
 
 Credits 
 Allowed 
 
 1 under this title. The total tax computed under thla 
 
 2 section shall be subject to the limitations provided m 
 
 3 section 302. 
 
 4 SECTION 304. (a) That the corporations enumerat- 
 6 ed in section 231 shall, to the extent that they are ex- 
 
 6 empt from income tax under Title II, be exempt from 
 
 7 taxation under this title. 
 
 8 (b) Any corporation whose net income for the taxable 
 
 9 year is less than $3,000 shall be exempt from taxation 
 
 10 under this title. 
 
 11 (c) In the case of any corporation engaged In the 
 
 12 mining of gold, the portion of the net income derived 
 
 13 from the mining of gold shall be exempt from the tax 
 
 14 imposed by this title, and the tax on the remaining 
 
 15 portion of the net income shall be the proportion of a 
 
 16 tax computed without the benefit of this subdivision 
 
 17 which such remaining portion of the net income bears 
 
 18 to the entire net income. 
 
 19 SECTION 305. That if a tax is computed under this 
 
 20 title for a period of less than twelve months, the 
 
 21 specific exemption of $3,000, wherever referred to in 
 
 22 this title, shall be reduced to an amount which is the 
 
 23 same proportion of $3,000 as the number of months 
 
 24 in the period is of twelve months. 
 25 
 
 26 
 
 27 PART IZZ.— CREDITS. 
 
 28 
 
 29 SECTION 310. That as used in this title the term 
 
 30 "prewar period" means the calendar years 1911, 1912, 
 
 31 and 1913, or, if a corporation was not in existence dur- 
 
 32 ing the whole of such period, then as many of such 
 
 33 years during the whole of which the corporation was 
 
 34 in existence. 
 
 35 SECTION 311. (a) That the war-profits credit shall 
 
 36 consist of the sum of: 
 
 37 (1) A specific exemption of $3,000; and 
 
 38 (2) An amount equal to the average net Income of 
 89 the corporation for the prewar period, plus or minus, 
 
 40 as the case may be, 10 per centum of the difference be- 
 
 41 tween the average invested capital for the prewar 
 
 42 period and the Invested capital for the taxable year. If 
 
 43 the tax Is computed for a period of less than twelve 
 
 44 months such amount shall be reduced to the same 
 
 45 proportion thereof as the number of months In the 
 
 46 period is of twelve months. 
 
 47 (b) If the corporation had no net income for the pre- 
 
 48 war period, or if the amount computed under paragraph 
 
 49 (2) of subdivision (a) is less than 10 per centum of Its 
 
 50 Invested capital for the taxable year, then the war- 
 
 61 profits credit shall be the sum of: 
 
 62 (1) A specific exemption of $3,000; and 
 
 63 (2) An amount equal to 10 per centum of the In- 
 
 64 vested capital for the taxable year. 
 
 5S (c) If the corporation was not In existence during 
 66 the whole of at least one calendar year during the 
 87 prewar period, then, except as provided in subdivision 
 68 (d), the war-profits credit shall be the sum of: 
 
(1) A specific exemption of $3,000; and 1 
 
 (2) An amount equal to the same percentage of the 2 
 invested capital of the taxpayer for the taxable year 3 
 as the average percentage of net Income to invested 4 
 capital, for the prewar period, of corporations engaged 6 
 in a trade or business of the same general class aa 6 
 that conducted by the taxpayer; but such amount shall 7 
 in no case be less than 10 per centum of the invested 8 
 capital of the taxpayer for the taxable year. Such 9 
 average percentage shall be determined by the Com- LO 
 missloner on the basis of data contained in return Ji 11 
 made under Title II of the Revenue Act of 1917, anvl 12 
 the average known as the median shall be used. If 13 
 such average percentage has not been determined and 14 
 published at least 30 days prior to the time when tb<e IE 
 return of the taxpayer is due, then for purposes of 16 
 such return 10 per centum shall be used in lieu there- 17 
 of; but such average percentage when determined shall 18 
 be used for the purposes of section 250 in determining 19 
 the correct amount of the tax. 20 
 
 (d) The war-profits credit shall be determined in the 21 
 manner provided in subdivision (b) instead of in the 22 
 manner provided in subdivision (c), in the case of any 23 
 corporation which was not in existence during the 24 
 whole of at least one calendar year during the prewar 25 
 period, if (1) a majority of its stock at any time during 26 
 the taxable year is owned or controlled, directly or in- 27 
 directly, by a corporation which was in existence dur-28 
 ing the whole of at least one calendar year during the 29 
 prewar period, or if (2) 50 per centum or more of its 30 
 gross income (as computed under section 233 for in- 31 
 come tax purposes) consists of gains, profits, commis-32 
 sions, or other income, derived from a government con- 33 
 tract or contracts made between April 6, 1917, and No- 34 
 vember 11, 1918, both dates inclusive. 35 
 
 (e) A foreign corporation shall not be entitled to a 36 
 specific exemption of $3,000. 37 
 
 38 
 SECTION 312. That the excess-profits credit shall 39 Foreign 
 consist of a specific exemption of $3;000 plus an amount 40 Corporation 
 equal to 8 per centum of the invested capital for the 41 
 taxable year. 42 
 
 A foreign corporation shall not be entitled to the 43 
 specific exemption of $3,000. 44 
 
 45 
 46 
 47 
 PART TV.— NUT INCOME. 48 Net Income 
 
 49 How 
 SECTION 320. (a) That for the purpose of this 50 Computed 
 title the net income of a corporation shall be ascer-51 
 tained and returned — 52 
 
 (1) For the calendar years 1911 and 1912 upon the 53 
 same basis and in the same manner as provided in 54 
 section 38 of the Act entitled "An Act to provide 55 
 revenue, equalize duties, and encourage the Industries 56 
 of the United States, and for other purposes," ap-57 
 proved August 5, 1909, except that taxes imposed by 58 
 
 93 
 
1 such section and paid by the corporation within tne 
 
 2 year shall be included; 
 
 3 (2) For the calendar year 1913 upon the same basis 
 
 4 and in the same manner as provided in Section II of 
 6 the Act entitled "An Act to reduce tariff duties and 
 
 6 to provide revenue for the Government, and for other 
 
 7 purposes," approved October 3, 1913, except that taxes 
 
 8 imposed by section 38 of such Act of August 5, 1909, 
 8 and paid by the corporation within the year shall 
 
 10 be included, and except that the amounts received 
 
 11 by it as dividends upon the stock or from the net 
 18 earnings of other corporations subject to the tax im- 
 
 13 posed by Section II of such Act of October 3, 1913, 
 
 14 shall be deducted; and 
 
 15 (3) For the taxable year upon the same basis and 
 
 16 in the same manner as provided for income tax pur- 
 
 17 poses in Title II of this Act. 
 
 18 (b) The average net income for the prewar period 
 
 19 shall be determined by dividing the number of years 
 80 within that period during the whole of which the corpo- 
 
 21 ration was in existence into the sum of the net Income 
 
 22 for such years, even though there may have been no net 
 
 23 income for one or more of such years. 
 
 24 
 86 
 86 
 
 ZnveBtttd Capital 27 
 
 FART v.— INVESTED CAPITAI.. 
 
 "Intangible 
 Property" 
 
 "Tangrible 
 Property" 
 
 'Borrowed 
 Capital" 
 
 'Inadmissible 
 Assets" 
 
 Stock of No Par 
 Value 
 
 29 SECTION 325. (a) That as used in this title— 
 
 30 The term "intangible property" means patents, copy- 
 
 31 rights, secret processes and formulae, good will, trade - 
 
 32 marks, trade-brands, franchises, and other like property; 
 
 33 The term "tangible property" means stocks, bonds, 
 
 34 notes, and other evidences of indebtedness, bills and 
 
 35 accounts receivable, leaseholds, and other property other 
 
 36 than intangible property; 
 
 37 The term "borrowed capital" means money or other 
 
 38 property borrowed, whether represented by bonds, notes, 
 
 39 open accounts, or otherwise; 
 
 40 The term "inadmissible assets" means stocks, bonds, 
 
 41 and other obligations (other than obligations of the 
 48 United States), the dividends or interest from which 
 
 43 is not included in computing net income, but where the 
 
 44 Income derived from such assets consists in part of 
 
 45 gain or profit derived from the sale or other disposl- 
 
 46 tion thereof, or where all or part of the interest de- 
 
 47 rived from such assets Is in effect included In the 
 
 48 net Income because of the limitation on the deduction 
 
 49 of Interest under paragraph (2) of subdivision (a) of 
 60 section 234, a corresponding part of the capital in- 
 51 vested In Such assets shall not be deemed to be inad- 
 52*mlsslble assets. The term "admissible assets" means 
 63'all assets other than Inadmissible assets, valued In 
 54iaccordance with the provisions of subdivision (a) of 
 56»sectlon 826, section 830, and section 331. 
 
 56 (b) For the purpose of this title, the par value of 
 87fstock or shares shall, In the case of stock or shares 
 68 issued at a nominal value or having no par value, be 
 
 94 
 
deemed to be the fair market value as of the date or 
 dates of issue of such stock or shares. 
 
 SECTION 326. (a) That as used^in this title the 4 Definition of 
 term "invested capital" for any year means (except as 5 "Invested 
 provided in subdivisions (b) and (c) of this section): 6 Capital" 
 
 (1) Actual cash bona fide paid in for stock or shares; 7 
 
 (2) Actual cash value of tangible property, other 8 
 than cash, bona fide paid in for stock or shares, at the 9 
 time of such payment, but in no case to exceed the 10 
 par Value of the original stock or shares specifically 11 
 issued therefor, unless the actual cash value of such 12 
 tangible property at the time paid in is shown to the 13 
 satisfaction of the Commissioner to have been clearly 14 
 and substantially in excess of such par value, in which 15 
 case such excess shall be treated as paid-in surplus: 16 
 Provided, That the Commissioner shall keep a record 17 
 of all cases in which tangible property is included in 18 
 invested capital at a value in excess of the stock or 19 
 shares issued therefor, containing the name and ad- 20 
 dress of each taxpayer, the business in which engaged, 21 
 the amount of invested capital and net income shown 22 
 by the return, the value of the tangible property at the 23 
 time paid in, the par value of the stock or shares spe- 24 
 cifically issued therefor, and the amount included un- 25 
 der this paragraph as paid-in surplus. The Commis- 26 
 sioner shall furnish a copy of such record and other 27 
 detailed information with respect to such cases when 28 
 required by resolution of either House of Congress, 29 
 without regard to the restrictions contained in section 20 
 257; 31 
 
 (3) Paid-in or earned surplus and undivided profits; 32 
 not including surplus and undivided profits earned dur- 33 
 ing the year; 34 
 
 (4) Intangible property bona fide paid in for stock 35 
 or shares prior to March 3, 1917, in an amount not 36 
 exceeding (a) the actual cash value of such property 37 
 at the time paid in, (b) the par value of the stock or 38 
 shares issued therefor, or (c) in the aggregate 25 per 39 
 centum of the par value of the total stock or shares 40 
 of the corporation outstanding on March 3, 1917, which- 41 
 ever is lowest; 42 
 
 (5) Intangible property bona fide paid in for stock 43 
 or shares on or after March 3, 1917, in an amount not 44 
 exceeding (a) the actual cash value of such property at 45 
 the time paid in, (b) the par value of the stock or 46 
 shares issued therefor, or (c) in the aggregate 25 per 47 
 centum of the par value of the total stock or shares of 40 
 the corporation outstanding at the beginning of the 49 
 taxable year, whichever is lowest: Provided, That in 50 
 no case shall the total amount included under para- 51 
 graphs (4) and (5) exceed in the aggregate 25 per 52 
 centum of the par value of the total stock or shares of 53 
 the corporation outstanding at the beginning of the 54 
 taxable year; but 55 
 
 (b) As used in this title the term "invested capital" 56 
 does not include borrowed capital. 57 
 
 (c) There shall be deducted from invested capital as 58 
 
 95 
 
1 above defined a percentage thereof equal to the per- 
 g centago which the amount of inadmissible assets Is of 
 8 Lhe amount of admissible and Inadmissible assets held 
 4 during the taxable year. 
 
 § (d) The Invested capital for any period shall be the 
 average invested capital for such period, but in tne 
 
 7 case of a corporation making a return for a fractional 
 
 8 part of a year, it shall (except for the purpose of para- 
 8 graph (2) of subdivision (a) of section 311) be the 
 
 10 iiame fractional part of such average invested capital. 
 
 11 The average invested capital for the prewar period 
 18 Hhall be determined by dividing the number of years 
 
 18 within that period during the whole of which the cor- 
 14 poratlon was in existence into the sum of the average 
 10 invested capital for such years. 
 
 16 
 Special 17 SECTION 327. — That in the following cases the tax 
 
 Computation 18 «hall be determined as provided in section 328: 
 
 19 (a) Where the Commissioner is unable to determine 
 80 the invested capital as provided in section 326; 
 
 21 (b) In the case of a foreign corporation; 
 
 28 (c) Where a mixed aggregate of tangible property 
 
 83 and intangible property has been paid in for stock or 
 
 84 for stock and bonds and the Commissioner is unable 
 86 satisfactorily to determine the respective values of the 
 
 86 several classes of property at the time^ of payment, or 
 
 87 to distinguish the classes of property paid in for stock 
 28 and for bonds, respectively; 
 
 89 (d) Where upon application by the corporation the 
 
 30 Commissioner finds and so declares of record that the 
 
 31 tax if determined without benefit of this section would, 
 
 32 owing to abnormal conditions afCectingr the capital or 
 
 33 income of the corporation, work upon the corporation 
 
 34 an exceptional hardship evidenced by gross dlspropor- 
 30 tlon between the tax computed without benefit of this 
 
 36 section and the tax computed by reference to the rep- 
 
 37 resentative corporations specified in section 328. This 
 
 38 subdivision shall not apply to any case (1) in which 
 89 the tax (computed without benefit of this section) is 
 
 40 high merely because the corporation earned within the 
 
 41 taxable year a high rate of profits upon a normal in- 
 
 42 vested capital nor (2) in which 50 per centum or more 
 
 43 of the gross income of the corporation for the taxable 
 
 44 year (computed under section 233 of Title II) consists 
 
 45 of gains, profits, commissions, or other income, derived 
 
 46 on a cost-plus basis from a government contract or 
 
 47 contracts made between April 6, 1917, and November 
 
 48 11, 1918, both dates inclusive. 
 49 
 
 60 SECTION 328. (a) In the cases specified in section 
 
 51 327 the tax shall be the amount which bears the same 
 
 52 ratio to the net income of the taxpayer (in excess of the 
 
 63 specific exemption of $3,000) for the taxable year, as 
 
 64 the average tax of representative corporations engaged 
 
 65 in a like or similar trade or bHsiness, bears to their 
 
 66 average net income (In excess of the specific exemption 
 
 67 of 13,000) for such year. In the case of a foreign cor- 
 68poration the tax shall be computed without deducting 
 
the specific exemption of $3,000 either for the taxpayer 1 
 or the representative corporations. 2 
 
 In computing the tax under this section the Commls- 3 
 sloner shall compare the taxpayer only with representa- 4 
 tive corporations whose invested capital can be satis- 6 
 factorily determined under section 326 and which are, 6 
 as nearly as may be, similarly circumstanced with re- 7 
 spect to gross income, net income, profits per unit of 8 
 business transacted and capital employed, the amount 9 
 and rate of war profits or excess profits, and all other 10 
 relevant facts and circumstances. 11 
 
 (b) For the purposes of subdivision (a) the rati'os 12 
 between the average tax and the average net income 13 
 of representative corporations shall be determined by 14 
 the Commissioner in accordance with regulations pre- 15 
 scribed by him with the approval of the Secretary. 16 
 
 In cases in which the tax is to be computed umJei 17 
 this section, if the tax as computed without the bene HI; 18 
 of this section is less than 50 per centum of the net 19 
 income of the taxpayer, the installments shall in tins 20 
 first instance be computed upon the basis of such tajt.; 21 
 but if the tax so computed is 50 per centum or moi » 22 
 of the net income, the installments shall in the fiirs t 23 
 instance be computed upon the basis of a tax equal 24 
 to 50 per centum of the net income. In any case, thii) 25 
 actual ratio when ascertained shall be used in dettr- 26 
 mining the correct amount of the tax. If the corrtsct 27 
 amount of the tax when determined exceeds 50 per 28 
 centum of the net income, any excess of the corroci 29 
 installments over the amounts actually paid shall on 30 
 notice and demand be paid together with interest at 31 
 the rate of Vz of 1 per centum per month on such ex- 32 
 cess from the time the installment was due. 33 
 
 (c) The Commissioner shall keep a record of all 34 
 cases in which the tax is determined in the manner pre- 35 
 scribed in subdivision (a), containing the name and ad- 36 
 dress of each taxpayer, the business in which engaged, 37 
 the amount of invested capital and net Income shown 38 
 by the return, and the amount of Invested capital as 39 
 determined under such subdivision. The Commissioner 40 
 shall furnish a copy of such record and other detailed 41 
 Information with respect to such cases when required 42 
 by resolution of either House of Congress, without re- 43 
 gard to the restrictions contained in section 257. 44 
 
 45 
 46 
 47 
 PART VZ.— BZIOBOANIZATZONS. 48 Beorgraulzatlons 
 
 49 
 SECTION 330. That In the case of the reorganlza- 50 
 tion, consolidation, or change of ownership after Jan- 51 
 uary 1, 1911, of a trade or business now carried on by 52 
 a corporation, the corporation shall for the purposes of 53 
 this title be deemed to have been In existence prior to 54 
 that date, and the net income and Invested capital of 55 
 such predecessor trade or business for all or any part 56 
 of the prewar period prior to the organization of the 57 
 corporation now carrying on such trade or business 58 
 
 97 
 
1 shall be deemed to have been the net income and in- 
 8 vested capital of such corporation. 
 
 3 If such predecessor trade or business was carried on 
 
 4 by a partnership or Individual the net income for the 
 6 prewar period shall, under regulations prescribed by 
 
 6 the Commissioner with the approval of the Secretary, 
 
 7 be ascertained and returned as nearly as may be upon 
 
 8 the same basis and in the same manner as provided 
 
 9 for corporations in Title II, including a reasonable de- 
 
 10 duction for salary or compensation to each partner or 
 
 11 the individual for personal services actually rendered. 
 la In the case of the organization as a corporation be- 
 
 13 fore July 1, 1919, of any trade or business in which 
 
 14 capital is a material income-producing factor and which 
 
 15 was previously owned by a partnership or individual, 
 
 16 the net income of such trade or business from January 
 
 17 1, 1918, to the date of such reorganization may at the 
 
 18 option of the individual or partnership be taxed as the 
 
 19 net income of a corporation is taxed under Titles II and 
 
 20 III; in which event the net income and invested capital 
 ^ 21 of such trade or business shall be computed as if such 
 
 22 corporation had been in existence on and after Janu- 
 
 23 ary 1, 1918, and the undistributed profits or earnings 
 
 24 of such trade or business shall not be subject to the 
 
 25 surtax imposed in section 211, but amounts distrib- 
 
 26 uted on or after January 1, 1918, from the earnings of 
 
 27 such trade or business shall be taxed to the recipients 
 
 28 as dividends, and all the provisions of Titles II and III 
 
 29 relating to corporations shall, so far as practicable, 
 
 30 apply to such trade or business: Provided, That this 
 
 31 paragraph shall not apply to any trade or business the 
 
 32 net income of which for the taxable year 1918 was less 
 
 33 than 20 per centum of its invested capital for such 
 84 year: Provided further. That any taxpayer who takes 
 
 35 advantage of this paragraph shall pay the tax imposed 
 
 36 by section 1000 of this Act and by the first subdivision 
 
 37 of section 407 of the Revenue Act of 1916, as if such 
 
 38 taxpayer had been a corporation on and after January 
 
 39 1, 1918, with a capital stock having no par value. 
 
 40 If any asset of the trade or business in existence both 
 
 41 during the taxable year and any prewar year Is in- 
 
 42 eluded in the Invested capital for the taxable year but 
 
 43 is not included In the invested capital for such prewar 
 
 44 year, or is valued on a different basis In computing 
 48 the invested capital for the taxable year and such pre- 
 
 46 war year, respectively, then under rules and regulations 
 
 47 to be prescribed by the Commissioner with the ap- 
 
 48 proval of the Secretary such readjustments shall be 
 
 49 made as. are necessary to place the computation of the 
 
 60 Invested capital for such prewar year on the basis 
 
 61 employed In determining the invested capital for the 
 
 62 taxable year. 
 63 
 
 Reorganization 54 SECTION 331. In the case of the reorganization, 
 After March 55 consolidation, or change of ownership of a trade or 
 3,1917 56 business, or change of owners'hip of property, after 
 
 57 March 3, 1917, If an Interest or control In such^ trade 
 
 58 or business or property of 50 per centum or more re- 
 
 98 
 
mains In the same persons, or any of them, then no 1 
 asset transferred or received from the previous owner 2 
 shall, for the purpose of determining invested capital, 3 
 be allowed a greater value than would have been 4 
 allowed under this title in computing the invested capi- 6 
 tal of such previous owner if such asset had not been 6 
 so transferred or received: Provided, That if such pre- 7 
 vious owner was not a corporation, then the value of 8 
 any asset so transferred or received shall be taken at 9 
 its cost of acquisition (at the date when acquired by 10 
 such previous owner) with proper allowance for depre- 11 
 elation, impairment, betterment or development, but 12 
 no addition to the original cost shall be made for any 13 
 charge or expenditure deducted as expense or otherwise 14 
 on or after March 1, 1913, in computing the net income 15 
 of such previous owner for purposes of taxation. 16 
 
 17 
 
 18 
 
 PART VZX.— MZSCEI^IiANEOUS. 19 
 
 20 
 SECTION 335. (a) That if a corporation (other than 21 
 a personal service corporation) makes return for a 22 
 fiscal year beginning in 1917 and ending in 1918, the tax 23 
 for the first taxable year under this title shall be the 24 
 sum of: 25 
 
 (1) The same proportion of a tax for the entire 26 
 period computed under Title II of the Revenue Act of 27 
 
 1917 which the portion of such period falling within the 28 
 calendar year 1917 is of the entire period, and (2) the 29 
 same proportion of a tax for the entire period com- 30 
 puted under this title at the rates specified in sub- 31 
 division (a) of section 301 which the portion of such 32 
 period falling within the calendar year 1918 is of the 33 
 entire period. 34 
 
 Any amount heretofore or hereafter paid on account 35 
 of the tax imposed for such fiscal year by Title II of 36 
 the Revenue Act of 1917 shall be credited toward the 37 
 payment of the tax imposed for such fiscal year by this 38 
 title, and if the amount so paid exceeds the amount of 39 
 the tax imposed by this title, the excess shall be 40 
 credited or refunded to the corporation in accordance 41 
 with the provisions of section 252. 42 
 
 (b) If a corporation makes return for a fiscal year 43 
 beginning in 1918 and ending in 1919, the tax for such 44 
 fiscal year under this title shall be the sum of: (1) 45 
 the same proportion of a tax for the entire period com- 46 
 puted under subdivision (a) of section 301 which the 47 
 portion of such period falling within the calendar year 48 
 
 1918 is of the entire period, and (2) the same proper- 49 
 tion of a tax for the entire period computed under 50 
 subdivision (b) or (c) of section 301 which the portion 51 
 of such period falling within the calendar year 1919 is 52 
 of the entire period. 53 
 
 (c) If a partnership or a personal service corporation 54 
 makes return for a fiscal year beginning in 1917 and 55 
 ending in 1918, it shall pay the same proportion of a 56 
 tax for the entire period computed under Title II of 57 
 the Revenue Act of 1917 which the portion of such 58 
 
 Fiscal Year 
 Other Than 
 Calendar 
 Years — 
 Corporation 
 
 Partnership 
 and Personal 
 Service 
 Corporation 
 
 99 
 
1 period falling within the calendar year 191? is of the 
 
 2 entire period. 
 
 Any tax paid by a partnership or personal service 
 
 4 corporation for any period beginning on or after Janu- 
 
 5 ary 1, 1918, shall be immediately refunded to the part* 
 
 6 nership or corporation as a tax erroneously or illegally 
 
 7 collected. 
 H 
 
 Return and 9 SECTION 336. That every corporation, not exempt 
 
 Payment of 10 under section 304, shall make a return for the purposes 
 Tax 11 of this title. Such returns shall be made, and the 
 
 12 taxes imposed by this title shall be paid, at the same 
 
 13 times and places. In the same manner, and subject to 
 
 14 the same conditions, as is provided in the case of re- 
 
 15 turns and payment of income tax by corporations for 
 
 16 the purposes of Title II, and all the provisions of that 
 
 17 title not Inapplicable, Including penalties, are hereby 
 
 18 made applicable to the taxes Imposed by this title. 
 19 
 
 Mines, Oil and 20 SECTION 337. That In the case of a bona fide sale 
 Gas Wells 21 of mines, oil or gas wells, or any interest therein, 
 
 22 where the principal value of the property has been 
 
 23 demonstrated by prospecting or exploration and discov- 
 
 24 ery work done by the taxpayer, the portion of the tax 
 
 25 imposed by this title attributable to such sale shall not 
 
 26 exceed 20 per centum of the selling price of such prop- 
 27erty or interest. 
 
 28 
 
 Definitions 
 "Executor' 
 
 'Collector' 
 
 37 
 38 
 39 
 40 
 41 
 42 
 43 
 44 
 45 
 Schedule of 46 
 Tax Rates 47 
 43 
 49 
 60 
 61 
 
 TITLE IV.— ESTATE TAX. 
 
 SECTION 400. That when used In this title— 
 
 The term "executor" means the executor or adminis- 
 trator of the decedent, or. If there Is no executor or 
 administrator, any person who takes possession of any 
 property of the decedent; and 
 
 The term "collector" means the collector of Internal 
 revenue of the district in which was the domicile of 
 the decedent at the time of his death, or. If there was 
 no such domicile In the United States, then the collector 
 of the district In which is situated the part of the gross 
 estate of the decedent In the United States, or, if such 
 part of the gross estate Is situated in more than one 
 district, then the collector of Internal revenue of such 
 district as may be designated by the Commissioner. 
 
 SECTION 401. That (In lieu of the tax Imposed by 
 Title II of the Revenue Act of 1916, as amended, and 
 in lieu of the tax Imposed by Title IX of the Revenue 
 Act of 1917) a tax equal to the sum of the following 
 percentages of the value of the net estate (determined 
 as provided In section 403) Is hereby Imposed upon the 
 transfer of the net estate of every decedent dying after 
 the passage of this Act, whether a resident or non- 
 resident of the United States: 
 
 1 per centum of the amount of the net estate not In 
 excess of |50,000; 
 
 2 per centum of the amount by which the net estate 
 exceeds $50,000 and does not exceed $150,000; 
 
 100 
 
3 per centum of the amount by which tne ijet estate 1 
 exceeds ?150,000 and does not exceed $250,000^ , , ,-. 2 
 
 4 per centum of the amount by which, tne net estate 3 
 exceeds $250,000 and does not exceed $450,000; 4 
 
 6 per centum of the amount by which the net estate 5 
 exceeds $450,000 and does not exceed $750,000; 6 
 
 8 per centum of the amount by which the net estate 7 
 exceeds $750,000 and does not exceed $1,000,000; 8 
 
 10 per centum of the amount by which the net estate 9 
 exceed $1,000,000 and does not exceed $1,500,000; 10 
 
 12 per centum of the amount by which the net estate H 
 exceeds $1,500,000 and does not exceed $2,000,000; 12 
 
 14 per centum of the amount by which the net estate 13 
 exceeds $2,000,000 and does not exceed $3,000,000; 14 
 
 16 per centum of the amount by which the net estate 15 
 exceeds $3,000,000 and does not exceed $4,000,000; 16 
 
 18 per centum of the amount by which the net estate 17 
 exceeds $4,000,000 and does not exceed $5,000,000; 18 
 
 20 per centum of the amount by which the net estate 19 
 exceeds $5,000,000 and does not exceed $8,000,000; 20 
 
 22 per centum of the amount by which the net estate 21 
 exceeds $8,000,000 and does not exceed $10,000,000; and 22 
 
 25 per centum of the amount by which the net estate 23 
 exceeds $10,000,000. 24 
 
 The taxes imposed by this title or by Title II of the 85 
 Revenue Act of 1916 (as amended by the Act entitled 26 
 "An Act to provide increased revenue to defray the 27 
 expenses of the increased appropriations for the army 28 
 and navy and the extensions of fortifications, and for 29 
 other purposes," approved March 3, 1917) or by Title 30 
 IX of the Revenue Act of 1917, shall not apply to the 3^ 
 transfer of the net estate of any decedent who has died 32 
 or may die while serving in the military or naval forces 33 
 of the United States in the present war or from in- 34 
 juries received or disease contracted while in such 35 
 service, and any such tax collected upon such transfer 36 
 shall be refunded to the executor. 37 
 
 38 
 
 SECTION 402. That the value of the gross estate 39 Gross Value of 
 of the decedent shall be determined by including the 40 Estate — How 
 value at the time of his death of all property, real or 41 Determined 
 personal, tangible or intangible, wherever situated — 42 
 
 (a) To the extent of the interest therein of the de- 43 
 cedent at the time of his death which after his death is 44 
 subject to the paj-^ment of the charges against his es- 45 
 tate and the expenses of its administration and is sub- 46 
 ject to distribution as part of his estate; 47 
 
 (b) To the extent of any interest therein of the sur- 48 
 viving spouse, existing at the time of the decedent's 49 
 death as dower, courtesy, or by virtue of a statute 50 
 creating an estate in lieu of dower or courtesy; 51 
 
 (c) To the extent of any interest therein of which 52 
 the decedent has at any time made a transfer, or with 53 
 respect to which he has at any time created a trust, in 54 
 contemplation of or intended to take effect in possession 55 
 or enjoyment at or after his death (whether such trans- 56 
 fer or trust is made or created before or after the pas- 57 
 sage of this act), except in case of a bona fide sale for 68 
 
 101 
 
Net Value of 
 Estate 
 
 How 
 
 Determined 
 
 .l.a fair consideration In money or money's worth. Any 
 
 •' 2 tr^hsf<?r 'qf. ,a aiaterial part of his property in the na- 
 
 ' «3 ture of a final disposition or distribution thereof, made 
 
 4 by the decedent within two years prior to his death 
 
 6 without such a consideration, shall, unless shown to 
 
 6 the contrary, be deemed to have been made in contem- 
 
 7 plation of death within the meaning of this title; 
 
 8 (d) To the extent of the interest therein held jointly 
 
 9 or as tenants in the entirety by the decedent and any 
 
 10 other person, or deposited in banks or other institu- 
 
 11 tions in their joint names and payable to either or the 
 
 12 survivor, except such part thereof as may be shown to 
 1» have originally belonged to such other person and 
 
 14 never to have belonged to the decedent; 
 
 15 (e) To the extent of any property passing under 
 
 16 a general power of appointment exercised by the de- 
 
 17 cedent (1) by will, or (2) by deed executed in con- 
 
 18 templation of, or intended to take effect in possession 
 19ior enjoyment at or after, his death, except in case of a 
 
 20 bona fide sale for a fair consideration in money or 
 
 21 money's worth; and 
 
 22 (f) To the extent of the amount receivable by the 
 23f«xecutor as insurance under policies taken out by the 
 
 24 decedent upon his own life; and to the extent of the 
 
 25 excess over $40,000 of the amount receivable by all 
 
 26 other beneficiaries as insurance under policies taken 
 
 27 out by the decedent upon his own life. 
 28 
 
 29 SECTION 403. That for the purpose of the tax the 
 
 30 value of the net estate shall be determined — 
 
 31 (a) In the case of a resident, by deducting from the 
 
 32 value of the gross estate — 
 
 33 (1) Such amounts for funeral expenses, administra- 
 
 34 tion expenses, claims against the estate, unpaid mort- 
 36 gages, losses Incurred during the settlement of the es- 
 
 36 tate arising from fires, storms, shipwreck, or other 
 
 37 casualty, or from theft, when such losses are not com- 
 
 38 pensated for by insurance or otherwise, and such 
 
 39 amounts reasonably required and actually expended 
 
 40 for the support during the settlement of the estate of 
 
 41 those dependent upon the decedent, as are allowed by 
 
 42 the laws of the jurisdiction, whether within or without 
 
 43 the United States, under which the estate Is being ad- 
 
 44 ministered, but not Including any Income taxes upon 
 
 45 Income received after the death of the decedent, or 
 
 46 any estate, succession, legacy, or Inheritance taxes; 
 
 47 (2) An amount equal to the value at the time of the 
 
 48 decedent's death of any property, real, personal, or 
 
 49 mixed, which can be identified as having been received 
 60 by the decedent as a share In the estate of any person 
 
 51 who died within five years prior to the death of the 
 
 52 decedent, or which can bo identified as having been 
 
 53 acquired by the decedent in exchange for property so 
 
 54 received, If an estate tax under the Revenue Act of 
 
 55 1917 or under this Act was collected from such es- 
 
 56 tate, and if such property is included in the decedent's 
 
 57 gross estate; 
 
 58 (3) The amount of all bequests, legacies, devises, or 
 
 102 
 
gifts, to or for the use of the United States, any State, 1 
 Territory, any political subdivision thereof, or the Dis- 2 
 trict of Columbia, for exclusively pubUc purposes, or 3 
 to or for the use of any corporation organized and oper- 4 
 ated exclusively for religious, charitable, scientific, 5 
 literary, or educational purposes, including the encour- 6 
 agement of art and the prevention of cruelty to chil- 7 
 dren or animals, no part of the net earnings of which 8 
 inures to the benefit of any private stockholder or in- 9 
 dividual, or to a trustee or trustees exclusively for 10 
 such religious, charitable, scientific, literary, or educa- H 
 tional purposes. This deduction shall be made in case 12 
 of the estates of all decedents who have died since De- 13 
 cember 31, 1917; and 14 
 
 (4) An exemption of $50,000; 15 
 
 (b) In the case of a nonresident, by deducting from ^° 
 the value of that part of his gross estate which at the ' 
 time of his death is situated in the United States — *° 
 
 (1) T^fia't propbfiion '61 the deductions specified in __ 
 paragraph (1) of subdivision (a) of this section which g. 
 the value of such part bears to the value of his entire „_ 
 gross estate, wherever situated, but in no case shall „_ 
 the amount so deducted exceed 10 per centum of the „. 
 value of that part of his gross estate which at the c;me gg 
 of his death is situated in the United States; _g 
 
 (2) An amount equal to the value at the time of the 27 
 decedent's death of any property, real, personal, or 23 
 mixed, which can be identified as having been received 29 
 by the decedent as a share in the estate of any person qq 
 who died within five years prior to the death of the 31 
 decedent, or which can be identified as having been ac- 32 
 quired by the decedent in exchange for property so re- 33 
 ceived, if an estate tax under the Revenue Act of 1917 34 
 or under this Act was collected from such estate, and 35 
 if such property is included in that part of the deced- qq 
 ent's gross estate which at the time of his death is 37 
 situated in the United States; and 38 
 
 (3) The amount of all bequests, legacies, devises, or 39 
 gifts, to or for the use of the United States, any State, 40 
 Territory, any political subdivision thereof, or the Dis- 41 
 trict of Columbia, for exclusively public purposes, or to 42 
 or for the use of any domestic corporation organized 43 
 and operated exclusively for religious, charitable, sci- 44 
 entific, literary, or educational purposes, including the 45 
 encouragement of art and the prevention of cruelty to 46 
 children or animals, no part of the net earnings of 47 
 which inures to the benefit of any private stockholder 48 
 or individual, or to a trustee or trustees exclusively for 49 
 such religious, charitable, scientific, literary, or educa- 50 
 tional purposes within the United States. This deduc- 51 
 tion shall be made in case of the estates of all deced- 52 
 ents who have died since December 31, 1917; and 53 
 
 No deductions shall be allowed in the case of a non- 54 
 resident unless the executor includes in the return re- 55 
 quired to be filed under section 404 the value at the time 56 
 of his death of that part of the gross estate of the non- 57 
 resident not situated in the United States. 58 
 
 X03 
 
Notice to 
 Collector 
 
 Returns 
 
 45 
 
 46 
 
 47 
 
 48 
 
 49 
 
 50 
 
 51 
 
 52 
 
 Collector to 53 
 
 Make Return 54 
 
 — When 55 
 
 56 
 
 57 
 
 68 
 
 For the purpose of this title stock in a domestic cor- 
 poration owned and held by a nonresident decedent, 
 and the amount receivable as insurance upon the life 
 of a nonresident decedent where the insurer is a do- 
 mestic corporation, shall be deemed property within 
 the United States, and any property of which the de- 
 cedent has made a transfer or with respect to which 
 he has created a trust, within the meaning of subdivi- 
 sion (c) of section 402, shall be deemed to be situated 
 in the United States, if so situated either at the time of 
 the transfer or the creation of the trust, or at the 
 time of the decedent's death. 
 
 In the case of any estate in respect to which the 
 tax under existing law has been paid, if necessary to 
 allow the benefit of the deduction under paragraph (3) 
 of subdivision (a) or (b) the tax shall be redetermined 
 and any excess of tax paid shall be refunded to the 
 executor. 
 
 SECTION 404. That the executor, within sixty days 
 after qualifying as such, or after coming into posses- 
 sion of any property of the decedent, whichever event 
 first occurs, shall give written notice thereof to the 
 collector. The executor shall also, at such times and 
 in such manner as may be required by regulations 
 made pursuant to law, file with the collector a return 
 under oath in duplicate, setting forth (a) the value of 
 the gross estate of the decedent at the time of his death, 
 or, in case of a nonresident, of that part of his gross 
 estate situated in the United States; (b) the deductions 
 allowed under section 403; (c) the value of the net 
 estate of the decedent as defined in section 403; and (d) 
 the tax paid or payable thereon; or such part of such 
 information as may at the time be ascertainable and 
 such supplemental data as may be necessary to estab- 
 lish the correct tax. 
 
 Return shall be made in all cases where the gross 
 estate at the death of the decedent exceeds $50,000, and 
 in the case of the estate of every nonresident any part 
 of whose gross estate is situated In the United States. 
 If the executor is unable to make a complete return 
 as to any part of the gross estate of the decedent, he 
 shall include in his return a description of such part 
 and the name of every person holding a legal or bene- 
 ficial interest therein, and upon notice from the col- 
 lector such person shall in like manner make a return 
 as to such part of the gross estate. The Commissioner 
 shall make all assessments of the tax under the au- 
 thority of existing administrative special and general 
 provisions of law relating to the assessment and col- 
 lection of taxes. 
 
 SECTION 405. That if no administration is granted 
 upon the estate of a decedent, or if no return is filed 
 as provided in section 404, or if a return contains a 
 false or Incorrect statement of a material fact, the 
 collector or deputy collector shall make a return and 
 the Commissioner shall assess the tax thereon. 
 
 104 
 
SECTION 406. That the tax shall be due one year 1 Payment of 
 after the decedent's death; but in any case where the 2 Taxes — 
 Commissioner finds that payment of the tax within 3 Penalty 
 one year after the decedent's death would impose undue 4 
 hardship upon the estate, he may grant an extension 5 
 of time for the payment of the tax for a period not to 6 
 exceed three years from the due date. If the tax is 7 
 not paid within one year and 180 days after the de- 8 
 cedent's death, interest at the rate of 6 per centum per 9 
 annum from the expiration of one year after the deced- 10 
 ent's death shall be added as part of the tax. 11 
 
 12 
 
 SECTION 407. That the executor shall pay the tax 13 
 to the collector or deputy collector. If the amount of 14 
 the tax can not be determined, the payment of a sum of 15 
 money sufficient, in the opinion of the collector, to dis- 16 
 charge the tax shall be deemed payment in full of the 17 
 tax, except as in this section otherwise provided. If 18 
 the amount so paid exceeds the amount of the tax as 19 
 finally determined, the Commissioner shall refund such 20 
 excess to the executor. If the amount of the tax as 21 
 finally determined exceeds the amount so paid, the 22 
 collector shall notify the executor of the amount of 23 
 such excess and demand payment thereof. If such 24 
 excess part of the tax is not paid within thirty days 25 
 after such notification. Interest shall be added thereto 26 
 at the rate of 10 per centum per annum from the ex- 27 
 piration of such thirty days' period until paid, and the 28 
 amount of such excess shall be in a lien upon the ontire*29 
 gross estate, except such part thereof as may have '30 
 been sold to a bona fide purchaser for a fair considera-51 
 tion in money or money's worth. 132 
 
 The collector shall grant to the person paying the 33 
 tax duplicate receipts, either of which shall be suffi- 34 
 cient evidence of such payment, and shall entitle the 35 
 executor to be credited and allowed the j-mount thereofSe 
 by any court having jurisdiction to audit or settle his 37 
 accounts. 38 
 
 89 
 
 SECTION 408. That if the tax herein imposed is not 40 Failure to Pay 
 paid within 180 days after it is due, the collector shall, 41 
 unless there is reasonable cause for further delay, pro- 42 
 ceed to collect the tax under the provisions of general 43 
 law, or commence appropriate proceedings in any court 44 
 of the United States, in the name of the United States, 46 
 to subject the property of the decedent to be sold under 46 
 the judgment or decree of the court. From the pro- 47 
 ceeds of such sale the amount of the tax, together with 48 
 the costs and expenses of every description to be al- 49 
 lowed by the court, shall be first paid and the balance 60 
 shall be deposited according to the order of the court, 61 
 to be paid under its direction to the person entitled} 62 
 thereto. 1 53 
 
 If the tax or any part thereof is paid by, or collected, 54 
 out of that part of the estate passing to or In thcil55 
 possession of, any person other than the executor in|56 
 his capacity as such, such person shall be entitled to|57 
 reimbursement out of any part of the estate still un-'68 
 
 lOS 
 
1 distributed or by a just and equitable contribution by 
 
 2 the persons whose interest in the estate of the decedent 
 8 would have been reduced if the tax had been paid before 
 4 the distribution of the estate or whose interest is sub- 
 
 6 ject to equal or prior liability for the payment of taxes, 
 « debts, or other charges against the estate, it being the 
 
 7 x)urpose and intent of this title that so far as is prac- 
 
 • 'ticable and unless otherwise directed by the will of the 
 
 • decedent the tax shall be paid out of the estate before 
 
 10 its distribution. If any part of the gross estate con- 
 
 11 Ijists of proceeds or policies of insurance upon the life 
 
 12 of the decedent receivable by a beneficiary other than 
 
 13 the executor, the executor shall be entitled to recover 
 
 14 from such beneficiary such portion of the total tax paid 
 
 15 as the proceeds, in excess of $40,000, of such policies 
 
 16 bear to the net estate. If there is more than one such 
 
 17 beneficiary the executor shall be entitled to recover 
 
 18 from such beneficiaries in the same ratio. 
 19 
 
 Tax Due to 20 SECTION 409. That unless the tax is sooner paid in 
 Become Ten- 21 full, it shall be a lien for ten years upon the gross 
 Year Lien 22 estate of the decedent, except that such part of the 
 
 23 gross estate as is used for the payment of charges 
 
 24 against the estate and expenses of its administration, 
 
 25 allowed by any court having jurisdiction thereof, shall 
 
 26 be divested of such lien. If the Commissioner is satls- 
 
 27 fied that the tax liability of an estate has been fully dis- 
 23 jharged or provided for, he may, under regulations pre- 
 
 29 scribed by him with the approval of the Secretary, issue 
 
 30 his certificate releasing any or all property of such 
 
 31 estate from the lien herein Imposed. 
 
 32 If (a) the decedent makes a transfer of, or creates a 
 
 33 trust with respect to, any property in contemplation of 
 
 34 or intended to take effect in possession or enjoyment 
 
 35 at or after his death (except in the case of a bona fide 
 
 36 sale for a fair consideration in money or money's 
 
 37 worth) or (b) if insurance passes under a contract ex- 
 
 38 acuted by the decedent in favor of a specific beneficiary, 
 
 39 and if in either case the tax in respect thereto is not 
 
 40 paid when due, then the transferee, trustee, or bene- 
 
 41 flciary shall be personally liable for such tax, and such 
 
 42 property, to the extent of the decedent's interest therein 
 
 43 at the time of such transfer, or to the extent of such 
 
 44 beneficiary's interest under such contract of insurance, 
 
 45 shall be subject to a like lien equal to the amount of 
 
 46 such tax. Any part of such property sold by such 
 
 47 transferee or trustee to a bona fide purchaser for a fair 
 
 48 consideration In money or money's worth shall be di- 
 
 49 vested of the lien and a like lien shall then attach to 
 
 50 all the property of such transferee or trustee, except 
 
 51 any part sold to a bona fide purchaser for a fair con- 
 
 52 sideration In money or money's worth. 
 53 
 
 Penalities 54:^ SECTION 410. That whoever knowingly makes any 
 
 5ff^alse statement in any notice* or return required to be 
 58^1ed under this title shall be liable to a penalty of not 
 57 exceeding $5,000, or Imprisonment not exceeding one 
 68 3'ear, or both. 
 
 106 
 
Whoever fails to comply with any duty imposed upon 1 
 him by section 404, or, having in his possession or 2 
 control any record, file, or paper, containing or supposed 3 
 to contain any information concerning* the estate of 4 
 the decedent, or, having in his possession or control any & 
 property comprised in the gross estate of the decedent, 6 
 fails to exhibit the same upon request to the Commis- 7 
 sioner or any collector or law officer of the United 8 
 States, or his duly authorized deputy or agent, who de- 9 
 sires to examine the same in the performance of his 10 
 duties under this title, shall be liable to a penalty of 11 
 not exceeding $500, to be recovered, with costs of suit, 12 
 in a civil action in the name of the United States. 13 
 
 14 
 
 15 
 
 TITLE v.— TAX ON TRANSPORTATION AND OTHER le 
 
 FACILITIES, AND ON INSURANCE. 17 
 
 18 
 
 SECTION 500. That from and after April 1, 1919, 19 
 there shall be levied, assessed, collected, and paid, in 20 
 lieu of the taxes imposed by section 500 of the Revenue 21 
 Act of 1917— 22 
 
 (a) A tax equivalent to 3 per centum of the amount 23 Rail and Water 
 paid for the transportation on or after such date, by 24 Transpor- 
 rail or water or by any form of mechanical motor 25 tation 
 power when in competition with carriers by rail or 26 
 
 water, of property by freight transported from one 27 
 point in the United States to another; and a like ta>. 28 
 on the amount paid for such transportation withlrj 29 
 the United States of property transported from a poin^ 30 
 without the United States to a point within the United 31 
 States; 32 
 
 (b) A tax of 1 cent for each 20 cents or fraction 33 
 thereof of the amount paid to any person for the 34 
 transportation on or after such date, by rail or water 36 
 or by any form of mechanical motor power when in 36 
 competition with express by rail or water, of any 37 
 package, parcel, or shipment, by express, transported 38 
 from one point in the United States to another; and 39 
 a like tax on the amount paid for such transportation 40 
 within the United States of property transported from 41 
 a point without the United States to a point within the 42 
 United States; 43 
 
 (c) A tax equivalent to 8 per centum of the amount 44 
 paid for the transportation on or after such date of 45 
 persons by rail or water, or by any form of mechanical 46 
 motor power on a regular established line when in 47 
 competition with carriers by rail or water, from one 48 
 point in the United States to another or to any point 49 
 in Canada or Mexico, where the ticket or order therefor 50 
 is sold or issued in the United States, not including 51 
 the amount paid for commutation or season tickets for 52 
 trips less than thirty miles, or for transportation the 53 
 fare for which does not exceed 42 cents: Provided, 54 
 That where such water transportation lines are in 55 
 competition between American ports with foreign water 56 
 transportation lines from adjacent foreign ports, the tax 57 
 imposed under this subdivision on amounts paid for 58 
 
 107 
 
staterooms 
 Parlor Cars 
 Etc. 
 
 Oil Pipe Line 
 
 Telegraph, 
 Telephone, 
 Cables 
 
 Leased Wires 
 
 Exemption 
 
 Payer for 
 
 Service 
 
 Taxable 
 Mileage Books, 
 
 Tickets, etc. 
 
 1 water transportation between American ports shall not 
 
 2 exceed the amount of the transportation tax to which 
 
 3 such foreign water transportation lines are subjected by 
 
 4 their Government corresponding to this tax; 
 
 B (d) A tax equivalent to 8 per centum of the amount 
 
 6 paid for seats, berths, and staterooms in parlor cars, 
 
 7 sleeping cars, or on vessels, used on or after such date 
 
 8 in connection with transportation upon which tax Is 
 • imposed by subdivision (c) ; 
 
 10 (e) A tax equivalent to 8 per centum of the amount 
 
 11 paid for the transportation on or after such date of 
 
 12 oil by pipe line; 
 
 13 (f) In the case of each telegraph, telephone, cable, 
 
 14 or radio, dispatch, message, or conversation, which 
 16 originates on or after such date within the United 
 
 16 States, and for the transmission of which the charge 
 
 17 is more than 14 cents and not more than 50 cents, a 
 
 18 tax of 5 cents; and if the charge is more than 50 cents, 
 
 19 a tax of 10 cents: Provided, That only one payment 
 80 of such tax shall be required, notwithstanding the lines 
 21 or stations of one or more persons are used for the 
 02 transmission of such dispatch, message, or conversa- 
 
 23 tion; and 
 
 24 (g) A tax equivalent to 10 per centum of the amount 
 
 25 paid after such date to any telegraph or telephone 
 
 26 company for any leased wire or talking circuit special 
 
 27 service furnished after such date. This subdivision 
 
 28 shall not apply to the amount paid for so much of 
 
 29 such service as is utilized (1) in the collection and 
 
 80 dissemination of news through the public press, or 
 
 81 (2) in the conduct, by a common carrier or telegraph 
 
 82 or telephone company, of its business as such. 
 
 83 (h) No tax shall be imposed under this section upon 
 
 84 any payment received for services rendered to the 
 
 85 United States or to any State or Territory or the Dis- 
 88 trict of Columbia. The right to exemption under this 
 
 87 subdivision shall be evidenced In such manner as the 
 
 88 Commissioner, with the approval of the Secretary, may 
 
 89 by regulation prescribe. 
 40 
 
 41 SECTION 501. (a) That the taxes imposed by sec- 
 
 42 tion 500 shall be paid by the person paying for the 
 
 43 services or facilities rendered. 
 
 44 (b) If a mileage book used for transportation or 
 
 45 accommodation was purchased before November 1, 1917, 
 48 or if cash fare is paid, the tax imposed by section 
 417 500 shall be collected from the person presenting the 
 
 48 mileage book, or paying the cash fare, by the con- 
 
 49 ductor or other agent, when presented for such trans- 
 
 50 portation or accommodation, and the amount so col- 
 
 51 lected shall be paid to the United States in such manner 
 88 and at such times as the Commissioner, with the 
 68 approval of the Secretary, may prescribe; If a ticket 
 64 (other than a mileage book) was bought and partially 
 66 used before November 1, 1917, It shall not be taxed, 
 66 but if bought but not so used before section 500 takes 
 57 effect. It shall not be valid for passage until the tax 
 68 has been paid and such payment evidenced on the 
 
 108 
 
ticket in such manner as the Commissioner, with the 1 
 approval of the Secretary, may by regulation prescribe. 2 
 
 (c) The taxes Imposed by section 5Q0 shall apply 3 
 to all services or facilities specified in such section 4 
 when rendered for hire, whether or not the agency 6 
 rendering them is a common carrier. In case a carrier 6 
 (other than a pipe line) principally engaged in ren- 7 
 derlng transportation services or facilities for hire 8 
 does not, because of its ownership of the goods trans- 9 
 ported, or for any other reason, receive the amount 10 
 which as a carrier it would otherwise charge, such 11 
 carrier shall pay a tax equivalent to the tax which 12 
 would be imposed upon the transportation of such goods 13 
 if the carrier received payment for such transporta- 14 
 tion, such tax, if It can not be computed from actual 15 
 rates or tariffs of the carrier, to be computed on the 16 
 basis of the rates or tariffs of other carriers for like 17 
 services as determined by the Commissioner. In the 18 
 case of any carrier (other than a pipe line) the prin- 19 
 cipal business of which is to transport goods belonging 20 
 to it on its own account and which only Incidentally 21 
 renders services for hire, the tax shall apply to such 22 
 services or facilities only as are actually rendered by 23 
 it for hire. Nothing in this or the preceding section 24 
 shall be construed as imposing a tax (1) upon the 25 
 transportation of any commodity which is necessary 26 
 for the use of the carrier in the conduct of its business 27 
 as such and is intended to be so used or has been so 28 
 used; or (2) upon the transportation of company ma- 29 
 terial transported by one carrier, which constitutes a 30 
 part of a railroad system, for another carrier wtilch 31 
 is also a part of the same system. 33 
 
 (d) The tax imposed by subdivision (e) of section 33 Oil and Pipe 
 500 shall apply to all transportation of oil by pipe 34 Lines 
 
 line. In case no charge for transportation is made, 35 
 by reason of ownership of the commodity transported, 36 
 or for any other reason, the person transportingr by 37 
 pipe line shall pay a tax equivalent to the tax which 38 
 would be imposed if such person received payment for 39 
 such transportation, and if the tax can not be com- 40 
 puted from actual bona fide rates or tariffs, it shall be 41 
 computed (1) on the basis of the rates or tariffs of 42 
 other pipe lines for like services, as determined by 43 
 the Commissioner, or (2) if no such rates or tariffs 44 
 exist, on the basis of a reasonable charge for such 45 
 transportation, as determined by the Commissioner. 46 
 
 47 
 
 SECTION 502. That each person receiving any pay- 48 Monthly 
 ments referred to in section 500 shall collect the 49 Returns of 
 amount of the tax, if any, imposed by such section 50 Tax 
 from the person making such payments, and shall make 51 Collected 
 monthly returns under oath, in duplicate, and pay the 52 
 taxes so collected and the taxes Imposed upon it under 53 
 subdivision (c) or (d) of section 501 to the collector 54 
 of the district In which the principal office or place of 55 
 business is located. , 56 
 
 No carrier collecting the taxes imposed by subdivi- 57 
 sion (a) or (b) of section 500 shall be required to list 58 
 
 109 
 
1 the amount of such tax separately in any bill of lading, 
 
 2 freight or express receipt, or other similar document, 
 
 3 if the total amount of the transportation charge and 
 
 4 the tax is stated therein. 
 
 6 Any person making a refund of any payment upon 
 
 6 which tax is collected under this section may repay 
 
 7 therewith the amount of the tax collected on such 
 
 8 payment; and the amount so repaid may be credited 
 
 9 against amounts included in any subsequent monthly 
 
 10 return. 
 
 11 The returns required under this section shall contain 
 
 12 such information, and be made at such times and in 
 
 13 such manner, as the Commissioner, with the approval 
 
 14 of the Secretary, may by regulation prescribe. 
 
 15 The tax shall, without assessment by the Commis- 
 
 16 sioner or notice from the collector, be due and pay- 
 
 17 able to the collector at the time so fixed for filing 
 
 18 the return. If the tax is not paid when due, there 
 
 19 shall be added as part of the tax a penalty of 5 per 
 
 20 centum, together with interest at the rate of 1 per 
 
 21 centum for each full month, from the time when the 
 
 22 tax became due. 
 
 Insurance 24 Insurance. 
 
 25 
 
 26 SECTION 503. That from and after April 1, 1919, 
 
 27 there shall be levied, assessed, collected, and paid, in 
 
 28 lieu of the taxes imposed by section 504 of the Revenue 
 ^ 29 Act of 1917, the following taxes on the issuance of in- 
 
 30 surance policies, including, in the case of policies is- 
 
 31 sued outside the United States (except those taxable 
 
 32 under Subdivision 15 of Schedule A of Title XI), their 
 
 33 delivery within the United States by any agent or 
 
 34 broker, whether acting for the insurer or the insured; 
 36 such taxes to be paid by the insurer, or by such agent 
 30 or broker: 
 
 Life Insurance 37 (a) Life insurance: A tax equivalent to 8 cents on 
 Policies 38 each $100 or fractional part thereof of the amount for 
 
 39 which any life is insured under any policy of insurance, 
 
 40 or other Instrument, by whatever name the same is 
 
 41 called: Provided, That on all policies for life insurance 
 
 42 only by which a life is insured not in excess of $500, 
 
 43 issued on the industrial or weekly or monthly pay- 
 
 44 raent plan of insurance, the tax shall be 40 per centum 
 
 45 of the amount of the first weekly premium or 20 per 
 
 46 centum of the amount of the first monthly premium, as 
 
 47 the case may be: Provided further. That on policies 
 
 48 of group life insurance, covering groups of not less 
 
 49 than 25 lives In the employ of the same person, for the 
 
 60 benefit of persons other than the employer, the tax 
 
 61 shall be equivalent to 4 cents on each $100 of the 
 
 62 aggregate amount for which the group policy is issued 
 
 63 and of any net Increase in the amount of the insur- 
 
 64 ance under such policy: And provided further. That 
 
 65 on all policies covering life, health, and accident in- 
 
 66 surance combined in one policy by which a life is In- 
 
 67 sured not in excess of $500, Issued on the industrial, or 
 
 68 weekly or monthly payment plan of insurance, the 
 
 110 
 
tax shall be 40 per centum of the amount of the first 1 
 weekly premium or 20 per centum of the amount of 2 
 the first monthly premium, as the cas^^ may be; 3 
 
 (b) Marine, inland, and fire insurance: A tax equiv- 4 Marine, Fire 
 alent to 1 cent on each dollar or fractional part there- 5 Insurance 
 of of the premium charged under each policy of in- 6 
 
 surance or other instrument by whatever name the 7 
 same is called whereby insurance is made or renewed 8 
 upon property of any description (including rents or 9 
 profits), whether against peril by sea or inland waters, 10 
 or by fire or lightning', or other peril; 11 
 
 (c) Casualty insurance: A tax equivalent to 1 cent 12 Casualty 
 
 on each dollar or fractional part thereof of the premium 13 Insurance 
 
 charged under each policy of insurance or obligation of 14 
 
 the nature of indemnity for loss, damage, or liability 15 
 
 (except bonds and policies taxable under subdivision 2 16 
 
 of schedule A of Title XI) issued or executed or re- 17 
 
 newed by any person transacting the business of em 18 
 
 ployer's liability, workmen's compensation, accident, 19 
 
 health, tornado, plate glass, steam boiler, elevator, 20 
 
 burglary, automatic sprinkler, automobile, or other 21 
 
 branch of insurance (except life insurance, and Insurt 22 
 
 ance described and taxed in the preceding subdivision): 23 
 
 Provided, That in case of policies of insurance issued on 24 
 
 the industrial or weekly or monthly payment plan 25 
 
 the tax shall be 40 per centum of the amount of the 26 
 
 first weekly premium or 20 per centum of the amount 27 
 
 of the first monthly premium, as the case may be; 28 
 
 (d) Policies issued by any corporation enumerated in 29 Exempt 
 section 231 and policies of reinsurance, shall be exempt 30 Corporations 
 from the taxes imposed by this section. 31 
 
 32 
 SECTION 504. That every person issuing policie.-i 33 Monthly 
 of Insurance upon the issuance of which a tax is im^ 34 Returns and 
 posed by section 503 shall make monthly returns under 35 Payment of 
 oath, in duplicate, and pay such tax to the collector 36 Tax 
 of the district in which the principal office or place of, 37 
 business of such person is located. Such returns shalj 38 
 contain such information and be made at such timeg 39 
 and in such manner as the Commissioner, with the 40 
 approval of the Secretary, may by regulation prescribe. 41 
 The tax shall, without assessment by the Commis- 42 
 sioner or notice from the collector, be due and payable 43 
 to the collector at the time so fixed for filing the return. 44 
 If the tax is not paid when due, there shall be added as 45 
 part of the tax a penalty of 5 per centum, together with 46 
 interest at the rate of 1 per centum for each full month, 47 
 from the time when the tax became due. 48 
 
 49 
 50 
 51 
 TITLE VI.— TAX ON BEVERAGES. 52 Tax on 
 
 53 Beverasres 
 SECTION 600. (a) That there shall be levied and 54 Distilled 
 collected on all distilled spirits now in bond or that 55 Spirits 
 have been or that may be hereafter produced In or 56 
 Imported Into the United States, except such distilled 57 
 spirits as are subject to the tax provided In section 58 
 
 111 
 
1 604, In lieu of the internal-revenue taxes now imposed 
 fl thereon by law, a tax of $2.20 (or, If withdrawn for 
 8 beverage purposes or for use in the manufacture or 
 
 4 production of any article used or intended for use as 
 
 5 a beverage, a tax of $6.40) on each proof gallon, or 
 
 6 wine gallon when below proof, and a proportionate 
 
 7 tax at a like rate on all fractional parts of such proof 
 
 • or wine gallon, to be paid by the distiller or importer 
 
 • when withdrawn, and collected under the provisions 
 
 10 of existing law. 
 
 11 (b) That the tax imposed by subdivision (a) on 
 
 12 distilled spirits intended for beverage purposes shall 
 18 not be due or payable on such spirits while stored in 
 14 any distillery, bonded warehouse, or special or general 
 16 bonded warehouse, and which, pursuant to any Act 
 
 16 of Congress or proclamation of the President of the 
 
 17 United States, can not be lawfully sold or removed 
 
 18 from any such warehouse during the period of prohi- 
 18 bition fixed by such Act or proclamation; and all ware- 
 80 housing bonds or transportation and warehousing bonds 
 
 21 conditioned for the payment of tax on any such spirits 
 
 22 so stored on the date such prohibition takes effect 
 
 23 shall as to all such spirits actually so stored be can-^ 
 
 24 celed and discharged, provided the distiller of such 
 28 spirits shall in lieu of such bonds and prior to their 
 28 cancellation execute a bond in a penal sum of not 
 
 87 less than $10,000, with sureties satisfactory to the 
 28 collector of the district, conditioned that the principal 
 89 shall, during the period of such prohibition, safely 
 80 keep or cause to be kept in good condition all such 
 
 31 spirits and the warehouse in which the same are stored, 
 
 32 and shall not remove or suffer to be removed from 
 
 33 warehouse, contrary to law, any such spirits during 
 84 the period of such prohibition ; and the bond herein 
 35 prescribed shall be in such further sum and shall 
 
 88 contain such further conditions as the Commissioner, 
 87 with the approval of the Secretary, may by regula- 
 38tions require. The distiller may, subject to the pro- 
 
 39 visions of this section, be permitted to retain in any 
 
 40 such bonded warehouse distilled spirits on which, under 
 
 41 the terms of any existing bond, the tax imposed thereon 
 48 becomes due and payable prior to the date such pro- 
 48 hibition takes effect: Provided, That on the removal 
 44 of such prohibition the distiller shall, as to all spirits 
 48 as to which the bonded period fixed by law has not 
 
 46 expired and which remain stored in warehouse, execute 
 
 47 new and satisfactory bond In the form required by 
 
 48 existing law, conditioned for the payment of the tax 
 
 49 on all such spirits; and all provisions of existing law 
 
 60 relating to such bonded warehouses, or the storage 
 
 61 of spirits therein, or to the execution of new or addi- 
 
 62 tlonal bonds, so far as applicable, shall continue In 
 
 63 force as to all distilled spirits rebonded under the 
 
 64 provisions of this section. 
 
 65 Upon the withdrawal of distilled spirits from bonded 
 
 66 warehouse, after the period of prohibition has ended, 
 
 57 and under the conditions Imposed by section 50 of an 
 
 58 Act entitled "An Act to reduce taxation, to provide 
 
 112 
 
revenue for the support of the Government, and for 1 
 
 other purposes," approved August 28,,. 1894, an allow- 2 
 
 ance for loss by leakage or other unavoidable cause, 3 
 
 not exceeding one proof gallon as to packages of a 4 
 
 capacity of not less than 40 wine gallons, may be made 6 
 
 in addition to that provided in said section 50, as 6 
 
 amended; and a like additional allowance of one proof 7 
 
 gallon as to each package withdrawn may be made 8 
 
 for each period of four months, or fraction thereof, 9 
 
 for such spirits as shall have remained in warehouse 10 
 
 during the period of prohibition and after the expira- ii > 
 
 tion of the maximum leakage period fixed by that 12 
 
 section. 13 
 
 Under regulations prescribed by the Secretary, any 14 
 imported distilled spirits, wines or other liquors which IB 
 may be in any customs bonded warehouse under the 16 
 customs laws on, the date such prohibition takes effect 17 
 shall be permitted to remain therein without payment 18 
 of any taxes or duties thereon, beyond the three-year 19 
 period provided in section 2971 of the Revised Statutes, 20 
 during such period of prohibition ; and may be ex- 21 
 ported at any time during such extended period. Any 22 
 imported spirits, wines or other liquors as to which 23 
 the three-year bonded period may expire after the 24 
 passage of this Act and prior to the date such pro- 25 
 hibition takes effect may at the option of the owner 26 
 remain in bond during such period of prohibition. 27 
 
 (c) In lieu of the internal-revenue tax now imposed 28 Perfumes 
 thereon by law there shall be levied and collected upon 29 
 all perfumes hereafter imported into the United States 30 
 containing distilled spirits, a tax of $1.10 per wine 31 
 gallon, and a proportionate tax at a like rate on all 32 
 fractional parts of such wine gallon. Such tax shall (33 
 be collected by the collector of customs and deposited 34 
 as internal-revenue collections, under such rules and 35 
 regulations as the Commissioner, with the approval of 36 
 the Secretary, may prescribe. 37 
 
 38 
 
 SECTION 601. That no distilled spirits produced 39 Importation of 
 after October 3, 1917, shall be imported into the United 40 Distilled 
 States from any foreign country, or from the Virgin 41 Spirits for 
 Islands (unless produced from products the growth 42 Beverage 
 of such Islands, and not then into any State or Terri- 43 Purposes 
 tory or District of the United States in which the 44 Prohibited 
 manufacture or sale of intoxicating liquor is pro- 45 
 hibited), or from Porto Rico, or the Philippine Islands. 46 
 Under such rules, regulations, and bonds as the Sec- 47 
 retary may prescribe, the provisions of this section 48 
 shall not apply to distilled spirits imported for other 49 
 than (1) beverage purposes or (2) use in the manu- 50 
 facture or production of any article used or intended 51 
 for use as a beverage. 52 
 
 53 
 
 SECTION 602. That at registered distilleries pro- 54 Regulations for 
 duclng alcohol, or other high-proof spirits, packages 55 Distilleries 
 may be filled with such spirits reduced to not less 56 
 than one hundred proof from the receiving cisterns 67 
 and tax paid without being entered into bonded ware- 58 
 
 113 
 
1 house. Such spirits may be also transferred from the 
 f receiving cisterns at such distilleries, by means of 
 8 pipe lines, direct to storage tanks in the bonded ware- 
 4 house and may be warehoused in such storage tanks. 
 B Such spirits may be also transferred in tanks or tank 
 g cars to general bonded warehouses for storage therein, 
 f either in storage tanks in such warehouses or in the 
 
 8 tanks in which they were transferred. Such spirits 
 
 9 may also be transferred from receiving cisterns or 
 
 10 warehouse storage tanks to barrels, drums, tanks, tank 
 
 11 cars, or other approved containers, and may be trans- 
 
 12 ported in such containers for exportation or other law- 
 
 13 ful purposes. The Commissioner, with the approval 
 
 14 of the Secretary, is hereby empowered to prescribe all 
 
 15 necessary regulations relating to the drawing off, trans- 
 18 ferring, gauging, storing, and transporting of such 
 
 17 spirits; the records to be kept and returns to be made; 
 
 18 the size and kind of packages and tanks to be used; 
 
 19 the marking, branding, numbering, and stamping of 
 SO such packages and tanks; the kinds of stamps, if any, 
 
 21 to be used; and the time and manner of paying the 
 
 22 tax; the kind of bond and the penal sum of same. The 
 
 23 tax prescribed by law must be paid before such spirits 
 
 24 are removed from the distillery premises, or from 
 26 general bonded warehouse in the case of spirits trans- 
 26 ferred thereto, except as otherwise provided by law. 
 
 87 Under such regulations as the Commissioner, with 
 
 28 the approval of the Secretary, may prescribe, distilled 
 
 29 spirits may hereafter be drawn from receiving cis- 
 
 30 terns and deposited in distillery warehouses without 
 
 31 having affixed to the packages containing the same, 
 
 32 distillery warehouse stamps, and such packages, when 
 38 so deposited in warehouse, may be withdrawn there- 
 84 from on the original gauge where the same have re- 
 
 38 mained In such warehouse for a period not exceeding 
 
 88 thirty days from the date of deposit. 
 
 87 Under such regulations as the Commissioner, with 
 
 88 the approval of the Secretary, may prescribe, the manu- 
 
 39 facture, warehousing, withdrawal, and shipment, under 
 
 40 the provisions of existing law, of ethyl alcohol for 
 
 41 other than (1) beverage purposes or (2) use in the 
 48 manufacture or production of any article used or in- 
 48 tended for use as a beverage, and denatured alcohol, 
 44 may be exempted from the provisions of section 3283 
 46 of the Revised Statutes. 
 
 Ethyl 46 The Commissioner, with the approval of the Sec- 
 
 Alcohol 47 retary, may by regulations exempt distillers of ethyl 
 
 48 alcohol, for use in the production of munitions of 
 48 war, or for other non-beverage purposes, from so much 
 
 60 of the provisions of sections 3264, 3285, or 3309 of the 
 
 61 Revised Statutes, and Acts amendatory thereof, re- 
 
 62 specting the survey of distilleries, the period of fer- 
 
 63 mentation, the filling and emptying of fermenting tubs, 
 
 64 and assessments, as, in his judgment, may be expedi- 
 66 ent: Provided, That the bond prescribed in section 
 
 66 3260 of the Revised Statutes shall, in the cases herein 
 
 67 provided, be In such sum and contain such further 
 
 68 conditions as the Commissioner may require, 
 
 '--^" 114 . 
 
SECTION 603. That under such regulations as the 1 
 Commissioner, with the approval of the Secretary, 8 
 may prescribe, ethyl alcohol of not less than 180 de- 8 
 grees proof, produced at any central distilling and 4 
 denaturing plant established under the provisions of 6 
 subsection 2, paragraph N, of section IV of the Act 6 
 entitled "An Act to reduce tariff duties and to provide 7 
 revenue for the Government, and for other purposes," 8 
 approved October 3, 1913, may be removed from such 9 
 plant to any central denaturing bonded warehouse for 10 
 denaturation, or may, before or after denaturation, be ll 
 removed from such plant or from such denaturing 18 
 bonded warehouse, free of tax, for use of the United 13 
 States or for shipment to any nation while engaged 14 
 against the German Government in the present war is 
 and the removal herein authorized may be made in le 
 such tank vessels, tank cars, drums, casks, or other 17 
 containers as may be approved by the Commissioner. 18 
 It shall be lawful, under regulations prescribed by 19 
 the Commissioner, with the approval of the Secretary, 80 
 for an allowance to be made for leakage or loss by 81 
 unavoidable accident and without fault or negligence 88 
 of the distiller, owner, carrier, or his agents or em- 83 
 ployees, which may occur during the transportation 84 
 of such spirits or while the same are lawfully stored 80 
 on either of the premises herein described. 86 
 
 87 
 
 SECTION 604. That upon all distilled spirits pro- 88 Floor Tax on 
 duced in or imported into the United States upon which 89 Distilled 
 the internal-revenue tax now imposed by law has been 30 Spirits 
 paid, and which, on the day after the passage of this 31 
 Act, are held by any person and intended for sale or 38 
 for use In the manufacture or production of any article 83 
 intended for sale, there shall be levied, assessed, col- 34 
 lected, and paid a floor tax of $3.20 (if intended for sale 35 
 for beverage purposes or for use in the manufacture or 36 
 production of any article used or intended for use as a 37 
 beverage) on each proof gallon, and a proportionate tax 38 
 at a like rate on all fractional parts of such proof 88 
 gallon. 40 
 
 41 
 
 SECTION 605. That in addition to the tax imposed 48 Additional Tax 
 by this Act on distilled spirits and wines, there shall 43 on Spirits 
 be levied, assessed, collected, and paid, in lieu of the 44 
 tax imposed by section 304 of the Revenue Act of 45 
 1917, a tax of 30 cents on each proof gallon and a 46 
 proportionate tax at a like rate on all fractional parts 47 
 of such proof gallon on all distilled spirits or wines 48 
 hereafter rectified, purified, or refined in such manner, 49 
 and on all mixtures hereafter produced In such man- 50 
 ner, that the person so rectifying, purifying, refining, 51 
 or mixing the same is a rectifier within the meaning 58 
 of section 3244 of the Revised Statutes, as amended: 53 
 Provided, That this tax shall not apply to gin pro- 54 
 duced by the redistillation of a pure spirit over juniper 55 
 berries and other aromatics. 56 
 
 Upon all such articles heretofore produced, and 57 
 which on the day after the passage of this Act are 68 
 
 116 
 
Iheld by any person and intended for sale, there shall 
 
 2 be levied, assessed, collected, and paid a floor tax of 
 
 3 15 cents on each proof gallon, and a proportionate tax 
 
 4 at a like rate on all fractional parts of each proof 
 6 gallon; and all such distilled spirits so held and not 
 
 6 contained in the distillers' original stamped packages, 
 
 7 or in bottles or other containers bearing the distillers' 
 
 8 original labels, shall for the purpose of this section 
 
 9 be regarded as rectified spirits. 
 
 10 When the process of rectification is completed and 
 
 11 the taxes prescribed by this section have been paid, 
 
 12 it shall be unlawful for the rectifier or other dealer 
 
 13 to reduce in proof or increase in volume such spirits 
 
 14 or wine by the addition of water or other substance; 
 
 15 nothing herein contained shall, however, prevent a 
 
 16 rectifier from using again in the process of rectification 
 
 17 spirits already rectified and upon which the taxes have 
 
 18 theretofore been paid. 
 
 Cordials 19 The taxes imposed by this section shall not attach 
 
 Liqueurs 20 to cordials or liqueurs on which a tax is imposed and 
 
 21 paid under section 611 or 613, nor to the mixing and 
 
 22 blending of wines, where such blending is for the sole 
 
 23 purpose of perfecting such wines according to com- 
 24mercial standards, nor to blends made exclusively of 
 
 25 two or more pure straight whiskies aged in wood for 
 
 26 a period not less than four years and without the 
 
 27 addition of coloring or flavoring matter or any other 
 
 28 substance than pure water and if not reduced below 
 
 29 ninety proof: Provided, That such blended whiskies 
 
 30 shall be exempt from tax under this section only when 
 
 31 compounded under the immediate supervision of a 
 
 32 revenue officer, in such tanks and under such con- 
 
 33 ditions and supervision as the Commissioner, with the 
 
 34 approval of the Secretary, may prescribe. 
 Uniform 35 All distilled spirits or wines taxable under this 
 
 Regulations 36 section shall be subject to uniform regulations con- 
 37cerning the use thereof in the manufacture, blending, 
 
 38 compounding, mixing, marking, branding, and sale of 
 
 39 whisky and rectified spirits, and no discrimination 
 
 40 whatsoever shall be made by reason of a difference 
 
 41 in the character of the material from which same may 
 
 42 have been produced. 
 
 43 The business of a rectifier of spirits shall be car- 
 44ried on, and the tax on rectified spirits shall be paid, 
 45 under such rules, regulations, and bonds as may be 
 48 prescribed by the Commissioner, with the approval of 
 47 the Secretary. 
 
 Penalties 48 Whoever violates any of the provisions of this sec- 
 
 49tion shall be deemed to be guilty of a misdemeanor 
 BO and, upon conviction, shall be fined not more than 
 63 $1,000 or Imprisoned not more than two years, and 
 
 52 shall. In addition, be liable to double the tax evaded. 
 
 53 together with the tax, to be collected by assessment 
 
 54 or on any bond given. 
 65 
 
 Stamp 56 SECTION 606. That hereafter collectors shall not 
 
 Regulations 67 furnish wholesale liquor dealer's stamps In lieu of 
 
 68 and in exchange for stamps for rectified spirits unless 
 
 116 
 
the package covered by stamp for rectified spirits is 1 
 to be broken into smaller packages. 2 
 
 The Commissioner, with the approval of the Sec- 3 
 retary, Is authorized to discontinue' the use of the 4 
 following stamps whenever in his judgment the In- 6 
 terests of the Government will be subserved thereby: 6 
 
 Distillery warehouse, special bonded warehouse, spe- 7 
 cial bonded rewarehouse, general bonded warehouse, 8 
 general bonded retransfer, transfer brandy, export 9 
 tobacco, export cigars, export oleomargarine, and export 10 
 fermented-liquor stamps. 11 
 
 IS 
 
 SECTION 607. That the Commissioner, with the 13 Installation of 
 approval of the Secretary, is hereby authorized to 14 Facilities for 
 require at distilleries, breweries, rectifying houses, and 15 Protecting 
 wherever else in his judgment such action may be 16 Revenue 
 deemed advisable, the installation of meters, tanks, 17 Required 
 pipes, or any other apparatus for the purpose of pro- 18 
 tecting the revenue, and such meters, tanks, and pipes 19 
 and all necessary labor incident thereto shall be at 20 
 the expense of the person on whose premises the In- 21 
 stallatlon is required. Any such person refusing or 22 
 neglecting to install such apparatus when so required 23 
 by the Commissioner shall not be permitted to con- 24 
 duct business on such premises. 25 
 
 26 
 
 SECTION 608. That there shall be levied and col- 27 Tax on Beer, 
 lected on all beer, lager beer, ale, porter, and other 28 Ale, Porter, 
 similar fermented liquor, containing one-half of one 29 Etc. 
 per centum, or more, of alcohol, brewed or manufac- 30 
 tured and hereafter sold, or removed for consumption 31 
 or sale, within the United States, by whatever name 32 
 such liquors may be called. In lieu of the internal- 33 
 revenue taxes now imposed thereon by law, a tax of 34 
 $6.00 for every barrel containing not more than thirty- 35 
 one gallons, and at a like rate for any other quantity 36 
 or for the fractional parts of a barrel authorized and 37 
 defined by law, to be collected under the provisions of 38 
 existing law. 39 
 
 40 
 
 SECTION 609. That from and after the passage of 41 Removal From 
 this Act taxable fermented liquors may be conveyed 42 Brewery to 
 without payment of tax from the brewery premises 43 Distillery 
 where produced to a contiguous industrial distillery of 44 
 either class established under the Act entitled "An 45 
 Act to reduce tariff duties and to provide revenue for 46 
 the Government, and for other purposes," approved 47 
 October 3, 1913, to be used as distilling material, and 48 
 the residue from such distillation, containing less than 49 
 one-half of 1 per centum of alcohol by volume, which 50 
 is to be used In making beverages, may be manipulated 51 
 by cooling, fiavoring, carbonating, settling, and filter- 52 
 ing on the distillery premises or elsewhere. 53 
 
 The removal of the taxable fermented liquor from 54 
 the brewery to the distillery and the operation of the 55 
 distillery and removal of the residue therefrom shall 56 
 be under the supervision of such officer or officers as 57 
 the Commissioner shall deem proper, and the Com- 68 
 
 117 
 
1 missioner, with the approval of the Secretary, I9 here- 
 8 by authorized to make such regulations from time to 
 8 time as may be necessary to give force and effect to 
 4 this section and to safeguard the revenue. 
 6 
 
 8 SECTION 610. That natural wine within the mean- 
 Natural Wine — 6 ing of this Act shall be deemed to be the product made 
 Definition 7 from the normal alcoholic fermentation of the juice 
 
 8 of sound, ripe grapes, without addition or abstraction, 
 
 10 except such as may occur in the usual cellar treat- 
 
 11 ment of clarifying and aging: Provided, however. That 
 18 the product made from the juice of sound, ripe grapes 
 18 by complete fermentation of the must under proper 
 14 cellar treatment and corrected by the addition (under 
 IB the supervision of a ganger or storekeeper-ganger in 
 18 the capacity of ganger) of a solution of water and 
 
 17 pure cane, beet, or dextrose sugar (containing, respec- 
 
 18 tively, not less than 95 per centum of actual sugar, 
 
 19 calculated on a dry basis) to the must or to the wine, 
 80 to correct natural deficiencies, when such addition shall 
 
 21 not increase the volume of the resultant product more 
 
 22 than 35 per centum, and the resultant product does 
 
 83 not contain less than five parts per thousand of acid 
 24 before fermentation and not more than 13 per centum 
 26 of alcohol after complete fermentation, shall be deemed 
 
 26 to be wine within the meaning of this Act, and may 
 
 27 be labeled, transported, and sold as "wine," qualified 
 
 28 by the name of the locality where produced, and may 
 
 29 be further qualified by the name of its own particular 
 
 30 type or variety: And provided further. That wine as 
 
 31 defined in this section may be sweetened with cane 
 
 32 sugar or beet sugar or pure condensed grape must and 
 
 33 fortified under the provisions of this Act, and wines 
 
 84 so sweetened or fortified shall be considered sweet 
 
 85 wine within the meaning of this Act. 
 
 87 
 
 Still Wines 38 SECTION 611. That upon all still wines, including 
 
 89 vermuth, and all artificial or imitation wines or com- 
 
 40 pounds sold as still wine, which are hereafter pro- 
 
 41 duced In or imported Into the United States, or which 
 
 42 on the day after the passage of this Act are on any 
 
 43 winery premises or other bonded premises or in transit 
 
 44 thereto or at any customhouse, there shall be levied, 
 
 45 collected, and paid, in lieu of the Internal-revenue taxes 
 
 46 now Imposed thereon by law, taxes at rates as follows, 
 
 47 when sold, or removed for consumption or sale: 
 
 48 On wines containing not more than 14 per centum 
 
 49 of absolute alcohol, 16 cents per wine gallon, the per 
 
 60 centum of alcohol taxable under this section to be 
 
 61 reckoned by volume and not by weight; 
 
 62 On wines containing more than 14 per centum and 
 68 not exceeding 21 per centum of absolute alcohol, 40 
 64 cents per wine gallon; 
 
 66 On wines containing more than 21 per centum and 
 
 66 not exceeding 24 per centum of absolute alcohol, |1 
 
 67 per wine gallon; 
 
 68 All such wines containing more than 24 per centum 
 
 118 
 
of absolute alcohol by volume shall be classed as dis- 
 tilled spirits and shall pay tax accordingly. 
 
 SECTION 612. That under such regulations and of- 
 ficial supervision and upon the giving of such notices, 
 entries, bonds, and other security as the Commis- 
 sioner, with the approval of the Secretary, may pre- 
 scribe, any producer of wines defined under the pro- 
 visions of this title, may withdraw from any fruit 
 distillery or special bonded warehouse grape brandy, 
 or wine spirits, for the fortification of such wines on 
 the premises where actually made: Provided, That 
 there shall be levied and assessed against the pro- 
 ducer of such wines a tax (in lieu of the internal- 
 revenue tax now imposed thereon by law) of 60 cents 
 per proof gallon of grape brandy or wine spirits when- 
 ever withdrawn and hereafter so used by him in the 
 fortification of such wines during the preceding month, 
 which assessment shall be paid by him within ten 
 months from the date of notice thereof: Provided 
 further, That nothing contained in this section shall be 
 construed as exempting any wines, cordials, liqueurs, or 
 similar compounds from the payment of any tax pro- 
 vided for in this title. 
 
 SECTION 613. That upon the following articles 
 which are hereafter produced in or Imported into the 
 United States, or which on the day after the passage 
 of this Act are on any winery premises or other bonded 
 premises or In transit thereto or at any customhouse, 
 there shall be levied, collected, and paid taxes at rates 
 as follows, when sold, or removed for consumption or 
 sale: 
 
 On each bottle or other container of champagne or 
 sparkling wine, 12 cents on each one-half pint or frac- 
 tion thereof: 
 
 On each bottle or other container of artificially car- 
 bonated wine, 6 cents on each one-half pint or fraction 
 thereof: 
 
 On each bottle or other container of liqueurs, cor- 
 dials, or similar compounds, by whatever name sold or 
 offered for sale, containing sweet wine fortified with 
 grape brandy, 6 cents on each one-half pint or fraction 
 thereof. 
 
 The tax Imposed by this section shall, in the case 
 of any article upon which a corresponding internal- 
 revenue tax is now Imposed by law, be in lieu of such 
 tax. 
 
 SECTION 614. That upon all articles specified In 
 section 611 or 613 upon which the internal-revenue tax 
 now imposed by law has been paid and which are on 
 the day after the passage of this Act held by any 
 person and Intended for sale, there shall be levied, col- 
 lected, and paid a floor tax equal to the difference be- 
 tween the tax imposed by this Act and the tax so paid. 
 
 SECTION 615. That upon all sweet wines held for 
 sale by the producer thereof upon the day after the 
 
 Withdrawal 
 From Bond- 
 Regulations 
 
 Champagne 
 
 Artificially 
 Carbonated 
 Wine 
 
 Liqueurs, 
 Cordials 
 
 See also Sec. 
 611, 613 
 
 Sweet Wines 
 
 119 
 
1 passage of this Act there shall be levied, assessed, 
 a collected, and paid a floor tax equivalent to 30 cents 
 
 • per proof gallon upon the grape brandy or wine spirits 
 4 used in the fortification of such wine. 
 
 B 
 Payment of 6 SECTION 616. That the taxes imposed by section 
 
 Tax 7 611 or 613 shall be paid by stamp on removal of the 
 
 8 wines from the customhouse, winery, or other bonded 
 
 • place of storage for consumption or sale, and every 
 10 person hereafter producing, or having in his possession 
 H or under his control when this title takes effect, any 
 18 wines subject to the tax imposed in section 611 or 613 
 
 13 shall file such notice, describing the premises on which 
 
 14 such wines are produced or stored; shall execute a 
 18 bond in such form; shall make such inventories under 
 
 16 oath; and shall, prior to sale or removal for consump- 
 
 17 tion, affix to each cask or vessel containing such wine 
 
 18 such marks, labels, or stamps as the Commissioner, 
 
 19 with the approval of the Secretary, may from time 
 80 to time prescribe; and the premises described in such 
 
 21 notice shall, for the purpose of this Act, be regarded 
 
 22 as bonded premises. But the provisions of this sec- 
 
 23 tion, except as to payment of tax and the affixing of 
 
 24 the required stamps or labels, shall not apply to wines 
 
 25 held by retail dealers, as defined in section 3244 of 
 
 26 the Revised Statutes, nor, subject to regulations pre- 
 
 27 scribed by the Commissioner, with the approval of 
 
 28 the Secretary, shall the tax imposed by section 611 
 
 29 apply to wines produced for the family use of the 
 
 30 duly registered producer thereof and not sold or other- 
 
 31 wise removed from the place of manufacture and not 
 38 exceeding in any case two hundred gallons per year. 
 33 
 
 84 SECTION 617. That sections 42, 43, and 45 of the 
 35 Act entitled "An Act to reduce the revenue and equal- 
 
 86 ize duties on imports, and for other purposes," ap- 
 
 87 proved October 1, 1890, as amended by section 68 of 
 38 the Act entitled "An Act to reduce taxation, to provide 
 
 88 revenue for the Government and for other purposes," 
 
 40 approved August 27, 1894, are further amended to read 
 
 41 as follows: 
 
 Sweet Wines 42 "Section 42. That any producer of pure sweet wines 
 48 may use in the preparation of such sweet wines, under 
 44 such regulations and after the filing of such notices 
 48 and bonds, together with the keeping of such records 
 48 and the rendition of such reports as to materials and 
 
 47 products as the Commissioner of Internal Revenue, 
 
 48 with the approval of the Secretary of the Treasury, 
 40 may prescribe, wine spirits produced by any duly au- 
 
 50 thorized distiller, and the Commissioner of Internal 
 
 51 Revenue, In determining the liability of any distiller 
 58 of wine spirits to assessment under section 3309 of the 
 58 Revised Statutes, is authorized to allow such distiller 
 
 54 credit In his computations for the wine spirits with- 
 
 55 drawn to be used in fortifying ^weet wines under this 
 
 56 Act. 
 
 Wine Spirits 57 "Section 43. That the wine spirits mentioned in 
 68 section 42 is the product resulting from the dlstllla- 
 
 120 
 
tion of fermented grape juice, to which water may have 1 
 been added prior to, during, or after fermentation, for 2 
 the sole purpose of facilitating the • fermentation and 3 
 economical distillation thereof, and shall be held to 4 
 include the product from grapes or their residues com- 5 
 monly known as grape brandy, and shall include com- 6 
 mercial grape brandy which may have been colored 7 
 with burnt sugar or caramel; and the pure sweet wine 8 
 which may be fortified with wine spirits under the 9 
 provisions of this Act is fermented or partially fer- 10 
 mented grape juice only, with the usual cellar treat- H 
 ment, and shall contain no other substance whatever 12 
 introduced before, at the time of, or after fermenta- 13 
 tion, except as herein expressly provided: Provided, 14 
 That the addition of pure boiled or condensed grape 15 
 must or pure crystallized cane or beet sugar, or pure 16 
 dextrose sugar containing, respectively, not less than 17 
 95 per centum of actual sugar, calculated on a dry 18 
 basis, or water, or any or all of them, to the pure 19 
 grape juice before fermentation, or to the fermented 20 
 product of such grape juice, or to both, prior to the 21 
 fortification herein provided for, either for the pur- 22 
 pose of perfecting sweet wines according to commer- 23 
 cial standards or for mechanical purposes, shall not 24 
 be excluded by the definition of pure sweet wine afore- 25 
 said: Provided, however. That the cane or beet sugar, 26 
 or pure dextrose sugar added for sweetening purposes 27 
 shall not be in excess of 11 per centum of the weight 28 
 of the wine to be fortified: And provided further. That 29 
 the addition of water herein authorized shall be under 30 
 such regulations as the Commissioner of Internal Rev- 31 
 enue, with the approval of the Secretary of the Treas- 32 
 ury, may from time to time prescribe : Provided, how- 33 
 ever. That records kept in accordance with such regu- 34 
 lations as to the percentage of saccharine, acid, alco- 35 
 holic, and added water content of the wine offered for 36 
 fortification shall be open to inspection by any official 37 
 of the Department of Agriculture thereto duly author- 38 
 ized by the Secretary of Agriculture; but in no case 39 
 shall such wines to which water has been added be 40 
 eligible for fortification under the provisions of this 41 
 Act, w^here the same, after fermentation and before 42 
 fortification, have an alcoholic strength of less than 43 
 5 per centum of their volume. 44 
 
 "Section 45. That under such regulations and of- 45 
 ficial supervision, and upon the execution of such en- 46 
 tries and the giving of such bonds, bills of lading, and 47 
 other security as the Commissioner of ^ Internal Rev- 48 
 enue, with the approval of the Secretary of the Treas- 49 
 ury, shall prescribe, any producer of pure sweet wines 50 
 as defined by this Act may withdraw wine spirits from 51 
 any special bonded warehouse in original packages or 52 
 from any registered distillery in any quantity not less 53 
 than eighty wine gallons, and may use so much of the 54 
 same as may be required by him under such regula- 55 
 tiong, and after the filing of such notices and bonds 56 
 and the keeping of such records and the rendition of 57 
 such reports as to materials and products and the 58 
 
 121 
 
Removal of 
 Wines Prom 
 Winery 
 
 1 disposition of the same as the Commissioner of In- 
 3 ternal Revenue, with the approval of the Secretary 
 
 3 of the Treasury, shall prescribe, In fortifying the pure 
 
 4 sweet wines made by him, and for no other purpose, 
 B In accordance with the foregoing limitations and pro- 
 • visions; and the Commissioner of Internal Revenue, 
 7 with the approval of the Secretary of the Treasury, Is 
 elauthorized whenever he shall deem It to be necessary 
 
 for the prevention of violations of this law to pre- 
 
 10 scribe that wine spirits withdrawn under this section 
 
 11 shall not be used to fortify wines except at a certain 
 
 12 distance prescribed by him from any distillery, rec- 
 
 13 tifying house, winery, or other establishment used for 
 
 producing or storing distilled spirits, or for making 
 or storing wines other than wines which are so for- 
 lejtlfied, and that in the building in which such forti- 
 fication of wines is practiced no wines or spirits other 
 than those permitted by this regulation shall be stored 
 in any room or part of the building In which forti- 
 fication of wines is practiced. The use of wine spirits 
 
 Orape Wines 
 
 19 
 80 
 
 21 for the fortification of sweet wines under this Act 
 22||shall be under the immediate supervision of an officer 
 
 of Internal revenue, who shall make returns describing 
 243the kinds and quantities of wine so fortified, and shall 
 25JafCix such stamps and seals to the packages containing 
 
 such wines as may be prescribed by the Commissioner 
 arjof Internal Revenue, with the approval of the Secre- 
 28|tary of the Treasury: and the Commissioner of In- 
 M ternal Revenue, with the approval of the Secretary of 
 
 30 the Treasury, shall provide by regulations the time 
 
 31 within which wines so fortified with the wine spirits 
 38 so withdrawn may be subject to inspection, and for 
 
 33 final accounting for the use of such wine spirits and 
 
 34 for rewarehousing or for payment of the tax on any 
 88 portion of such wine spirits which remain not used 
 88 in fortifying pure sweet wines." 
 
 37 
 
 38 SECTION 618. (a) That under such regulations and 
 
 .39 upon the execution of such notices, entries, bonds, and 
 
 40 other security as the Commissioner, with the approval 
 
 41 of the Secretary, may prescribe, domestic wines sub- 
 48 ject to the tax Imposed by section 611 may be removed 
 
 43 from the winery where produced, free of tax, for stor- 
 
 44 age on other bonded premises or from such premises 
 
 45 to other bonded premises (but not more than one such 
 48 additional removal shall be allowed), or for exporta- 
 4T tlon from the United States or for use as distilling ma- 
 48terial at any regularly registered distillery: Provided. 
 48 however. That the distiller using any such wine as ma- 
 80 terial shall, subject to the provisions of section 3309 
 61 of the Revised Statutes, as amended, be held to pay 
 68 the tax on the product of such wines as will Include 
 
 63 both the alcoholic strength therein produced by fer- 
 
 64 mentation and that obtained from the brandy or wine 
 66 spirits added to such wines at the time of fortification. 
 68 (b) Under regulations prescribed by the Commis- 
 67sloner with the approval of the Secretary, it shall be 
 68 lawful to produce grape wines on bpnded winery prem- 
 
 123 
 
ises by the usual method, and to transport and use 1 
 the same, and like wines heretofore produced and now 8 
 stored on bonded winery premises, as distilling mate- • 
 rial for the production of nonbeverage spirits In the 4 
 production of nonalcoholic wines, containing less than 6 
 % of 1 per centum of alcohol by volume. In any fruit • 
 brandy or industrial distillery: Provided, That all 7 
 alcoholic spirits so obtained at any industrial distillery 8 
 shall be denatured, and all spirits so obtained at any 8 
 fruit distillery shall be removed and used only for non- 10 
 beverage purposes or for denaturatlon. 11 
 
 la 
 
 SECTION 619. That the collection of the tax on Im- 13 Imported 
 ported still wines, including vermuth, and sparkling 14 Wines 
 wines, Including champagne, and on imported liqueurs, 18 
 cordials, and similar compounds, may be made within 16 
 the discretion of the Commissioner, with the approval 17 
 of the Secretary, by assessment Instead of by stamps. 18 
 
 19 
 
 SECTION 620. That whoever evades or attempts to 20 Penalties 
 evade any tax Imposed by sections 611 to 615, both 81 
 Inclusive, or any requirement of sections 610 to 621, 28 
 both inclusive, or regulation Issued pursuant thereto, 23 
 or whoever, otherwise than as provided in such sec- 24 
 tions, recovers or attempts to recover any spirits from 25 
 domestic or Imported wine, or whoever rectifies, mixes, 26 
 or compounds with distilled spirits any domestic wines, 27 
 other than In the manufacture of liqueurs, cordials, or 28 
 similar compounds, shall, on conviction, be punished 29 
 for each such offense by a fine of not exceeding $5,000, 30 
 or Imprisonment for not more than five years, or both, 31 
 and in addition thereto by a penalty of double the tax 32 
 evaded, or attempted to be evaded, to be assessed and 33 
 collected in the same manner as taxes are assessed 34 
 and collected, and all wines, spirits, liqueurs, cordials, 35 
 or similar compounds as to which such violation occurs 36 
 shall be forfeited to the United States. But the pro- 37 
 visions of this section and the provisions of section 38 
 3244 of the Revised Statutes, as amended, relating to 39 
 rectification, or other Internal-revenue laws of the 40 
 United States, shall not be held to apply to or prohibit 41 
 the mixing or blending of wines subject to tax under 43 
 the provisions of sections 611 to 615, both inclusive, 43 
 with each other or with other wines for the sole pur- 44 
 pose of perfecting such wines according to commercial 45 
 standards: Provided, That nothing herein contained 46 
 shall be construed as prohibiting the use of tax-paid 47 
 grain or other ethyl alcohol In the fortification of sweet 48 
 wines as defined In section 610 of this Act and section 49 
 43 of the Act entitled "An Act to reduce the revenue 50 
 and equalize duties on Imports, and for other purposes," 51 
 approved October 1, 1890, as amended by this Act. 52 
 
 53 
 
 SECTION 621. That the Commissioner, by regula- 54 Apparatus and 
 tions to be approved by the Secretary, may require the 55 Gangers 
 use at each fruit distillery of such spirit meters, and 56 
 such locks and seals to be affixed to fermenters, tanks, 57 
 or other vessels and to such pipe connections as may 68 
 
 183 
 
Loss While in 
 Storage 
 
 Mash Beer 
 
 Regulations for 
 Manufacture 
 
 Withdrawal 
 From 
 Receiving 
 Cistern for 
 Export 
 
 1 in his Judgment be necessary or expedient, and Is here- 
 
 2 by authorized to assign to any such distillery and to 
 
 3 each winery where wines are to be fortified such num- 
 
 4 ber of gangers or storekeeper-gangers in the capacity 
 6 of gangers as may be necessary for the proper super- 
 
 6 vision of the manufacture of brandy or the making or 
 
 7 fortifying of wines subject to tax imposed by this sec- 
 Stion; and the compensation of such officers shall not 
 9 exceed $5 per diem while so assigned, together with 
 
 10 their actual and necessary traveling expenses, and also 
 
 11 a reasonable allowance for their board bills, to be fixed 
 
 12 by the Commissioner, with the approval of the Secre- 
 
 13 tary, but not to exceed $2.50 per diem for such board 
 
 14 bills. 
 15 
 
 16 SECTION 622. That the Commissioner, with the ap- 
 
 17 proval of the Secretary, is hereby authorized to make 
 
 18 such allowances for unavoidable loss of wines while 
 
 19 on storage or during cellar treatment as in his Judg- 
 
 20 ment may be just and proper. 
 21 
 
 22 SECTION 623. That the second paragraph of section 
 
 23 3264 of the Revised Statutes, as amended by section 
 
 24 5 of the Act of March 1, 1879, and as further amended 
 
 25 by the Act of June 22, 1910, be amended so as to read 
 
 26 as follows: 
 
 27 "In all surveys forty-five gallons of mash or beer 
 
 28 brewed or fermented from grain shall represent not 
 
 29 less than one bushel of grain, and seven gallons of 
 
 30 mash or beer brewed or fermented from molasses shall 
 
 31 represent not less than one gallon of molasses, except 
 
 32 in distilleries operated on the sour-mash principle, in 
 
 33 which distilleries sixty gallons of beer brewed or fer- 
 
 34 mented from grain shall represent not less than one 
 
 35 bushel of grain, and except that in distilleries where 
 
 36 the filtration-aeration process is used, with the ap- 
 
 37 proval of the Commissioner of Internal Revenue; that 
 
 38 is, where the mash after it leaves the mash tub Is 
 
 39 passed through a filtering machine before it is run into 
 
 40 the fermenting tub, and only the filtered liquor passes 
 
 41 into the fermenting tub, there shall hereafter be no 
 
 42 limitation upon the number of gallons of water which 
 
 43 may be used in the process of mashing or filtration for 
 
 44 fermentation; but the Commissioner of Internal Rev- 
 
 45 enue, with the approval of the Secretary of the Treas- 
 
 46 ury, in order to protect the revenue, shall be authorized 
 
 47 to prescribe by regulation, to be made by him, such 
 
 48 character of survey as he may find suitable for distil- 
 
 49 leries using such filtration-aeration process. The provi- 
 so sions hereof relating to filtration-aeration process shall 
 51 apply only to sweet-mash distilleries." 
 
 52 
 
 53 SECTION 624. That under such regulations as the 
 
 54 Commissioner, with the approval of the Secretary, may 
 
 55 prescribe, alcohol or other distiiled spirits of a proof 
 
 56 strength of not less than one hundred and eighty de- 
 
 57 grees intended for export free of tax may be drawn 
 §8 from receiving cisterns at any distillery, or from stor- 
 
 124 
 
age tanks in any distillery warehouse, for transfer to 1 
 tanks or tank cars for export from the United States, 3 
 and all provisions of existing law relating to the 3 
 exportation of distilled spirits not inconsistent herewith 4 
 shall apply to spirits removed for export under the pro- 6 
 visions of this Act. 6 
 
 7 
 
 SECTION 625. That section 3255 of the Revl&ed 8 
 
 Statutes as amended by the Act of June 3, 1896, and as 9 
 
 further amended by the Act of March 2, 1911, be further XO 
 
 amended so as to read as follows: 11 
 
 12 
 "Section 3255. The Commissioner of Internal Reve- 13 Brandy 
 nue, with the approval of the Secretary of the Treas- 14 
 ury, may exempt distillers of brandy made exclu- 15 
 sively from apples, peaches, grapes, pears, pineapples, 16 
 oranges, apricots, berries, plums, pawpaws, persimmons, 17 
 prunes, figs, or cherries from any provision of this title 18 
 relating to the manufacture of spirits, except as to the 19 
 tax thereon, when in his judgment it may seem ex- 20 
 pedient to do so: Provided, That where. In the manu- 21 
 f acture of wine, artificial sweetening has been used the 22 
 wine or the fruit pomace residuum may be used in the 23 
 distillation of brandy, and such use shall not prevent 24 
 the Commissioner of Internal Revenue, with the ap- 25 
 proval of the Secretary of the Treasury, from exempt- 26 
 ing such distiller from any provision of this title relat- 27 
 ing to the manufacture of spirits, except as to the tax 28 
 thereon, when in his judgment it may seem expedient 29 
 to do so: And provided further. That the distillers 30 
 mentioned in this section may add to not less than five 31 
 hundred gallons (or ten barrels) of grape cheese not 32 
 more than five hundred gallons of a sugar solution 33 
 made from cane, beet, starch, or corn sugar, 95 per 34 
 centum pure, such solution to have a saccharine 35 
 strength of not to exceed 10 per centum, and may fer- 36 
 ment the resultant mixture on a winery or distillery 37 
 premises, and such fermented product shall be regarded 38 
 as distilling material." 39 
 
 40 
 SECTION 626. That distilled spirits known commer- 41 Gin 
 cially as gin of not less than 80 per centum proof may 42 
 at any time within eight years after entry In bond at 43 
 any distillery be bottled In bond at such distillery for 44 
 export without the payment of tax, under such rules 45 
 and regulations as the Commissioner, with the approval 46 
 of the Secretary, may prescribe. 47 
 
 48 
 
 SECTION 627. That section 3354 of the Revised 49 
 
 Statutes as amended by the Act approved June 18, 1890, 50 
 
 be and is hereby, amended to read as follows: 51 
 
 52 
 "Section 3354. Every person who withdraws any 53 Penalties 
 fermented liquor from any hogshead, barrel, keg, or 54 
 other vessels upon which the proper stamp has not 55 
 been affixed for the purpose of bottling the same, or 56 
 who carries on or attempts to carry on the business of 57 
 bottling fermented liquor in any brewery or other place 68 
 
 125 
 
& in which fermented liquor Is made, or upon any prem- 
 illses having communication with such brewery, or any 
 
 3 warehouse, shall be liable to a fine of $500, and the prop- 
 
 4 erty used In such bottling or business shall be liable to 
 6 forfeiture: Provided, however. That this section shall 
 
 6 not be construed to prevent the withdrawal and trans- 
 
 7 fer of unfermented, partially fermented, or fermented 
 
 8 liquors from any of the vats in any brewery by way 
 8 of a pipe line or other conduit to another building or 
 
 10 place for the sole purpose of bottling the same, such 
 
 11 pipe line or conduit to be constructed and operated in 
 
 12 such manner and with such cisterns, vats, tanks, valves, 
 
 13 cocks, faucets, and gauges, or other utensils or appa- 
 
 14 ratus, either on the premises of the brewery or the 
 
 15 bottling house, and with such changes of or additions 
 
 16 thereto, and such locks, seals, or other fastenings, and 
 
 17 under such rules and regulations as shall be from 
 
 18 time to time prescribed by the Commissioner of In- 
 
 19 ternal Revenue, subject to the approval of the Secre- 
 
 20 tary of the Treasury, and all locks and seals prescribed 
 
 21 shall be provided by the Commissioner of Internal Kev- 
 
 22 enue at the expense of the United States: Provided 
 
 23 further, That the tax imposed in section 3339 of the 
 
 24 Revised Statutes shall be paid on all fermented liquor 
 28 removed from a brewery to a bottling house by means 
 
 26 of a pipe or conduit, at the time of such removal, by the 
 
 27 cancellation and defacement, by the collector of the 
 
 28 district or his deputy, in the presence of the brewer, 
 
 29 of the number of stamps denoting the tax on the fer- 
 
 30 mented liquor thus removed. The stamps thus can- 
 
 31 celed and defaced shall be disposed of and accounted for 
 
 32 in the manner directed by the Commissioner of Internal 
 
 33 Revenue, with the approval of the Secretary of the 
 
 34 Treasury. And any violation of the rules and regula- 
 38 tions hereafter prescribed by the Commissioner of 
 
 36 Internal Revenue, with the approval of the Secretary 
 
 37 of the Treasury, in pursuance of these provisions, shall 
 
 38 be subject to the penalties above provided by this sec- 
 
 39 tlon. Every owner, agent, or superintendent of any 
 
 40 brewery or bottling house who removes, or connives at 
 
 41 the removal of, any fermented liquor through a pipe 
 
 42 line or conduit, without payment of the tax thereon, or 
 48 who attempts in any manner to defraud the revenue 
 
 44 as above, shall forfeit all the liquors made by and for 
 
 45 him, and all the vessels, utensils, and apparatus used 
 
 46 in making the same." 
 47 
 
 Other 48 SECTION 628. That there shall be levied, assessed, 
 
 Beverages 49 collected, and paid in lieu of the taxes imposed by 
 
 Derived From 60 sections 313 and 315 of the Revenue Act of 1917 — 
 
 Cereals 61 (a) Upon all beverages derived wholly or in part 
 
 62 from cereals or substitutes therefor, and containing less 
 
 68 than one-half of one per centum of alcohol, sold by 
 
 64 the manufacturer, producer, or importer, in bottles or 
 
 66 other closed containers, a tax equivalent to 15 per 
 Soft Drinks 66 centum of the price for which so sold; and upon all 
 
 67 unfermented grape juice, ginger ale, root beer, sarsa- 
 
 68 parilla, pop, artificial mineral waters (carbonated or 
 
 196 
 
not carbonated), other carbonated waters or beverages. 1 
 and other soft drinks, sold by the manufacturer, pro- 3 
 ducer, or importer, in bottles or other closed containers, 3 
 a tax equivalent to 10 per centum of the price for 4 
 which so sold; and 5 '] 
 
 (b) Upon all natural mineral waters or table waters, 6 
 sold by the producer, bottler, or importer thereof, in 7 ; 
 
 bottles or other closed containers, at over 10 cents per 8 
 gallon, a tax of 2 cents per gallon. 9 
 
 10 
 
 SECTION 629. That each manufacturer, producer, 11 Monthly 
 bottler, or Importer of any of the articles enumerated in 12 Return and 
 section 628 shall make monthly returns under oath in 13 Payment of 
 duplicate and pay the taxes imposed in respect to such 14 Tax 
 articles by such section to the collector for the district 15 
 in which is located the principal place of business, con- 16 
 taining such information necessary for the assessment 17 
 of the tax, and at such times and In such manner as 18 
 the Commissioner, with the approval of the Secretary, 19 
 may by regulation prescribe. 20 
 
 The tax shall, without assessment by the Commis- 21 
 sioner or notice from the collector, be due and payable 22 
 to the collector at the time so fixed for filing the re- 23 
 turn. If the tax Is not paid when due, there shall be 24 
 added as part of the tax a penalty of 5 per centum, 25 
 together with interest at the rate of 1 per centum for 26 
 each full month, from the time when the tax became 27 
 due. 28 
 
 29 
 
 SECTION 630. That on and after May 1, 1919, there 30 Ice Cream 
 shall be levied, assessed, collected, and paid a tax of 31 Parlors, Soda 
 1 cent for each 10 cents or fraction thereof of the 32 Fountains, 
 amount paid to any person conducting a soda fountain, 33 Soft Drinks 
 ice-cream parlor, or other similar place of business, for 34 
 drinks commonly known as soft drinks, compounded 85 
 or mixed at such place of business, or for ice cream, 86 
 ice-cream sodas, sundaes, or other similar articles of 37 
 food or drink, when any of the above are sold on or 38 
 after such date for consumption in or in proximity to 39 
 such place of business. Such tax shall be paid by the 40 
 purchaser to the vendor at the time of the sale and 41 
 shall be collected, returned, and paid to the United 42 
 States by such vendor in the same manner as provided 43 
 in section 502. 44 
 
 45 
 
 TITLE VII.— TAX ON CIGARS, TOBACCO AND ^7 
 MANUFACTURES THEREOF. 48 
 
 49 
 SECTION 700. (a) That upon cigars and cigarettes 50 Cigars and 
 manufactured in or Imported into the United States, 51 Cigarettes 
 and hereafter sold by the manufacturer or importer, 62 
 or removed for consumption or sale, there shall be 63 
 levied, collected, and paid under the provisions of 64 
 existing law, in lieu of the internal-revenue taxes now 55 
 Imposed thereon by law, the following taxes, to be 56 
 paid by the manufacturer or importer thereof— 57 
 
 On cigars of all descriptions made of tobacco, or 58 Cigars 
 
 127 
 
Cigarettes 
 
 Tobacco, 
 Snuff 
 
 any substitute therefor, and weighing not more man 
 three pounds per thousand, $1.50 per thousand; 
 
 On cigars made of tobacco, or any substitute therefor, 
 and weighing more than three pounds per thousand, if 
 manufactured or imported to retail at not more than 
 5 cents each. $4 per thousand; 
 
 If manufactured or imported to retail at more than 
 5 cents each and not more than 8 cents each, $6 per 
 thousand; 
 
 If manufactured or imported to retail at more than 
 than 8 cents each and not more than 15 cents each, $9 
 per thousand; 
 
 If manufactured or imported to retail at more than 
 15 cents each and not more than 20 cents each, $12 
 per thousand; 
 
 Tf manufactured or irnpbrted to retail at more than 
 20 cents each, $15 per thousand; 
 
 On cigarettes made of tobacco, or any substitute 
 therefor, and weighing not more than three pounds per 
 thousand, $3 per thousand; 
 
 Weighing more than three pounds per thousand, $7.20 
 per thousand. 
 
 (b) Whenever in this section reference Is made to 
 cigars manufactured or imported to retail at not over 
 a certain price each, then In determining the tax to be 
 paid regard shall be had to the ordinary retail price 
 of a single cigar. 
 
 (c) The Commissioner may, by regulation, require the 
 manufacturer or Importer to affix to each box, package, 
 or container a conspicuous label indicating the clause 
 of this section under which the cigars therein con- 
 tained have been tax-paid, which must correspond with 
 the tax-paid stamp on such box or container. 
 
 (d) Every manufacturer of cigarettes (including 
 small cigars weighing not more than three pounds per 
 thousand) shall put up all the cigarettes and such 
 small cigars that he manufactures or has manufactured 
 for him, and sells or removes for consumption or sale, 
 in packages or parcels containing five, eight, ten, 
 twelve, fifteen, sixteen, twenty, twenty-four, forty, 
 fifty, eighty, or one hundred cigarettes each, and shall 
 securely affix to each of such packages or parcels a 
 suitable stamp denoting the tax thereon and shall prop- 
 erly cancel the same prior to such sale or removal for 
 consumption or sale under such regulations as the 
 Commissioner, with the approval of the Secretary, shall 
 prescribe; and all cigarettes imported from a foreign 
 country shall be packed, stamped, and the stamps can- 
 celed in a like manner, in addition to the import stamp 
 Indicating inspection of the custom house before they 
 are withdrawn therefrom. 
 
 SECTION 701. (a) That upon all tobacco and snuff 
 manufactured in or imported into the United States, and 
 hereafter sold by the manufacturer or importer, or re- 
 moved for consumption or sale, there shall be levied, 
 collected, and paid, in lieu of the Internal-revenue taxes 
 now Imposed thereon by law, a tax of 18 cents per 
 
 128 
 
pound, to be paid by the manufacturer or importer 1 
 thereof. 2 
 
 (b) Section 3362 of the Revised Statutes, as amended. 3 
 is hereby amended to read as follows:, 4 
 
 6 
 
 "Section 3362. All manufactured tobacco shall be 6 Regulation of 
 put up and prepared by the manufacturer for sale, or 7 Packages 
 removal for sale or consumption, in packages of the 8 
 following description and in no other manner: 9 
 
 "All smoking tobacco, snuff, fine-cut chewing tobacco, 10 
 all cut and granulated tobacco, all shorts, the refuse 11 
 of fine-cut chewing, which has passed through a riddle 12 
 of thirty-six meshes to the square inch, and all refuse 13 
 scraps, clippings, cuttings, and sweepings of tobacco, 14 
 and all other kinds of tobacco not otherwise provided 15 
 for, in packages containing one-eighth of an ounce, 16 
 three-eighths of an ounce, and further packages with a 17 
 difference between each package and the one next small- 18 
 er of one-eighth of an ounce up to and including two 19 
 ounces, and further packages with a difference between 20 
 each package and the one next smaller of one-fourth of 21 
 an ounce up to and including four ounces, and packages 22 
 of five ounces, six ounces, seven ounces, eight ounces, 23 
 ten ounces, twelve ounces, fourteen ounces, and sixteen 24 
 ounces: Provided, That snuff may, at the option of the 25 
 manufacturer, be put up in bladders and in jars con- 26 
 taining not exceeding twenty pounds. 27 
 
 "All cavendish, plug, and twist tobacco, in wooden 28 
 packages not exceeding two hundred pounds net weight. 29 
 
 "And every such wooden package shall have printed 30 
 or marked thereon the manufacturer's name and place 31 
 of manufacture, the registered number of the manu- 32 
 factory, and the gross weight, the tare, and the net 33 
 weight of the tobacco in each package: Provided, That 34 
 these limitations and descriptions of packages shall 35 
 not apply to tobacco and snuff transported in bond for 36 
 exportation and actually exported: And provided fur- 37 
 ther. That perique tobacco, snuff flour, fine-cut shorts, 38 
 the refuse of fine-cut chewing tobacco, refuse scraps, 39 
 clippings, cuttings, and sweepings of tobacco, may be 40 
 sold in bulk as material, and without the payment of 41 
 tax, by one manufacturer directly to another manufac- 42 
 turer, or for export, under such restrictions, rules, and 43 
 regulations as the Commissioner of Internal Revenue 44 
 may prescribe: And provided further. That wood, metal, 45 
 paper, or other materials may be used separately or in 46 
 combination for packing tobacco, snuff, and cigars, un-47 
 der such regulations as the Commissioner of Internal 48 
 Revenue may establish." 49 
 
 50 
 
 SECTION 702. That upon all the articles enumerated 51 Floor Tax on 
 in section 700 or 701, which were manufactured or 52 Tobacco and 
 imported, and removed from factory or customhouse 53 Tobacco 
 on or prior to the date of the passage of this Act, and 54 Products 
 upon which the tax imposed by existing law has been 55 
 paid, and which are, on the day after the passage of this 56 
 Act, held by any person and intended for sale, there 57 
 shall be levied, assessed, collected, and paid a floor tax 58 
 
 129 
 
1 equal to the difference between (a) the tax imposed by 
 8 this Act upon such articles according to the class in 
 8 which they are placed by this title, and (b) the tax Im- 
 4 posed upon such articles by existing law other than 
 6 section 403 of the Revenue Act of 1917. 
 • 
 Cigarette 7 SECTION 703. That there shall be levied, collected. 
 
 Paper 8 and paid, in lieu of the taxes imposed by section 404 
 
 8 of the Revenue Act of 1917, upon cigarette paper made 
 
 10 up Into packages, books, sets, or tubes, made up in or 
 
 11 imported into the United States and hereafter sold by 
 
 12 the manufacturer or importer to any person (other than 
 
 13 to a manufacturer of cigarettes for use by him in the 
 
 14 manufacture of cigarettes) the following taxes, to be 
 
 15 paid by the manufacturer or importer: On each package, 
 10 book, or set, containing more than twenty-five but not 
 
 17 more than fifty papers, y2 cent; containing more than 
 
 18 fifty but not more than one hundred papers, 1 cent; 
 18 containing more than one hundred papers, % cent for 
 80 each fifty papers or fractional part thereof; and upon 
 
 21 tubes, 1 cent for each fifty tubes or fractional part 
 
 22 thereof. 
 
 23 Every manufacturer of cigarettes purchasing any 
 
 24 cigarette paper made up into tubes (a) shall give bond 
 
 25 in an amount and with sureties satisfactory to the Com- 
 28 missioner that he will use such tubes in the manufac- 
 87 ture of cigarettes or pay thereon a tax equivalent to the 
 28 tax Imposed by this section, and (b) shall keep such 
 28 records and render under oath such returns as the Com- 
 80 missioner finds necessary to show the disposition of all 
 31 tubes purchased or imported by such manufacturer of 
 38 cigarettes. 
 
 Repeal of Sec. 34 
 
 35 of Act of 35 
 
 Aug. 5, 1909 36 
 
 37 
 
 40 
 41 
 
 Regulations for 42 
 Dealers in 43 
 Leaf Tobacco 44 
 46 
 48 
 47 
 48 
 48 
 60 
 61 
 62 
 63 
 64 
 66 
 60 
 67 
 
 SECTION 704. That section 35 of the Act entitled 
 "An Act to provide revenue, equalize duties and encour- 
 age the Industries of the United States, and for other 
 purposes," approved August 5, 1909, be, and is hereby, 
 repealed, to take effect April 1, 1919. 
 
 That section 3360 of the Revised Statutes be, and is 
 hereby, amended to read as follows: 
 
 "Section 3360. (a) Every dealer in leaf tobacco 
 shall file with the collector of the district in which his 
 business is carried on, a statement in duplicate, sub- 
 scribed under oath, setting forth the place, and if In a 
 city, the street and number of the street, where his 
 business Is to be carried on, and the exact location of 
 each place where leaf tobacco is held by him on storage, 
 and, whenever he adds to or discontinues any of his leaf 
 tobacco storage places, he shall give immediate notice 
 to the collector of the district In which he Is registered. 
 
 "Every such dealer shall give a bond with surety, sat- 
 isfactory to, and to be approved by, the collector of the 
 district, In such penal sum as the collector may require, 
 not less than $500; and a new bond may be required in 
 the discretion of the collector or under instructions of 
 the Commissioner. 
 
 "Every such dealer shall be assigned a number by 
 
 130 
 
the collector of the district, which number shall appear 1 
 In every inventory, invoice and report rendered by the 2 
 dealer, who shall also obtain certificates from the col- 8 
 lector of the district setting forth the place where his 4 
 business Is carried on and the places designated by B 
 the dealer as the places of storage of his tobacco, which 6 
 certificates shall be posted conspicuously within the 7 
 dealer's registered place of business, and within each 8 
 designated place of storage. 9 
 
 "(b) Every dealer in leaf tobacco shall make and 10 
 deliver to the collector of the district a true inventory 11 
 of the Quantity of the different kinds of tobacco held 12 
 or owned, and where stored by him, on the first day of 13 
 January of each year, or at the time of commencing 14 
 and at the time of concluding business, if before or 15 
 after the first day of January, such inventory to be 16 
 made under oath and rendered in such form as may 17 
 be prescribed by the Commissioner. 18 
 
 "Every dealer in leaf tobacco shall render such 19 
 invoices and keep such records as shall be prescribed 20 
 by the Commissioner, and shall enter therein, day by 21 
 day, and upon the same day on which the circum- 22 
 stance, thing or act to be recorded is done or occurs, 23 
 an accurate account of the number of hogsheads, 24 
 tierces, cases and bales, and quantity of leaf tobacco 25 
 contained therein, purchased or received by him, on 26 
 assignment, consignment, for storage, by transfer or 27 
 otherwise, and of whom purchased or received, and the 28 
 number of hogsheads, tierces, cases and bales, and 29 
 the quantity of leaf tobacco contained therein, sold 30 
 by him, with the name and residence in each instance 31 
 of the person to whom sold, and if shipped, to whom 32 
 shipped, and to what district; such records shall be 33 
 kept at his place of business at all times and pre- 34 
 served for a period of two years, and the same shall 35 
 be open at all hours for the Inspection of any Internal- 36 
 revenue officer or agent. 37 
 
 "Every dealer in leaf tobacco on or before the tenth 38 
 day of each month, shall furnish to the collector of 39 
 the district a true and complete report of all pur- 40 
 chases, receipts, sales and shipments of leaf tobacco 41 
 made by him during the month next preceding, which 42 
 report shall be verified and rendered in such form as 43 
 the Commissioner, with the approval of the Secretary, 44 
 shall prescribe. 45 
 
 "(c) Sales or shipments of leaf tobacco by a dealer 46 
 in leaf tobacco shall be in quantities of not less than 47 
 a hogshead, tierce, case, or bale, except loose leaf 48 
 tobacco comprising the breaks on warehouse floors, 49 
 and except to a duly registered manufacturer of cigars 50 
 for use in his own manufactory exclusively. 51 
 
 "Dealers in leaf tobacco shall make shipments of 52 
 leaf tobacco only to other dealers In leaf tobacco, to 53 
 registered manufacturers of tobacco, snuff, cigars or 54 
 cigarettes, or for export. 55 
 
 "(d) Upon all leaf tobacco sold, removed or shipped 56 
 by any dealer in leaf tobacco in violation of the pro- 57 
 visions of subdivision (c), or in respect to which no 58 
 
 131 
 
1 report has been made by such dealer in accordance 
 S with the provisions of subdivision (b), there shall be 
 8 levied, assessed, collected and paid a tax equal to the 
 
 4 tax then in force upon manufactured tobacco, such tax 
 
 5 to be assessed and collected in the same manner as 
 e the tax on manufactured tobacco. 
 
 Penalties 7 "(e) Every dealer in leaf tobacco 
 
 8 "(1) who neglects or refuses to furnish the state- 
 8 ment, to give bond, to keep books, to file inventory or 
 
 10 to render the invoices, returns or reports required by 
 
 11 the Commissioner, or to notify the collector of the 
 
 12 district of additions to his places of storage; or 
 
 13 "(2) who ships or delivers leaf tobacco, except as 
 
 14 herein provided; or 
 
 16 "(3) who fraudulently omits to account for tobacco 
 
 16 purchased, received, sold, or shipped; 
 
 17 shall be fined not less than $100 or more than $500, or 
 
 18 imprisoned not more than one year, or both. 
 
 19 "(f) For the purposes of this section a farmer or 
 
 20 grower of tobacco shall not be regarded as a dealer in 
 
 21 leaf tobacco in respect to the leaf tobacco produced 
 
 22 by him." 
 
 24 
 
 2B TITLE VIIL—TAX ON ADMISSIONS AND DUES. 
 
 88 
 
 27 SECTION 800. (a) That from and after April 1, 
 
 28 1919, there shall be levied, assessed, collected, and paid, 
 
 29 in lieu of the taxes imposed by section 700 of the 
 
 30 Revenue Act of 1917 — 
 
 10% Tax 31 (1) A tax of 1 cent for each 10 cents or fraction 
 
 38 thereof of the amount paid for admission to any place 
 
 33 on or after such date, including admission by season 
 
 34 ticket or subscription, to be paid by the person paying 
 
 35 for such admission; 
 
 Persons 36 (2) In the case of persons (except bona fide employees, 
 
 Admitted 37 municipal officers on oflEicial business, persons in the 
 
 Free or at 38 military or naval forces of the United States when in 
 Reduced 39 uniform, and children under twelve years of age) ad- 
 
 Rates 40 mitted free or at reduced rates to any place at a time 
 
 41 when and under circumstances under which an admis- 
 
 42 sion charge is made to other persons, a tax of 1 cent 
 
 43 for each 10 cents or fraction thereof of the price so 
 
 44 charged to such other persons for the same or similar 
 
 45 accommodations, to be paid by the person so admitted; 
 Theatres, 46 (3) Upon tickets or cards of admission to theatres, 
 
 Operas 47 operas, and other places of amusement, sold at news 
 
 48 stands, hotels, and places other than the ticket offices 
 
 49 of such theatres, operas, or other places of amuse- 
 
 60 ment, at not to exceed 50 cents in excess of the sum 
 
 61 of the established price therefor at such ticket offices 
 
 62 plus the amount of any tax imposed under paragraph 
 
 63 (1), a tax equivalent to 5 per centum of the amount 
 
 64 of such excess; and if sold for more than 50 cents in 
 66 excess of the sum of such established price plus the 
 
 66 amount of any tax imposed under paragraph (1), a 
 
 67 tax equivalent to 50 per centum of the whole amount 
 
 68 of such excess, such taxes to be returned and paid, 
 
 132 
 
in the manner provided in section 903, by the person 1 
 selling such tickets; 2 
 
 (4) A tax equivalent to 50 per centum of the amounts 50% Tax on 
 for which the proprietors, managers, or employees of 4 Tickets Sold 
 any opera house, theater, or other place of amusement 5 Above 
 
 sell or dispose of tickets or cards of admission in 6 Regular Price 
 excess of the regular or established price or charge 7 
 therefor, such tax to be returned and paid, in the 8 
 manner provided in section 903, by the person selling 9 
 such tickets; 10 
 
 (5) In the case of persons having the permanent use 11 Boxes or Seats 
 of boxes or seats in an opera house or any place of 12 Permanently 
 amusement or a lease for the use of such box or seat 13 Leased 
 
 in such opera house or place of amusement (in lieu of 14 
 the tax imposed by paragraph (1)), a tax equivalent to 15 
 10 per centum of the amount for which a similar box 16 
 or seat is sold for each performance or exhibition at 17 
 which the box or seat is used or reserved by or for 18 
 the lessee or holder, such tax to be paid by the lessee 19 
 or holder; and 20 
 
 (6) A tax of 1% cents for each 10 cents or fraction 21 Roof Gardens, 
 thereof of the amount paid for admission to any public 22 Cabarets 
 performance for profit at any roof garden, cabaret, 23 
 
 or other similar entertainment, to which the charge for 24 
 admission is wholly or in part included in the price 25 
 paid for refreshment, service, or merchandise; the 26 
 amount paid for such admission to be deemed to be 27 
 20 per centum of the amount paid for refreshment, 28 
 service, and merchandise; such tax to be paid by the 29 
 person paying for such refreshment, service, or mer- 30 
 chandise. 31 
 
 (b) No tax shall be levied under this title in respect 32 Religious, 
 
 to any admissions all the proceeds of which inure 33 Charitable, 
 exclusively to the benefit of religious, educational, or 34 Educational, 
 charitable institutions, societies, or organizations, so- 35 Etc., 
 cieties for the prevention of cruelty to children or 36 Entertain- 
 animals, or exclusively to the benefit of organizations 37 ments 
 conducted for the sole purpose of maintaining symphony 38 
 orchestras and receiving substantial support from vol- 39 
 untary contributions, none of the profits of which are 40 
 distributed to members of such organizations, or 41 
 exclusively to the benefit of persons in the military 42 
 or naval forces of the United States, or admissions to 43 
 agricultural fairs none of the profits of which are 44 
 distributed to stockholders or members of the asso- 45 
 elation conducting the same. 46 
 
 (c) The term "admission" as used in this title in- 47 "Admission" 
 eludes seats and tables, reserved or otherwise, and 48 Defined 
 other similar accommodations, and the charges made 49 
 
 therefor. 1 50 
 
 (d) The price (exclusive of the tax to be paid by 51 Price and 
 
 the person paying for admission) at which every ad- 52 Other Details 
 
 mission ticket or card is sold shall be conspicuously 53 to be 
 
 and indelibly printed, stamped, or written on the face 54 Stamped on 
 
 or back thereof, together with the name of the vendor 55 Tickets 
 
 If sold other than at the ticket office of the theater, 56 
 
 opera, or other place of amusement. Whoever sells 57 
 
 an admission ticket or card on which the name of the 58 
 
 133 
 
1 vendor and price Is not so printed, stamped, or written, 
 
 2 or at a price in excess of the price so printed, stamped, 
 8 or written thereon, is guilty of a misdemeanor, and 
 4 upon conviction thereof shall be fined not more than 
 $100. 
 
 6 
 Club Dues 7 SECTION 801. That from and after April 1, 1919, 
 
 8 there shall be levied, assessed, collected, and paid, in 
 
 9 lieu of the taxes imposed by section 701 of the Rev- 
 
 10 enue Act of 1917, a tax equivalent to 10 per centum 
 
 11 of any amount paid on or after such date, for any 
 
 12 period after such date, (a) as dues or membership fees 
 
 13 (where the dues or fees of an active resident annual 
 
 14 member are in excess of $10 per year) to any social, 
 16 athletic, or sporting club or organization; or (b) as 
 
 16 initiation fees to such a club or organization, if such 
 
 17 fees amount to more than $10, or if the dues or mem- 
 
 18 bership fees <not including initiation fees) of an 
 
 19 active resident annual member are in excess of $10 
 flO per year; such taxes to be paid by the person paying 
 
 21 such dues or fees: Provided, That there shall be ex- 
 
 22 empted from the provisions of this section all amounts 
 
 23 paid as dues or fees to a fraternal society, order, or 
 
 24 association, operating under the lodge system. In 
 26 the case of life memberships a life member shall pay 
 
 26 annually, at the time for the payment of dues by 
 
 27 active resident annual members, a tax equivalent to 
 
 28 the tax upon the amount paid by such a member, but 
 
 29 shall pay no tax upon the amount paid for life member- 
 
 30 ship. 
 31 
 
 Return and 32 SECTION 802. That every person (a) receiving any 
 
 Payment of 33 payments for such admission, dues, or fees shall col- 
 Tax 34 lect the amount of the tax imposed by section 800 or 
 86 801 from the person making such payments, or (b) 
 
 86 admitting any person free to any place for admission 
 
 87 to which a charge is made, shall collect the amount 
 
 88 of the tax imposed by section 800 from the person 
 
 89 so admitted. Every club or organization having life 
 
 40 members, shall collect from such members the amount 
 
 41 of the tax imposed by section 801. In all the above 
 
 42 cases returns and payments of the amount so collected 
 48 shall be made at the same time and in the same 
 44 manner as provided in section 602. 
 
 47 
 48 
 
 TITLE IX.— EXCISE TAXES. 
 
 Automobiles 
 and 
 Accessories 
 
 50 SECTION 900. That there shall be levied, assessed, 
 61 collected, and paid upon the following articles sold 
 52 or leased by the manufacturer, producer, or Importer, 
 
 63 a tax equivalent to the following percentages of the 
 
 64 price for which so sold or leased — 
 
 55 (1) Automobile trucks and automobile wagons, (in- 
 
 56 eluding tires, inner tubes, parts, and acces.sories there- 
 
 57 for, sold on or In connection therewith or with the 
 68 sale thereof), 3 per centum; 
 
 134 
 
(2) Other automobiles and motorcycles, (including 1 
 tires, inner tubes, parts, and accessories therefor, sold 2 
 on or in connection therewith or with the sale thereof), 3 
 except tractors, 5 per centum; 4 
 
 (3) Tires, inner tubes, parts, or accessories, for any 6 
 of the articles enumerated in subdivision (1) or (2) 6 
 sold to any person other than a manufacturer or pro- 7 
 ducer of any of the articles enumerated in subdivision 8 
 (1) or (2), 5 per centum; 9 
 
 (4) Pianos, organs (other than pipe organs), piano 10 Musical 
 players, graphophones, phonographs, talking machines, 11 Instruments 
 music boxes, and records used in connection with any 12 and 
 musical Instrument, piano player, graphophone, phono- 13 Accessories 
 graph, or talking machine, 5 per centum; 14 
 
 (5) Tennis rackets, nets, racket covers and presses, 15 Sporting 
 skates, snowshoes, skis, toboggans, canoe paddles and 16 Equipment 
 cushions, polo mallets, baseball bats, gloves, masks, 17 
 protectors, shoes and uniforms, football helmets, har- 18 
 
 ness and goals, basket-ball goals and uniforms, golf 19 
 bags and clubs, lacrosse sticks, balls of all kinds, in- 20 
 eluding baseballs, footballs, tennis, golf, lacrosse, bil- 21 
 Hard and pool balls, fishing rods and reels, billiard and 22 
 pool tables, chess and checker boards and pieces, dice; 28 
 games and parts of games (except playing cards and 24 
 children's toys and games), and all similar articles 25 
 commonly or commercially known as sporting goods, 26 
 10 per centum; 27 
 
 (6) Chewing gum or substitutes therefor, 3 per 28 Chewing Gum 
 centum; 29 
 
 (7) Cameras, weighing not more than 100 pounds, 10 30 Cameras, Etc. 
 per centum; 31 
 
 (8) Photographic films and plates, other than mov-32 
 ing-picture films, 5 per centum; 33 
 
 (9) Candy, 5 per centum; 34 Candy 
 
 (10) Firearms, shells, and cartridges, except those 35 Firearms and 
 sold for the use of the United States, any State, Ter-36 Accessories 
 ritory, or possession of the United States, any political 37 
 subdivision thereof, the District of Columbia, or any 38 
 
 foreign country while engaged against the German 39 
 Government in the present war, 10 per centum; 40 
 
 (11) Hunting and bowie knives, 10 per centum; 41 Hunting 
 
 (12) Dirk knives, daggers, sword canes, stilettos, 42 Knives 
 and brass or metallic knuckles, 100 per centum; 43 
 
 (13) Portable electric fans, 5 per centum; 44 Electric Fans 
 
 (14) Thermos and thermostatic bottles, carafes, jugs, 45 Thermos 
 or other thermostatic containers, 5 per centum; 46 Containers 
 
 (15) Cigar or cigarette holders and pipes, composed 47 Smoking 
 wholly or In part of meerschaum or amber, humidors, 48 Accessories 
 and smoking stands, 10 per centum; 49 
 
 (16) Automatic slot-device vending machines, 5 per 50 Vending 
 centum, and automatic slot-device weighing machines, 51 Machines 
 10 per centum; if the manufacturer, producer, or im- 52 
 
 porter of any such machine operates it for profit, he 63 
 shall pay a tax In respect to each such machine put 54 
 into operation equivalent to 5 per centum of its? fair 6B 
 market value in the case of a vending machine, and 58 
 10 per centum of its fair market value In the case of a 57 
 weighing machine; 58 
 
 135 
 
Liveries, etc. 
 Sport Garments 
 Fur 
 
 Pleasure Craft 
 
 Soaps 
 
 Wholesale and 
 Retail Price 
 
 Motion Picture 
 Films 
 
 Objects oi Art 
 
 1 (17) Liveries and livery boots and hats, 10 per 
 
 2 centum; 
 
 3 (18) Hunting and shooting garments and riding 
 
 4 habits, 10 per centum; 
 
 5 (19) Articles made of fur on the hide or pelt, or of 
 
 6 which any such fur is the component material of chief 
 
 7 value, 10 per centum; 
 
 8 (20) Yachts and motor boats not designed for trade, 
 
 9 fishing, or national defense; and pleasure boats and 
 
 10 pleasure canoes if sold for more than $15, 10 per cen- 
 
 11 turn; and 
 
 12 (21) Toilet soaps and toilet soap powders, 3 per 
 
 13 centum. 
 
 14 If any manufacturer, producer, or importer of any of 
 
 15 the articles enumerated in this section customarily sells 
 
 16 such articles both at v.'holesale and at retail, the tax 
 
 17 in the case of any article sold by him at retail shall 
 
 18 be computed on the price for which like articles are 
 
 19 sold by him at wholesale. 
 
 20 The taxes imposed by this section shall, in the case 
 
 21 of any article in respect to which a corresponding tax 
 
 22 is imposed by section 600 of the Revenue Act of 1917, 
 
 23 be in lieu of such tax. 
 24 
 
 25 SECTION 901. That if any person manufactures, 
 
 26 produces or imports any article enumerated in section 
 
 27 900, or leases or licenses for exhibition any positive 
 
 28 motion-picture film containing a picture ready for pro- 
 
 29 jection, and, whether through any agreement, arrange- 
 
 30 ment, or understanding, or otherwise, sells, leases, or 
 
 31 licenses such article at less than the fair market price 
 
 32 obtainable therefor, either (a) in such manner as dl- 
 
 33 rectly or indirectly to benefit such person or any person 
 
 34 directly or indirectly interested in the business of such 
 
 35 person, or (b) with intent to cause such benefit, the 
 
 36 amount for which such article is sold, leased or 11- 
 
 37 censed shall be taken to be the amount which would 
 
 38 have been received from the sale, lease or license of 
 89 such article if sold, leased or licensed at the fair 
 40 market price. 
 
 41 
 
 43 SECTION 902. That there shall be levied, assessed, 
 
 43 collected, and paid upon sculpture, paintings, statuary, 
 
 44 art porcelains, and bronzes, sold by any person other 
 
 45 than the artist, a tax equivalent to 10 per centum of the 
 
 46 price for which so sold. This section shall not apply 
 
 47 to the sale of any such article to an educational in- 
 
 48 stitution or public art museum. 
 
 Monthly Return 50 SECTION 903. That every person liable for any tax 
 and Payment 51 imposed by section 900, 902, or 906, shall make monthly 
 of Tax 52 returns under oath in duplicate and pay the taxes 
 
 53 imposed by such sections to the collector for the dis- 
 
 54 trict in which is located the principal place of business. 
 
 65 Such returns shall contain such information and be 
 
 66 made at such times and in such manner as the Com- 
 57 missioner, with the approval of the Secretary, may 
 68 by regulations prescribe. 
 
 136 
 
The tax shall, without assessment by the Commis- 1 
 sloner or notice from the collector, be due and payable 2 
 to the collector at the time so fixed for filing the return. 3 
 If the tax is not paid when due, there ^hall be added as 4 
 part of the tax a penalty of 5 per centum, together with 6 
 interest at the rate of 1 per centum for each full 6 
 month, from the time when the tax became due. 7 
 
 8 
 9 
 
 SECTION 904. (a) That on and after May 1, 1919, 10 Tax on 
 there shall be levied, assessed, collected, and paid all Luxuries 
 tax equivalent to 10 per centum of so much of the 12 
 amount paid for any of the following articles as is 13 
 in excess of the price hereinafter specified as to each 14 
 such article, when such article is sold by or for a dealer 15 
 or his estate on or after such date for consumption or 16 
 use — 17 
 
 (1) Carpets and rugs, including fiber, except im- 18 Carpets, Rugs 
 ported and American rugs made principally of wool, 19 
 
 on the amount in excess of $5 per square yard; 20 
 
 (2) Picture frames, on the amount in excess of $10 21 Picture Frames 
 each; 22 
 
 (3) Trunks, on the amount in excess of $50 each; 23 Traveling 
 
 (4) Valises, traveling bags, suit cases, hat boxes 24 Equipment 
 used by travelers, and fitted toilet cases, on the amount 25 
 
 in excess of $25 each; 26 
 
 (5) Purses, pocketbooks, shopping and hand bags, 27 Purses, Etc. 
 on the amount in excess of $7.50 each; 28 
 
 (6) Portable lighting fixtures, including lamps of all 29 Lighting 
 kinds and lamp shades, on the amount in excess of 30 Fixtures 
 $25 each; 31 
 
 (7) Umbrellas, parasols, and sun shades, on the 32 Umbrellas, 
 amount in excess of $4 each; 33 Etc. 
 
 (8) Fans, on the amount in excess of $1 each; 34 Fans 
 
 (9) House or smoking coats or jackets, and bath or 35 Clothing 
 lounging robes, on the amount in excess of $7.50 each; 36 
 
 (10) Men's waistcoats, sold separately from suits, 37 
 on the amount in excess of $5 each; 3tJ 
 
 (11) Women's and misses' hats, bonnets, and hoods, 39 Hats, Boots, 
 on the amount in excess of $15 each; 40 Shoes 
 
 (12) Men's and boys' hats, on the amount in excess 41 Stockings, 
 of $5 each; 42 Night Robes 
 
 (13) Men's and boys' caps, on the amount in excess 43 
 of $2 each; 44 
 
 (14) Men's, women's, misses', and boys' boots, shoes, 45 
 pumps, and slippers, not including shoes or appliances 46 
 made to order for any person having a crippled or de-47 
 formed foot or ankle, on the amount in excess of $10 48 
 per pair; 49 
 
 (15) Men's and boys' neckties and neckwear, on the 50 
 amount in excess of $2 each; 51 
 
 (16) Men's and boys' silk stockings or hose, on the 52 
 amount in excess of $1 per pair; 53 
 
 (17) "Women's and misses' silk stockings or hose, on 54 
 the amount in excess of $2 per pair; 55 
 
 (18) Men's shirts, on the amount in excess of $3 56 
 each; 57 
 
 (19) Men's, women's, misses', and boys' pajamas, 58 
 
 137 
 
1 night gowns, and underwear, on the amount in excess 
 fl of $5 each; and 
 
 8 (20) Kimonos, petticoats, and waists, on the amount 
 4 in excess of $15 each. 
 See also 1[2 to US 6 (b) The tax imposed by this section shall not apply 
 6 (1) to any article enumerated in paragraphs (2) to (8), 
 T both inclusive, of subdivision (a), if such article is 
 
 • made of or ornamented, mounted, or fitted with, pre- 
 
 • cious metals or Imitations thereof or Ivory, or (2) to 
 
 10 any article made of fur on the hide or pelt, or of which 
 
 11 any such fur is the component material of chief value, 
 M or to (3) any article enumerated in subdivision (17) or 
 13 (18) of section 900. 
 
 Tax Paid by 14 (c) The taxes imposed by this section shall be paid 
 
 Purchaser 16 by the purchaser to the vendor at the time of the sale 
 
 10 and shall be collected, returned, and paid to the 
 
 17 United States by such vendor in the same manner as 
 
 18 provided In section 502. 
 19 
 
 Tax on Jewelry 20 SECTION 905. That on and after April 1, 1919, there 
 
 Precious 21 shall be levied, assessed, collected, and paid (in lieu 
 
 Stones, 22 of the tax imposed by subdivision (e) of section 600 
 
 Optical 23 of the Revenue Act of 1917) upon all articles com- 
 
 Glasses 24 monly or commercially known as jewelry, whether real 
 
 80 or imitation; pearls, precious and semi-precious stones, 
 
 80 and Imitations thereof; articles made of, or ornamented, 
 
 27 mounted or fitted with, precious metals or imitations 
 
 80 thereof or ivory (not including surgical Instruments) ; 
 
 29 watches; clocks; opera glasses; lorgnettes; marine 
 
 80 glasses; field glasses; and binoculars; upon any of the 
 
 31 above when sold by or for a dealer or his estate for con- 
 
 38 sumption or use, a tax equivalent to 5 per centum of the 
 
 83 price for which so sold. 
 
 Monthly Return 34 Every person selling any of the articles enumerated 
 
 and Payment 35 in this section shall make returns under oath In dupli- 
 
 of Tax 30 cate (monthly or quarterly as the Commissioner, with 
 
 37 the approval of the Secretary, may prescribe) and pay 
 
 38 the taxes imposed in respect to such articles by this 
 
 39 section to the collector for the district in which Is lo- 
 
 40 cated the principal place of business. Such returns 
 
 41 shall contain such information and be made at such 
 
 48 times and In such manner as the Commissioner, with 
 
 43 the approval of the Secretary, may by regulations 
 
 44 prescribe. 
 
 46 The tax shall, without assessment by the Commis- 
 40 sloner or notice from the collector, be due and payable 
 
 47 to the collector at the time so fixed for filing the re- 
 40 turn. If the tax Is not paid when due, there shall be 
 
 49 added as part of the tax a penalty of 5 per centum, 
 
 60 together with Interest at the rate of 1 per centum for 
 
 61 each full month, from the time when the tax became 
 69 due. 
 
 63 
 Motion Picture 64 SECTION 906. That on and after the 1st day of 
 Films 66 May, 1919, any person engaged in the business of leas- 
 
 60 ing or licensing for exhibition positive motion-picture 
 
 67 films containing pictures ready for projection shall pay 
 
 68 monthly an excise tax In respect to carrying on such 
 
 138 
 
business equal to 5 per centum of the total rentals 1 
 earned from each such lease or license during the 8 
 preceding month. If a person owning such a film ex- 8 
 hibita it for profit he shall pay a ta?:. equivalent to 5 4 
 per centum of the fair rental or license value of such 5 
 film at the time and place where and for the period 6 
 during which exhibited. If any such person has, prior 7 
 to December 6, 1918, made a bona fide contract with 8 
 any person for the lease or licensing, after the tax 9 
 imposed by this section takes effect, of such a film for 10 
 exhibition for profit, and if such contract does not per- 11 
 mit the adding of the whole of the tax imposed by this 12 
 section to the amount to be paid under such contract, 13 
 then the lessee or licensee shall, in lieu of the lessor 14 
 or licensor, pay so much of such tax as is not so per- 15 
 mitted to be added to the contract price. The tax im- 10 
 posed by this section shall be in lieu of the tax im- 17 
 posed by subdivisions (c) and (d) of section 600 of the 18 
 Revenue Act of 1917. 19 
 
 20 
 SECTION 907. (a) That on and after May 1, 1919, 21 Toilet Articles 
 there shall be levied, assessed, collected and paid (in 22 
 lieu of the taxes imposed by* subdivisions (g) and (h) 23 
 of section 600 of the Revenue Act of 1917) a tax of 24 
 1 cent for each 25 cents or fraction thereof of the 25 
 amount paid for any of the following articles when 26 
 sold by or for a dealer or his estate on or after such 27 
 date for consumption or use: 28 
 
 (1) Perfumes, essences, extracts, toilet waters, cos- 29 
 metics, petroleum jellies, hair oils, pomades, hair dress- 30 
 ings, hair restoratives, hair dyes, tooth and mouth 31 
 washes, dentrifices, tooth pastes, aromatic cachous, toi- 32 
 let powders (other than soap powders), or any similar 33 
 substance, article, or preparation by whatsoever name 34 
 known or distinguished, any of the above which are 35 
 used or applied or intended to be used or applied for 36 
 toilet purposes; 87 
 
 (2) Pills, tablets, powders, tinctures, troches or loz- 38 Patent 
 enges, sirups, medicinal cordials or bitters, anodynes, 39 Medicine 
 tonics, plasters, liniments, salves, ointments, pastes, 40 
 
 drops, waters (except those taxed under section 628 41 
 of this Act), essences, spirits, oils, and other medicinal 42 
 preparations, compounds, or composition (not includ- 48 
 ing serums and antitoxins), upon the amount paid for 44 
 any of the above as to which the manufacturer or pro- 45 
 ducer claims to have any private formula, secret, or 46 
 occult art for making or preparing the same, or has 47 
 or claims to have any exclusive right or title to the 48 
 making or preparing the same, or which are prepared, 49 
 uttered, vended, or exposed for sale under any letters 50 
 patent, or trade-mark, or which (if prepared by any 51 
 formula, published or unpublished) are held out or 62 
 recommended to the public by the makers, vendors, 63 
 or proprietors thereof as proprietary medicines or me- 54 
 dicinal proprietary articles or preparations, or as rem- 55 
 edies or specifics for any disease, diseases, or afCection 56 
 whatever affecting the human or animal body: Pro- 57 
 vided, That the provisions of this section shall not 58 
 
 139 
 
1 apply to the sale of vaccines and bacterines whicn are 
 
 2 not advertised to the general lay public, nor to the sale 
 
 3 by a physican in personal attendance upon a patient of 
 
 4 medicinal preparations not so advertised. 
 Regulation for 5 (b) The taxes imposed by this section shall be col- 
 Collection of 6 lected by whichever of the following methods the 
 Tax 7 Commissioner may deem expedient: (1) by stamp af- 
 
 8 fixed to such article by the vendor, the cost of which 
 
 9 shall be reimbursed to the vendor by the purchaser; 
 
 10 or (2) by payment to the vendor by the purchaser at 
 
 11 the time of the sale, the taxes so collected being re- 
 
 12 turned and paid to the United States by such vendor 
 
 13 fji the same manner as provided in section 502. 
 14 
 
 15 
 
 16 TITLE X.— SPECIAL TAXES. 
 
 17 
 
 18 SECTION 1000. (a) That on and after July 1, 1918, 
 
 19 in lieu of the tax imposed by the first subdivision of 
 
 20 section 407 of the Revenue Act of 1916 — 
 
 21 (1) Every domestic corporation shall pay annually a 
 
 22 special excise tax with respect to carrying on or doing 
 
 23 business, equivalent to $1 for each $1,000 of so much of 
 
 24 the fair average value of its capital stock for the pre- 
 
 25 ceding year ending June thirtieth as is in excess of 
 
 26 $5,000. In estimating the value of capital stock the 
 
 27 surplus and undivided profits shall be included; 
 
 28 (2) Every foreign corporation shall pay annually a 
 
 29 special excise tax with respect to carrying on or doing 
 
 30 business in the United States, equivalent to $1 for 
 
 31 each $1,000 of the average amount of capital employed 
 
 32 in the transaction of its business in the United States 
 
 33 during the preceding year ending June thirtieth. 
 
 34 (b) In computing £Tie TSS" in the case of insurance 
 
 35 companies such deposits and reserve funds as chey are 
 33 required by law or contract to maintain or hold for 
 
 37 the protection of or payment to or apportionment among 
 
 38 policyholders shall not be included. 
 
 39 (c) The taxes imposed by this section shall not 
 
 40 apply in any year to any corporation which was not 
 
 41 engaged in business (or in the case of a foreign cor- 
 
 42 poratlon not engaged in business in the United States) 
 
 43 during the preceding year ending June 30, nor to any 
 
 44 corporation enumerated in section 231. The taxes im- 
 
 45 posed by this section shall apply to mutual insurance 
 
 46 companies, and in the case of every such domestic com- 
 
 47 pany the tax shall be equivalent to $1 for each $1,000 
 
 48 of the excess over $5,000 of the sum of its surplus 
 
 49 Of contingent reserves maintained for the general use 
 
 50 of the business and any reserves the net additions to 
 
 51 which are Included in net income under the provisions 
 
 52 of Title II, as of the close of the preceding accounting 
 
 53 period used by such company for purposes of making 
 Foreign Mutual 54 its income tax return: Provided, That in the case of a 
 
 Insurance 55 foreign mutual insurance company the tax shall be 
 
 Company 56 equivalent to $1 for each $1,000 of the same proportion 
 
 57 of the sum of such surplus and reserves, which the 
 
 68 reserve fund upon business transacted within the 
 
 Capital Stock 
 Tax 
 
 Domestic 
 Corporation 
 
 Foreign 
 
 Corporation 
 
 Insurance 
 Companies 
 
 Application of 
 Tax 
 
 140 
 
United States is of the total reserve upon all business 1 
 transacted, as of the close of the preceding accounting 2 
 period used by such company for purposes of making its 3 
 income tax return. 4 
 
 (d) Section 257 shall apply to all returns filed with 5 Returns 
 the Commissioner for purposes of the tax imposed by 6 
 this section. 7 
 
 8 
 
 SECTION 1001. That on and after January 1, 1919, 9 
 there shall be levied, collected, and paid annually the 10 
 following special taxes — 11 
 
 (1) Brokers shall pay $50. Every person whose busi- 12 Tax on Brokers 
 ness it is to negotiate purchases or sales of stocks, 13 
 
 bonds, exchange, bullion, coined money, bank notes, 14 
 promissory • notes, other securities, produce or mer- 15 
 chandise, for others, shall be regarded as a broker. If 16 
 a broker is a member of a stock exchange, or if he is 17 
 a member of any produce exchange, board of trade, IG 
 or similar organization, where produce or merchandise 19 
 is sold, he shall pay an additional amount as follows: 20 
 if the average value, during the preceding year ending 21 
 June 30, of a seat or membership in such exchange 22 
 or organization was $2,000 or more but not more than 23 
 $5,000, $100; if such value was more than $5,000, $150.24 
 
 (2) Pawnbrokers shall pay $100. Every person 25 Pawnbrokers 
 whose business or occupation it is to take or receive, 26 
 
 by way of pledge, pawn, or exchange, any goods, wares, 27 
 or merchandise, or any kind of personal property what- 28 
 ever, as security for the repa /nient of money loaned 29 
 thereon, shall be regarded as a, pawnbroker. 30 
 
 (3) Ship brokers shall pay $50. Every person whose 31 Ship Brokers 
 business it is as a broker to negotiate freights and 32 
 
 other business for the owners of vessels, or for the 33 
 shippers or consignors or consignees of freight carried 34 
 by vessels, shall be regarded as a ship broker. 35 
 
 (i) Customhouse brokers shall pay $50. Every per- 36 Customhouse 
 son whose occupation it is, as the agent of others, to 37 Brokers 
 arrange entries and other customhouse papers, or trans- 38 
 act business at any port of entry relating to the im- 39 
 portation or exportation of goods, wares, or merchan- 40 
 dise, shall be regarded as a customhouse broker. 41 
 
 (5) Proprietors of theaters, museums, and concert 42 Proprietors of 
 halls, where a charge for admission is made, having a 43 Places of 
 seating capacity of not more than two hundred and 44 Amusement 
 fifty, shall pay $50; having a seating capacity of more 45 
 than two hundred and fifty and not exceeding five hun- 46 
 dred, shall pay $100; having a seating capacity ex- 47 
 ceeding five hundred and not exceeding eight hundred, 48 
 shall pay $150; having a seating capacity of more than 49 
 eight hundred, shall pay $200. Every edifice used for 50 
 the purpose of dramatic or operatic or other repre- 51 
 eentations, plays, or performances, for admission to 52 
 which entrance money is received, not including halls 53 
 or armories rented or used occasionally for concerts or 54 
 theatrical representations, and not including edifices 55 
 /)wned by religious, educational or charitable institu- 56 
 tions, societies or organizations where all the proceeds 57 
 from admissions inure exclusively to the benefit of such 58 
 
 141 
 
Circuses 
 
 Public 
 Exhibitions 
 
 Bowling Alleys, 
 Billiard 
 Rooms 
 
 Shooting 
 Galleries 
 
 Riding 
 Academies 
 
 Public 
 Conveyance 
 by Motor 
 
 1 institutions, societies or organizations or exclusively 
 8 to the benefit of persons in the military or naval forces 
 8 of the United States, shall be regarded as a theater: 
 4 Provided, That in cities, towns, or villages of five 
 6 thousand inhabitants or less the amount of such pay- 
 6 ment shall be one-half of that above stated: Pro- 
 T vided further. That whenever any such edifice is under 
 
 • lease at the time the tax is due, the tax shall be paid 
 
 • by the lessee, unless otherwise stipulated between the 
 
 10 parties to the lease. 
 
 11 (6) The proprietor or proprietors of circuses shall 
 
 12 pay $100. Every building, space, tent, or area, where 
 
 13 feats of horsemanship or acrobatic sports or theatrical 
 
 14 performances not otherwise provided for in this sec- 
 16 tion are exhibited shall be regarded as a circus: Pro- 
 
 16 vided. That no special tax paid in one State, Territory, 
 
 17 or the District of Columbia shall exempt exhibitions 
 
 18 from the tax in another State, Territory, or the Dis- 
 
 19 trict of Columbia, and but one special tax shall be 
 80 imposed for exhibitions within any one State, Terri- 
 
 21 tory, or District. 
 
 22 (7) Proprietors or agents of all other public exhibi- 
 
 23 tions or shows for money not enumerated ii\ this sec- 
 
 24 tion shall pay $15: Provided, That a special tax paid 
 
 25 in one State, Territory, or the District of Columbia 
 
 26 shall not exempt exhibitions from the tax in another 
 
 27 State, Territory, or the District of Columbia, and but 
 
 28 one special tax shall be required for exhibitions within 
 
 29 any one State, Territory, or the District of Columbia: 
 
 30 Provided further. That this paragraph shall not apply 
 
 31 to Chautauquas, lecture lyceums, agricultural or indus- 
 
 32 trial fairs, or exhibitions held under the auspices of 
 
 33 religious or charitable associations: Provided further, 
 
 34 That an aggregation of entertainments, known as a 
 
 35 street fair, shall not pay a larger tax than $100 in any 
 
 36 State, Territory, or in the District of Columbia. 
 
 37 (8) Proprietors of bowling alleys and billiard rooms 
 
 38 shall pay $10 for each alley or table. Every building or 
 
 39 place where bowls are thrown or where games of bil- 
 
 40 liards or pool are played, except in private homes, 
 
 41 shall be regarded as a bowling alley or a billiard room, 
 
 42 respectively. 
 
 43 (9) Proprietors of shooting galleries shall pay $20. 
 
 44 Every building, space, tent, or area, where a charge is 
 
 45 made for the discharge of firearms at any form of tar- 
 43 get shall be regarded as a shooting gallery. 
 
 47 (10) Proprietors of riding academies shall pay $100. 
 
 48 Every building, space, tent, or area, where a charge is 
 
 49 made for instruction in horsemanship or for facilities 
 
 50 for the practice of horsemanship shall be regarded as 
 5X a riding academy. 
 
 52 (11) Persons carrying on the business of operating 
 63 or renting passenger automobiles for hire shall pay 
 
 54 $10 for each such automobile having a seating capacity 
 
 55 of more than two and not more than seven, and $20 
 
 56 for each such automobile having a seating capacity of 
 67 more than seven. 
 
 142 
 
(12) Every person carrying on the business of a I Liquor 
 brewer, distiller, wholesale liquor dealer, retail liquor 2 Manufac- 
 dealer, wholesale dealer in malt liquor^, retail dealer in 3 turers and 
 malt liquor, or manufacturer of stills, as defined In 4 Dealers 
 section 3244 as amended and section 3247 of the Re- 6 
 vised Statutes, in any State, Territory, or District of 6 
 the United States, contrary to the laws of such 7 
 State, Territory, or District, or in any place therein 8 
 in which carrying on such business is prohibited 9 
 by local or municipal law, shall pay, in addition to 10 
 all other taxes, special or otherwise, imposed by exist- 11 
 ing law or by this Act, |1,000. 12 
 
 The payment of the tax Imposed by this subdivision 13 
 shall not be held to exempt any person from any pen- 14 
 alty or punishment provided for by the laws of any 15 
 State, Territory, or District for carrying on such busi- 16 
 ness in such State, Territory, or District, or in any 17 
 manner to authorize the commencement or continuance 18 
 of such business contrary to the laws of such State, 19 
 Territory, or District, or in places prohibited by local 20 
 or municipal law. 21 
 
 The taxes Imposed by this section shall, in the case 22 
 of persons upon whom a corresponding tax Is imposed 23 
 by section 407 of the Revenue Act of 1916, be In lieu 24 
 of such tax. 25 
 
 SECTION 1002. That on and after January 1, 1919, 26 Manufactures 
 there shall be levied, collected, and paid annually, in 27 of Tobacco, 
 lieu of the taxes Imposed by section 408 of the Revenue 28 Cigars and 
 Act of 1916, the following special taxes, the amount of 29 Cigarettes 
 such taxes to be computed on the basis of the sales for 30 
 the preceding year ending June 30 — 31 
 
 Manufacturers of tobacco whose annual sales do not 32 
 exceed fifty thousand pounds shall each pay $6; 33 
 
 Manufacturers of tobacco whose annual sales exceed 34 
 fifty thousand and do not exceed one hundred thousand 35 
 pounds shall each pay $12; 36 
 
 Manufacturers of tobacco whose annual sales exceed 37 
 one hundred thousand and do not exceed two hundred 38 
 thousand pounds shall each pay $24; 39 
 
 Manufacturers of tobacco whose annual sales exceed 40 
 two hundred thousand pounds shall each pay $24, and 41 
 at the rate of 16 cents per thousand pounds, or fraction 42 
 thereof, in respect to the excess over two hundred 48 
 thousand pounds; 44 
 
 Manufacturers of cigars whose annual sales do not 45 
 exceed fifty thousand cigars shall each pay $4; 48 
 
 Manufacturers of cigars whose annual sales exceed 47 
 fifty thousand and do not exceed one hundred thou- 48 
 sand cigars shall each pay $6; 49 
 
 Manufacturers of cigars whose annual sales exceed 60 
 one hundred thousand and do not exceed two hundred 61 
 thousand cigars shall each pay $12; 68 
 
 Manufacturers of cigars whose annual sales exceed 53 
 two hundred thousand and do not exceed four hundred 64 
 thousand cigars shall each pay $24; 65 
 
 Manufacturers of cigars whose annual sales exceed 66 
 four hundred thousand cigars shall each pay $24, and 67 
 at the rate of 10 cents per thousand cigars, or fraction 58 
 
 148 
 
1 thereof, In respect to the excess over four hundred 
 
 2 thousand cigars; 
 
 3 Manufacturers of cigarettes, including small cigars 
 
 4 weighing not more than three pounds per thousand shall 
 
 5 each pay at the rate of 6 cents for every ten thousand 
 
 6 cigarettes, or fraction thereof. 
 
 7 In arriving at the amount of special tax to be paid 
 
 8 under this section, and in the levy and collection of 
 
 9 such tax, each person engaged in the manufacture of 
 
 10 more than one of the classes of articles specified in 
 
 11 this section shall be considered and deemed a manu- 
 
 12 facturer of each class separately. 
 13 
 
 Pleasure Craft 14 SECTION 1003. That sixty days after the passage 
 
 15 of this Act, and thereafter on July 1 in each year, and 
 
 16 also at the time of the original purchase of a new 
 
 17 boat by a user, if on any other date than July 1, there 
 
 18 shall be levied, assessed, collected, and paid in lieu oi 
 
 19 the tax imposed by section 603 of the Revenue Act of 
 20 1917, upon the use of yachts, pleasure boats, power 
 
 21 boats, and sailing boats, of over five net tons, and 
 
 22 motor boats with fixed engines, not used exclusively 
 
 23 for trade, fishing or national defense, or not built ac- 
 
 24 cording to plans and specifications approved by the 
 
 25 Navy Department, a special excise tax to be based on 
 
 26 each yacht or boat, at rates as follows: Yachts, pleas- 
 
 27 ure boats, power boats, motor boats with fixed engines, 
 ^ 28 and sailing boats, of over five net tons, length not 
 
 29 over fifty feet, $1 for each foot; length over fifty feet 
 
 30 and not over one hundred feet, $2 for each foot; length 
 
 31 over one hundred feet, $4 for each foot; motor boats 
 
 32 of not over five net tons with fixed engines, |10. 
 
 33 In determining the length of such yachts, pleasure 
 
 34 boats, power boats, motor boats with fixed engines, and 
 
 35 sailing boats, the measurement of over-all length shall 
 
 36 govern. 
 
 37 In the case of a tax imposed at the time of the 
 
 38 original purchase of a new boat on any other date than 
 
 39 July 1, and in the case of the tax taking effect sixty 
 
 40 days after the passage of this Act, the amount to be 
 
 41 paid shall be the same number of twelfths of the 
 
 42 amount of the tax as the number of calendar months 
 
 43 (Including the month of sale, or the month in which 
 
 44 Is included the sixty-first day after the passage of 
 
 45 this Act, as the case may be) remaining prior to the 
 
 46 following July 1. 
 
 47 If the tax imposed by section 603 of the Revenue 
 
 48 Act of 1917, for the fiscal year ending June 30, 1919, 
 
 49 has been paid in respect to the use of any boat, the 
 
 60 amount so paid shall under such regulations as the 
 
 61 Commissioner, with the approval of the Secretary, may 
 52 prescribe, be credited upon the first tax due under 
 63 this section In respect to the use of such boat, or be 
 54 refunded to the person paying the first tax Imposed 
 
 Where Taxes 55 by this section In respect to th« use of such boat. 
 Have Been 56 
 
 Paid Under 57 SECTION 1004. That if the tax Imposed by section 
 Act of 1916 58 407 or 408 of the Revenue Act of 1916, for the fiscal 
 
 144 
 
year ending June 30, 1919, has been paid by any person 1 
 subject to the corresponding tax imposed by this title, 2 
 collectors may issue a receipt in lieu of special tax 3 
 stamp for the amount by which the tax under this title 4 
 is in excess of that paid or payable ao4 evidenced by 6 
 stamp under the Revenue Act of 1916, Such receipt 6 
 shall be posted as in the case of the special tax stamp, 7 
 as provided by law, and with it, within the place of 8 
 business of the taxpayer. 9 
 
 If the corresponding tax imposed by section 407 of 10 
 the Revenue Act of 1916 was not payable by stamp, the 11 
 amount paid under such section for any period for 12 
 which a tax is also imposed by this title may be cred- 13 
 ited against the tax imposed by this title. 14 
 
 15 
 
 SECTION 1005. That any person who carries on any 16 Penalties 
 business or occupation for which a special tax is im- 17 
 posed by sections 1000, 1001, or 1002, without having 18 
 paid the special tax therein provided, shall, besides 19 
 being liable for the payment of such special tax, be 20 
 subject to a penalty of not more than $1,000 or to 21 
 imprisonment for not more than one year, or both. 22 
 
 23 
 
 SECTION 1006. That section 1 of the Act of Con- 24 Manufacturers 
 gress approved December 17, 1914, is hereby amended 25 and 
 to read as follows: 26 Importers of 
 
 "Section 1. That on or before July 1 of each year 27 and Dealers 
 every person who imports, manufactures, produces, 28 in Opium or 
 compounds, sells, deals in, dispenses, or gives away 29 Coca Leaves 
 opium or coca leaves, or any compound manufacture, 30 
 salt, derivative, or preparation thereof, shall register 31 
 with the collector of internal revenue of the district 32 
 his name or style, place of business and place or 33 
 places where such business is to be carried on, and 34 
 pay the special taxes hereinafter provided; 35 
 
 "Every person who on January 1, 1919, is engaged 36 
 in any of the activities above enumerated, or who be- 37 
 tween such date and the passage of this Act first en- 38 
 gages in any of such activities, shall within 30 days 39 
 after the passage of this Act make like registration, 40 
 and shall pay the proportionate part of the tax for 4i 
 the perio<i ending June 30, 1919; and 42 
 
 "Every person who first engages in any of sucii activ- 43 Tax on 
 ities after the passage of this Act shall immediately 44 Registrations 
 make like registration and pay the proportionate part of 43 
 the tax for the period ending on the following June 30; 46 
 
 "Importers, manufacturers, producers, or compound- 47 
 crs, $24 per annum; wholesale dealers, $12 per annum; 48 
 retail dealers, $6 per annum; physicians, dentists, vet- 49 
 erinary surgeons, and other practitioners lawfully en- 50 
 titled to distribute, dispense, give away, or administer 51 
 any of the aforesaid drugs to patients upon whom they 52 
 in the course of their professional practice are in at- 53 
 tendance, shall pay $3 per annum. 54 
 
 "Every person who Imports, manufactures, com- 55 
 pounds, or otherwise produces for sale or distribution 56 
 any of the aforesaid drugs shall be deemed to be an 57 
 importer, manufacturer, or producer. 68 
 
 145 
 
Unlawful to 
 Purchase 
 Except as 
 Provided by 
 Law 
 
 1 "Every person who sells or offers for sale any of 
 
 2 said drugs in the original stamped packages, as here- 
 
 3 inaf ter provided, shall be deemed a wholesale dealer. 
 
 4 "Every person who sells or dispenses from original 
 6 stamped packages, as hereinafter provided, shall be 
 e deemed a retail dealer: Provided, That the office, or 
 7, if none, the residence, of any person shall be con- 
 Sjsidered for the purpose of this Act his place of busi- 
 •^ess; but no employee of any person who has regls- 
 
 10 tered and paid special tax as herein required, actlnir 
 
 11 within the scope of his employment, shall be required 
 
 12 to register and pay special tax provided by this section: 
 
 13 Provided further, That officials of the United Statea, 
 
 14 Territorial, District of Columbia, or Insular possession*, 
 
 15 State or municipal governments, who In the exercise 
 1§ of their official duties engage in any of the business 
 
 17 herein described, shall not be required to register, nor 
 
 18 pay special tax, nor stamp the aforesaid drugs as 
 1^ hereinafter prescribed, but their right to this exemp- 
 
 20 tlon shall be evidenced in such manner as the Com- 
 
 21 missloner of Internal Revenue, with the approval of 
 
 22 the Secretary of the Treasury, may by regulations 
 
 23 prescribe. 
 
 24 "It shall be unlawful for any person required to 
 2^ register under the provisions of this Act to Import, 
 20 manufacture, produce, compound, sell, deal in, dispense, 
 
 27 distribute, administer, or give away any of the afore- 
 
 28 said drugs without having registered and paid the 
 28 special tax as Imposed by this section. 
 
 30 "That the word 'person' as used in this Act shall be 
 
 31 construed to mean and Include a partnership, assocla- 
 
 32 tion, company, or corporation, as well as a natural 
 
 33 person; and all provisions of existing law relating to 
 
 34 special taxes, as far as necessary, are hereby extended 
 38, and made applicable to this section. 
 
 36 "That there shall be levied, assessed, collected, and 
 37fpaid upon opium, coca leaves, any compound, salt, de- 
 38,rivative, or preparation thereof, produced in or im- 
 
 39 ported into the United States, and sold, or removed for 
 
 40 consumption or sale, an internal-revenue tax at the 
 
 41 rate of 1 cent per ounce, and any fraction of an ounce 
 
 42 in a package shall be taxed as an ounce, such tax to 
 
 43 be paid by the importer, manufacturer, producer, or 
 
 44 compounder thereof, and to be represented by appro- 
 
 45 priate stamps, to be provided by the Commissioner of 
 40 Internal Revenue, with the approval of the Secretary 
 
 47 of the Treasury; and the stamps herein provided shall 
 
 48 be so affixed to the bottle or other container as to 
 
 49 securely seal the stopper, covering, or wrapper thereof. 
 60 "The tax imposed by this section shall be in 
 
 51 addition to any Import duty imposed on the aforesaid 
 
 52 drugs. 
 
 53 "It shall be unlawful for any person to purchase, 
 
 54 sell, dispense, or distribute any of the aforesaid drugs 
 
 55 except in the original stamped package or from the 
 
 56 original stamped package; and the absence of appro- 
 
 57 priate tax-paid stamps from any of the aforesaid drugs 
 
 58 shall be prima facie evidence of a violation of this sec- 
 
 146 
 
tlon by the person in whose possession same may be 1 
 found; and the possession of any original stamped 2 
 package containing any of the aforesaid drugs by any 3 
 person who has not registered and paid special taxes 4 
 as required by this section shall be prima facie evi- 5 
 dence of liability to such special tax: Provided, That 6 
 the provisions of this paragraph shall not apply to 7 
 any person having in his or her possession any of the 8 
 aforesaid drugs which have been obtained from a reg- 9 
 istered dealer in pursuance of a prescription, written 10 
 for legitimate medical uses, issued by a physician, den- 11 
 tist, veterinary surgeon, or other practitioner registered 12 
 under this Act; and where the bottle or other container 13 
 in which such drug may be put up by the dealer upon 14 
 , said prescription bears the name and registry number 15 
 of the druggist, serial number of prescription, name 16 
 and address of the patient, and name, address, and 17 
 registry number of the person writing said prescrip- 18 
 tion; or to the dispensing, or administration, or giving 19 
 away of any of the aforesaid drugs to a patient by a 20 
 registered physician, dentist, veterinary surgeon, or 21 
 other practitioner in the course of his professional 22 
 practice, and where said drugs are dispensed or ad- 23 
 ministered to the patient for legitimate medical pur- 24 
 poses, and the record kept as required by this Act 25 
 of the drugs so dispensed, administered, distributed, or as 
 given away. 27 
 
 "And all the provisions of existing laws relating to 28 
 the engraving, issuance, sale, accountability, cancella- 29 
 tion, and destruction of tax-paid stamps provided for 30 
 in the internal-revenue laws are, in so far as necessary, 31 
 hereby extended and made to apply to stamps provided 32 
 by this section. 33 
 
 "That all unstamped packages of the aforesaid drugs 34 
 found in the possession of any person, except as herein 35 
 provided, shall be subject to seizure and forfeiture, 36 
 and all the provisions of existing internal-revenue laws 37 
 i-elating to searches, seizures, and forfeitures of un- 38 
 stamped articles are hereby extended to and made to 39 
 apply to the articles taxed under this Act and the 40 
 persons upon whom these taxes are imposed. 41 ** 
 
 "Importers, manufacturers, and wholesale dealers 42 
 shall keep such books and records and render such 43 
 monthly returns in x^elation to the transactions in the 44 
 aforesaid drugs as the Commissioner of Internal Rev- 45 
 enue, with the approval of the Secretary of the Treas- 46 
 ury, may by regulations require. 47 
 
 "The Commissioner of Internal Revenue, with the 43 
 approval of the Secretary of the Treasury, shall make 49 
 all needful rules and regulations for carrying the pro- eo 
 visions of this Act into efCect." . 51 
 
 62 
 
 SECTION 1007. That section 6 of such Act of De- 55 Drugs and 
 cember 17, 1914, is hereby amended to read as follows: 56 Remedies 
 
 "Section 6. That the provisions of this Act shall 57 Containing 
 not be construed to apply to the manufacture, sale, dis- 58 Small 
 tribution, giving away, dispensing, or possession of 59 Percentage 
 preparations and remedies which do not contain more 60 of Narcotics 
 
 147 
 
1 than two grains of opium, or more than one-fourth of 
 
 2 a grain of morphine, or more than one-eighth of a grain 
 
 3 of heroin, or more than one grain of codeine, or any 
 
 4 salt or derivative of any of them in one fluid ounce, or, 
 B if a solid or semisolid preparation, in one avoirdupois 
 
 6 ounce; or to liniments, ointments, or other preparations 
 
 7 which are prepared for extenal use only, except llni- 
 
 8 ments, ointments, and other preparations which contain 
 
 9 cocaine or any of Its salts or alpha or beta cucaine 
 
 10 or any of their salts or any synthetic substitute for 
 
 11 them: Provided, That such remedies and preparations 
 
 12 are manufactured, sold, distributed, given away, dis- 
 
 13 pensed, or possessed as medicines and not for the pur- 
 
 14 pose of evading the intentions and provisions of this 
 
 15 Act: Provided further, That any manufacturer, pro- 
 
 16 ducer, compounder, or vendor (including dispensing 
 
 17 physicians) of the preparations and remedies mentioned 
 
 18 in this section shall keep a record of all sales, ex- 
 
 19 changes, or gifts of such preparations and remedies in 
 
 20 such manner as the Commissioner of Internal Revenue, 
 
 21 with the approval of the Secretary of the Treasury, 
 
 22 shall direct. Such record shall be preserved for a 
 
 23 period of two years in such a way as to be readily 
 
 24 accessible to inspection by any officer, agent, or em- 
 
 25 ployee of the Treasury Department duly authorized for 
 
 26 that purpose, and the State, Territorial, District, 
 
 27 municipal, and insular officers named in section 5 of 
 
 28 this Act, and every such person so possessing or dis- 
 
 29 posing of such preparations and remedies shall register 
 
 30 as required in section 1 of this Act and, if he is not 
 
 31 paying a tax under this Act, he shall pay a special 
 
 32 tax of $1 for each year, or fractional part thereof, in 
 
 33 which he is engaged in such occupation, to the col- 
 
 34 lector of internal revenue of the district in which he 
 
 35 carries on such occupation as provided in this Act. The 
 
 36 provisions of this Act as amended shall not apply to 
 
 37 decocainized coca leaves or preparations made there- 
 
 38 from, or to other preparations of coca leaves which do 
 
 39 not contain cocaine." 
 40 
 
 41 SECTION 1008. That all opiunri. its salts, deriva- 
 
 42 tives, and compounds, and coca leaves, salts, deriva- 
 
 43 tives, and compounds thereof, which may now be under 
 
 44 seizure or which may hereafter be seized by the United 
 
 45 States Government from any person or persons charged 
 
 46 with any violation of the Act of October 1, 1890, as 
 
 47 amended by the Acts of March 3, 1897, February 9. 
 
 48 1909, and January 17, 1914, or the Act of December 17, 
 
 49 1914, shall upon conviction of the person or persons 
 
 50 from whom seized be confiscated by and forfeited to 
 
 51 the United States; and the Secretary is hereby author- 
 
 52 izcd to deliver for medical or scientific purposes to any 
 
 53 department, bureau, or other agency of the United 
 
 54 States Government, upon proper application therefor 
 
 55 under such regulation as may be prescribed by the 
 
 56 Commissioner, with the approval of the Secretary, any 
 
 57 of the drugs so seized, confiscated, and forfeited to the 
 68 United States. 
 
 148 
 
The provisions of this section shall also apply to 1 
 any of the aforesaid drugs seized or coming into the 2 
 possession of the United States in the enforcement of: 3 
 any of the above-mentioned Acts where the owner or 4 
 owners thereof are unknown. None of the aforesaid 6 
 drugs coming into possession of the United States un- 6 
 der the operation of said Acts, or the provisions of this 7 
 section, shall be destroyed without certification by a 8 
 committee appointed by the Commissioner, with the 9 
 approval of the Secretary, that they are of no value for 10 
 medical or scientific purposes. 11 
 
 12 
 
 SECTION 1009. That the Act approved October 22, IS 
 1914, entitled "An Act to increase the internal rev- 14 
 enue, and for other purposes," and the joint resolution 15 
 approved December 17, 1915, entitled "Joint resolution IG 
 extending the provisions of the Act entitled 'An Act to 17 
 increase the internal revenue, and for other purposes,* 18 
 approved October twenty-second, nineteen hundred and 19 
 fourteen, to December thirty -first, nineteen hundred 20 
 and sixteen," are hereby repealed, except that the pro- 21 
 visions of such Act shall remain in force for the assess- 22 
 ment and collection of all special taxes imposed by 23 
 sections 3 and 4 thereof, or by such sections as ex- 24 
 tended by such joint resolution, for any year or part 25 
 thereof ending prior to January 1, 1917, and of all other 26 
 taxes imposed by such Act, or by such Act as so ex- 27 
 tended, accrued prior to September 8, 1916, and for 28 
 the imposition and collection of all penalties or for- 29 
 feitures which have accrued or may accrue in relation 30 
 to any of such taxes. 31 
 
 88 
 88 
 TITLE XI.— STAMP TAXES. 34 Stamp Taxes 
 
 35 
 
 SECTION 1100. That on and after April 1, 1919,36 
 there shall be levied, collected, and paid, for and in 37 
 respect of the several bonds, debentures, or certificates 38 
 of stock and of indebtedness, and other documents, in- 89 
 struments, matters, and things mentioned and de- 40 
 scribed in Schedule A of this title, or for or in respect 41 
 of the vellum, parchment, or paper upon which such in- 42 
 struments, matters, or things, or any of them, are 43 
 written or printed, by any person who makes, signs, 44 
 issues, sells, removes, consigns, or ships the same, or 45 
 for whose use or benefit the same are made, signed, 46 
 issued, sold, removed, consigned, or shipped, the sev-47 
 eral taxes specified in such schedule. The taxes im- 48 
 posed by this section shall, in the case of any article 49 
 upon which a corresponding stamp tax is now imposed 50 
 by law, be in lieu of such tax. 51 
 
 52 
 
 SECTION 1101. That there shall not be taxed under 53 Exemptions 
 this title any bond, note, or other instrument, issued 54 
 by the United States, or by any foreign Government, 55 
 or by any State, Territory, or the District of Columbia, 56 
 or local subdivision thereof, or municipal or other cor- 57 
 poration exercising the taxing power; or any bond of 58 
 
 149 
 
1 indemnity required to be filed by any person to secure 
 
 2 payment of any pension, allowance, allotment, relief, 
 
 • or insurance by the United States; or stocks and bonds 
 
 4 Issued by cooperative building and loan associations 
 
 • which are organized and operated exclusively for the 
 
 6 benefit of their members and make loans only to their 
 
 7 shareholders, or by mutual ditch or irrlgatlngr com- 
 
 5 panles. 
 8 
 
 10 SECTION 1102. That whoever— 
 Penalties 11 (a) Makes, signs, issues, or accepts, or causes to be 
 
 12 made, signed, issued, or accepted, any instrument, docu- 
 
 13 ment, or paper of any kind or description whatsoever 
 
 14 without the full amount of tax thereon being duly 
 
 15 paid; 
 
 16 (b) Consigns or ships, or causes to be consigned or 
 
 17 shipped, by parcel post any parcel, package, or article 
 
 18 without the full amount of tax being duly paid; 
 
 19 (c) Manufactures or imports and sells, or offers for 
 
 20 sale, or causes to be manufactured or imported and 
 
 21 sold, or offered for sale, any playing cards, package, 
 
 22 or other article without the full amount of tax being 
 
 23 duly paid; 
 
 24 (d) Makes use of any adhesive stamp to denote any 
 
 26 tax imposed by this title without canceling or obliter- 
 26ating such stamp as prescribed in section 1104; 
 
 27 Is guilty of a misdemeanor and upon conviction 
 
 28 thereof shall pay a fine of not more than $100 for each 
 
 29 offense. 
 30 
 
 31 SECTION 1103. That whoever— 
 
 32^ (a) Fraudulently cuts, tears, or removes from any 
 
 33 vellum, parchment, paper, instrument, writing, package, 
 
 34 or article, upon which any tax is imposed by this title, 
 36 any adhesive stamp or the impression of any stamp, 
 36 die, plate, or other article provided, made, or used In 
 37 pursuance of this title; 
 
 38 (b) Fraudulently uses, joins, fixes, or places to, with, 
 89 or upon any vellum, parchment, paper, instrument, 
 
 40 writing, package, or article, upon which any tax Is Im- 
 
 41 posed by this title, (1) any adhesive stamp, or the im- 
 
 42 pression of any stamp, die, plate, or other article, which 
 
 43 has been cut, torn, or removed from any other vellum, 
 
 44 parchment, paper, instrument, writing, package, or ar- 
 46 tide, upon which any tax is imposed by this title; or 
 
 46 (2) any adhesive stamp or the impression of any stamp, 
 
 47 die, plate, or other article of insufficient value; or (3^ 
 
 48 any forged or counterfeit stamp, or the impression of 
 
 49 any forged or counterfeited stamp, die, plate, or other 
 
 60 article; 
 
 61 (c) Willfully removes, or alters the cancellation, or 
 
 62 defacing marks of, or otherwise prepares, any adhesive 
 
 63 stamp, with intent to use, or cause the same to be used, 
 
 64 after It has been already used, or knowingly or willfully 
 
 66 buys, sells, offers for sale, or gives away, any such 
 86 washed or restored stamp to any person for use, or 
 
 67 knowingly uses the same; 
 
 68 (d) Knowingly and without lawful excuse (the bur- 
 
 150 
 
den of proof of such excuse being on the accused) has 1 
 in possession any washed, restored, or altered stamp, 2 
 which has been removed from any vellum, parchment, 3 
 paper, Instrument, writing, package, or article; 4 
 
 Is guilty of a misdemeanor, and upon conviction shall 6 
 be punished by a fine of not more than $1,000, or by 6 
 imprisonment for not more than Ave years, or both, and 7 
 any such reused, canceled, or counterfeit stamp and the 8 
 vellum, parchment, document, paper, package, or article 9 
 upon which it is placed or impressed shall be forfeited 10 
 to the United States. 11 
 
 18 
 13 
 SECTION 1104. That whenever an adhesive stamp is 14 Use of Stamps 
 used for denoting any tax imposed by this title, except 16 
 as hereinafter provided, the person using or affixing the 16 
 same shall write or stamp or cause to be written or 17 
 stamped thereupon the initials of his or its name and 18 
 the date upon which the same is attached or used, so 19 
 that the same may not again be used: Provided, That 20 
 the Commissioner may prescribe such other method for 21 
 the cancellation of such stamps as he may deem ex- 22 
 pedient. 23 
 
 24 
 26 
 SECTION 1105. (a) That the Commissioner shall 86 
 cause to be prepared and distributed for the payment 87 
 of the taxes prescribed in this title suitable stamps 28 
 denoting the tax on the document, articles, or thing to 29 
 which the same may be affixed, and shall prescribe such 30 
 method for the affixing of said stamps in substitution 31 
 for or in addition to the method provided in this title, 32 
 as he may deem expedient. 33 
 
 (b) The Commissioner, with the approval of the Sec- 34 
 retary, is authorized to procure any of the stamps pro- 35 
 vided for in this title by contract whenever such stamps 36 
 can not be speedily prepared by the Bureau of Engrav- 37 
 ing and Printing; but this authority shall expire on 38 
 January 1, 1920, except as to Imprinted stamps fur- 39 
 nished under contract, authorized by the Commissioner. 40 
 
 (c) All internal-revenue laws relating to the assess- 41 
 ment and collection of taxes are hereby extended to 42 
 and made a part of this title, so far as applicable, for 43 
 the purpose of collecting stamp taxes omitted through 44 
 mistake or fraud from any instrument, document, paper, 45 
 writing, parcel, package, or article named herein. 46 
 
 47 
 48 
 SECTION 1106. That the Commissioner shall furnish 49 
 to the Postmaster General without prepayment a suit- 50 
 able quantity of adhesive stamps to be distributed to 51 
 and kept on sale by the various postmasters in the 52 
 United States. The Postmaster General may requii'e 53 
 each such postmaster to give additional or increased 54 
 bond as postmaster for the value of the stamps so fur- 55 
 nished, and each such postmaster shall deposit the re- 66 
 ceipts from the sale of such stamps to the credit of 57 
 and render accounts to the Postmaster General at such 68 
 
 151 
 
1 times and In such form as he may by regulations pre- 
 
 2 scribe. The Postmaster General shall at least once 
 
 3 monthly transfer all collections from this source to the 
 
 4 Treasury as internal-revenue collections. 
 5 
 
 6 SECTION 1107. That the collectors of the several 
 
 7 districts shall furnish without prepayment to any 
 
 8 assistant treasurer or designated depositary of the 
 
 9 United States located in their respective collection dis- 
 
 10 tricts a suitable quantity of adhesive stamps for sale. 
 
 11 In such cases the collector may require a bond, with 
 
 12 sufficient sureties, to an amount equal to the value of 
 
 13 the adhesive stamps so furnished, conditioned for the 
 
 14 faithful return, whenever so required, of all quantltie.s 
 16 or amounts undisposed of, and for the payment monthly 
 
 16 of all quantities or amounts sold or not remaining on 
 
 17 hand. The Secretary may from time to time make such 
 
 18 regulations as he may find necessary to insure the safe- 
 
 19 keeping or prevent the illegal use of all such adhesive 
 
 20 stamps. 
 21 
 
 22 SCHEDUI^E A.— STAMP TAXES. 
 
 aa 
 
 Bonds of 24 1. Bonds of indebtedness: On all bonds, debentures, 
 
 Indebtedness 25 or certificates of indebtedness issued by any person, and 
 
 26 all instruments, however termed, issued by any cor- 
 
 27poration with interest coupons or in registered form, 
 
 28 known generally as corporate securities, on each $100 
 
 29 of face value or fraction thereof, 5 cents: Provided, 
 
 30 That every renewal ot the foregoing shall be taxed as 
 31a new issue: Provided further. That when a bond con- 
 32d!tloned for the repayment or payment of money Is 
 
 33 j^iven In a penal sum greater than the debt secured, the 
 
 34 tax shall be based upon the amount secured. 
 
 Bonds, 35 2. Bonds, indemnity and surety: On all bonds exe- 
 
 Indemnity 36 cuted for indemnifying any person who shall have be- 
 and Surety 37 come bound or engaged as surety, and on all bonds 
 
 38 executed for the due execution or performance of any 
 
 39 contract, obligation or requirement, or the duties of 
 
 40 any oJYice or position, and to account for money re- 
 
 41 celved by virtue thereof, and on all policies of guaranty 
 42 and fidelity insurance, including policies guaranteeing 
 
 43 titles to real estate and mortgage guarantee policies, 
 
 44 and on all other bonds of any description, made. Issued, 
 
 45 or executed, not otherwise provided for in this schedule, 
 
 46 except such as may be required in legal proceedings, 
 
 47 no cents: Provided, That where a premium is charged 
 
 48 for the Issuance, execution, renewal or continuance of 
 
 49 such bond the tax shall be 1 cent on each dollar or 
 ao fractional part thereof of the premium charged: Pro- 
 51vided further. That policies of reinsurance shall be 
 52 exempt from the tax imposed by this subdivision. 
 
 Capital stock, 53 3. Capital stock, issue: On each original Issue, 
 Issue 54 whether on organization or reorganization, of certlfl- 
 
 65 cates of stock, or of profits, or ot interest in property 
 60 or accumulations, by any corporation, on each $100 of 
 57 face value or fraction thereof, 5 cents: Provided, That 
 58 where a certificate is issued without face value, the tax 
 
 152 
 
shall be 5 cents per share, unless the actual value is 1 
 in excess of $100 per share, in which case the tax shall 2 
 be 5 cents on each $100 of actual value or fraction 3 
 thereof. ^ 4 
 
 The stamps representing the tax imposed by this sub- B 
 division shall be attached to the stock books and not to 6 
 the certificates issued. 7 
 
 4. Capital stock, sales or transfers: On all sales, or 8 Capital Stock, 
 agreements to sell, or memoranda of sales or deliveries 9 Sales or 
 of, or transfers of legal title to shares or certificates oi 10 Transfers 
 stock or of profits or of interest in property or accu- 11 
 mulations in any corporation, or to rights to subscribe 12 
 for or to receive such shares or certificates, whether 13 
 made upon or shown by the books of the corporation, 14 
 or by any assignment in blank, or by any delivery, or 15 
 by any paper or agreement or memorandum or other 16 
 evidence of transfer or sale, whether entitling the hold- 17 
 er in any manner to the benefit of such stock, interest, 18 
 or rights, or not, on each $100 of face value or fraction 19 
 thereof, 2 cents, and where such shares are without par 20 
 or face value, the tax shall be 2 cents on the transfer 21 
 or sale or agreement to sell on each share, unless thel22 
 actual value thereof is in excess of $100 per share, in 23 
 which case the tax shall be 2 cents on each $100 ol 24 
 actual value or fraction thereof: Provided, That it is 25 
 not intended by this title to impose a tax upon an 26 
 agreement evidencing a deposit of certificates as coi- 27 
 lateral security for money loaned thereon, which cer- 28 
 tificates are not actually sold, nor upon the delivery 29 
 or transfer for such purpose of certificates so deposited: 30 
 Provided further, That the tax shall not be imposed 81 
 upon deliveries or transfers to a broker for sale, nor 32 
 upon deliveries or transfers by a broker to a customer 33 
 for whom and upon whose order he has purchased same, 34 
 but such deliveries or transfers shall be accompanied by 35 
 a certificate setting forth the facts: Provided further, 36 
 That in case of sale where the evidence of transfer is 37 
 shown only by the books of the corporation the stamp 38 
 shall be placed upon such books; and where the change 39 
 of ownership is by transfer of the certificate the stamp 40 
 shall be placed upon the certificate; and in cases of anfll 
 agreement to sell or where the transfer is by delivery oi 48 
 the certificate assigned in blank there shall be made and 43 
 delivered by the seller to the buyer a bill or memoran- 44 
 dum of such sale, to which the stamp shall be affixed; 45 
 and every bill or memorandum of sale or agreement 46 
 to sell before mentioned shall show the date thereof, 47 
 the name of the seller, the amount of the sale, and 48 
 the matter or thing to which it refers. Any person 49 
 liable to pay the tax as herein provided, or anyone who 50 
 acts in the matter as agent or broker for such person, 51 
 who makes any such sale, or who in pursuance of any 62 
 such sale delivers any certificate or evidence of the sale 53 
 of any stock, interest or right, or bill or memorandum 54 
 thereof, as herein required, without having the proper 55 
 stamps affixed thereto with intent to evade the fore- 56 
 going provisions, shall be deemed guilty of a mlsde- 57 
 meaner, and upon conviction thereof shall pay a fine 58 
 
 153 
 
1 of not exceeding $1,000, or be imprisoned not more than 
 
 2 six months, or both. 
 
 Produce, 3 5. Produce, sales of, on exchange: Upon each sale, 
 
 Sales of 4 agreement of sale, ar agreement to sell (not including 
 
 5 so-called transferred or scratch sales), any products or 
 
 6 merchandise at, or under the rules or usages of, any 
 
 7 exchange, or board of trade, or other similar place, for 
 S future delivery, for each $100 in value of the mer- 
 9 chundise covered by said sale or agreement of sale or 
 
 lu agreement to sell, 2 cents, and for each additional $100 
 
 11 or fractional part thereof in excess of $100, 2 cents: 
 
 12 Provided, That on every sale or agreement of sale or 
 
 13 agreement to sell as aforesaid there shall be made and 
 
 14 delivered by the seller to the buyer a bill, memorandum, 
 
 15 agreement, or other evidence of such sale, agreement of 
 
 16 sale, or agreement to sell, to which there shall be 
 
 17 affixed a lawful stamp or stamps in value equal to the 
 
 18 amount of the tax on such sale: Provided further, That 
 
 19 sellers of commodities described herein, having paid 
 
 20 the tax provided by tliis subdivision, may transfer such 
 
 21 contracts to a clearing-house corporation or association, 
 
 22 and such transfer shall not be deemed to be a sale, or 
 
 23 agreement of sale, or an agreement to sell within the 
 
 24 provisions of this Act, provided that such transfer shall 
 
 25 not vest any beneficial interest in such clearing-house 
 
 26 association but shall be made for the sole purpose of 
 
 27 enabling such clearing-house association to adjust and 
 
 28 balance the accounts of the members of such clearing- 
 
 29 house association on their several contracts. Every 
 
 30 such bill, memorandum, or other evidence of sale or 
 
 31 agreement to sell shall show the date thereof, the name 
 
 32 of the seller, the amount of the sale, and the matter 
 
 33 or thing to which it refers; and any person liable to 
 
 34 pay the tax as herein provided, or anyone who acts in 
 36 the matter as agent or broker for such person, who 
 
 36 makes any such sale or agreement of sale, or agreement 
 
 37 to sell, or who, In pursuance of any such sale, agree- 
 
 38 ment of sale, or agreement to sell, delivers au> 
 
 39 such products or merchandise without a bill, memoran- 
 i 40 dum, or other evidence thereof as herein required, or 
 
 41 who delivers such bill, memorandum, or other evidence 
 
 42 of sale, or agreement to sell, without having the proper 
 
 43 st;nnp3 alfixed thereto, with intent to evade the fore- 
 
 44 going provisions, shall be deemed guilty of a misde- 
 
 45 meaner, and upon conviction thereof shall pay a fine 
 
 46 of not exceeding $1,000 or be imprisoned not more than 
 
 47 six months, or both. 
 
 48 No bill, memorandum, agreement, or other evidence 
 48 of such sale, or agreement of sale, or agreement to sell, 
 
 50 in case of cash sales of products or merchandise for 
 
 51 immediate or prompt delivery which in good faith are 
 
 52 actually intended to be delivered shall be subject to this 
 58 tax. 
 
 Drafts, Checks 54 6. Drafts or checks (payable otherwise than at sight 
 
 55 or on demand) upon their acceptance or delivery within 
 
 56 the United States Avhichever is prior, promissory notes, 
 5T except bank notes issued for circulation, and for each 
 5f renewal of the same, for a sum not exceeding $100, 2 
 
 154 
 
cents; and for each additional $100 or fractional part 1 
 thereof, 2 cents. 8 
 
 This subdivision shall not apply to a promissory note 3 
 secured by the pledge of bonds or obligations of the 4 
 United States issued after April 24, 1917, or secured by 6 
 the pledge of a promissory note which itself is secured 6 
 by the pledge of such bonds or obligations: Provided, 7 
 That in either case the par value of such bonds or 8 
 obligations shall be not less than the amount of such 9 
 note. 10 
 
 7. Conveyances: Deed, instrument, or writing, where- 11 Conveyances 
 by any lands, tenements, or other realty sold shall be 12 
 
 granted, assigned, transferred, or otherwise conveyed 13 
 to, or vested in, the purchaser or purchasers, or any 14 
 other person or persons, by his, her, or their direction, 15 
 when the consideration or value of the interest or prop- 16 
 erty conveyed, exclusive of the value of any lien or 17 
 encumbrance remaining thereon at the time of sale, 18 
 exceeds ?100 and does not exceed $500, 50 cents; and 19 
 for each additional $500 or fractional part thereof, 50 20 
 cents. This subdivision shall not apply to any instru- 21 
 ment or writing given to secure a debt. 22 
 
 8. Entry of any goods, wares or merchandise at any 23 Entry of Goods 
 custom house, either for consumption or warehousing, 24 
 
 not exceeding $100 in value, 25 cents; exceeding $100 25 
 and not exceeding $500 in value, 50 cents; exceeding 26 
 $500 in value, $1. 27 
 
 9. Entry for the withdrawal of any goods or mer- 28 
 chandise from customs bonded warehouse, 50 cents. 29 
 
 10. Passage ticket, one way or round trip, for each 30 Passage ticket 
 passenger, sold or issued in the United States for pas- 31 
 
 sage by, any vessel to a port or place not in the United 32 
 States, Canada, or Mexico, if costing not exceeding $30,83 
 $1; costing more than $30 and not exceeding $60, $3; 34 
 costing more than $60, $5. This subdivision shall not 35 
 apply to passage tickets costing $10 or less. 36 
 
 11. Proxy for voting at any election for officers, or 37 Proxy 
 meeting for the transaction of business, of any 38 
 corporation, except religious, educational, charitable, 39 
 fraternal, or literary societies, or public cemeteries, 40 
 
 10 cents. 41 
 
 12. Power of attorney granting authority to do or per- 42 Power of 
 form some act for or in behalf of the grantor, which 43 Attorney 
 authority is not otherwise vested in the grantee, 25 44 
 
 cents. This subdivision shall not apply to any papers 45 
 necessary to be used for the collection of claims from 46 
 the United States or from any State for pensions, 47 
 back pay, bounty, or for property lost in the military 48 
 or naval service, or to powers of attorney required in 49 
 bankruptcy cases. 61 
 
 13. Playing cards: Upon every pack of playing cards 50 Playing Cards 
 containing not more than fifty-four cards, manufac- 52 
 
 tured or imported, and sold, or removed for consumption 53 
 or sale, a tax of 8 cents per pack. 54 
 
 14. Parcel-post packages: Upon every parcel or pack- 65 Parcel Post 
 age transported from one point In the United States to 66 Packaf es 
 another by parcel post on which the postage amounts 57 
 
 to 25 cents or more, a tax of 1 cent for each 25 cents 58 
 
 155 
 
1 or fractional part thereof charged for such transporta- 
 
 2 tlon, to be paid by the consignor. 
 
 8 No such parcel or package shall be transported until 
 4 a stamp or stamps representing the tax due shall have 
 6 been affixed thereto. 
 
 Insurance 6 15. On each policy of insurance, or certificate, binder, 
 
 Policies, 7 covering note, memorandum, cablegram, letter, or other 
 
 Binders, etc. 8 instrument by whatever name called whereby insur- 
 
 9 an<;e is made or renewed upon property within the 
 
 10 United States (including rents and profits) against peril 
 
 11 by sea or on inland waters or in transit on land (In- 
 
 12 eluding transshipments and storage at termini or way 
 
 13 points) or by fire, lightning, tornado, wind-storm, bom» 
 
 14 bardment, invasion, insurrection or riot, Issued to or for 
 16 or in the name of a domestic corporation or partnership 
 16 or an individual resident of the United States by any 
 IT foreign corporation or partnership or any individual 
 
 18 not a resident of the United States, when such policy 
 
 19 or other instrument is not signed or countersigned by 
 
 20 an officer or agent of the insurer in a State, Territory, 
 
 21 or district of the United States within which such In- 
 
 22 surer is authorized to do business, a tax of 3 cents on 
 
 23 each dollar, or fractional part thereof of the premium 
 
 24 charged: Provided, That policies of re-insurance shall 
 
 25 be exempt from the tax imposed by this subdivision. 
 
 aft Any person to or for whom or in whose name any 
 
 27 such policy or other instrument is issued, or any solici- 
 
 28 tor or broker acting for or on behalf of such person in 
 
 29 the procurement of any suca policy or other instru- 
 aO ment, shal affix the proper stamps to such policy or 
 
 31 other instrument, and for failure to affix such stamps 
 
 32 with intent to evade the tax shall, in addition to other 
 
 33 penalties provided therefor, pay a fine of double the 
 
 34 amount of the tax. 
 
 Child Labor 
 
 30 
 
 31' TITLE XII.— TAX ON EMPLOYMENT OF CHILD 
 
 88 LABOR. 
 
 39 
 
 40 SECTION 1200. That every person (other than a 
 
 41 bona fide boys* or girls' canning club recognized by the 
 
 42 Agricultural Department of a State and of the United 
 
 43 States) operating (a) any mine or quarry situated m 
 
 44 the United States in which children under the age of 
 
 45 sixteen years have been employed or permitted to work 
 
 46 during any portion of the taxable year; or (b) any 
 
 47 mill, cannery, workshop, factory, or manufacturing es- 
 
 48 tablishment situated in the United States in which chil- 
 
 49 dren under the age of fourteen years have been em- 
 
 50 ployed or permitted to work, or children between the 
 
 51 ages of fourteen and sixteen have been employed or 
 
 52 permitted to work more than eight hours in any day 
 
 53 or more than six days in any week, or after the hour 
 
 54 of seven o'clock post meridian, or before the hour of six 
 
 65 o'clock ante meridian, during any portion of the taxable 
 
 66 year, shall pay for each taxable year, in addition to all 
 
 67 other taxes imposed by law, an excise tax equivalent to 
 88 10 per centum of the entire net profits received or ac- 
 
 156 
 
crued for such year from the sale or disposition of the 1 
 product of such mine, quarry, mill, cannery, workshop, 2 
 factory, or manufacturing establishment. 3 
 
 4 
 SECTION 1201. That in computing net profits under 5 Net Profits — 
 the provisions of this title, for the purpose of the tax 6 How 
 there shall be allowed as deductions from the gross 7 Computed 
 amount received or accrued for the taxable year from 8 
 the sale or disposition of such products manufactured 9 
 within the United States the following items: 10 
 
 (a) The cost of raw materials entering into the pro- 11 
 duction ; 12 
 
 (b) Running expenses, including rentals, cost of re- 18 
 pairs, and maintenance, heat, power, insurance, man- 14 
 agement, and a reasonable allowance for salaries or 15 
 other compensations for personal services actually ren- 16 
 dered, and for depreciation; 17 
 
 (c) Interest paid within the taxable year on debts 18 
 or loans contracted to meet the needs of the business, 19 
 and the proceeds of which have been actually used to 20 
 meet such needs; 21 
 
 (d) Taxes of all kinds paid during the taxable year 22 
 with respect to the business or property relating to the 23 
 production; and 24 
 
 (e) Losses actually sustained within the taxable 25 
 year in connection with the business of producing 26 
 such products, including losses from fire, flood, storm, 27 
 or other casualties, and not compensated for by insur- 28 
 ance or otherwise. 29 
 
 30 
 SECTION 1202. That if any such person during any 31 Sales at Less 
 taxable year or part thereof, whether under any agree- 32 Than Pair 
 ment, arrangement, or understanding or otherwise, sells 33 Market Price 
 or disposes of any product of such mine, quarry, mill, 34 
 cannery, workshop, factory, or manufacturing estab- 36 
 lishment at less than the fair market price obtainable 36 
 therefor either (a) in such manner as directly or indl- 37 
 rectly to benefit such person or any person directly or 38 
 indirectly interested in the business of such person; or 39 
 (b) with intent to cause such benefit; the gross amount 40 
 received or accrued for such year or part thereof from 41 
 the sale or disposition of such product shall be taken 42 
 to be the amount which would have been received or 48 
 accrued from the sale or disposition of such product if 44 
 sold at the fair market price. 45 
 
 46 
 SECTION 1203. (a) That no person subject to the 47 Exceptions 
 provisions of this title shall be liable for the tax here- 48 
 in imposed if the only employment or permission to 49 
 work which but for this section would subject him to 60 
 the tax, has been of a child as to whom such person 51 
 has in good faith procured at the time of employing 62 
 such child or permitting him to work, and has since in 53 
 good faith relied upon and kept on file a certificate, 54 
 issued in such form, under such conditions and by such 55 
 persons as may be prescribed by a board consisting of 56 
 the Secretary, the Commissioner, and the Secretary of 57 
 Labor, showing the child to be of such age as not to 68 
 
 157 
 
1 subject such person to the tax imposed by this title. 
 
 2 Any person who knowingly makes a false statement or 
 
 3 presents false evidence In or in relation to any such 
 
 4 certificate or application therefor shall be punished by 
 B a fin© of not less than $100, nor more than $1,000, or 
 
 6 by imprisonment for not more than three months, or 
 
 7 by both such fine and imprisonment, in the discretion 
 
 8 of the court. 
 
 9 In any State designated by such board an employ- 
 
 10 ment certificate or other similar paper as to the age of 
 
 11 the child, issued under the laws of that State, and not 
 13 inconsistent with the provisions of this title, shall have 
 
 13 the same force and effect as a certificate herein pro- 
 
 14 vlded for. 
 
 15 (b) The tax imposed by this title shall not be im- 
 
 16 posed in the case of any person who proves to the satis- 
 
 17 faction of the Secretary that the only employment or 
 
 18 permission to work which but for this section would 
 
 19 subject him to the tax, has been of a child employed 
 
 20 or permitted to work under a mistake of fact as to the 
 
 21 age of such child, and without intention to evade the 
 
 22 tax. 
 23 
 
 Return of 24 SECTION 1204. That on or before the first day of 
 
 Income 25 the third month following the close of each taxable 
 
 26 year, a true and accurate return under oath shall be 
 
 27 made by each person subject to the provisions of this 
 
 28 title to the collector for the district In which such per- 
 
 29 son has his principal ofEice or place of business, in such 
 
 30 form as the Commissioner, with the approval of the 
 
 31 Secretary, shall prescribe, setting forth specifically the 
 
 32 gross amount of income received or accrued during such 
 
 33 year from the sale or disposition of the product of any 
 
 34 mine, quarry, mill, cannery, workship, factory, or manu- 
 
 35 facturing establishment, in which children have been 
 
 36 employed subjecting him to the tax imposed by this 
 
 37 title, and from the total thereof deducting the aggre- 
 
 38 gate items of allowance authorized by this title, and 
 30 such other particulars as to the gross receipts and 
 
 40 items of allowance as the Commissioner, with the ap- 
 
 41 proval of the Secretary may require. 
 42 
 
 43 SECTION 1205. That all such returns shall be trans- 
 
 44 mitted forthwith by the collector to the Commissioner, 
 
 45 who shall, as soon as practicable, assess the tax founa 
 
 46 due and notify the person making such return of the 
 
 47 amount of the tax for which such person is liable, and 
 
 48 such person shall pay the tax to the collector on or 
 
 49 before thirty days from the date of such notice. 
 60 
 
 Commissioner 51 SECTION 1206. That for the purposes of this Act 
 Has 62 the Commissioner, or any other person duly authorized 
 
 Authority to 53 by him, shall have authority to enter and inspect at 
 Inspect 54 any time any mine, quarry, mill, cannery, workshop, 
 
 Premises 55 factory, or manufacturing establishment. The Secre- 
 
 66 tary of Labor, or any person duly authorized by him, 
 
 67 shall, for the purpose of complying with a request of 
 08 the Commissioner to make such an inspection, have like 
 
 158 
 
authority, and shall make report to the Commissioner 1 
 of inspections made under such authority in such form 2 
 as may be prescribed by the Commissioner with the 3 
 approval of the Secretary of the Treasury, 4 
 
 Any person who refuses or obstructs entry or inspec- 6 
 tion authorized by this section shall be punished by a 6 
 fine of not more than $1,000, or by imprisonment for 7 
 not more than one year, or both such fine and imprison- 8 
 ment. 9 
 
 10 
 
 SECTION 1207. That as used in this title the term 11 
 "taxable year" shall have the same meaning as pro- 12 
 vided for the purposes of income tax in section 200. 13 
 The first taxable year for the purposes of this title 14 
 shall be tTie period between sixty days after the pas- 15 
 sage of this Act and December 31, 1919, both inclusive, 16 
 or such portion of such period as is included within 17 
 the fiscal year (as defined in section 200) of the tax- 18 
 payer. 19 
 
 80 
 
 TITLE XIII.— GENERAL ADMINISTRATIVE 22 
 
 PROVISIONS. 23 
 
 24 
 
 SECTION 1300. That hereafter the salary of the 25 Salary of 
 Commissioner shall be $10,000 a year. The difference 26 Commissioner 
 between the amount appropriated under existing law 27 
 and the salary herein established shall, for the period 28 
 between the passage of this Act and July 1, 1919, be 29 
 paid out of the appropriations for collecting internal 30 
 revenue. 31 
 
 32 
 
 SECTION 1301. (a) That hereafter there may be 33 DfM)Uty 
 employed in the Bureau of Internal Revenue, in lieu 34 Commissioner 
 of the deputy commis.sioners who.se salaries are now 35 
 fixed by law, five deputy commissioners and an assistant 36 
 to the Commissioner, who shall each receive a salary 37 
 of $5,000 a year, payable monthly. The assistant to 38 
 the Commissioner may be authorized by the Commis- 39 
 sioner to perform any duties which the deputy com- 40 
 missioners may perform under existing law. 41 
 
 (b) The salaries of collectors may be readjusted and 42 
 Increased under such regulations as may be prescribed 43 
 by the Commissioner, subject to the approval of the 44 
 Secretary, but no collector shall receive a salary in 45 
 excess of $6,000 a year. 46 
 
 (c) There is hereby appropriated, out of any money 47 Appropriation 
 in the Treasury not otherwise appropriated, for the 48 for 
 
 fiscal year ending June 30, 1919, the sum of $7,500,000 49 Assessment 
 
 for the expenses of assessing and collecting the inter- 50 and 
 
 nal-revenue taxes as provided in this Act, including the 61 Collection 
 
 employment of necessary officers, attorneys, experts, 52 
 
 agents, inspectors, deputy collectors, clerks, janitors, 53 
 
 and messengers, in the District of Columbia and the 54 
 
 several collection districts, to be appointed as provided 55 
 
 by law, telegraph and telephone service, rental and re- 56 
 
 pair of quarters, postage, and the purchase of such sup- 57 
 
 plies, equipment, furniture, mechanical devices, print- 58 
 
 159 
 
Advisory- 
 Tax Board 
 
 I Ing, stationery, law books and books of reference, not 
 a to exceed $500 for street car fares in tlie District of 
 3\:olumbia, and sucli other articles as may be necessary 
 4''for use in the District of Columbia and the several col- 
 5! lection districts: Provided, That not more than $2,750,- 
 ejooo of the total amount appropriated by this section may 
 be expended in the Bureau of Internal Revenue, in the 
 District of Columbia. 
 
 (d) (1) There is hereby created a board to be known 
 __ as the "Advisory Tax Board," hereinafter called the 
 llJBoard, and to be composed of not to exceed six mem- 
 
 12 bers to be appointed by the Commissioner with the ap- 
 
 13 proval of the Secretary. The Board shall cease to exist 
 
 14 at the expiration of two years after the passage of this 
 
 15 Act, or at such earlier time as the Commissioner with 
 leithe approval of the Secretary may designate. 
 
 Vacancies in the membership of the Board shall be 
 
 18 filled in the same manner as an original appointment. 
 
 19 Any member shall be subject to removal by the Com- 
 
 20 missioner with the approval of the Secretary. The 
 21 
 22 
 
 Commissioner with the approval of the Secretary shall 
 
 designate the chairman of the Board. Each member 
 
 shall receive an annual salary of $9,000, payable 
 
 24l monthly, together with actual necessary expenses when 
 
 26 absent from the District of Columbia on official busi- 
 
 26 ness. 
 
 Interpretation 27;! (2) The Commissioner may, and on the request of 
 of Tax Act 28 any taxpayer directly interested shall, submit to the 
 
 29 Board any question relating to the interpretation or 
 
 30 administration of the income, war-proflts or excess- 
 
 31 profits tax laws, and the Board shall report its findings 
 
 32 and recommendations to the Commissioner. 
 
 33 (3) The Board shall have its office in the Bureau o' 
 
 34 Internal Revenue in the District of Columbia. The ex 
 36 penses and salaries of members of the Board shall be 
 
 86 audited, allowed, and paid out of appropriations for 
 
 87 collecting internal revenue, in the same manner as ex- 
 
 88 penses and salaries of employees of the Bureau of 
 39 Internal Revenue are audited, allowed, and paid. 
 
 Broad Powers 40 (4) The Board shall have the power to summon wit- 
 
 of Board 41 nesses, take testimony, administer oaths and to require 
 
 48 imy person to produce books, papers, documents or other 
 
 43 data relating to any matter under investigation by the 
 
 44 Board. Any member of the Board may sign subpoenas 
 46 and members and employees of the Bureau of Internal 
 
 46 Revenue designated to assist the Board, when author- 
 
 47 Ized by the Board, may administer oaths, examine wlt- 
 
 48 nesses, take testimony and receive evidence. 
 48 
 
 Leave of 50 SECTION 1302. That all Internal-revenue agents 
 
 Absence for 61 and inspectors shall be granted leave of absence with 
 Aarents 52 pay, which shall not be cumulative, not to exceed thirty 
 
 63 days in any calendar year, under such regulations as 
 
 64 the Commissioner, with the approval of the Secretary, 
 
 65 may prescribe. 
 Legislative 66 
 
 Drafting 57 SECTION 1303. (a) That there is hereby created a 
 
 Service 58 Legislative Drafting Service under the direction of two 
 
 160 
 
draftsmen, one of whom shall be appointed by the Presl- 1 
 
 dent of the Senate, and one by the Speaker of the House 2 
 
 of Representatives, without reference to political afCilia- 3 
 
 tions and solely on the ground of fitness to perform 4 
 
 the duties of the office. Each draftsman shall receive 6 
 
 a salary of $5,000 a year, payable monthly. The drafts- 6 
 
 men shall, subject to the approval of the President of 7 - 
 
 the Senate and the Speaker of the House of Repre- 8 
 
 sentatives, employ and fix the compensation of such 9 
 
 assistant draftsmen, clerks, and other employees, and 10 
 
 purchase such furniture, office equipment, books, sta- 11 
 
 tionery, and other supplies, as may be necessary for 12 
 
 the proper performance of the duties of the service 13 
 
 and as may be appropriated for by Congress. 14 
 
 (b) The Drafting Service shall aid in drafting public 16 
 bills and resolutions or amendments thereto on the 16 
 rquest of any committee of either House of Congress, 17 
 but the Library Committee of the Senate and the Lib- 18 
 rary Committee of the House of Representatives, re- 19 
 spectively, may determine the preference, if any, to be 20 
 given to such requests of the committees of either 21 
 House, respectively. The draftsmen shall, from time 22 
 to time, prescribe rules and regulations for the conduct 23 
 of the work of the service for the committees of each 24 
 House, subject to the approval of the Library Commit- 25 
 tee of each House, respectively. 26 
 
 (c) For the remainder of the current fiscal year there 27 
 is hereby appropriated, out of any money in the Treas- 28 
 ury not otherwise appropriated, the sum of $25,000, or 29 
 so much thereof as may be necessary, for the purpose 30 
 of defraying the expenses of the establishment and 31 
 maintenan'ce of the service, including the payment of 32 
 salaries herein authorized. One-half of all appropria- 33 
 tions for the service shall be disbursed by the Secretary 34 
 of the Senate and one-half by the Clerk of the House 36 
 of Representatives. 86 
 
 37 
 SECTION 1304. That there shall be levied, collected, 38 Tax on 
 and paid in the United States, upon articles coming into 39 Importation 
 the United States from the Virgin Islands, a tax equal 40 of Articles 
 to the internal-revenue tax imposed in the United States 41 from Virgin 
 upon like articles of domestic manufacture; such ar- 42 Islands 
 tides shipped from such islands to the United States 43 
 shall be exempt from the payment of any tax imposea 44 
 by the internal-revenue laws of such islands: Provided, 45 
 That there shall be levied, collected, and paid In such 46 
 islands, upon articles imported from the United States, 47 
 a tax equal to the internal-revenue tax imposed in such 48 
 islands upon like articles there manufactured; and such 49 
 articles going into such islands from the United States 50 
 shall be exempt from payment of any tax imposed by 51 
 the internal-revenue laws of the United States. 52 
 
 53 
 SECTION 1305. That all administrative, special, or 54 
 stamp provisions of law, including the law relating to 55 
 the assessment of taxes, so far as applicable, are here- 56 
 by extended to and made a part of this Act, and every 67 
 person liable to any tax imposed by this Act, or for 58 
 
 161 
 
1 the collection thereof, shall keep such records and ren- 
 2der, under oath, such statements and returns, and shall 
 8 comply with such regulations as the Commissioner, 
 4 with the approval of the Secretary, may from time to 
 6 time prescribe, 
 rowers of 6 Whenever in the judgment of the Commissioner nec- 
 
 Commi»«ioner 7 essary he may require any person, by notice served upon 
 
 8 him, to make a return or such statements as he deems 
 
 9 sufficient to show whether or not such person is liable 
 
 10 to tax. 
 
 11 The Commissioner, for the purpose of ascertaining 
 18 the correctness of any return or for the purpose of 
 
 13 making a return where none has been made, is hereby 
 
 14 authorized, by any revenue agent or inspector desig- 
 IB nated by him for that purpose, to examine any books, 
 
 16 papers, records or memoranda bearing upon the mat- 
 
 17 ters required to be included in the return, and may 
 
 18 require the attendance of the person rendering the re- 
 
 19 tui^n or of any officer or employee of such person, or 
 
 20 the attendance of any other person having knowledge 
 
 21 in the premises, and make take his testimony with 
 
 22 reference to the matter required by law to be included 
 
 23 in such return, with power to administer oaths to such 
 
 24 person or persons. 
 
 Floor Taxes — 26 SECTION 1306, That where floor taxes are imposed 
 Return Under 27 by this Act in respect to articles or commodities, in 
 
 Oath 
 
 28 respect to which the tax imposed by existing law haa 
 
 29 been paid, the person required by this Act to pay the 
 
 30 tax shall, within thirty days after its passage, make 
 
 31 return under oath in such form and under such regula- 
 
 32 tions as the Commissioner, with the approval of the 
 
 33 Secretary, shall prescribe. Payment of the tax shown 
 
 34 to be due may be extended to a date not exceeding seven 
 
 35 months from the passage of this Act, upon the filing of 
 
 36 a bond for payment in such form and amount and with 
 
 37 such sureties as the Commissioner, with the approval 
 
 38 of the Secretary, may prescribe. 
 
 40 SECTION 1307. That in all cases where the method 
 
 41 of collecting the tax imposed by this Act is not specifl- 
 
 42 cally provided in this Act, the tax shall be collected In 
 
 43 such manner as the Commissioner, with the approval of 
 
 44 the Secretary, may prescribe. All administrative and 
 
 45 penalty provisions of Title XI of this Act, in so far as 
 
 46 applicable, shall apply to the collection of any tax 
 
 47 which the Commissioner determines or prescribes shall 
 
 48 be paid by stamp. 
 49 
 
 Penalties 60 SECTION 1308. (a) That any person required under 
 
 61 Titles V, VI, VII, VIII, IX, X, or XII, to pay, or to 
 52 collect, account for and pay over any tax, or required by 
 63 law or regulations made under authority thereof to 
 
 54 make a return or supply any information for the pur- 
 
 55 pcses of the computation, assessment or collection of 
 
 56 any such tax, who fails to pay, collect, or truly account 
 
 57 for and pay over any such tax, make any such return 
 
 58 or supply any such information at the time or times 
 
 162 
 
required by law or regulation shall in addition to other 1 
 penalties provided by law be subject to a penalty of not S 
 more than $1,000. ., 8 
 
 (b) Any person who willfully refuses to pay, collect, 4 
 or truly account for and pay over any such tax, make • 
 such return or supply such information at the time or 6 
 times required by law or regulation, or who willfully 7 
 attempts in any manner to evade such tax shall be 8 
 guilty of a misdemeanor and in addition to other penal- 9 
 ties provided by law shall be fined not more than 10 
 $10,000 or imprisoned for not more than one year, or 11 
 both, together with the costs of prosecution. 12 
 
 (c) Any person who willfully refuses to pay, collect 13 
 or truly account for and pay over any such tax shall in 14 
 addition to other penalties provided by law be liable 15 
 to a penalty of the amount of the tax evaded, or not 16 
 paid, collected, or accounted for and paid over, to be 17 
 assessed and collected in the same manner as taxes are 18 
 assessed and collected: Provided, however. That no pen- 19 
 alty shall be assessed under this subdivision for any 20 
 offense for which a penalty may be assessed under au- 81 
 thority of section 3176 of the Revised Statutes, as 22 
 amended, or of section 605 or 620 of this Act, or for 23 
 any offense for which a penalty has been recovered 24 
 under section 3256 of the Revised Statutes. 25 
 
 (d) The term "person" as used in this section in- 26 
 eludes an ofRcer or employee of a corporation or a 27 
 member or employee of a partnership, who as such off i- 28 
 cer, employee, or member is under a duty to perform 29 
 the act in respect of which the violation occurs. 30 
 
 31 
 
 SECTION 1309. That the Commissioner, with the 38 
 approval of the Secretary, is hereby authorized to make 33 
 all needful rules and regulations for the enforcement 34 
 of the provisions of this Act. 36 
 
 The Commissioner with such approval may by regula-36 
 tion, provide that any return required by Titles V, VI, 37 
 VII, VIII, IX or X to be under oath may, if the 38 
 amount of the tax covered thereby is not in excess of 39 
 $10, be signed or acknowledged before two witnesses 40 
 Instead of under oath. 41 
 
 42 
 
 SECTION 1310. (a) That in the case of any over- 43 Over-payment 
 payment or overcollection of any tax imposed by sec- 44 of Tax 
 tion 628 or 630 or by Title V, Title VIII, or Title IX, 46 
 the person making such overpayment or overcollection 46 
 may take credit therefor against taxes due upon any 47 
 monthly return, and shall make refund of any excessiv©48 
 amount collected by him upon proper application by 49 
 the person entitled thereto. 60 
 
 (b) Wherever in this Act a tax is required to be 51 Payment of 
 paid by the purchaser to the vendor at the time of a 62 Tax by 
 sale, and such sale is made on credit, then, under regu- 63 Vendor 
 lations prescribed by the Commissioner, with the ap- 64 
 proval of the Secretary, the tax may, at the option of 66 
 the vendor, be returned and paid by him to the United 66 
 States as if paid to him by the purchaser at the time 67 
 of the sale, and In such case the vendor shall have 68 
 
 163 
 
1 a right of action In any court of competent jurUdlc- 
 
 2 tion against the purchaser for the amount of the tax 
 
 3 so returned and paid to the United States. 
 
 Tax on Articles 4 (c) Under such rules and regulations as the Com- 
 for Export 5 missloner with the appi'oval of the Secretary may pre- 
 Except when 6 scribe, the taxes Imposed under the provisions of Titles 
 Approved by 7 VI, VII or IX shall not apply in respect to articles sold 
 Secretary 8 or leased for export and in due course so exported. 
 
 8 Under such rules and regulations the amount of any 
 
 10 internal-revenue tax erroneously or illegally collected 
 
 11 in respect to exported articles may be refunded to the 
 
 12 exporter of the article, instead of to the manufacturer, 
 
 13 if the manufacturer waives any claim for the amount 
 
 14 so to be refunded. 
 15 
 
 Old Stamps 16 SECTION 1311. That where the rate of tax imposed 
 
 May Be 17 by this Act, payable by stamps, is an increase over 
 
 Used — ^When 18 previously existing rates, stamps on hand in the col- 
 
 19 lectors' offices and in the Bureau of Internal Revenue 
 
 20 may continue to be used until the supply on hand is 
 
 21 exhausted, but shall be sold and accounted for at the 
 
 22 rates provided by this Act, and assessment shall be 
 
 23 made against manufacturers and other taxpayers hav- 
 
 24 ing such stamps on hand on the day this Act takes 
 
 25 effect for the difference between the amount paid for 
 
 26 such stamps and the tax due at the rates provided by 
 
 27 this Act. 
 28 
 
 Bona-fide 29 SECTION 1312. (1) That (a) if any person has prior 
 
 Contracts 30 to May 9, 1917, made a bona fide contract with a dealer 
 
 Made Before 31 for the sale or lease, after the tax takes effect, of any 
 Passage of 32 article In respect to which a tax is imposed under Title 
 Act 33 VI, VII, or IX, or under subdivision 13 of Schedule A 
 
 34 of Title XI, or under this subdivision, and (b) if such 
 
 35 contract does not permit the adding of the whole of 
 
 36 such tax to the amount to be paid under such contract, 
 
 37 then the vendee or lessee shall, in lieu of the vendor 
 
 38 or lessor, pay so much of such tax as is not so per- 
 
 39 mltted to be added to the contract price. If a contract 
 
 40 of the character above described was made with any 
 
 41 person other than a dealer, the tax collected under this 
 
 42 Act shall be the tax in force on May 9, 1917. 
 
 43 (2) If (a) any person has prior to September 3, 1918, 
 
 44 made a bona fide contract with a dealer for the sale 
 43 or lease, after the tax takes effect, of any article in 
 
 46 respect to which a tax is imposed under Title VI, VII, 
 
 47 or IX, or under subdivision 13 of Schedule A of Title 
 
 48 XI, or under this subdivision, and in respect to which 
 
 49 no corresponding tax was imposed by the Revenue Act 
 
 50 of 1917, and (b) such contract does not permit the 
 
 61 adding, to the amount to be paid under such contract, 
 
 62 of the whole of the tax Imposed by this Act, then the 
 
 53 vendee or lessee shall, in lieu of the vendor or lessor, 
 
 54 pay so much of the tax Imposed by this Act as is not 
 
 55 so permitted to be added to the contract price. If a 
 
 56 contract of the character above described was made 
 
 57 with any person other than a dealer, no tax shall be 
 B9 collected under this Act. 
 
 164 
 
(3) If (a) any person has prior to September 3, 1918, 1 
 made a bona fide contract with a dealer for the sale 2 
 or lease, after the tax takes effect, of any article in 3 
 respect to which a tax Is imposed und.er Title VI, VII, 4 
 or IX, or under subdivision 13 of Schedule A of Title 5 
 XI, or under this subdivision, and in respect to which a 6 
 corresponding tax was imposed by the Revenue Act of 7 
 1917, and (b) such contract does not permit the add- 8 
 ing-, to the amount to be paid under such contract, of 9 
 the whole of the difference between such tax and tne 10 
 corresponding tax imposed by the Revenue Act of 1917, 11 
 then the vendee or lessee shall, in lieu of the vendor 12 
 or lessor, pay so much of such difference as is not so 13 
 permitted to be added to the contract price. If a con- 14 
 tract of the character above described was made with 15 
 any person other than a dealer, the tax collected under 16 
 this Act shall be the tax in force on September 3, 1918. 17 
 
 (4) The taxes payable by the vendee or lessee under 18 
 this section shall be paid to the vendor or lessor at the 19 
 time the sale or lease is consummated, and collected, re- 20 
 turned, and paid to the United States by such vendor or 21 
 lessor in the same manner as provided in section 502. 22 
 
 (5) The term "dealer" as used in this section in- 23 
 eludes a vendee who purchases any article with intent 24 
 to use it in the manufacture or production of another 25 
 article intended for sale. 26 
 
 (6) This section shall not apply to any tax imposed 27 
 by section 906. 28 
 
 29 
 
 SECTION 1313. That in the payment of any tax un-30 Fractional 
 der this Act not payable by stamp a fractional part of 31 Parts of a 
 a cent shall be disregarded unless it amounts to one- 32 a Cent 
 half cent or more, in which case it shall be increased to 33 
 1 cent. 34 
 
 35 
 
 SECTION 1314. That collectors may receive, at par 36 Payment by 
 with an adjustment for accrued interest, certificates of 37 Uncertified 
 indebtedness issued by the United States and uncerti- 38 Check or 
 fled checks in payment of income, war-profits and 39 with U. S. 
 excess-profits taxes and any other taxes payable other 40 Ctfs. of 
 than by stamp, during such time and under such regu-41 Indebtedness 
 lations as the Commissioner, with the approval of the 42 
 Secretary, shall prescribe; but if a check so received 43 
 Is not paid by the bank on which it is drawn the per- 44 
 son by whom such check has been tendered shall re- 45 
 main liable for the payment of the tax and for all legal 46 
 penalties and additions the same as if such check had 47 
 not been tendered. 48 
 
 49 
 
 SECTION 1315. That section 3315 of the Revised 50 
 Statutes, as amended, is hereby amended to read af» 51 
 follows: 52 
 
 53 
 
 "Section 3315. The Commissioner of Internal Rev- 54 
 enue may, under regulations prescribed by him with 55 
 the approval of the Secretary of the Treasury, issue 56 
 stamps for restamping packages of distilled spirits. 57 
 tobacco, cigars, snuff, cigarettes, fermented liquors, and 58 
 
 165 
 
X wines which have been duly stamped but from which 
 
 2 the stamps have been lost or destroyed by unavoid- 
 
 3 able accident." 
 4 
 
 5 SECTION 1316. (a) That section 3220 of the Re- 
 
 • vised Statutes is hereby amended to read as follows: 
 7 
 
 8 "Section 3220. The Commissioner of Internal Rev- 
 
 • enue, subject to regulations prescribed by the Secretary 
 
 10 of the Treasury, is authorized to remit, refund, and pay 
 
 11 back all taxes erroneously or illegally assessed or col- 
 
 12 lected, all penalties collected without authority, and all 
 18 taxes that appear to be unjustly assessed or excessive 
 
 14 in amount, or in any manner wrongfully collected; also 
 
 15 to repay to any collector or deputy collector the full 
 
 16 amount of such sums of money as may be recovered 
 
 17 against him in any court, for any internal revenue taxes 
 
 18 collected by him, with the cost and expenses of suit; 
 18 also all damages and costs recovered against any asses- 
 20 sor, assistant assessor, collector, deputy collector, 
 ISA agent, or inspector, in any suit brought against him by 
 
 22 reason of anything done in the due performance of his 
 
 23 official duty, and shall make report to Congress at the 
 
 24 beginning of each regular session of Congress of all 
 
 26 transactions under this section," 
 26 
 
 27 (b) Section 3225 of the Revised Statutes of the 
 
 28 United States is hereby amended to read as follows: 
 28 
 
 80 "Section 3225. When a second assessment is made 
 31 in case of any list, statement, or return, which in the 
 38 opinion of the collector or deputy collector was false 
 38 or fraudulent, or contained any understatement or un- 
 
 84 dervaluation, such assessment shall not be remitted, 
 
 85 nor shall taxes collected under such assessment be re- 
 
 36 funded, or paid back, or recovered by any suit, unless it 
 
 37 is proved that such list, statement, or return was not 
 
 38 willfully false or fraudulent and did not contain any 
 
 39 willful understatement or undervaluation." 
 40 
 
 41 (c) That the paragraph of section 3689 of the Re- 
 48 vised Statutes, as amended, reading as follows: 
 
 43 "Refunding taxes illegally collected (internal rev- 
 
 44 enue) : To refund and pay back duties erroneously or 
 46 illegally assessed or collected under the internal-rev- 
 
 46 enue laws," is repealed from and after June 30, 1920; 
 
 47 and the Secretary of the Treasury shall submit for the 
 
 48 fiscal year 1921, and annually thereafter, an estimate of 
 48 appropriations to refund and pay back duties or taxes 
 60 erroneously or illegally assessed or collected under the 
 51 internal-revenue laws, and to pay judgments, including 
 68 interest and costs, rendered for taxes or penalties er- 
 63 roneously or illegally assessed or collected under the 
 54 internal-revenue laws. 
 
 •6 
 
 •6 SECTION 1317. That section* 3164, 3165. 3167, 3172. 
 57 8173. and 3176 of the Revised Statutes as amended are 
 68 hereby amended to read as follows: 
 
 166 
 
"Section 3164. It shall be the duty of every col- 1 
 lector of internal x-evenue having knowledge of any will- 2 
 ful violation of any law of the United States relating 3 
 to the revenue, within thirty days after coming into 4 
 possession of such knowledge, to file with the district 6 
 attorney of the district in which any fine, penalty, or 6 
 forfeiture may be incurred, a statement of all the facts 7 
 and circumstances of the case within his knowledge, 8 
 together with the names of the witnesses, setting forth 9 
 the provisions of law believed to be so violated on 10 
 which reliance may be had for condemnation or con- 11 
 viction. IS 
 
 "Section 3165. Every collector, deputy collector, 13 
 internal-revenue agent, and internal-revenue officer as- 14 
 signed to duty under an internal-revenue agent, % au- 16 
 thorized to administer oaths and to take evidence 16 
 touching any part of the administration of the internal- 17 
 revenue laws with which he is chai-ged, or where such 18 
 oaths and evidence are authorized by law or regula- 19 
 tion authorized by law to be taken. SO 
 
 81 
 
 •'Section 3167. It shall be unlawful for any col- 22 Secrecy of 
 lector, deputy collector, agent, clerk, or other officer or 23 Information 
 employee of the United States to divulge or to make 24 Obtained by 
 known in any manner whatever not provided by law to 25 Collectors 
 any person the operations, style of work, or apparatus 26 
 of any manufacturer or producer visited by him in the 27 
 discharge of his official duties, or the amount or source 28 
 of income, profits, losses, expenditures, or any partic- S9 
 ular thereof, set forth or disclosed in any income re- 30 
 turn, or to permit any income return or copy thereof 31 
 or any book containing any abstract or particulars 38 
 thereof to be seen or examined by any person except 33 
 as provided by law; and it shall be unlawful for any 34 
 person to print or publish in any manner whatever not 35 
 provided by law any income return, or any part thereof 36 
 or source of income, profits, losses, or expenditures ap- 37 
 pearing in any income return; and any offense against 38 
 the foregoing provision shall be a misdemeanor and 39 
 be punished by a fine not exceeding $1,000 or by im-40 
 prisonment not exceeding one year, or both, at the dis- 41 
 cretion of the court; and if the offender be an officer 42 
 or employee of the United States he shall be dismissed 43 
 from office or discharged from employment. 44 
 
 45 
 "Section 3172. Every collector shall, from time to;46 Canvass of 
 time, cause his deputies to pi-oceed through every part 47 Collection 
 of his district and inquire after and concerning all 48 District 
 persons therein who are liable to pay any internal 
 revenue tax, and all persons owning or having the care||50 
 and management of any objects liable to pay any tax 
 and to make a list of such persons and enumerate 
 said objects. 
 
 Bl 
 52 
 63 
 
 |64 
 55 
 56 
 
 "Section 3173. It shall be the duty of any person, 
 partnership, firm, association, or corporation, made 
 liable to any duty, specal tax, or other tax Imposed by|57 
 law, when not otherwise provided for, (1) in case of a{|58 
 
 List Return 
 by Person, 
 Corporation, 
 Partnership 
 
 X67 
 
1 special tax, on or before the thirty-first day of July in 
 
 2 each year, and (2) In other cases before the day on 
 
 3 which the taxes accrue, to make a list or return, veri- 
 
 4 fled by oath, to the collector or a deputy collector of 
 6 the district where located, of the articles or objects, in- 
 6 eluding the quantity of goods, wares, and merchandise, 
 ^made or sold and charged with a tax, the several rates 
 
 8 and aggregate amount, according to the forms and 
 
 9 regulations to be prescribed by the Commissioner of In- 
 
 10 ternal Revenue, with the approval of the Secretary of 
 
 11 ihe Treasury, for which such person, partnership, firm, 
 
 12 association, or corporation is liable: Provided, That If 
 
 13 any person liable to pay any duty or tax, or owning, 
 
 14 possessing, or having the care or management of prop- 
 
 15 erty, goods, wares, and merchandise, article or objects 
 IS liable to pay any duty, tax, or license, shall fail to 
 
 17 make and exhibit a list or return required by law, but 
 
 18 shall consent to disclose the particulars of any and 
 
 19 all the property, goods, wares, and merchandise, ar- 
 
 20 tides, and objects liable to pay any duty or tax, oi 
 
 21 any business or occupation liable to pay any tax as 
 
 22 aforesaid, then, and in that case, it shall be the duty 
 
 23 of the collector or deputy collector to make such list or 
 
 24 return, which, being distinctly read, consented to, and 
 
 25 signed and verified by oath by the person so owning, 
 
 26 possessing, or having the care and management as 
 27 aforesaid, may be received as the list of such person: 
 
 28 Provided further. That In case no annual list or return 
 
 29 has been rendered by such person to the collector or 
 
 30 deputy collector as required by law, and the person 
 
 31 shall be absent from his or her residence or place of 
 
 33 business at the time the collector or a deputy collector 
 3^ shall call for the annual list or return, it shall be the 
 
 34 duty of such collector or deputy collector to leave at 
 36 such place of residence or business, with some one of 
 36 suitable age and discretion, if such be present, other- 
 87 wise to deposit in the nearest post office, a note or 
 
 38 memorandum addressed to such person, requiring him 
 
 39 or her to render to such collector or deputy collector the 
 
 40 list or return required by law within ten days from the 
 
 41 date of such note or memorandum, verified by oath. 
 
 42 And if any person, on being notified or required as 
 
 43 aforesaid, shall refuse or neglect to render such list or 
 4^ return within the time required as aforesaid, or when- 
 4S*-ever any person who is required to deliver a monthly 
 
 46 or other return of objects subject to tax fails to do so 
 
 47 at the time required, or delivers any return which, in 
 
 48 the opinion of the collector, is erroneous, false, or 
 
 49 fraudulent, or contains any undervaluation or under- 
 
 50 statement, or refuses to allow any regularly author- 
 
 51 ized Government officer to examine the books of such 
 
 52 person, firm, or corporation, it shall be lawful for 
 63 the collector to summon such person, or any other 
 54 person having possession, custody, or care of books 
 Sn of account containing entries relating to the business 
 80 of such person or any other person he may deem 
 57 proper, to appear before him and produce such books 
 68 at a time and place named in the summons, and to 
 
 1G8 
 
give testimony or answer interrogatories, under oath, 1 
 respecting- any objects or income liable to tax or the 2 
 returns thereof. The collector may summon any per- 3 
 son residing or found within the State or Territory 4 
 In which his district lies; and when the person in- 5 
 tended to be summoned does not reside and can not 6 
 be found within such State or Territory, he may enter 7 
 any collection district where such person may be found 8 
 and there make the examination herein authorized. 9 
 And to this end he may there exercise all the authority 10 
 which he might lawfully exercise in the district for 11 
 which he was commissioned: Provided, That 'person,' 12 
 as used in this section, shall be construed to include 13 
 any corporation, joint-stock company or association, 14 
 or insurance company when such construction is neces- IS 
 sary to carry out its provisions. 16 
 
 "Section 3176. If any person, corporation, company, 17 Penalty 
 or association fails to make and file a return or list 18 Failure to 
 at the time prescribed by law or by regulation made 19 File Return 
 under authority of law, or makes, willfully or other- 20 
 wise, a false or fraudulent return or list, the col- 21 
 lector or deputy collector shall make the return or 22 
 list from his own knowledge and from such informa- 23 
 tion as he can obtain through testimony or otherwise. 24 
 In any such case the Commissioner may, from his 25 
 own knowledge and from such information as he can 26 
 obtain through testimony or otherwise, make a return 27 
 or amend any return made by a collector or deputy 28 
 collector. Any return or list so made and subscribed 29 
 by the Commissioner, or by a collector or deputy col- 30 
 lector and approved by the Commissioner, shall be 31 
 prima facie good and sufficient for all legal purposes. 32 
 
 "If the failure to file a return or list is due to 33 
 sickness or absence, the collector may allow such 34 
 further time, not exceeding thirty days, for making 35 
 and filing the return or list as he deems proper. 36 
 
 "The Commissioner of Internal Revenue shall de- 37 
 termine and assess all taxes, other than stamp taxes, 38 
 as to which returns or lists are so made under tn« 89 
 provisions of this section. In case of any failure to 40 
 make and file a return or list within the time pre- 41 
 scribed by law, or prescribed by the Commissioner of 42 
 Internal Revenue or the collector in pursuance of law, 43 
 the Commissioner of Internal Revenue shall add to 44 
 the tax 25 per centum of its amount, except that 45 
 when a return is filed after such time and it is shown 46 
 that the failure to file it was due to a reasonable cause 47 
 and not to willful neglect, no such addition shall be 48 
 made to the tax. In case a false or fraudulent re- 49 
 turn or list is willfully made, the Commissioner of 50 
 Internal Revenue shall add to the tax 50 per centum 81 
 of its amount. 52 
 
 "The amount so added to any tax shall be collected 53 
 at the same time and in the same manner and as part 64 
 of the tax unless the tax has been paid before the 55 
 discovery of the neglect, falsity, or fraud, in which 56 
 case the amount so added shall be collected in the 57 
 same manner as the tax." 68 
 
 169 
 
Summons 1 SECTION 1318. That if any person is summoned 
 
 Jurisdiction 2 under this Act to appear, to testify, or to produce 
 
 3 books, papers or other data, the district court of the 
 
 4 United States for the district in which such person 
 6 resides shall have jurisdiction by appropriate process 
 
 6 to compel such attendance, testimony, or production of 
 
 7 books, papers, or other data. 
 
 8 The district courts of the United States at the in- 
 
 9 stance of the United States are hereby invested with 
 
 10 such jurisdiction to make and issue, both in actions at 
 
 11 law and suits in equity, writs and orders of injunction, 
 
 12 and of ne exeat republica, orders appointing receivers, 
 
 13 and such other orders and process, and to render such 
 
 14 judgments and decrees, granting in proper cases both 
 
 15 legal and equitable relief together, as may be necessary 
 
 16 or appropriate for the enforcement of the provisions of 
 
 17 this Act. The remedies hereby provided are in addi- 
 
 18 tion to and not exclusive of any and all other remedies 
 
 19 of the United States in such courts or otherwise to en- 
 
 20 force such provisions. 
 21 
 
 False 22 SECTION 1319. That whoever in connection with 
 
 Statements — 23 the sale or lease, or offer for sale or lease, of any 
 
 Penalties 24 article, or for the purpose of making such sale or 
 
 26 lease, makes any statement, written or oral, (1) in- 
 
 26 tended or calculated to lead any person to believe that 
 
 27 any part of the price at which such article is sold or 
 
 28 leased, or offered for sale or lease, consists of a tax 
 
 29 imposed under the authority of the United States, or 
 
 30 (2) ascribing a particular part of such price to a tax 
 
 31 imposed under the authority of the United States, 
 
 32 knowing that such statement is false or that the tax 
 
 33 Is not so great as the portion of such price ascribed 
 
 34 to such tax, shall be guilty of a misdemeanor and upon 
 35^conviction thereof shall be punished by a fine of not 
 36 more than $1,000 or by imprisonment not exceeding one 
 37Vear, or both. 
 
 Sureties 39 SECTION 1320. That wherever by the laws of th« 
 
 Required 40 United States or regulations made pursuant thereto, 
 
 41 nny person is required to furnish any recognisance, 
 
 42 Stipulation, bond, guarantee, or undertaking, hereinafter 
 48 called "penal bond," with surety or sureties, such 
 44 'person may, in lieu of such surety or sureties, deposit 
 45ias .security with the official having authority to ap- 
 
 46 prove such penal bond. United States Liberty bonds 
 
 47 or other bonds of the United States in a sum equal 
 
 48 at their par value to the amount of such penal bond 
 
 49 required to be furnished, together with an agreement 
 80, authorizing such official to collect or sell such bonds 
 51 so deposited in case of any default in the perform- 
 82 fince of any of the conditions or stipulations of such 
 53, penal bond. The acceptance of such United States 
 64 bonds in lieu of surety or sureties required by law 
 66 shall have the same force and effect as individual or 
 
 66 corporate suretie.s, or certified checks, bank drafts, 
 
 67 post-office money orders, or cash, for the penalty or 
 
 68 amount of such penal bond. The bonds deposited 
 
 170 
 
hereunder, and such other United States bonds as may 1 
 be substituted therefor from time to time as such 2 
 security, may be deposited with the Treasurer, or an 8 
 Assistant Treasurer of the United States, a Govern- 4 
 ment depository. Federal Reserve bank, or member 5 
 bank, which shall issue receipt therefor, describing- • 
 such bonds so deposited. As soon as security for 7 
 the performance of such penal bond is no longer nee- 8 
 essary, such bonds so deposited, shall be returned to 9 
 the depositor: Provided, That in case a person or 10 
 persons supplying a contractor with labor or material 11 
 as provided by the Act of Congress, approved Feb- IS 
 ruary 24, 1905 (33 Stat, 811), entitled "An Act to 13 
 amend an Act approved August thirteenth, eighteen 14 
 hundred and ninety-four, entitled 'An Act for the 15 
 protection of persons furnishing materials and labor 16 
 for the construction of public works,' " shall file with 17 
 the obligee, at any time after a default in the per- 18 
 formance of any contract subject to said Acts, the ap- 19 
 plication and affidavit therein provided, the obligee 20 
 shall not deliver to the obligor the deposited bonds 21 
 nor any surplus proceeds thereof until the expiration 22 
 of the time limited by said Acts for the institution 23 
 of suit by such person or persons, and, in case suit 24 
 shall be instituted within such time, shall hold said 26 
 bonds or proceeds subject to the order of the court 26 
 having jurisdiction thereof: Provided further. That 27 
 nothing herein contained shall affect or impair the 28 
 priority of the claim of the United States against the 29 
 bonds deposited or any right or remedy granted by 30 
 said Acts or by this section to the United States for 31 
 default upon any obligation of said penal bond: Pro- 32 
 vided further. That all laws inconsistent with this 33 
 section are hereby so modified as to conform to the 34 
 provisions hereof: And provided further, That nothing 35 
 contained herein shall affect the authority of courts 36 
 over the security, where such bonds are taken as 37 
 security in judicial proceedings, or the authority of 38 
 any administrative officer of the United States to 39 
 receive United States bonds for security in cases au-40 
 thorized by existing laws. The Secretary may prescribe 41 
 rules and regulations necessary and proper for carry- 42 
 Ing this section into effect. 48 
 
 44 
 
 45 
 
 TITLE XIV.— GENERAL PROVISIONS. 46 
 
 47 
 
 SECTION 1400. (a) That the following parts of 48 
 
 Acts are hereby repealed, subject to the limitations 49 
 
 provided in subdivision (b): 60 
 
 (1) The following titles of the Revenue Act of 1916:61 
 Title I (called "Income Tax"); 62 
 Title II (called "Estate Tax"); 63 
 Title III (called "Munitions Manufacturers' Tax"), 64 
 
 as amended; 56 
 
 Title IV (called "Miscellaneous Taxes"). 66 
 
 (2) The following parts of the Act entitled "An Act 67 
 to provide increased revenue to defray the expenses 68 
 
 171 
 
1 of the Increased appropriations for the Army and Navy 
 
 2 and the extensions of fortifications, and for other pur- 
 
 3 poses," approved March 3, 1917: 
 
 4 Title III (called "Estate Tax"); 
 
 6 Section 402 (called "Returns of Dividends"). 
 
 6 (3) The following titles of the Revenue Act of 1917: 
 
 7 Title I (called "War Income Tax"); 
 
 8 Title II (called "War Excess-Profits Tax"); 
 
 9 Title III (called "War Tax on Beverages"); 
 
 10 Title IV (called "War Tax on Cigars, Tobacco, and 
 
 11 Manufactures Thereof"); 
 
 12 Title V (called "War Tax on Facilities Furnished by 
 
 13 TMiblic Utilities, and Insurance"); 
 
 14 Title VI (called "War Excise Taxes"); 
 
 15 Title VII (called "War Tax on Admissions and 
 
 16 Ones"); 
 
 17 Title VIII (called "War Stamp Taxes"); 
 
 18 Title IX (called "War Estate Tax"); 
 
 19 Title X (called "Administrative Provisions"); 
 
 20 Title XII (called "Income-Tax Amendments"). 
 
 21 (b) Such parts of Acts shall remain in force for 
 
 22 tlie assessment and collection of all taxes which have 
 
 23 accrued thereunder, and for the imposition and col- 
 
 24 lection of all penalties or forfeitures which have ac- 
 
 25 ciued and may accrue in relation to any such taxes, 
 
 26 and except that the unexpended balance of any ap- 
 
 27 propriation heretofore made and now available for 
 
 28 the administration of any such part of an Act shall 
 
 29 be available for the administration of this Act or the 
 
 30 corresponding provision thereof: Provided, That, ex- 
 
 31 cept as otherwise provided in this Act, no taxes shall 
 
 32 be collected under Title I of the Revenue Act of 1916 
 
 33 as amended by the Revenue Act of 1917, or Title I or 
 
 34 II of the Revenue Act of 1917, in respect to any period 
 
 35 after December 31, 1917: Provided further, That the 
 
 36 assessment and collection of all estate taxes, and the 
 
 37 imposition and collection of all penalties or forfeitures, 
 
 38 which have accrued under Title II of the Revenue 
 
 39 Act of 1916 as amended by the Act entitled "An Act 
 
 40 to provide increased revenue to defray the expenses 
 
 41 of the increased appropriations for the Army and Navy 
 
 42 and the extensions of fortifications, and for other 
 
 43 purposes," approved March 3, 1917, or Title IX of the 
 
 44 Revenue Act ol 1917, shall be according to the provl- 
 
 45 Rions of Title IV of this Act. In the case of any 
 
 46 tax imposed by any part of an Act herein repealed, if 
 
 47 there is a tax imposed by this Act in lieu thereof, the 
 
 48 provision Imposing such tax shall remain in force 
 
 49 until the corresponding tax under this Act takes ef- 
 
 50 feet under the provisions of this Act. 
 
 51 Title I of the Revenue Act of 1916 as amended by 
 
 52 the Revenue Act of 1917 shall remain in force for 
 
 53 the assessment and collection of the income tax in 
 
 54 Porto Rico and the Philippine Islands, except as may 
 
 55 be otherwise provided by their respective legislatures. 
 56 
 
 57 SECTION 1401. That section 1100 of the Revenue 
 6b Act of 1917 is hereby repealed, to take efCect on July 1, 
 
 172 
 
1919, and thereafter the rate of postage on all mall 1 
 matter of the first class shall be the same as the rate 1 
 In force on October 2, 1917: Provided, That letters 8 
 written and mailed by soldiers, sailors, and marines 4 
 assigned to duty in a foreign country engaged in the 6 
 present war may be mailed free of postage, subject to 6 
 such rules smrZ regulations as may be prescribed by 7 
 the Postmaster General. 8 
 
 Section 1107 of such Act is hereby repealed, to take 9 
 effect July 11, 1919. 10 
 
 11 
 
 SECTION 1402. That if any clause, sentence, para- 13 
 graph, or part of this Act shall for any reason be 13 
 adjudged by any court of competent jurisdiction to be 14 
 Invalid, such judgment shall not affect, impair, or in- 15 
 validate the remainder of this Act, but shall be con- 16 
 fined in its operation to the clause, sentence, para- 17 
 graph, or part thereof directly involved in the con- 18 
 troversy in which such judgment has been rendered. 19 
 
 20 
 
 SECTION 1403. That the Revenue Act of 1916 is 2 
 hereby amended by adding at the end thereof a section 22 
 to read as follows: 23 
 
 "Section 903. That this Act may be cited as the 24 
 'Revenue Act of 1916.*" 25 
 
 26 
 
 SECTION 1404. That the Revenue Act of 1917 is 27 
 hereby amended by adding at the end thereof a sec- 28 
 tion to read as follows: 29 
 
 "Section 1303. That this Act may be cited as the 30 
 'Revenue Act of 1917.* " 31 
 
 32 
 
 SECTION 1405. That this Act may be cited as the 33 
 "Revenue Act of 1918." 34 
 
 35 
 
 SECTION 1406. That all persons serving In the 36 Payment of 
 military or naval forces of the United States durmg 37 $60 to Soldier 
 the present war who have, since April 6, 1917, resigned 33 and Sailor 
 or been discharged under honorable conditions (or, in 39 Upon 
 the case of reservists, been placed on Inactive duty), 40 Honorable 
 or who at any time hereafter (but not later than the 41 Discharge 
 termination of the current enlistment or term of serv- 43 
 ice in the case of the enlisted personnel and female 43 
 nurses, or within one year after the termination of the 44 
 present war in the case of officers, may resign or be 45 
 discharged under honorable conditions (or, in the case 46 
 of reservists, be placed on inactive duty), shall be paid, 47 
 in addition to all other amounts due them in pursu- 48 
 ance of law, $60 each. 49 
 
 This amount shall not be paid (1) to any person who 50 
 though appointed or inducted into the military or naval 51 
 forces on or prior to November 11, 1918, had not re- 52 
 ported for duty at his station on or prior to such date; 53 
 or (2) to any person who has already received oneJ64 
 month's pay under the provisions of section 9 of thei55 
 Act entitled "An Act to authorize the President to in-J56 
 crease temporarily the military establishment of thef57 
 United States," approved May 18, 1917; or (3) to any^58 
 
 173 
 
1 person who is entitled to retired pay; or (4) to the 
 
 2 heirs or legal representatives of any person entitled 
 
 3 to any payment under this section who has died or may 
 
 4 die before receiving such payment. In the case of any 
 6 person who subsequent to separation from the service 
 
 6 as above specified has been appointed or inducted into 
 
 7 the military or naval forces of the United States and 
 
 8 has been or is again separated from the service as above 
 
 9 specified, only one payment of $60 shall be made. 
 
 10 The above amount, in the case of separation from 
 
 11 the service on or prior to the passage of this Act, shall 
 
 12 be paid as soon as practicable after the passage of this 
 
 13 Act, and in the case of separation from the service 
 
 14 after the passage of this Act shall be paid at the time 
 
 15 of such separation. 
 
 16 The amounts herein provided for shall be paid out of 
 
 17 the appropriations for "Pay of the Army" and "Pay of 
 
 18 the Navy," respectively, by such disbursing officers as 
 
 19 may be designated by the Secretary of War and the 
 80 Secretary of the Navy. 
 
 21 The Secretary of War and the Secretary of the Navy 
 
 22 respectively shall make all regulations necessary for 
 83 the enforcement of the provisions of this section. 
 
 84 
 District of 25 SECTION 1407. That the provisions of section 5 of 
 
 Columbia 26 the Act entitled "An Act making appropriations for 
 
 87 the service of the Post OfCice Department for the fiscal 
 
 88 year ending June 30, 1918, and for other purposes," 
 
 89 approved March 3, 1917, relating to intoxicating liquors 
 
 30 in interstate commerce, as amended by section 1110 
 
 31 of an Act entitled "An Act to provide revenue to de- 
 
 32 fray war expenses, and for other purposes," approved 
 
 33 October 3, 1917, be, and the same are hereby, made 
 
 34 applicable to the District of Columbia. 
 35 
 
 Persons Having 36 SECTION 1408. That ever/ person who on or after 
 Contracts 37 April 6, 1917, has entered Into any contract, undw- 
 
 with 38 taking, or agreement with the United States, or with 
 
 Government 39 any department, bureau, officer, commission, board, 
 to File Copy 40 or agency under the United States or acting in its be- 
 Upon 41 half, or with any other person having contract rela- 
 
 Request 42 tions with the United States, for the performance of 
 
 43 any work or the supplying of any materials or prop- 
 
 44 erty for the use of or for the account of the United 
 
 45 States, shall, within thirty days after a request of the 
 
 46 Commissioner therefor, file with the Commissioner a 
 
 47 true and correct copy of every such contract, under- 
 
 48 taking, or agreement. 
 
 49 Whoever fails to comply with such request of the 
 
 60 Commissioner shall be guilty of a misdemeanor and 
 
 61 shall be punished by a fine of not more than $1,000, or 
 68 by imprisonment for not more than one year, or both. 
 
 63 The Commissioner shall (when not violative of the 
 
 64 technical military or naval secrets of the Government) 
 
 65 have access to all information and data relating to 
 60 any such contract, undertaking, or agreement, In the 
 
 67 possession, control or custody of any department, 
 
 68 bureaii, board, agency, officer or commission of the 
 
 174 
 
United States and may call upon any such department, 1 
 bureau, board, agency, officer or commission for a 2 
 full statement and description of any allowance for 3 
 amortization, obsolescence, depreciation or loss, or of 4 
 any valuation, appraisal, adjustment or final settlement, 5 
 made in pursuance of any such contract, undertaking, 6 
 or agreement. 7 
 
 8 
 
 SECTION 1409. That unless otherwise herein spe- 9 
 
 cially provided, this Act shall take effect on the day 10 
 
 following its passage. 11 
 
 175 
 
GENERAL INDEX 
 
 Index 
 Page 
 
 Individuals 3 
 
 Corporations 25 
 
 War Profits and Excess Profits Tax 49 
 
 Estate Tax 55 
 
 Transportation and Other Facilities and 
 Insurance 57 
 
 Treasury Decisions 59 
 
Individuals. 
 
 Reference is made to Paragraph Numbers 
 and NOT to pages. 
 
 Paragraph 
 No. 
 Abatement — 
 
 Claims for 287 
 
 Liability for tax : 287 
 
 Absence — 
 
 Agent may make return for taxpayer in case of 243 
 
 Accident — 
 
 Reimbursement for expenses incident to :. 94' 
 
 Accident Insurance — 
 
 Compensation for personal injuries 86(6) 
 
 Additional Tax — 
 
 Calculation of — how made 8-9 
 
 Contingent on undistributed profits 11 
 
 Dividends subject to additional tax only : 30 
 
 On individuals 7-S* 
 
 Schedule of rates 7 
 
 Stock Dividends — 
 
 Schedules of rates for previous years for guidance 
 in allocating tax on stock dividends and for 
 
 other purposes See page 1371 
 
 Administrator — 
 
 See "Fiduciary." 
 
 Advertising* Expense 109 
 
 Ag'ent — 
 
 Acting under power of attorney 383, 423, 424 
 
 Commissions — See "Commissions." 
 
 Of taxpayer to make return when .'.......... * 243 
 
 Alaska — 
 
 Government officers and employees subject to tax 15, 15(a) 
 
 Alien (Resident) — 
 
 See "Resident Alien." 
 Aliens (Non-resident) — 
 
 See "Non-resident Aliens." 
 Alimony — 
 
 A personal expense, not deductible and not income to 
 
 recipient 113 
 
 Amortization — 
 
 Bonds — Deduction for not allowable 204 
 
 Of loss on buildings, machinery and equipment erected 
 
 or installed for war purposes 197 
 
 Annnity — 
 
 Taxable status of income from 97 
 
 Architect — 
 
 Expense for services of a capital investment 124 
 
 Army — 
 
 See also "Army Officers." 
 
 Persons in service — Verification of returns 273 
 
 Army Officers — 
 
 See also "Army." 
 
 Expenditure from allowances 117 
 
 Retired pay subject to tax 76(a) 
 
 INDEX PAGE 3: 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Assessment of Tax — 
 
 Five-year limitation 277 
 
 Assessments — 
 
 On securities 122, 173 
 
 On shareholder of irrigation company 173 
 
 Bad Debts — 
 
 Definition of 178 
 
 Amount accepted as compromise 177 
 
 Arising from unpaid wages, salaries, rents, etc 179 
 
 Bankruptcy 180 
 
 Default on installment payments 45 
 
 Due and charged off within the taxable year 176 
 
 Due prior to March 1, 1913 182 
 
 Foreclosure sale on mortgage 181 
 
 Income if collected 183 
 
 Banks- 
 Deposits: 
 
 Of foreign governments — interest on exempt 86(5) 
 
 Private bank partnership 370 
 
 State tax on capital stock paid in behalf of stockholder.... 37 
 Tax to be wi-thheld on interest paid on bank deposits to 
 
 non-resident alien 347 
 
 Bank Deposits — 
 See "Banks." 
 Banker — 
 
 Substitute certificates of ownership of bonds 322 
 
 Bankruptcy — 
 
 Status of bad debt arising from 180 
 
 Beneficiary — 
 
 Of estate — To make return 261 
 
 Time of receipt of income 17 
 
 Bequest — 
 
 See "Legacy." 
 Bills of Bzchang-e— 
 See also "License." 
 
 Collection of, license required 354 to 361 
 
 Bondholder — 
 
 Rentals paid directly to 31 
 
 Bonds (Securities) — 
 
 Tax-free — Special distinction, for income tax pur- 
 poses, between bonds which contain a tax-free 
 covenant and those which do not. Read carefully 
 309-310. 
 Tax Free — 
 
 Status of interest under income tax See page 1375 
 
 Amortization of : .". 204 
 
 Certificates of Ownership — 
 
 See "Certificates of Ownership." 
 
 Certificates of ownership to be filed 297 
 
 County Bonds — Exempt 314 
 
 Coupon Bonds — 
 
 See "Certificate of Ownership." 
 Coupons due in tax year but not collected until following 
 
 year 17 
 
 Coupons — Foreign — License required to collect. See 
 
 "License." 
 Depreciation or loss written off at direction of Comp- 
 troller of Currency 170 
 
 District Irrigation Bonds — Losses on 172 
 
 INDEX PAGE 4 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Bonds (Securities) — Continued. 
 Exempt Corporations — 
 
 Owner must file certificates of ownership 313 
 
 Fidelity- 
 Premium on allowable deduction 137 
 
 Foreign corporation — 
 
 How treated for income tax purposes 321 
 
 Foreign Bonds — 
 
 Collection of coupons and other foreign items 
 
 requires a license 354 
 
 Collection of tax on 359 
 
 License — Penalty for failure to obtain 354-361 
 
 See also "License." 
 Interest from: — 
 
 Bonds purchased between interest dates v.. 48 
 
 Municipal Bonds — Exempt 315 
 
 Municipality — Public utility acquired by 316 
 
 Notes — Promissory note of corporation 311 
 
 Public Utility — Acquired by municipality 316 
 
 Purchased between interest dates 48 
 
 Registered Bonds — 
 
 Retired within interest period 319 
 
 See "Certificate of Ownership," 
 
 Scrip (dividend) — Not obligation similar to bonds M2 
 
 State Bonds — Exempt 314 
 
 Status of bonds under income tax... See page 1375 
 
 Status of interest under income tax — See page 1375 
 
 Tax Exempt — Income from, exempt 314 
 
 War Finance Corporation — See "War Finance Corpora- 
 tion." 
 Withholding provisions as to tax on interest from— 
 See "Withholding at the Source." 
 Bonds — United States — 
 
 Information at the source not required 350 
 
 Income from, exempt 314 
 
 Interest from, exempt 86(4), 90 
 
 Liberty Bonds — 
 
 Dividends paid in 27 
 
 Interest on indebtedness incurred to purchase not 
 
 deductible, when 146 
 
 Taxable status of 89, 90 
 
 No certificates of ownership required 314, 350 
 
 Owners of must make statement of ownership 86(4) 
 
 Status of bonds under income tax Page 1375 
 
 Brokers — 
 
 To make return of profits of customers when required 
 
 (see page 86, line 51) 352 
 
 Bonus — 
 
 Bonus paid in common stock 51 
 
 Book Values — 
 
 Shrinkage in 203, 205 
 
 Building- and I^oan Association — 
 
 Income from shares — how treated 50 
 
 Businesses — 
 
 Income from taxable 15, 15 (a) 
 
 Business Insurance — 
 
 Premiums paid in advance on 118 
 
 Campaign Expense 121 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Capital Assets — 
 
 Stock dividend declared from revaluation of 99 
 
 Certificates of Ownership- 
 Use of in connection with coupons and interest orders, 
 
 309(f) to 309 (j) 
 Bonds: 
 
 Coupons: 
 
 Substitute certificates to bank or collecting 
 
 a,gency 322, 339 
 
 Registered Bonds: 
 
 Certificates of ownership not required to ac- 
 company orders or checks in payment of 
 
 interest 320, 329, 340 
 
 Containing tax-free covenant — exemption claimed.-309(h) 
 
 Containing tax-free covenant 309(f) 
 
 : Containing tax-free covenant — exemption waived....309(.1) 
 
 Foreign Corporation — How treated 321 
 
 Forms to be filed 309(h), 309 (j) 
 
 Identity of persons presented required of 343 
 
 Not tax-free 309 ( j) 
 
 Read also 1[ 298 and 299. 
 
 Of exempt organizations — Certificates to be filed 313 
 
 Of exempt corporations 313 
 
 Private corporation may print for own use 299 
 
 Sinking fund and similar bonds retired within in- 
 terest period 319 
 
 ': Tax-free but not containing a tax-free covenant.... 309 (j) 
 
 State, Government, Municipal and similar bonds: 
 
 No certificate of ownership required 314, 350 
 
 Corporations — Certificates of 331 
 
 Foreign Partnership composed of non-resident aliens and 
 
 citizens of U. S 333 
 
 May be signed by duly authorized agents 330 
 
 Non-resident aliens — Certificates of 332 
 
 Registered Bonds — Certificates not required to accom- 
 pany interest orders 329 
 
 Substitute certificates of banks and collecting agency...... 322 
 
 Checks- 
 Foreign checks — License required for collection 354-361 
 
 Christmas Gifts — 
 : See "Gifts." 
 Citizenship — 
 
 Ruling on 4 
 
 American woman marrying foreigner 242 
 
 Naturalized citizens residing abroad 4 
 
 .Pity- 
 See "Municipality." 
 
 Warrants of — Face value to be accounted as income 78 
 Clerg-ymen — 
 
 Voluntary offerings, fees, etc 84 
 
 Collection Districts — 
 
 Complete list with names and addresses of collectors. 
 
 See page 1365 
 Commis sion s — 
 
 See also 'Compensation," "Salary." 
 Deduction: 
 
 Paid to real estate agent 119 
 
 Paid to salesmen 120 
 
 INDEX PAGE 6 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No, 
 
 Commissions — Continued. 
 Income from: 
 
 On renewal premium for insurance..... — 52 
 
 Retained by agent on his own life insurance - 53 
 
 Paid for purchase and sale of securities 125 
 
 Receipt basis 18 
 
 Compen sation — 
 
 See also "Salary," "Commissions." 
 
 For personal service _ 15 
 
 For service on annual, monthly or weekly basis 54 
 
 Not paid in money 55, 68, 142 
 
 Payer must make return of information 350 
 
 Stockholders of close corporation 38 
 
 Contract — 
 
 Loss through payment of rebates 168 
 
 Contributions — 
 
 To religious, charitable, scientific or educational cor- 
 porations '.'. 212 
 
 Copyrigfhts — 
 
 Amount expended for an investment of capital 134 
 
 County — 
 
 See also "State or Political Subdivision." 
 
 Coupons — 
 
 See also "Bonds." 
 
 Due in tax year but not collected until following year 17 
 
 Credits — 
 
 Individuals 104 
 
 Partnerships 377 
 
 Damagres — 
 
 From injuries 86(6) 
 
 Death- 
 Deceased husband — specific exemption 239 
 
 "When either husband or wife dies during year. 238 
 
 Debts — 
 
 See "Bad Debts." 
 
 Deceased Person — 
 See also "Death." 
 
 Executor or administrator to make return 262 
 
 Income received by estate of 46 
 
 No penalty in delay in payment of tax for 418 
 
 Penalties enforcible and not enforcible against estate of.. 269 
 Personal representative to make return in case of 420 
 
 Deductions, Exemptions and Credits Allowed — 
 
 See "Credits," "Personal Exemption," "Expenses,"^ 
 "Taxes," "Losses," "Interest," "Depreciation." 
 
 Deed of Trust 413 
 
 Default on Installment Payments 45 
 
 Deposits — Bank — See "Bank." 
 
 Depreciation — 
 
 Definition 188 to 196 
 
 Depletion: 
 
 Mines — See "Mines," 
 
 Oil and Gas Wells — See "Oil and Gas Wells." 
 
 Timber — See "Timber." 
 
 Dividends paid out of depreciation reserve 28 
 
 Estimated life of buildings 186 
 
 Fundamental principles to be observed 188 to 196 
 
 Land — Depreciation of value cannot be claimed 191, 209 
 
 Livestock purchased for breeding purposes only _ 208 
 
 INDEX PAGE 7 
 
INDIVIDUALS— Continued. 
 
 ParagraiA 
 No. 
 Depreciation — Continued. 
 Obsolescence: 
 
 Machinery — An important distinction 192 
 
 Of Assets — Book values 203, 205 
 
 Patents — How treated 206 
 
 Property : 
 
 Building — Condemned by municipality 19ft 
 
 Buildings — Estimated life of 185 
 
 Buildings — Loss due to voluntary removal or de- 
 struction of 195 
 
 Buildings, machinery and equipment erected or in- 
 stalled for war purposes — amortization of 197 
 
 Farm buildings, machinery, etc 208 
 
 Land — Depreciation of value cannot be claimed 191 
 
 Real estate 209, 19 
 
 Valuation fixed by cost 193 
 
 Where owner has claimed full cost as depreciation.... 193 
 
 Rate at which depreciation may be claimed 185, 186 
 
 Repairs — Cost of — how treated 187 
 
 Stage costumes 207 
 
 District Irrig-ation Bonds — Losses on 172 
 
 Dividends 19, 30 
 
 Definition IS 
 
 Cash dividends 20 
 
 Declared in one tax year and paid in another 17 
 
 Stock Dividend: 
 
 Court decisions on taxable status of 21 
 
 Definition of 22 
 
 Taxable at what rates 24 
 
 Value of — How computed 23 
 
 To be included in return 10-19, 29 
 
 Close Corporation — Division of profits by stockholders 
 
 considered a dividend 38 
 
 Declared from special surplus 9d 
 
 Federal Reserve Bank — Dividends on stock exempt 91 
 
 Dividends from stock of member banks not exempt.... 98 
 Foreign corporation which derives its entire income from 
 
 business within U. S 295 
 
 From leased line or stock trust certificates 32 
 
 Non-resident Alien — Tax on not to be withheld 294 
 
 Paid on life insurance policies 390 
 
 Paid with securities 26 
 
 Paid in Liberty Bonds '. 27 
 
 Paid out of depreciation reserve 28 
 
 Paid by foreign corporations..... ; 33 
 
 From earnings wholly within United States 34 
 
 Received by record owner where another is actual owner 35 
 
 Scrip dividends 36, 312 
 
 Stock Dividends: 
 
 Received by fiduciary 395 
 
 Subject to additional tax 30 
 
 Taxable status of 80 
 
 Taxes paid on capital stock of banks taxable to stock- 
 holder as dividends 37, 214 
 
 District of Colombia — 
 
 Income derived from public utility 86(7) 
 
 Obligations of — Interest from exempt &6(4) 
 
 Drainasre^ 
 
 Taxes Issued for purposes of 157, 158 
 
 INDEX PAGE 8 
 
XX^A^X V 1.U «J n.Xj\3 V/UlitlllUCU. 
 
 Paragraph 
 No. 
 Duties — 
 
 See "Customs Duties," 
 Excess Profits Tax — 
 
 Amount paid as not deductible 148 
 
 For digest of law and regulations relating to, see Index 
 Page 49. 
 Executor — 
 
 See "Fiduciary." 
 Exemption — 
 
 See "Personal Exemption." 
 Exempt Org-anizations — 
 
 Bonds of — Certificates of ownership to be filed 313 
 
 Exempt Securities — 
 See "Securities." 
 Expense — 
 
 Advertising 109 
 
 Allowable deductions from income as 107 to 146 
 
 Allowances to minor children 116 
 
 Architect's services — A capital investment 124 
 
 Army officers 117 
 
 Assessments on securities 122 
 
 Campaign expenses 121 
 
 Commissions — See "Comrnissions." 
 
 Copyrights, plates, etc. — Amount expended for invest- 
 ment of capital — not deductible 134 
 
 Entertainment (customers') expense 127 
 
 Fees — Earned but not paid 132 
 
 Expenses in earning income subject to tax and not sub- 
 ject to tax 123, 126 
 
 Farmer — See "Farm." 
 
 Farm Expenses — See "Farm." 
 
 Gifts or contributions to religious, charitable, scientific 
 
 or educational corporations 212 
 
 Lobbying expense 121 
 
 Insurance: 
 
 Business insurance premiums 118 
 
 •Life and fire insurance premiums 138 
 
 Merchant, necessary 109 
 
 Personal Expenses: 
 
 Alimony a personal expense 113 
 
 Not allowable deduction 112 
 
 Physician 110 
 
 Reimbursement of expense incident to accident 94 
 
 Rents — See "Rentals." 
 
 Special compensation to employees 38, 144 
 
 Titles to property — Cost of defending a capital invest- 
 ment 135 
 
 Travelling expenses — per diem allowances 73 
 
 Estate- 
 Expenses of administering 115 
 
 Income from 46 
 
 Income from trust , 47 
 
 Returns: 
 
 Beneficiary to make 261 
 
 Farm — 
 
 Definition of 57 
 
 Deductions 59 
 
 Compensation of employes 129 
 
 Cost of farm' machinery and tools 130 
 
 INDEX PAGE 9 
 
EHDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Vann — ^Dednctions — Continued. 
 
 Cost of stock, how treated 128 
 
 Crop destroyed by storm, flood or fire 128(c) 
 
 Depreciation of farm buildings, machinery, stock 
 
 raised for breeding purposes 208 
 
 Expenses 59 
 
 Expense — allowable deduction as 106, 108, 111, 112 
 
 Loss of livestock 131 
 
 Orchards and ranches 114 
 
 Rehabilitation or restoration of farm 128(b) 
 
 Repair expense on rental basis 130(a) 
 
 Value of Land — depreciation cannot be claimed 191 
 
 Farm for recreation or pleasure 128(a) 
 
 Parmer — Taxable status of 128(a) 
 
 Income from: 
 
 Accounting basis 61 
 
 Accounting methods 60, 61 
 
 Crop shares 59 
 
 From sale of livestock 131 
 
 How treated 56, 58 
 
 Merchandise exchanged for farm products — how 
 
 valued 63 
 
 Price placed by merchant upon goods exchanged for 
 
 farm produce 63 
 
 Product consumed by farmer and family 62 
 
 Rents received as crop shares 59 
 
 Rents received in crop shares 59 
 
 Taxable income defined 58 
 
 Value of product not taxable until converted into 
 
 cash 60 
 
 Parxoer — 
 
 See "Farm." 
 Farm Products — 
 
 See "Farm." 
 Pcderal Farm :Loan Act — 
 
 Securities issued under, exempt 86(4), 92 
 
 Ped«ral Beserve Bank — 
 
 Dividends from capital stock of exempt 91 
 
 Dividends from stock of member banks not exempt 91 
 
 Pms— 
 
 Earned but not paid 132 
 
 Pia-nciary — 
 
 Definition 382 
 
 Administrator, ancillary 412 
 
 Agent : 
 
 Acting under power of attorney 383 
 
 Acts for his principal, not for beneficiary of estate.... 415 
 
 Definition 424, 425 
 
 Agent acting under power of attorney 383 
 
 Beneficiary — tax liability 419 
 
 Deed of trust 413 
 
 Depreciation : 
 
 Deduction in return of 102,414,210 
 
 Estates and trusts 388, 401 
 
 Estates — during period of administration 406 
 
 Executors and administrators 391 
 
 Expense: 
 
 Estate — Expense of administering 115 
 
 . Of administration of estates not deductible 410,115 
 
 INDEX PAGE 10 
 
INDIVIDUALS— Continued. 
 
 Paragiapb 
 No. 
 Fiduciary — Continued. 
 
 Guardians, trustees, executors as fiduciary agents to file 
 
 returns 425 
 
 Income: 
 
 From vested interest taxable to 16 
 
 Held for future distribution 396, 402 
 
 Income accumulated for unborn or unascertained 
 
 persons 40 
 
 Of estate of deceased person during- period of 
 
 administration 401 
 
 Proceeds of life insurance policies 392 
 
 Stock dividends 395 
 
 Insane person 394, 407 
 
 Minor 394 
 
 Of non-resident alien — return of 47f» 
 
 Payment of Tax: 
 
 Exector or administrator — liability for 421, 422 
 
 No penalty for delay, in case of insane, deceased and 
 
 insolvent persons 418 
 
 Personal Exemption: 
 
 Gardian — Allowance for each ward or cestui trust 
 
 220, 417 
 
 Trustee — Allowance for each cestui trust 22 Q 
 
 Returns of information at the source required 431 
 
 Returns 384, 385, 380 
 
 Administrator or exector 41J 
 
 Amended return not required when found subject 
 
 to further tax 308 
 
 Annual return to show what 416 
 
 Beneficiary right to inspection 41?> 
 
 Beneficiary to make 261 
 
 Deceased person 262, 420 
 
 Executors and administrators ,... 392 
 
 Failure to file — guardian 263 
 
 For non-resident alien beneficiary 387 
 
 Joint fiduciaries 403 
 
 Trustee 386 
 
 What to include 408 
 
 Tax: 
 
 To be assessed against fiduciary direct 399 
 
 When not paid by fiduciary 400 
 
 Trust estates 398, 399, 405 
 
 Two estates 393 
 
 Unborn persons 390 
 
 Withholding at the source by 404 
 
 Estate 46 
 
 Of deceased person 46 
 
 Received in one tax year and paid in another 17 
 
 Trustee: 
 
 Income from estate held by 47 
 
 Fiscal Year — 
 Individuals: 
 
 Change of: 
 
 From fiscal to calendar year 247 
 
 From calendar year to fiscal year 248 
 
 From one fiscal year to another 249 
 
 First return on fiscal year basis 250 
 
 INDEX PAGE 11 
 
IMDIVIDUALS— Continued. 
 
 raragraph 
 No. 
 
 PoreclOBure — 
 
 Difference between purchase price and debt not deduct- 
 ible as bad debt 181 
 
 Poreig-n Coupons, Checks, Bills of Ezchangre 354, 361 
 
 Pire Insurcmce — 
 
 Premiums paid on 138 
 
 Poreig"!! Governments — 
 
 Income from investments in U. S 86(5) 
 
 Taxes paid to deductible from total amount of income 
 
 tax 149(a) 
 
 Gas Wells — 
 
 See "Oil and Gas Wells." 
 
 Gift- 
 See also "Bonus." 
 
 Christmas gifts not income 93 
 
 Property acquired by 15, 15(d), 86(3) 
 
 Sale of stock acquired by 75 
 
 To religious, charitable, scientific and educational 
 
 corporations 212 
 
 To religious, charitable, scientific or educational cor- 
 porations by individuals..... 212 
 
 Guardian — 
 
 See "Fiduciary." 
 
 Good Will — 
 
 Increase or decrease in value not allowed 174 
 
 Hawaii — 
 
 Government officers and employes subject to tax 15, 15 (a) 
 
 Head of a Pamily — 
 
 Defined 219 
 
 Dependents — allowance for 217 
 
 Personal exemption 216 
 
 Husband and Wife^ 
 
 Living apart 228 
 
 Living together 229 
 
 Exemption 232 
 
 Returns of 227. 234 
 
 Separate estates 233 
 
 Separate returns, when 231 
 
 Separated and living apart 230 
 
 Single or married status, when determined 241 
 
 Taxable status 226 
 
 Wife — Income from special articles (magazine) 240 
 
 Wife — separate estate managed by herself 235 
 
 When either dies during year 238 
 
 When either has income of $1,000 or over 236 
 
 When income of both in ercess of $2,000 237 
 
 Wife — American women marrying foreigner takes na- 
 tionality of husband — Cannot claim exemption 242 
 
 Income — 
 
 See also "Compensation," "Salary." 
 
 Gross Income — definition 15 
 
 What it includes 15 
 
 Inventory to determine, when necessary 175 
 
 Net Income: 
 
 Definition * 12 
 
 How computed 13, 14 
 
 Allowance for expenses 73 
 
 Bonus 80 
 
 Exempt from tax 86 
 
 INDEX PAGE 12 
 
INDIVIDUALS-Continued. 
 
 Paragraph 
 No. 
 
 Income — Continued. 
 
 Fees '.'. 8^ 
 
 From Life Insurance — See "Life Insurance." 
 
 From sale of personal property on instalment plan 44, 45 
 
 From sale of property 43, 45 
 
 From sale of stock, securities, etc 72 
 
 Interest — See "Interest." 
 
 Mileage - 69 
 
 Payer of Income to another must make return of in- 
 formation - 35*0 
 
 Pensions 71 
 
 Receipt basis ^ _ 18, 54 
 
 Royalty : 77 
 
 Time of accrual 17 
 
 Travelling expenses 73 
 
 Warrants of city or town 78 
 
 Income TaK — 
 
 Additional Tax — See "Additional Tax." 
 
 Evasions of tax, penalty 285 
 
 Laws of other countries 6 
 
 Normal Tax — See "Normal Tax." 
 
 Not deductible from taxable income ...133, 14% 
 
 Payment of — "Payment of Tax." 
 Payments of — See "Payment of Taxes." 
 
 Who and what taxable - 1-6 
 
 Withholding of at source — See "Withholding at the 
 Source." 
 
 Inheritance — 
 
 See "Legacy." 
 
 Information at the Source — 
 
 Broker.s — To make return of profits of customers when 
 
 required (see page 86, line 51) 3512 
 
 Dividends — Corporations to make return of dividends 
 paid on request of Commissioner (see page 86, line 
 
 41) 350(a) 
 
 Individuals, partnerships and corporations required to 
 
 make return of income paid to another 350* 
 
 Obligations of U. S. — return not required 35,r9 
 
 Where person receiving payment is not the actual owner 
 
 of income 345 
 
 Illness — 
 
 Agent may make return for taxpayer in case of 243 
 
 Insane Person 394^ 418 
 
 Insolvency — 
 
 No penalty for delay in payment of tax for 418 
 
 Installment Payments — 
 
 Income from sale of property paid by 44, 45 
 
 Loss from default of — how computed 45 
 
 Of income tax — See "Payment of Tax." ^: 
 
 Insurance- 
 Accident Insurance — See "Accident Insurance." 
 Business Insurance — See "Business Insurance." 
 Fire Insurance — See "Fire Insurance." 
 Health Insurance — See "Health Insurance." 
 Life Insurance — See "Life Insurance.'^ 
 
 Workmen's Compensation Insurance — See "Workmen's 
 Compensation Insurance." 
 
 Interest — 
 
 Deductible from income 145 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Interest — Continued. 
 
 Income from 15, 15 (a) 
 
 Bonds — See "Bonds," "Bonds — United States." 
 
 Obligations of State, Territory, County, Municipality, 
 
 etc 86(4) 
 
 Return of information at source required of payer 350 
 
 Tax-free Bonds — See "Withholding at the Source." 
 
 Xnvestment Certificates 310 
 
 Inventories — 
 
 Individual: 
 
 To be taken when necessary to determine income 175 
 
 Dealer in securities 205 
 
 Investment Certificates — 
 
 Status of 32, 310 
 
 Irrig'ation District — 
 
 See also "Irrigation Corporations." 
 
 Taxes assessed by I57 
 
 Jndg-es — 
 
 Of Supreme and inferior courts subject to tax 15, 15(a) 
 
 Knig-hts of Columbus — 
 
 Contributions to 212 
 
 landlord — - 
 
 ^ Permanent improvements made by tenant 42 
 
 1 Taxes paid by tenant 143 
 
 lawyer — 
 
 See "Professional Man," "Fees," "Physician." 
 Ziease — 
 
 Permanent Improvements made under 42 
 
 IJeased Iiine Certfiicates — 
 
 Income from considered to be dividends 32 
 
 Legracy — 
 
 Property acquired by i 16, 86(3) 
 
 lessee (Corporation) — 
 
 Rentals paid directly to bondholder or stockholder 31 
 
 Liberty Bonds — 
 
 See "Bonds — United States." 
 
 License — 
 
 Annual list return 358 
 
 Application for 355 
 
 Branch offices — 35*6 
 
 License to furnish list 357(a) 
 
 Licensee to keep records 360 
 
 Penalty for failure to obtain 356 
 
 Required for collection of foreign coupons, checks, bills 
 
 of exchange 354 
 
 Life Insurance- 
 Amount received in excess of premiums taxable 64 
 
 Business insurance premiums 118 
 
 Dividends from policies 39, 65, 98 
 
 Endowment contract 97 
 
 Endowments — Income from 66 
 
 Premiums paid on 138 
 
 Premiums paid on lives of officers and employes 372 
 
 Proceeds of paid on death of Insured... 86(1) 
 
 Proceeds of payable to estate of decedent 392 
 
 Return of premiums .....86(2) 
 
INDIVIDUALS— Continued. , 
 
 Pai 
 No. 
 Xdvestock — 
 
 Cost of — how treated - 128 
 
 Depreciation in value of - 208 
 
 Loss of through death .' - 131 
 
 Sales of — Income from — 131 
 
 Xiving: Quarters Fnmished in Addition to Salary 55,68 
 
 Uqnidation — 
 
 Of assets — how valued _. 25 
 
 laobbying* EKpense 121 
 
 Xiocal Benefits — 
 
 Defined „ 157 
 
 Taxes assessed against not allowable deductions 157, 158 
 
 XK>sses — 
 
 Individuals: 
 
 Definition * 163,168 
 
 All losses deductible _ 162 
 
 Assessment on stock 173 
 
 Bad Debts — See "Bad Debts." 
 Bankruptcy — See "Bad Debts." 
 
 Default on installment payments 44(4) 
 
 Foreclosure — See "Bad Debts." 
 
 Good Will — Capable neither of appreciation nor 
 
 depreciation — 174 
 
 Inventory: 
 
 Losses from reduction in value of „ 166 
 
 Not to be confused with "depreciation" - 168 
 
 Property: 
 
 Loss of 164 
 
 Rebates: 
 
 Losses from payment of 166 
 
 Mileagre— 
 
 Amount received as, how treated ™ 69 
 
 Military Forces — 
 
 See "Army." 
 Mines — 
 
 Depletion and depreciation allowance defined 198 to 202 
 
 Minor _ 394 
 
 Mortg-agre — 
 
 Foreclosure — Difference between purchase price and debt 
 
 not deductible 181 
 
 Security — See "Bonds." 
 Municipality — 
 
 See also "State or Political Subdivision." 
 
 Bonds of — Certificates of ownership not required 315 
 
 Bonds of — Exempt from tax 315 
 
 Bonds of Public Utility acquired by „ 816 
 
 Bonds — Public Utility acquired by — Income from not 
 
 exempt 316 
 
 Taxes against local benefits — definition 158 
 
 Warrants of city — ^Face value to be accounted as income 78 
 Vatnral Deposits — 
 
 Depletion allowance defined 198 to 202 
 
 Wavy — 
 
 Verification of returns of persons in service 27S 
 
 Von-resident Aliens — 
 
 Definition 432 
 
 American wife of _ 434 
 
 Bonds of — Tax on interest to be withheld and paid at 
 
 source 318 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Non-Resident Aliens — Continued. 
 
 Certificate of ownership to be filed 333 
 
 Deductions: 
 
 Conditioned on filing a return 438, 454 
 
 Contributions, gifts ■. 466 
 
 Deductions allowed 455 
 
 Depreciation 46S ' 
 
 Mines, oil and gas well 464, 467 
 
 Expenses 456 
 
 Interest 457 
 
 Other deductions 468, 469 
 
 Losses 459, 460, 461 
 
 Taxes 45« 
 
 Fiduciary of: 
 
 To render return, when 477 
 
 Credits 470, 471 
 
 Employed by domestic corporation — Tax on salary not 
 
 subject to withholding 361 
 
 Income: 
 
 Compensation for services rendered abroad, exempt.. 439 
 
 Dividends .....442, 443 
 
 Dividends: 
 
 Foreign corporations 444 
 
 Record owner other than non-resident alien in- 
 dividual actual owner, and is non-resident 
 
 alien 451 
 
 Record owner non-resident alien corporation 452 
 
 Record owner liable for tax 446 
 
 Record owner to mark return and pay tax 447 
 
 Returns of — Actual owner non-resident alien 
 
 corporation ,441? 
 
 Actual owner a non-resident alien indi- 
 vidual :44'P 
 
 Actual owner non-resident alien partnership 450 
 
 Exempt income 47$ 
 
 Income subject to tax.. 437 
 
 Royalties 440 
 
 Salary, rents paid to by domestic corporations or res* .: 
 
 ident individuals : ., 480 
 
 , Sale of stocks 441 
 
 Interest on bank deposits — Tax on to be withheld 347 
 
 Notes — Tax on interest from to be withheld 349 
 
 Refund, on return 487 
 
 Returns: 
 
 Agents or representatives to make 472, 477, 478 
 
 Conditions i. 438 
 
 Dividends i. 442 
 
 Failure to file — Notice to be sent to guardian 263 
 
 Liability to make 473 
 
 Return in behalf of by commissioner 474 
 
 Resident Aliens — defined for tax purposes ;43S 
 
 Residence: . 
 
 Method of establishing residence - 45j5 
 
 Permanently located in U S. but with domicile out- 
 side U. S m 
 
 ; Temporary residence in U. S _.....i 433 
 
 Stock — Certificate to disclose ownership ^* 447 
 
 Temporary residence in U. S „ :. 433 
 
 Verification of return required 271, 272 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Non-Besident Aliens — Continued. 
 
 Withholding provisions of law as applied to income, 
 
 291(a), 291(b) 
 
 Tax on dividends exempt from withholding 294 
 
 Withholding tax at source of income 478 
 
 When all tax not withheld 479 
 
 Normal Tax — 
 
 How calculated 8-9 
 
 On citizens and residents 1-2 
 
 On naturalized citizens residing abroad 3 
 
 On non-resident alien individuals 1-3 
 
 Upon what computed 12 
 
 Notes — Promissory — 
 
 See 'Promissory Notes." 
 
 Notes 311 
 
 See also "Bonds." 
 Oaths- 
 Returns to be made under 271 to 273 
 
 Obligfations of United States — 
 See "Bonds — United States." 
 
 Of State — See "State or Political Subdivision." 
 Oil and Gas Wells — 
 
 Depletion and depreciation allowed as deduction 198 
 
 Orchards — 
 
 See "Farm." 
 Partnerships — 
 
 Credits allowed 377 
 
 Composed of non-resident aliens and citizens of U. S 333 
 
 Deductions: 
 
 Life insurance premiums on lives of officers and 
 
 employes — not deductible 372 
 
 Taxes deductible by members of 149(a) 
 
 Fiscal year of 378 
 
 Income of Member of: 
 
 How computed 368, 376 
 
 Identity of 373 
 
 Individual profits 379 
 
 Partnership profits to be included 369 
 
 W^hen accrued 371 
 
 Limited partnerships 40 
 
 Members of liable for tax in individual capacity 368 
 
 Private bank partnerships 370 
 
 Returns — of information of all payments of over $1,000 
 
 made to individuals, fil'ms, corporations 350 
 
 Taxes: 
 
 Foreign taxes — 146(a), 147 to 152 
 
 Read especially 149 to 153 
 
 Paying* Agfent-^ 
 
 Bond Interest — Corporations may appoint 335, 336 
 
 Returns of — See "Withholding at Source." 
 Payment of Tax — 
 
 Abatement of taxes (see "Abatement) 287 
 
 At the source — See "Withholding at the Source." 
 
 Evasion of payment, penalty 285 
 
 Excess payment of tax — how treated 281 
 
 Failure to pay ....:.....• 286 
 
 Failure to Pay: '. 
 
 No penalty in case of insane, deceased and Insolvent 
 
 persons ......-:....::......!..: 418 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 
 Payment of Tax — Continued. 
 
 Instalment payments 258 
 
 Payment optional 260 
 
 Receipt for to be given on request 279 
 
 Taxes withheld at source 304 
 
 When extension of time for filing return is granted 259 
 
 Penalties — 
 
 Death — Ad valorem penalties to be enforced regardless of 269 
 
 Death — Specific penalties unenforcible in case of 269 
 
 Evasion of tax 285 
 
 False returns 268, 284 
 
 False Return: 
 
 F'raudulent return — penalty 283 
 
 Understatement of income 280, 284 
 
 Failure to file returns ^ 267, 283 
 
 Failure to pay tax: 
 
 None in case of insane, deceased or Insolvent persons 418 
 Withholding agent for divulging information 307 
 
 Pensions 71 
 
 Personal Exemption — 
 
 Allowed to each ward or cestui trust 417 
 
 Dependents — allowance for 217 
 
 Guardian 220 
 
 Head of a family 216 
 
 Head of a family — definition 219 
 
 Husband and Wife — Taxable status of — See "Husband 
 and Wife." 
 
 Married person 216 
 
 Single person 218 
 
 Trustee 220 
 
 Personal Service Corporations — 
 
 Not subject to tax as corporations 41 
 
 To make returns as partnerships 41 
 
 Philippine Islands — 
 
 Taxes imposed by — See "Taxes." 
 
 Obligations of — Interest on exempt 86(4) 
 
 Physician — 
 
 Expense deduction 110 
 
 Plates (Publishers) — 
 
 Amount expended for an investment of capital 134 
 
 Porto Rico — 
 
 Obligations of — Interest on exempt 86(4) 
 
 Taxes imposed by authority of — See "Taxes." 
 
 Power of Attorney — 
 
 Fiduciary relationship cannot be created thereby 424 
 
 Premiums- 
 Fidelity bond 137 
 
 Insurance — See "Fire Insurance," "Life Insurance." 
 
 Paid on life Insurance of officers or employes 372 
 
 Profession — 
 
 See also "Fees," "Physician." 
 
 Rent Tor residential property 140 
 
 Promissory ITote of Corporation 311 
 
 Property — 
 
 See also "Real Estate." 
 
 Losses in connection with — See "Losses." 
 
 Method of determining value of 45 
 
 Income from sale of 43-45 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Property — Continued. 
 
 Permanent improvements made under lease or rental 
 
 contract - *2 
 
 Title to — Cost of defending a capital investment 135 
 
 Private Bank — 
 See "Bank." 
 Profits — 
 
 Undistributed, tax contingent on 11 
 
 President of United States — 
 
 Income subject to tax 15(a) 
 
 Promissory Note of Corporation 311 
 
 Public TTtiUty— 
 
 Bonds of acquired by municipality not exempt 316 
 
 Income from accruing to State, Territory, political sub- 
 division and District of Columbia..... 86(6) 
 
 Ranches — 
 
 See "Farm." 
 
 Seal Estate — 
 
 See also "Property." 
 
 Depreciation of — See "Depreciation" 209 
 
 Foreclosure of mortgage on — See "Bad Debt." 
 Installment payment on — See "Installment Payments." 
 Permanent improvements made under lease or rental 
 contract 42 
 
 Rebates — 
 
 Loss from payment of under contract 166 
 
 Red Cross (American) — 
 
 Contributions to 212 
 
 Refund — of tax for 290(b) 
 
 Reclamatior— 
 
 Taxes assessed for purposes of 157 
 
 Reimbursement— 
 
 Of expense incident to accident 94 
 
 Rentals — 
 
 Amounts expended for taxes or repairs by tenants....76, 143 
 Paid directly to bondholder or stockholder — Bad debts 
 
 arising from unpaid 179 
 
 Permanent improvements made under lease or rental 
 
 contract 42 
 
 Room and board furnished employe as part of compen- 
 sation 142 
 
 Return of information at the source required of payer 350 
 
 Residential property 140, 141 
 
 Sale of leasehold — deduction 139 
 
 Taxes paid by tenant to landlord 143 
 
 Repairs — 
 
 Cost of — How treated in computing "depreciation" 187 
 
 Reporting* at the Source- 
 See "Information at the Source." 
 
 Residence — 
 
 Rental 140, 141 
 
 Resident Alien — 
 
 Defined lor tax purposes 435 
 
 Taxes paid or accrued to a foreign country 153 
 
 Taxes paid or accrued to a Possession of U. S 153 
 
 Returns — 
 
 Collector to make in certa^ cases 264 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Returns — Continued. 
 Failure to File: 
 
 "Reasonable cause of" defined 278 
 
 Refund of portions of amount paid as penalties for 
 
 failure to file for year 1913 266 
 
 2% penalty — Disclosre of liability to file prevents.... 267 
 Written waiver of exemption after expiration of 
 
 time limit 270 
 
 False Return: 
 
 Defined 265 
 
 Fraudulent penalties 268, 284 
 
 Extension of time — citizens residing abroad, non- 
 resident and alien corporations 276 
 
 Extension of time to citizens of U. S., non-resident 
 
 individuals abroad '. 276 
 
 Filing of: 
 
 Individual having no legal residence or place of 
 
 business in U. S 253 
 
 Where filed 252 
 
 Forms of , 243(a) 
 
 • Forms of — What to contain 254 
 
 Individual — 
 
 Adjustment of tax by commissioner 256 
 
 Agent for taxpayer — to make return, when 243 
 
 Amended return not required when individual found ; 
 
 subject to further tax 255 
 
 Dividends to be included in 245 
 
 Fiscal year return basis — See "Fiscal Year." 
 Fiscal year — See "Fiscal Year." 
 
 Mailed returns 244 
 
 Non-resident aliens — See "Non-resident Aliens." 
 Period to be covered by return unless changed to a 
 
 fiscal year >. 246 
 
 Who shall make, when made 243 
 
 Verification of: 
 
 Understatement of Income: 
 
 Penalty 5% of deficiency plus 1% 250 
 
 Oaths — Who may administer 272 
 
 Persons in naval or military service 7. 273 
 
 To be verified under oath 271-273 
 
 United States Bonds — Owners to make statement wltli 
 
 return 86(4) 
 
 Withholding agents — See "Withholding at the Source." 
 
 Royalty- 
 Income from taxable 77 
 
 Salary — 
 
 Bad debts arising from unpaid 175 
 
 Earned in one year and not paid until next year 17, bi^ 
 
 Foreign employe — Not subject to withholding at source.. 361 
 
 Included as income 15 
 
 Non-resident alien individual, paid by resident individual 
 
 or domestic corporation, exempt : 480 
 
 Paid after death lOd 
 
 Paid by organizations exempt from tax : 82 
 
 Payer must make return of information 350 
 
 Salary and bonus ^. :..... 79 
 
 Salary and commissions ^ 19 
 
 Two years' salary paid conditionally .,-,.... , . 85 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 
 Salvation Army — 
 
 Contributions to 212 
 
 Securities — 
 
 Assessments on 122 
 
 Book values — Shrinkage in 203 
 
 Commissions paid for purchase and sale of 125 
 
 Dealers in 203, 205 
 
 Exempt securities — Income from, how treated 96 
 
 Investment certificates 310 
 
 Investment certificates 310 
 
 Issued by War Finance Corporation, exempt 12(b), 86(4) 
 
 Issued under Federal Farm Loan Act 86(4) 
 
 Owned by foreign governments 86(5) 
 
 Leased line or stock trust certificates — taxable status.... 32 
 
 Promissory note of corporation 311 
 
 See also "Stocks," "Bonds," "Bonds — United States." 
 Value reduced at direction of Comptroller of Currency.... 170 
 
 Sta£re Costmnes — 
 
 Depreciation 207 
 
 State or Political Subdivision — 
 
 Bonds of — Certificate of ownership not required 315 
 
 Bonds of — Interest from exempt 314 
 
 Contractor with — Status of 70 
 
 Expense incurred in earning income not allowable deduc- 
 tion 101 
 
 Income derived from public utility 86(7) 
 
 Obligations of — Definition 88 
 
 Obligations of — Interest from exempt 85(4) 
 
 Obligations of — Interest on exempt from tax 86(4) 
 
 Officer or employee of — definition 70 
 
 Political subdivision — Definition 87 
 
 Taxes imposed by — See "Taxes." 
 
 Warrants issued by '.... 78 
 
 Stock Dividend — 
 
 See "Dividends." 
 
 Schedules of rates for previous years for guidance in 
 allocating tax on stock dividends and for other 
 purposes See page 1371 
 
 Stockholder — 
 
 Of corporation to be taxed on undistributed profits — 
 
 when 11 
 
 Rentals paid by lessee directly to 31 
 
 Stock (Securities) — 
 
 Bonus in common stock 51 
 
 Dividends on — See "Dividends." 
 
 Profit from sale of — how treated 72 
 
 Profit from sale of lots purchased at different times 72 
 
 Profit from sale of stock acquired by gift 75 
 
 "Rights" '(subscription) income from 74 
 
 Stock Trust Certificates — 
 
 Income from considered as dividends 32 
 
 Tariff- 
 See "Customs Duties." 
 
 Taxes — 
 
 Against Local Benefits: 
 
 Local Benefits defined 157, 158 
 
 Not Allowable Deduction — 
 Law, page 62, line 48. 
 
 INDEX PAGE 21 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Taxes — Continued. 
 
 As Expense or Deduction: 
 
 Paid by tenant as part of rent 76 
 
 Customs duties are part of cost of goods 155 
 
 Deductible from income 147 
 
 By beneficiary of an estate 149(a) 
 
 By member of a partnership 149(a) 
 
 Porto Rico and Philippine Islands — Imposed by 
 
 authority of 149 
 
 State, county and municipal taxes 150 
 
 United States — Imposed by authority of 149 
 
 Deductible as Rental: 
 
 Paid by tenant to landlord 143 
 
 Deductible from Total Amount of Tax: 
 
 Income, war profits and excess-profits taxes imposed 
 
 by U. S. Possessions and foreign countries 149 
 
 Foreign Taxes 146(a), 149 to 152 
 
 Foreign taxes — (paid to foreign countries) 149(b) 
 
 Imposed by United States Gov't — Read H16(a) and 
 Us 147 to 152. 
 
 Income taxes not deductible 133 
 
 Local benefits — Taxes against not deductible 150, 157 
 
 Not Deductible from Income: 
 
 Imposed by Philippine Islands, Porto Rico 149 
 
 Income, war-profits and excess-profits taxes 14 
 
 Paid in behalf of stockholder by bank on capital stock 
 
 allowable deduction 37, 214 
 
 Paid to foreign country deductible from total amount 
 
 of income tax 149(b) 
 
 Philippine Islands: 
 
 Taxes imposed by 146(a), 149 to 152 
 
 State or Political Sub-division: 
 
 Taxes imposed by 150 
 
 U. S. Gov't — Taxes imposed by — Read tI146(a) and 
 Us 147 to 152. 
 Tax— free Covenant — 
 
 See "Bonds." 
 Tenant — 
 
 Permanent improvement made by 42 
 
 Repairs made by, as part of rent 76 
 
 Taxes paid by as part of rent..... 76, 143 
 
 Territory — 
 
 Interest from obligations of 86(d). 
 
 Timber — 
 
 Depreciation and depletion allowed 198 to 202 
 
 Loss by fire of standing timber 165 
 
 Town — 
 
 See "Municipality." 
 Treasury Decisions — 
 
 Promulgated under Acts of 1916 and 1917 for guidance 
 of those who are required to make amended returns 
 for those years. (See Index to Treasury Decisions.) 
 Trustee — 
 
 See Fiduciary. 
 Treasury Decisions — 
 
 Effective date of 38t 
 
 Trust Companies — 
 See "Banks," 
 
 INDEX PAGE 22 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Undistributed Profits — 
 
 See "Profits." 
 U. S. Government — 
 
 Bonds of — See "Bonds — United States." 
 Government officers and employes: 
 
 Compensation not paid in money 95 
 
 Taxable status of income 95 
 
 Liberty Bonds — See "Bonds — United States." 
 
 Officers of — Income subject to tax 15, 15(a) 
 
 President of — See '-President of United States." 
 Securities issued by War Finance Corporation — See 
 "Securities." 
 
 Taxes deductible from income 149 
 
 Taxes imposed by authority of — See "Taxes." 
 Vocations — 
 
 Income from taxable 15, 15(a) 
 
 Wagres — 
 
 See "Salary." 
 War Finance Corporation — 
 
 Securities issued by, exempt 86(4), 12(b) 
 
 War-Profits Tax — 
 
 Amount paid as not deductible 149, 150 
 
 Warrants of City or Town 78 
 
 Wife- 
 Taxable status — See "Husband and Wife." 
 Withholdingf at the Source — 
 
 Bond — Certificates of ownership — See "Certificates of 
 
 Ownership." 
 Bond Interest — Tax on: 
 
 Amount of tax to be withheld 308 
 
 Bonds containing tax-free covenant 309 
 
 Bonds without tax-free covenant — Payment cannot 
 
 be made) at source 309(e) 
 
 Citizen or Resident — May file certificate of ex- 
 emption 309(a) 
 
 Exempt organization — Certificates to be filed — 313 
 
 No withholding when individual exemption claimed. 309 (b 
 Of 2% to be deducted from income of citizen or 
 
 resident or non-resident alien individual 309 
 
 Owners not known to withholding agent — Commis- 
 sioner may authorize deduction 309 
 
 Tax-free Bonds — Important distinction for income 
 
 tax purposes 309(f) 
 
 Tax-free bonds — issued with and without tax-free 
 
 covenant — Important distinction 309(e), 309(f) 
 
 Varying policy of corporations 309 
 
 Tax-free bonds only 308, 309 
 
 Tax-free covenant — Contract between corporation 
 
 and bondholder 309(c) 
 
 Tax withheld only a partial tax 309(d) 
 
 Exempt organizations subject to provisions of lav/ 293 
 
 Fiduciaries 404 
 
 Foreign corporations 291(b) 
 
 Non-resident alien individuals 291 (a) 
 
 Non-resident alien — Tax on dividends not to be with- 
 held 294 
 
 Non-resident Alien : 
 
 Interest from bank deposits — Tax on 347 
 
 Interest from notes 348, 349 
 
 INDEX PAGE 23 
 
INDIVIDUALS— Continued. 
 
 Paragraph 
 No. 
 Withholdinsf at the Source — Continued. 
 
 Payment of tax withheld 304 
 
 Provisions of the act, as applied to citizens, residents 
 
 and non-resident aliens 291 
 
 Also see Law, page 69, lines 27-48. 
 Returns: 
 
 Of information at the source. See "Information at 
 the Source." 
 Withholding Agent: 
 
 Annual return of 305 
 
 Bond interest — Non-resident aliens 312 
 
 Corporation may appoint paying agent 335, 335 
 
 Defined 317,292 
 
 Monthly Return of , 306 
 
 Non-resident aliens 318 
 
 Paying agents 317 
 
 Payments of tax withheld 304 
 
 Penalty for divulging information 306 
 
 Returns of: 
 
 Annual return 305, 344 
 
 Monthly list 304, 306, 344 
 
 Monthly List — Duplicates to be filed 338 
 
 Monthly list— Where filed 337, 344 
 
 Penalty for divulging information.. 307 
 
 Salary of foreign employe exempt 361 
 
 Withholding- Ag-ent — 
 
 See "Withholding at the Source." 
 Workmen's Compensation Insurance — 
 
 Compensation for personal injuries 86(6) 
 
 Voung' Men's Christian Association — 
 
 Contributions to 212 
 
 INDEX PAGE 24 
 
Corporations. 
 
 Reference is made to Paragraph. Numbers 
 and NOT to pases. 
 
 Paragraph 
 No. 
 
 Assessments — 
 
 Additional 779 
 
 Acconntingr — 
 
 See "Bookkeeping." 
 
 Additions and Betterments — 
 
 Not deductible 593 
 
 Siding or spur traclvs 605a 
 
 Affiliated Corporations — 
 
 Consolidated returns by specific exemptions allowable 
 
 — definition of 711 
 
 Agricnltural Orgranizations — 
 
 See "Exempt Corporations." 
 
 Amortization — 
 
 Buildings, etc., constructed for war purposes 651 
 
 Bonds 201 
 
 Bonds, discount and expense 663 
 
 Assessments — 
 
 Additional 779 
 
 Assets — 
 
 Carrying charges 577, 594 
 
 See "Capital Assets." 
 
 Associations — 
 
 Definition of 490, 491 
 
 Limited partnerships 495 
 
 Private banks 497 
 
 Bad Debts — 
 
 Arising from unpaid wages 638 
 
 Doubtful accounts 636 
 
 Loss must be definite 637 
 
 Recovered 639 
 
 When determined 635 
 
 Bankruptcy — 
 
 Bad debts charged off 180 
 
 Banks — 
 
 Bank stock taxes 687 
 
 Gross income of 550-720 
 
 Interest paid on deposits or investment 611 
 
 Banks and Other Financial Institutions — 
 
 Gross income defined as taxable 720 
 
 Boards of Trade — 
 
 See "Exempt Corporations." 
 Bonds (Securities) — 
 
 Tax-free 684 
 
 Discount and expense to be amortized 663 
 
 Discount on, not deductible 662 
 
 • Tax-free — Special distinction, for income tax pur- 
 poses between bonds which contain a tax-free 
 covenant and those which do not. Read carefully 
 309-310. 
 Tax-free Covenant — See 309 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Bonds (Securities) — Continued. 
 Tax Free — 
 
 Status of ihterest from under income tax — See page....l375 
 
 Amortization of 204 
 
 Certificates of Ownership — 
 
 See "Certificates of Ownership." 
 
 Certificates of ownership to be filed 297 
 
 County Bonds — Exempt 314 
 
 Coupon Bonds — 
 
 See "Certificates of Ownership." 
 Coupons due in tax year but not collected until following 
 
 year 17 
 
 Coupons — Foreign — License required to collect. See 
 
 "License." 
 Depreciation or loss written off at direction of Comp- 
 troller of Currency 170 
 
 District Irrigation Bonds — Losses on... 172 
 
 Exempt Corporations — 
 
 Owner must file certificates of ownership 313 
 
 Fidelity — 
 
 Premium on allowable deduction .^ 137 
 
 Foreign Corporation — 
 
 How treated for income tax purposes 321 
 
 Foreign Bonds — 
 
 Collection of coupons and other foreign items 
 
 requires a license 354 
 
 License — Penalty for failure to obtain 354 
 
 See also "License." 
 Interest from — 
 
 Bonds purchased between interest dates 49 
 
 Municipal Bonds — Exempt 315 
 
 Municipality — Public utility acquired by 31$ 
 
 Notes — Promissory note of corporation _... 311 
 
 Public Utility — Acquired by municipality 316 
 
 Purchased between interest dates 48 
 
 Registered Bonds — 
 
 Retired within interest period 319 
 
 See "Certificate of Ownership." 
 
 Scrip (dividend) — Not obligation similar to bonds 312 
 
 State Bonds — Exempt 314 
 
 Status of bonds under income tax See page 1375 
 
 Tax Exempt — Income from, exempt 314 
 
 State Bonds — Exempt 314 
 
 War Finance Corporation — See "War Finance Corpora- 
 tion." 
 Withholding provisions as to tax on interest from — 
 
 See "Withholding at the Source." 
 Bonds — United States — 
 
 Information at the source not required 315 
 
 Interest from exempt 86(4), 90 
 
 Liberty Bonds — 
 
 Dividends paid in 27 
 
 Interest on indebtedness incurred to purchase not 
 
 deductible, when 146 
 
 Taxable status of 89, 90 
 
 No certificate of ownership required 314, 315 
 
 Owners of must make statement of ownership 86(4) 
 
 Income from, exempt 314 
 
CORPORATIONS— Continued. 
 
 Pi 
 No. 
 Bonuses — _ 
 
 Bonus paid in common stock 51 
 
 Special payments 614 
 
 Taxable status of , 80 
 
 Books — 
 
 Examination of 778 
 
 Bookkeeping* — 
 
 No particular system - 774 
 
 Book Values — 
 
 Shrinkage in 203,205 
 
 Brokerage — 
 
 Interest received by 585 
 
 Building: and Zioan Association — 
 
 Income from shares — ^how treated :. 50 
 
 Without capital stock, operated for mutual purposes, 
 
 without profit .— 527 
 
 Business Zieag-ues — 
 
 See "Exempt Corporations." 
 Capitalization — 
 
 Capital Stock — 
 
 Delinition of 543 
 
 Donations 545 
 
 Of lessor companies— not. to be included by lessee 
 
 companies .— . 515 
 
 Paid-up — 542 
 
 Received by a corporation 544 
 
 Capital Assets — 
 
 Drawings, Models, Etc. — 
 
 Expenditure for 667 
 
 Value of — 
 
 When exchanged for capital stock 576 
 
 When sold to other corporation 578 
 
 When sold by subsidiary to. parent company 579 
 
 Capital Stock — 
 
 See "Premium and Discount." 
 Certificates of Ownership — 
 
 Use of in connection with coupons and interest orders, 
 
 309(f) to 309(j) 
 
 Banks and trust companies — Execution of 343 
 
 Bonds: 
 
 Coupons- 
 Substitute certificates to bank or collecting 
 
 agency , 322, 339 
 
 ,, Registered Bonds: 
 
 Certificates of ownership not required to ac- 
 company orders or checks in payment of 
 
 interest 320, 329, 340 
 
 Containing tax-free covenant 309 (f ) 
 
 Containing tax-free covenant — exemption claimed..309(h) 
 Containing tax-free covenant — exemption waived.. ..3 09 (j) 
 
 Foreign Corporation — How treated - 321 
 
 Forms to be filed 309(h), 309 (j) 
 
 Identity of persons i)resented required of 343 
 
 Not tax-free 300 (j) 
 
 Read also t|298 and 299. 
 
 Of exempt organizations — Certificates to be filed 313 
 
 Private corporation may print for own use 299 
 
 Sinking fund and similar bonds retired within in- 
 terest period , 319 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Certificate of Ownership— Continued. 
 
 State, Government, Municipal and similar bonds: 
 
 No certificates of ownersiiip required 314, 315 
 
 Tax-free but not containing a tax-free covenant 309 (j) 
 
 Corporations — Certificates of 33i 
 
 Foreign Partnership composed of non-resident alien cor- 
 porations and citizens of U. S 333 
 
 May be signed by duly authorized agents 330 
 
 Non-resident alien corporations — Certificates of 332 
 
 Registered Bonds — Certificates not required to accom- 
 pany interest orders 32d 
 
 Substitute certificates of banks and collecting agency 322 
 
 Chambers of Conuuerce-— 
 
 See "Exempt Corporations." 
 
 Charitable Organizations — 
 
 See "Exempt Corporations." 
 Checks — 
 
 Uncertified — 
 
 Liability for payment of 763 
 
 Cemetery Companies — 
 
 See "Exempt Corporations," 
 Citizens of 17. S. — 
 
 Possessions 773 
 
 City- 
 See "Municipality." 
 
 Warrants of — Face value to be accounted as income.. 78 
 Civic Zieagnes — 
 
 See "Exempt Corporations." 
 Close Corporations — 
 
 Compensation of officers 38 
 
 Liable to tax 502 
 
 Clnbs — Pleasure or Recreation — 
 
 See "Exempt Corporations." 
 Collection Districts — 
 
 Complete list with names and addresses of collectors. 
 
 See page 1365 
 Compensation — 
 
 Of individuals composing company with two stockholders 561 
 Commissions — 
 Deduction: 
 
 Paid to real estate agent 119 
 
 Paid to salesmen 120 
 
 Common-Iiaw Partnerships — 
 
 Not associations 496 
 
 Contracting- Companies- 
 Income — see "Corporations" 503 
 
 Co-operative Associations — 
 
 See "Definitions." 
 Co-operative Dairy — 
 See "Definitions." 
 Copyrights — 
 
 ■ Amount expended for an investment of capital 134 
 
 Corporations — 
 
 Definition of 490 
 
 Dividends — 
 
 Return of dividends paid when required by Commis- 
 sioner (See page 86, line 41) 351 
 
 Affiliated 711 
 
 As withholding agent 334 
 
CORPORATIONS— Continued. 
 
 Paragrapn 
 No. 
 Corporations — Continued. 
 
 Banks and other financial institutions 720 
 
 Bonds — shrinkage in value of ...i.. 172 
 
 Capitalization — 
 
 See "Capitalization." 
 
 Change of name of 518 
 
 Close Corporation — 
 
 Division of profits considered to be dividends to 
 
 stockholders 3$ 
 
 Contracting Companies — 
 
 Income of 503 
 
 Dissolved 494 
 
 Domestic 711 
 
 Domestic, doing business in foreign country must make 
 
 return 504 
 
 Exempt — 
 
 See "Exempt Corporations." 
 
 Foreign 691 
 
 Foreign, with office in United States — 
 
 Designate principal office 516 
 
 Incomplete 493 
 
 Information Returns — 
 
 Of all payments over $1,000 made to another corpora- 
 tion, firm or individual 350 
 
 Irrigation — 
 
 Assessments on stock of 173 
 
 Manufacturing 721 
 
 Mercantile 722 
 
 Miscellaneous — income defined 555 
 
 New — 
 
 Fiscal year returns 517 
 
 New — 
 
 Fiscal year — returns of 744 
 
 Notes of — 
 
 Promissary notes 311 
 
 Operating corporation controlled by stock ownership 556 
 
 Organized — 
 
 During year make returins 519 
 
 Personal Service — 
 
 Definition 541(a) 
 
 Payment agent — corporation may appoint 335 
 
 Personal Service Corporations — 
 
 See "Personal Service Corporations." 
 Philippine and Porto Rican corporations — 
 
 Tax on 492 
 
 Premiums paid on lives o officers not expense 616 
 
 Promissary Note of — 
 
 Taxable status 311 
 
 Property taken over in exchange for stock 571 
 
 Receivers, trustees or assignees to make return 728 
 
 Returns of — 
 
 Mutual telephone 501 
 
 Mutual insurance 501 
 
 Consolidated 711 
 
 Close corporations 502 
 
 Sinking fund investments 56 4 
 
 Sinking fund reserve 563 
 
 Tax on 488 
 
 INDEX PAGE 29 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Corporations — Continued. 
 Treasury stock — 
 
 When taxable 566 
 
 Voluntary payments by stockholders 566 
 
 County — 
 
 See also "State or Political Subdivision." 
 Conpons — 
 
 See also "Bonds." 
 
 Due in tax year but not collected until following year.... 17 
 
 Exchange of — 
 
 For funding purposes , 568 
 
 Credits — 
 
 Allowed as deduction ,., ..., - 548 
 
 Example of 690 
 
 Excess-profits tax 686 
 
 Cnstom Duties — 
 
 Deductible as expense 688 
 
 Dairy — Co-operative — See "Definitions." 
 Debts — 
 
 See "Bad Debts." 
 Deductions — 
 
 Allowable -- 586 
 
 Bad Debts — 
 
 See "Bad Debts." 
 Dividends — 
 
 See "Dividends." 
 Dividends — 
 
 See "Dividends." 
 Expenses — 
 
 See "Expenses." 
 
 For depreciation 72S 
 
 For general expenses ;. - 724 
 
 Bad debts :. 725 
 
 For interest on indebtedness 727 
 
 For Losses: 
 
 Insurance Companies — 
 
 See "Insurance Companies." 
 Interest — 
 
 See "Interest." 
 Losses — 
 
 See "Losses." 
 
 Operation and maintenance 588 
 
 Rent — 
 
 See "Rent." 
 Taxes — 
 
 See "Taxes." 
 
 Deed of Trust 418 
 
 Default on Installment Payments 48 
 
 Definitions — 
 
 Associations 490, 491 
 
 Clubs, exemption 538 
 
 Co-operative associations 537 
 
 Co-operative dairy 536 
 
 Corporations : 496 
 
 Insurance companies 490 
 
 Joint-stock companies : •. 490, 491 
 
 Paid 596 
 
 Paid or accrued and paid and Incurred 596 
 
 Society or association exemption _ 683 
 
 INDEX PAGE 30 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 
 Definitions — Continued. 
 
 Social clubs, exemption 1 534 
 
 Taxable year 489 
 
 Taxable period 489 
 
 Depletion — 
 
 Mines, oil and gas wells 632, 676, 677 
 
 Depreciation — 
 
 Deductions for 726 
 
 Allowance for property 646 
 
 Assets subject to wear and tear 650 
 
 Cost of buildings, not allowed 618 
 
 Diversion of funds 653 
 
 Estimated value, when 652 
 
 Improvements 675 
 
 Life of buildings 649 
 
 In excess of cost 655 
 
 Mines, oil and gas wells 63S 
 
 Must be charged ofC 657 
 
 Patents 666 
 
 Rate for computing 648 
 
 Reserve 654 
 
 Reserve 654, 656 
 
 Securities 660 
 
 Shrinkage in book values 658 
 
 Stocks and bonds 659 
 
 Disclosure of Information in Return — 
 
 Penalty 771 
 
 Discount — 
 
 On bonds not deductible , 662 
 
 Sale of capital stock 583 
 
 Dissolved Corporations — 
 
 Liability for tax 494 
 
 District Irrigation Bonds — Losses on 172 
 
 District of Columbia — 
 
 Income derived from public utility 86(7) 
 
 Obligations of — Interest from exempt 86(4) 
 
 Dividends — 
 
 Definition 19 
 
 Cash dividends 20 
 
 Close Corporation — Division of profits by stockholders 
 
 considered a dividend 38 
 
 Declared from special surplus 99 
 
 Declared in one tax year and paid in another 17 
 
 Deductions from gross income 598 
 
 Deductible 645 
 
 Earnings or dividends from subsidiary companies not 
 
 deductible by parent or holding company 560 
 
 Federal Reserve Bank — Dividends on stock exempt.... 91 
 
 Dividends from stock of member banks not exempt.. 92 
 Foreign corporation which derives its entire income from 
 
 business within U. S 295 
 
 From leased line or stock trust certificates 32 
 
 Non-resident Alien Corporation — Tax on not to be with- 
 held : 294 
 
 Paid with securities 26 
 
 Paid in Liberty Bonds 27 
 
 Paid out of depreciation reserve 28 
 
 Paid by foreign corporations 83 
 
 From earnings wholly within United States S4 
 
 INDEX PAGE 31 
 
CORPORATIONS— Continued. 
 
 Paragrapl) 
 Dividends — Continued. No. 
 
 Private banks 498, 499 
 
 Received by record owner where another is actual owner 35 
 
 Return of ., 753 
 
 Scrip dividends 36, 312 
 
 Stock Dividends: 
 
 Court decisions on taxable status of 21 
 
 Definition of 22 
 
 Received by fiduciary 395 
 
 Taxable at what rates 24 
 
 Value of — How computed 23 
 
 Subject to additional tax 30 
 
 Taxes paid on capital stock of banks taxable to stock- 
 holder as dividends 37, 214 
 
 Domestic Buildingr and I^oan Associations — 
 
 See "Exempt Corporations." 
 Domestic Corporations — 
 
 Indebtedness of 719 
 
 Instructions re making returns of annual net income .... 716 
 
 Returns on stock owned in foreign corporation 711 
 
 What constitutes capital stock in making return 718 
 
 Donations — 
 
 See "Expenses" 
 
 Not deductible 628 
 
 "When donations are deductible." 
 Drainag^e— 
 
 Taxes issued for purposes of 157, 158 
 
 Drawing's, Models, Etc. — 
 See "Losses." 
 See "Capital Assets." 
 
 Obsolescence 669 
 
 Duties- 
 See "Customs Duties." >, 
 Edncational Organizations — 
 
 See "Exempt Corporations." 
 
 ISzamination of Books 778 
 
 Dzcess Profits Tax — 
 
 Amount paid as not deductible 148 
 
 For digest of law and regulations relating to, see Index 
 page. 
 Sxempt Corporation — 
 
 Income from bonds of 313 
 
 Exempt Organizations — 
 
 Bonds of — Certificates of ownership to be filed 313 
 
 Conditional 520 
 
 Unconditional — 
 
 Boards of Trade 522 
 
 Business League 522 
 
 Cemetery companies 522, 535 
 
 Charitable organizations 522 
 
 Chambers of Commerce 522 
 
 Civic Leagues 522 
 
 Clubs — Pleasure or Recreation 622 
 
 Domestic building and loan associations 522, 527 
 
 Educational organizations « 522 
 
 Farmers', Fruit Growers' or like associations — mar- 
 keting on mutual basis 522, 535a 
 
 Farmers' or other mutual insurance company 522 
 
 Mutual ditch or irrigation 522 
 
 Mutual or co-operative telephone 522 
 
 INDEX PAGE 32 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Exempt Org-anizations — Continued. 
 
 Federal land banks <... 522 
 
 Fraternal beneficiary societies 522 
 
 Holding companies — title to property 522 
 
 Humane organizations 522 
 
 Labor agricultural or horticultural organizations..522-526 
 
 Mutual savings banks 522 
 
 Personal service corporations, conditional 522 
 
 Qualifications for 528 
 
 Religious organizations 522 
 
 Scientific organizations 522 
 
 See "Exempt Organizations." 
 Exempt Org-anizations 
 Bonds of — 
 
 Certificates of ownership to be filed 297 
 
 Salaries paid by subject to tax 82 
 
 Withholding of tax at source 293, 291, 346 
 
 Exempt Securities — 
 See "Securities." 
 Exemption — 
 
 See "Credits." 
 Clubs- 
 See "Definitions." 
 Doubtful — 
 
 Organizations to make return 528 
 
 Established 530, 531 
 
 Social Clubs — 
 
 See "Definitions." 
 Society and Association — 
 See "Definitions." 
 Expenses — 
 
 Advertising 109 
 
 Allowable deductions for 587 
 
 Architect's services — ^A capital investment 12i 
 
 Assessments on securities 122 
 
 Bonuses or additional compensation 614 
 
 Campaign expenses 121 
 
 Charges against current earnings 597 
 
 Commissions — see "Commissions." 
 
 Commissions paid salesmen 621 
 
 Compensation paid in stock 62? 
 
 Company composed of two stockholders 561 
 
 Copyrights, plates, etc. — Amoimt expended for invest- 
 ment of capital — not deductible 134 
 
 Cost of improvements 592 
 
 Cost of material .' 589 
 
 Customs duties deductible 688 
 
 Deductions for general expenses 724 
 
 Depositors' guarantee fund : 591 
 
 Donations deductible, under certain conditions 627 
 
 Earnings — Public Utility 602 
 
 Entertainment (customers') expense 127 
 
 Incidental repairs 590 
 
 Import or tarifC duties 689 
 
 Insurance: 
 
 Business insurance premiums 118 
 
 Fire insurance premiums 138 
 
 Lobbying expenses 121, 601 
 
 INDEX PAGE 33 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Expenses — Continued. 
 
 Maintenance : 608 
 
 Merchant 109 
 
 Operation and maintenance 588 
 
 Operation and maintenance 613 
 
 Payment for labor and material 609 
 
 Pensions paid employes, deductible 624 
 
 Rents — See "Rentals." 
 
 Salaries paid officers and employes 595 
 
 Salary drawn from own business 38, 145 
 
 Special compensation 626 
 
 Special compensation to employees 18, 144 
 
 Spending money 600 
 
 Sale of capital stock 603 
 
 Taxes — see "Taxes." 
 
 Tenant corporations 604 
 
 Titles to property — Cost of defending a capital invest- 
 ment 135 
 
 Traveling expenses — per diem allowances , 73 
 
 liztension — 
 
 Collectors may grant, in case of sickness or absence 509 
 
 Commissioner may grant for good reason 510 
 
 Farmers' and Pmit Growers' Associations — 
 
 See "Exempt Corporations." 
 Parmers' or Other Mutnal Insurance Companies — 
 Federal Farm I^oan Act — 
 
 Securities issued under, exempt 86(4), 92 
 
 See "Exempt Corporations." 
 Federal Iiand Banks — 
 Federal Reserve Bank — 
 
 Dividends from capital stock of exempt 91 
 
 Dividends from stock of member banks not exempt 91 
 
 See "Exempt Corporations." 
 Fiscal Year — 
 
 Amended instruction for guidance in determining 746 
 
 Collectors must make designation of , 747 
 
 Computation basis 745 
 
 Corporation — 
 
 Computation of tax 547 
 
 Of New Corporations — 
 
 Returns of net income for — 
 
 How made 744 
 
 Foreclosure — 
 
 Difference between purchase price and debt not deducti- 
 ble as bad debt 181 
 
 Foreisru Corporations — 
 
 Deductions allowable 693 
 
 Deductions — 
 
 How evidenced 707 
 
 . Income in United States subject to withholding — 
 
 Income — 
 
 Withholding of tax on at source 291(b) 
 
 Amortization — 
 
 Deductions allowable 705 
 
 Bonds of — 
 
 How treated for incorfie tax purposes 321 
 
 Debts deductible 700 
 
 Depletion and depreciation — 
 
 Allowed on mines, oil and gas wells, etc 706 
 
 INDEX PAGE 34 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 
 Foreign Corporations — Continued. 
 
 Depreciation allowed 702 
 
 Dividends deductible _..:.. 701 
 
 Dividends of — 
 
 When all income derived from sources with U. S 295 
 
 Expenses deductible 694 
 
 Firms, corporations which are exempt from withholding 
 
 at source 486 
 
 Interest on bonds not deductible 698 
 
 Interest on indebtedness 695 
 
 Inventories required 709 
 
 Losses deductible 699 
 
 New buildings, permanent improvements, betterments, 
 
 etc., not deductible 703 
 
 Restoration of property not deductible 704 
 
 Returns — 
 
 Domestic corporations — books in foreign country 692 
 
 Source of income „ 696 
 
 Taxes 697 
 
 Taxation of 691 
 
 Tax Withheld at Source Deductible — 
 
 Deduction for losses not compensated by insurance.. 708 
 
 Foreign Coupons, Checks, Bills of Ezchang-e 354, 361 
 
 Fire Insurance — 
 
 Premiums paid on , 138 
 
 Foreclosure — 
 
 Sale on mortgage 181 
 
 Foreign Governments — 
 
 Income from investments in U. S 86(5) 
 
 Not taxable 538 
 
 Taxes paid to — deductible from total amount of income 
 
 tax 149(a) 
 
 Forms — 
 
 In absence of forms a statement is accepted until sub- 
 stituted by return on prescribed form 730 
 
 Prescribed by department must be used 729 
 
 Returns itemized on supplementary statement, Form 1031 715 
 To be furnished for reporting returns 712 
 
 Fraternal Beneficiary Societies — 
 See "Exempt Corporations." 
 
 Gifts- 
 See also "Bonus." 
 
 Property acquired by 15, 15(d), 86(3) 
 
 To corporations 567 
 
 Good Will- 
 Deduction for depreciation, not allowed 664 
 
 Gross Income — 
 See "Income." 
 
 Holding Companies — 
 
 See "Exempt Corporations." 
 
 Carrying charges 599 
 
 Returns of 505 
 
 Horticultural Orgranizations — 
 See "Exempt Corporations." 
 
 Humane Organization — 
 
 See "Exempt Corporations." 
 
 Import or Tariff Duties — 
 
 Deductible as taxes 689 
 
 INDEX PAGE 35 
 
C ORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Zxnprovexnents — 
 
 Cost of renewals 606 
 
 Depreciation 675 
 
 Leased property „ 617 
 
 New buildings, no deduction paid for same 620 
 
 Inoome — 
 
 Accrued interest deductible from 775 
 
 Bad debt if collected 183 
 
 Bank discount ^ 574 
 
 Basis of tax 546 
 
 Bonuses and special payments 614 
 
 Books of account best guide to 776 
 
 Capital assets, sale of 575 
 
 Damages 569 
 
 Expenditures included as such 607 
 
 Fiscal year 547 
 
 Gross — 
 
 Banks and financial institutions 550 
 
 Insurance companies 551 
 
 Gross income defined 558 
 
 Gross — 
 
 Miscellaneous corporations 555 
 
 Gross computed by banks and other financial institu- 
 tions 720 
 
 Gross computed by manufacturing corporations 721 
 
 Gross computed by mercantile corporations 722 
 
 Gross computed by other corporations 723 
 
 Interest — 
 
 Brokers to include in gross income 585 
 
 Net Computed by New Corporations — 
 Fiscal Year Returns of — 
 
 How made 744 
 
 Computed on fiscal year basis 745, 746 
 
 Other 552 
 
 Patents, sale of 570 
 
 Personal property — sale of, on installments 553 
 
 Refunds of excess paid 762 
 
 Royalties from patents 573 
 
 Voluntary payments by stockholders 566 
 
 Zucomplete Corporations — 
 
 Roturns by, liability for '. 493 
 
 Indebtedness — 
 
 Lessee companies not to include that of lessor compa- 
 nies 515 
 
 Individual Ownership — 
 Private Banks — 
 
 Association, held not to be 500 
 
 Information — 
 To States — 
 
 When 767 
 
 Regulations governing inspection 768 
 
 Information at the Source — 
 
 Brokers — To make return of profits of customers when 
 
 required (see page 86, line 51) 352 
 
 Dividends — Corporations to make return of dividends 
 paid on -request of Commissioner (see page 86, line 
 41) 350(a) 
 
 INDEX PAGE 36 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Information at tlie Source-^Continued. 
 
 Partnerships and corporations required to make return 
 
 of income paid to another 350 
 
 Obligations of U. S. — return not required 315 
 
 Return of information of all payments of $1,000 or more 
 
 made to another 354 
 
 Where corporation receiving payment is not the actual 
 
 owner of income 345 
 
 Zustallment Payments — 
 
 Default on, bad debts , 45 
 
 Income from sale of property paid by 44, 45 
 
 Loss from default of — how computed 45 
 
 Insurance- 
 Business Insurance — See "Business Insurance." 
 
 Insurance Companies — 
 Deductions — 
 
 Net addition to reserve funds 605 
 
 Policies covering life, health and accident 605 
 
 Definition of 490 
 
 Gross income of 551 
 
 Mutual Insurance — 
 
 Premium deposits 605 
 
 Mutual Marine — 
 
 Amount repaid to policyholders 605 
 
 Interest — 
 
 Deductions — 
 
 Bonds — See "Bonds," "Bonds — United States." 
 
 Income from 15, 15(a) 
 
 Obligations of State, Territory, County, Municipality, 
 
 etc 86 ( 4 ) 
 
 Return of information at source required of payer 350 
 
 Tax-free Bonds — See "Withholding at the Source." 
 
 By corporation operating leased or purchased lines 556 
 
 On indebtedness 727 
 
 Accrued, deductible from income 775 
 
 Added where extension is granted 757 
 
 Allowable 678 
 
 Banks — 
 
 On deposits or investment 611 
 
 Brokers — 
 
 Gross income when receivetl by 585 
 
 Charged when abatement of taxes is claimed 765 
 
 Deposits 680 
 
 Different rates 681 
 
 Indebtedness as rental 679 
 
 Income from — 
 
 Exchange of coupons for funding purposes 568 
 
 Paid by brokerage corporation 682 
 
 Paid or accrued 610 
 
 On exempt bonds, corporation 562 
 
 On indebtedness of leased property, assumed by lessee.... 515 
 Ikiventories — 
 
 Merchandise 582 
 
 Securities 582 
 
 Investment Certificates — 
 
 Status of „ 32, 310 
 
 INDEX PAGE 37 
 
CORPORATIONS—Continued. 
 
 Paragraph 
 No. 
 XTTigration Company — 
 
 Assessment on stock of 173 
 
 Shrinkage in value of securities 172 
 
 Irrig-ation District — 
 
 See also "Irrigation Corporations." 
 
 Taxes assessed by 157 
 
 Xrrlg-atiou Bonds (District) — 
 
 Losses 
 
 Joint Stock Companies — 
 
 Definition of 490, 491 
 
 £abor Org-anizations — 
 
 See "Exempt Corporations." 
 
 Iiandlord — 
 
 Permanent improvements made by tenant 42 
 
 Taxes paid by tenant 143 
 
 Ziease — 
 
 Permanent improvements made under 42 
 
 Ikeased l^ine Certificates — 
 
 Income from considered to be dividends 32 
 
 Iieased Properties — 
 See "Rent." 
 
 I^essee (Corporation) — 
 
 Rentals paid directly to bondholder or stockholder 31 
 
 ILiberty Bonds — 
 
 See "Bonds — United States." 
 
 z;icense — 
 
 Annual list return : 35d 
 
 Application for 355 
 
 Branch offices 356 
 
 Licensee to furnish list 357(a) 
 
 Licensee to keep records 360 
 
 Penalty for failure to obtain 356 
 
 Required for collection of foreign coupons, checks, bills 
 
 of exchange 354 
 
 Iiimited Partnerships — 
 
 Associations, held to be 495 
 
 Iiiquidation — 
 
 Of assets — how valued 25 
 
 lobbying* Expense 121 
 
 ]Losses — 
 
 Deductions for — 
 
 Bad debts 725 
 
 Corporation — . 
 
 Irrigation Co. — 
 
 Assessment on stock of 173 
 
 Shrinkage in value of securities 172 
 
 Inventory 634 
 
 Irrigation bonds „ 661 
 
 Judgments 633 
 
 Models, drawings, etc 667 
 
 Previous losses 644 
 
 Sustained 630 
 
 Removal of buildings ■.. 640 
 
 Retirement of bonds 643 
 
 When deductible 631 
 
 MannfactnrinsT — 
 
 Cost of manufactured products 554 
 
 Manufacturing- Corporations — 
 
 Gross income defined as taxable 721 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Merchandise — 
 
 Inventory of /.: 582 
 
 Mercantile Corporations — 
 
 Gross income defined as taxable 722 
 
 Mines- 
 See "Depreciation." 
 Deductions — 
 
 Allowed between the lessor and lessee 632 
 
 Value March 1, 1913 632 
 
 Miscellaneons Corporations — 
 
 Gross income of 555 
 
 Mortg-ag-e — 
 
 Foreclosure — Difference between purchase price and debt 
 
 not deductible 181 
 
 Security — See "Bonds." 
 Municipality — 
 
 See also "State or Political Subdivision." 
 
 Bonds of — Certificates of ownership not required 315 
 
 Bonds of — Exempt from tax 315 
 
 Bonds of Public Utility acquired by 316 
 
 Bonds — Public Utility acquired by — Income from not 
 
 exempt 316 
 
 Taxes against local benefits — definition 158 
 
 Warrants of city — Face value to be accounted as income 78 
 Mutual Ditch and Irrigfation Companies — 
 
 See "Exempt Corporations." 
 Mutual Insurance Companies^ — 
 
 Returns to be made by 501 
 
 Mutual or Co-operative Telephone Companies — 
 
 See "Exempt Corporations." 
 Mutual Saving's Banks — 
 
 See "Exempt Corporations." 
 Mutual Telephone Companies — 
 
 Returns to be made by 501 
 
 Natural Deposits — 
 
 Depletion allowance defined 198 to ?02 
 
 Name of Corporation — 
 
 Charge in 518 
 
 New Building's — 
 
 Erection of not deductible 641 
 
 Non-resident Alien Corporations — 
 
 Bonds of — Tax on interest to be withheld and paid at 
 
 source 318 
 
 Deductions: 
 
 Depreciation 463 
 
 Mines, oil and gas well 464, 467 
 
 Interest on bank deposits — Tax on to be withheld 347 
 
 Notes — Tax on interest from to be withheld 348 
 
 Stock — Certificate to disclose ownership 447 
 
 Withholding provisions of law as applied to income 
 
 291(a), 291(b) 
 
 Tax on dividends exempt from withholding 294 
 
 Withholding tax at source of income 478 
 
 When all tax not withheld 479 
 
 Oblig'ations of United States — 
 See "Bonds — -United States." 
 Of State— See "State or Political Subdivision." 
 
 INDEX PAGE 39 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 
 Obsolescence- 
 Models, drawings, etc 609 
 
 Physical property 670 
 
 When no depreciation is deducted 671 
 
 OU and Gas WeUs— 
 See "Depreciation." 
 Deductions — 
 
 Allowed between the lessor and lessee 632 
 
 Value March 1, 1913 632 
 
 Other Corporations — 
 
 Gross Income defined as taxable 723 
 
 Other Income — 
 See "Income." 
 
 Partnerships — 
 
 Common-Law, not associations 496, 541 
 
 Liimited, held to be associations 495 
 
 Patents — 
 
 Royalties from — 
 
 See "Income." 
 Sale of 570 
 
 Patents — 
 
 Depreciation of 666 
 
 Sale of 672 
 
 Paying- Ag-ent — 
 
 Bond Interest — Corporations niay appoint 335, 336 
 
 Returns of — See "Withholding at Source." 
 
 Payment of Tax — 
 
 Abatement of taxes (see "Abatement") 287 
 
 At the source — See "Withholding at the Source." 
 
 Evasion of payment, penalty 285 
 
 Excess payment of tax — how treated '. 281 
 
 Failure to pay 286 
 
 Failure to Pay: 
 
 No penalty in case of insane, deceased and insolvent 
 
 persons 418 
 
 Instalment payments 253 
 
 • Payment optional 260 
 
 Receipt for to be given on request 279 
 
 Taxes withheld at source 304 
 
 When extension of time for filing return is granted 259 
 
 Penalties — 
 
 Evasion of tax 285 
 
 Far failure to pay tax when due 764 
 
 For failure to file return 732 
 
 For failure to pay tax 731 
 
 For false or fraudulent return 734 
 
 For false statement of liability period ("Returns") 740 
 
 For giving information re Return.^ 742 
 
 For wilfully refusing to file returns 736 
 
 Paid by uncertified check , 763 
 
 Refund for failure to make return in 1913 739 
 
 Remitting for failure to file return 741 
 
 Returns properly mailed in time 750 
 
 Specific — 
 
 For failure to pay or collect tax, make return or 
 
 supply information 735 
 
 W^aived upon filing claim for abatement 765 
 
 Period of Return — 
 
 Taxable period , 511 
 
 INDEX PAGE 40 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 
 Personal Property — 
 See "Property." 
 
 Personal Service Corporation — 
 
 Definition 541(a) 
 
 Not subject to tax as corporations 4i 
 
 To make returns as partnerships 41 
 
 Philippine Islands — 
 
 Taxes imposed by — See "Taxes" 
 
 Obligations of — Interest on exempt 86 (4 > 
 
 Philippine and Porto Bican Corporations — 
 
 Tax on 492, 777 
 
 Plates (PubUshers)— 
 
 Amount expended for an investment of capital 13 » 
 
 Porto Bico— 
 
 Obligations of — Interest on exempt 86(4) 
 
 Taxes imposed by authority of — See "Taxes." 
 
 Public Utilities- 
 Income from — when not taxable 539 
 
 Purchased by Municipality — 
 
 Indebtedness of 540 
 
 Prenxiam — 
 
 Sale of capital stock 583 
 
 Premixuus — 
 
 Paid on lives of officers or corporation 616 
 
 Private Banks — 
 See "Bank." 
 
 Associations, held to be 497, 499 
 
 Individual ownership of association, held not to be 500 
 
 Stockholders of, dividends of 498, 499 
 
 Profits — 
 
 Undistributed, tax contingent on 11 
 
 Promissory Note of Corporation 311 
 
 Property — 
 
 See also "Real Estate." 
 
 Damages recovered by corporation 569 
 
 Depreciation of (court decision) 674 
 
 Exchange of - 
 
 Exchange of corporation property for stock 571, 576 
 
 Income from sale of :. 43-45 
 
 Income from sale of, on installment plan 553 
 
 Losses in connection with — See "Losses." 
 
 Method of determining value of 45 
 
 Obsolescence of 670 
 
 Permanent improvements made under lease or rental 
 
 contract - 42 
 
 Title to — Cost of defending a capital investment 135 
 
 PubUc Utility- 
 Bonds of acquired by municipality not exempt 316 
 
 Income from accruing to State, Territory, political sub- 
 division and District of Columbia 86(6) 
 
 Qualifications for Exemption 528 
 
 Bailroad Companies — 
 
 Operating leased or purchased lines 556 
 
 Beal Estate — 
 
 See also "Property." 
 
 Depreciation of — See "Depreciation" 209 
 
 Foreclosure of mortgage on — See "Bad Debt." 
 
 Income from sale of 558 
 
 Installment payment on — See "Installment Payments." 
 
 INDEX PAGE 41 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Real Estate — Continued. 
 
 Permanent improvements made under lease or rental 
 
 contract 42 
 
 Rebates — 
 
 Loss from payment of under contract 166 
 
 Reclaimatioji — 
 
 Taxes assessed for purposes of 15? 
 
 Refund of Tax — ♦ 
 
 Claims for 290(b) 
 
 Refnnds — 
 
 Income, war-profits or excess-profits paid in excess 762 
 
 Limitation of time for allowance of 762 
 
 Relig'ious Orgranizations — 
 
 See "Exempt Corporations." 
 Repairs — 
 
 Cost of — How treated in computing "depreciation" 187 
 
 Reporting' at the Source- 
 See "Information at the Source." 
 Rent — 
 
 Bond interest and dividends paid in lieu of rental.... 513, 557 
 
 Paid to stockholders of lessor 512 
 
 Rentals — 
 
 Amounts expended for taxes or repairs by tenants 76, 143 
 
 Paid directly to bondholder or stockholder — Bad debts 
 
 arising from unpaid ...., : 179 
 
 Permanent improvements made under lease or rental 
 
 contract ,.. , 42 
 
 Return of information at the source required of payer.... 350 
 
 Sale of leasehold — deduction 139 
 
 Taxes paid by tenant to landlord 143 
 
 Tenant corporations making repairs 619 
 
 Reserves — 
 
 Insurance, not deductible 629 
 
 Sinking Fund, for 563 
 
 Sinking Fund investments 564 
 
 Returns — 
 
 By brokers 754 
 
 By domestic corporation on stock owned in foreign cor- 
 poration 711 
 
 Close corporation 502 
 
 Consolidated 711 
 
 Consolidated returns by affiliated corporations 711 
 
 Copies of, Certified — 
 
 Furnished by commissioner upon request of Attorney 
 
 General 770 
 
 Corporations, all not exempt to make 501 
 
 Disclosure of — 
 
 Penalty 771 
 
 Domestic corporations, doing business in foreign country 504 
 Domestic corporations with principal office in foreign 
 
 country — where filed 6.07 
 
 Extension for filing 748 
 
 Failure to file — 
 
 Penalty 732 
 
 Failure to receive 713 
 
 25% additional tax for failure to receive returns 714 
 
 False — 
 
 Definition of 743 
 
 INDEX PAGE 42 
 
CORPORATIONS— Continued. 
 
 Paragraph 
 No. 
 Betums — Continued. 
 
 False or fraudulent — 
 
 Penalty 734 
 
 Fiscal year returns not acceptable 717 
 
 For fiscal year of new corporations — 
 
 Forms for 712 
 
 Form of — 
 
 Corporations 710 
 
 Insurance companies 710 
 
 Mutual insurance companies 710 
 
 Railroad corporations 710 
 
 Further extension for filing 749 
 
 Holding companies 505 
 
 How made 744 
 
 Incomplete corporations ^ 493 
 
 Independent for each taxable period 511 
 
 Instructions to corporations re annual net income 716 
 
 Itemized supplementary statement on Form 1031 715 
 
 "Last due date" defined 751 
 
 When falling on Sunday or legal holiday 752 
 
 Mutual telephone companies 501 
 
 Mutual insurance companies 501 
 
 New corporations, fiscal year basis 517 
 
 Net income computed on fiscal year basis 745 
 
 Of dividends 753 
 
 Acting for customers -. 754 
 
 On paid-up capital stock 718 
 
 Payments of $1,000 by individuals, corporations or part- 
 nerships in any capacity 755 
 
 Penalty for false statement of liability period 740 
 
 Penalty for giving information of 742 
 
 Properly mailed in time not subject to penalty 750 
 
 Reasonable cause for failure to file 733 
 
 Remitting penalties for failure to file 741 
 
 Statement to be used in absence of prescribed forms 730 
 
 Specific penalty for failure to make return 735 
 
 Penalty 736 
 
 Subsidiary companies 506 
 
 Tentative 508 
 
 To be made by receivers, trustees or assignees of cor- 
 porations 728 
 
 To be made on forms prescribed 729 
 
 Upon which tax has been determined are public records.. 766 
 
 Verifying accuracy of 737 
 
 Wilful refusal to file — 
 
 Royalty — 
 
 Income from taxable = 77 
 
 Salary — 
 
 Employee — 
 
 Paid after death, not deductible 625 
 
 Foreign employe — Not subject to withholding at source.... 361 
 
 Scientific Org'anizations — 
 
 See "Exempt Corporations." 
 
 Securities — 
 
 Assessments on — - - .- 122 
 
 Book values — Shrinkage i'a 203 
 
 Commissions paid for purchase and sale of 125 
 
 Dealers in 203,205 
 
 INDEX PAGE 43 
 
CORPORATIONS— Continued. 
 
 Paragrapn 
 No. 
 Securities — Continued. 
 
 Exempt securities — Income from, how treated 96 
 
 Inventory of 582 
 
 Investment certificates 31u 
 
 Issued by War Finance Corporation, exempt 12(b), 86(4) 
 
 Issued under Federal Farm Loan Act 86(4) 
 
 Owned by foreign governments 86(5) 
 
 Leased line or stock trust certificates — taxable status 32 
 
 Promissory note of corporation 311 
 
 See also "Stocks," "Bonds," "Bonds — United States." 
 Shrinkage in value of — 
 
 Written off by authority of State officials 581 
 
 Value reduced at direction of Comptroller of Currency.... 170 
 Sinkingr Fund — 
 
 Investments by corporations „ 564 
 
 Reserves set aside by corporations 563 
 
 State or Political Subdivision — 
 
 Definition 87 
 
 Bonds of — Certificate of ownership not required 315 
 
 Bonds of — Interest from exempt : 314 
 
 Contractor with — Status of 70 
 
 Expense incurred in earning income not allowable de- 
 duction 101 
 
 Income derived from public utility 86(7) 
 
 Obligations of — Definition 88 
 
 Obligations of — Interest from exempt 85(4) 
 
 Obligations of — Interest on exempt from tax 86(4) 
 
 Officer or employee of — definition 70 
 
 Taxes imposed by — See "Taxes." 
 
 Warrants issued by 78 
 
 Statistics — 
 
 Publication of — 
 
 Commissioner shall annually issue 772 
 
 Stock — 
 
 Treasury stock, when taxable 566 
 
 Stock Dividend — 
 See "Dividends." 
 
 Stockholders — 
 
 Private banks 498, 499 
 
 Rentals paid by lessee directly to 31 
 
 Stock (Securities) — 
 
 Bonus in common stock 51 
 
 Dividends on — See "Dividends." 
 
 Profit from sale of — how treated 72 
 
 Profit from sale of lots purchased at different times 72 
 
 Profit from sale of stock acquired by gift 75 
 
 "Rights" (subscription) income from 74 
 
 Stock Trust Certificates — 
 
 Income from considered as dividends 32 
 
 Subsidiary Companies — 
 
 Earnings or dividends from, not deductible 560 
 
 Returns by 506 
 
 Supplementary Statements — 
 
 Publicity of — prohibited — same status as returns 769 
 
 Tariff- 
 See "Customs Duties." 
 
 INDEX PAGE 44 
 
CORPORATIONS— Continued. 
 
 No. 
 Paragraph 
 Taxes — 
 
 Allowable 683 
 
 Allowable deduction 612 
 
 Are not to be re-collected when once paid 738 
 
 As Expense or Deduction: 
 
 Paid by tenant as part of rent 76 
 
 Assessment and payment of — 
 
 Installment payments 756 
 
 Bank stock taxes 687 
 
 Basis of 546 
 
 Corporations, imposed on 488 
 
 Custom duties — not taxes — deductible expenses 688 
 
 Deductible from income 147 
 
 By beneficiary of an estate 149(a) 
 
 By member of partnership 149(a) 
 
 Porto Rico and Philippine Islands — Imposed by 
 
 authority of 149 
 
 State, county and municipal taxes....'. 150 
 
 United States — Imposed by authority of 149 
 
 Deductible as Rental: 
 
 Paid by tenant to landlord 143 
 
 Deductible from Total Amount of Tax: 
 
 Income, war profits and excess-profits taxes imposed 
 
 by U. S. Possessions and foreign countries 149 
 
 Excess profits tax credit 686 
 
 Failure to pay — 
 
 Penalty 731 
 
 Falsely or fraudulently returned 760 
 
 Fiscal year basis 547 
 
 Foreign Taxes 146(a), 149 to 152 
 
 Foreign taxes — (paid to foreign countries) 149(b) 
 
 Import or tariff duties :. 689 
 
 Imposed by United States Gov't — Read 11416(a) and 
 
 Us 147 to 152. 
 
 Income taxes not deductible 133 
 
 Limitation of time for filing refund claim 758(b) 
 
 I-iimit of time for assessing tax 760 
 
 Local benefits 685 
 
 Made in single payment 758 
 
 Not Deductible from Income: 
 
 Imposed by Philippine Islands, Porto Rico 149 
 
 Income, war-profits and excess-profits taxes 14 
 
 On bonds containing a tax-free clause 759 
 
 Paid by uncertified check not honored by bank — 
 
 Liability for 763 
 
 Paid in behalf of stockholder by bank on capital stock 
 
 allowable deduction 37, 214 
 
 Paid to foreign country deductible from total amount 
 
 of income tax 149 (b) 
 
 Past due voluntarily paid 761 
 
 Payments where extension is granted — 
 
 Interest added 757 
 
 Payment at source on income to non-resident aliens 759 
 
 Penalty for failure to pay when due 764 
 
 Philippine and Porto Rican corporations 492, 777 
 
 Philippine Islands: 
 
 Taxes imposed by 146(a), 149 to 152 
 
 Refund of penalties for failure to make return in 1913.... 739 
 
 INDEX PAGE 45 
 
CORPORATIONS— Continued. 
 
 No. 
 Paragraph 
 Taxes — Continued. 
 
 Refund under any previous or the present Act 758(a) 
 
 Specific penalty for failure to pay or collect tax 735 
 
 State or Political Sub-division: 
 
 Taxes imposed by 150 
 
 Tax-free bonds, taxes not deductible 684 
 
 Tax-Free Covenant — 
 See "Bonds." 
 
 U. S. Gov't — Taxes imposed by — Read 11146(a) and 
 !Isl47 to 152. 
 
 When abatement is claimed — 
 
 Penalty relapses and interest is charged 765 
 
 Taxable Period — 
 
 Definition of 489 
 
 Taxable Year — 
 
 Definition of 489 
 
 Tax-Free Bonds — 
 
 Taxes on — not deductible 684 
 
 Tenant — 
 
 Permanent improvement made by 42 
 
 Repairs made by, as part of rent 76 
 
 Taxes paid by as part of rent 76, 143 
 
 Tentative Returns 508 
 
 Territory — 
 
 Interest from obligations of 86(d) 
 
 Timber — 
 
 Depreciation and depletion allowed 198 to 202 
 
 Loss by flre of standing timber 165 
 
 Timber l^ands — 
 
 Regulations governing 673 
 
 Town — 
 
 See "Municipality." 
 Trade Marks and Trade Brands — 
 
 Deduction for depreciation not allowed 663 
 
 Trading Stamps — 
 
 Redemption of 615 
 
 Treasury Decisions — 
 
 Effective date of 381 
 
 Trust Companies — 
 
 See "Banks." 
 
 Gross income of 550 
 
 trndistribnted Profits — 
 
 See "Profits." 
 United States — 
 
 Bonds of — See "Bonds — United States." 
 TT. S. Government — 
 
 Bonds of — See "Bonds — United States." 
 Government officers and employes 
 
 Compensation not paild in money 95 
 
 Taxable status of income 96 
 
 Liberty Bonds — See "Bonds — United States." 
 
 Securities issued by War Finance Corporation — See 
 "Securities." 
 
 Taxes deductible from income 149 
 
 Taxes imposed by authority of — See "Taxes." 
 United States Possessions — 
 
 Citizens of 773 
 
 War Pinance Corporation — 
 
 Securities issued by, exempt 86(4), 12(b) 
 
 TTvrmrv T>Amr ac 
 
CORPORATIONS— Continued. 
 
 No. 
 Paragraph 
 War-Profits Tax 
 
 Amount paid as not deductible 149, 150 
 
 Warrants of City or Town 78 
 
 Where Filed — 
 Returns by — 
 Domestic corporations having principal office in foreign 
 
 country 507 
 
 Withholding- Agrent — 
 
 See "Withholding at the Source." 
 Withholding: at the Source — 
 
 Bond — Certificates of ownership — See "Certificates of 
 
 Ownership." 
 Bond Interest — Tax on: 
 
 Amount of tax to be withheld 308 
 
 Bonds containing tax-free covenant 309 
 
 Bonds without tax-free covenant — Payment cannot 
 
 be made at source 309(e) 
 
 Citizen or Resident Corporation — May file certificate 
 
 of exemption 309 (a) 
 
 Exempt organization — Certificates to be filed 313 
 
 No withholding when exemption claimed 309(b) 
 
 Of 2% to be deducted from income of citizen or 
 
 resident or non-resident alien corporation 309 
 
 Owners not known to withholding agent — Commis- 
 sioner may authorize deduction 309 
 
 Tax-free Bonds — Important distinction for income 
 
 tax purposes 309 (f ) 
 
 Tax-free bonds — issued with and without tax-free 
 
 covenant — Important distinction 309(e), 309(f) 
 
 Varying policy of corporations 309 
 
 Tax-free bonds only 308, 309 
 
 Tax-free covenant — Contract between corporation 
 
 and bondholder 309 (c) 
 
 Tax withheld only a partial tax 309(d) 
 
 Exempt organizations subject to provisions of law 293 
 
 Fiduciaries 404 
 
 Foreign corporations 291 (b) 
 
 Non-resident alien corporations 291(a) 
 
 Non-resident alien corporations — Tax on dividends not 
 
 to be withheld 294 
 
 Non-resident Alien Corporation: 
 
 Interest from bank deposits — Tax on 347 
 
 Interest from notes 348, 349 
 
 Payment of tax withheld : 304 
 
 Provisions of the act, as applied to citizen, resident 
 
 and non-resident alien corporations 291 
 
 Also see Law, page 69, lines 27-48. 
 Returns: 
 
 Of information at the source. See "Information at 
 the Source." 
 Stock and Treasurry Stock — 
 Withholding Agent: 
 
 Annual return of 305 
 
 Bond interest— Non-resident alien corporations 312 
 
 Corporation may appoint paying agent 335, 336 
 
 Defined 317, 292 
 
 Monthly Return of 306 
 
 INDEX PAGE 47 
 
CORPORATIONS-Continued. 
 
 No. 
 Paragraph 
 Withholding* at the Souroe-— 
 
 Non-resident alien corporations 318 
 
 Paying agents 317 
 
 Payments of tax withheld 304 
 
 Penalty for divulging information 306 
 
 Returns of: 
 
 Annual return 305, 344 
 
 Monthly list 304, 306, 344 
 
 Monthly List — Duplicates to be filed 338 
 
 Monthly list — ^Where filed 337, 344 
 
 Penalty for divulging information 307 
 
 Salary- of foreign employe exempt 361 
 
 INDEX PAGE 48 
 
War-Profits and Excess-Profits Tax. 
 
 Reference is made to Faragrraph Numbers 
 and NOT to pages. 
 
 Paragraph 
 No. 
 Accoiuiting- — 
 
 Methods of application to invested capital adjustments.... 863 
 Accounts Receivable — 
 
 Tangible property 848 
 
 Act of 1917— 
 
 "Excess Profits Tax Primer," published for the guidance 
 of those who may be required to file amended returns 
 
 for the year 1917 See pages 1347 to 1364 
 
 Additions to Capital — 
 
 Allowable 904 
 
 Amortization — 
 
 Improper allowance for 862 
 
 Assets — 
 
 Admissible — Law, page 94, line 52. 
 
 Tangible 902 
 
 Intangible 905 
 
 Inadmissible — Law, page 94, lire 40. 
 
 Tangible 923 
 
 Intangible 905 
 
 Averag'e Adjustments of Capital — 
 
 Illustration 914 
 
 Balance Sheets 868 to 880 
 
 Illustrations — 
 
 Capital adjustments 864 to 897 
 
 Must conform to adjustments of capital 912 
 
 Bills Receivable- 
 Tangible property 848 
 
 Bonds — 
 
 Tangible property - 848 
 
 Calendar Year — 
 
 Returns, due date of 788 
 
 Capital Invested — 
 
 Defined Z 840 
 
 Dividends paid, allocated 894, 896 
 
 Addition of reserves for taxes 886 
 
 Adjustments during the year 883 
 
 Allowance for depletion and obsolescence in connection 
 
 with 840 
 
 Average adjustments (illustration) 914 
 
 Averaged for year by months 841 
 
 Borrowed capital excluded 844 
 
 Capital stock and surplus 882 
 
 Certain exempt securities may be included 845-846 
 
 Corporations at disadvantage due to manner of account- 
 ing 859 
 
 Donated stock 890 
 
 Exceptional cases where capital cannot be satisfactorily 
 
 determined 854, 855 
 
 Expense in securing data on foreign corporations in con- 
 nection with invested capital 857 
 
 INDEX PAGE 49. 
 
WAR-PROFITS AND EXCESS-PROFITS TAX— Continued. 
 
 Paragri^)b 
 No. 
 
 Capital Invested — Continued. 
 
 Foreign corporations (proportion) .» 849 
 
 Inflated value of good will » .— . 891 
 
 Items not allowed to be included 842 
 
 Mixed aggregate of tangible and Intangible property in 
 
 connection with 858 
 
 Organization expenses 889 
 
 Overvaluation of stock 892 
 
 Patents and copyrights 903 
 
 Pre-war period 853 
 
 Reserves for bad debts .....885, 888 
 
 Reserves for improvements and contingencies 887 
 
 Reserves subject to careful scrutiny 884 
 
 Sinking fund reserve 897 
 
 Stock issued for intangible assets 900 
 
 Stock of foreign corporations 847 
 
 Stocks, bonds etc., not to be included 843 
 
 Tangible and intangible assets defined 848 
 
 Taxes paid under 1917 Act, relation to 924 
 
 Tax free securities and profits from tradings 846 
 
 Value of intangible assets 901 
 
 Where capital is disproportionate by comparison with 
 
 representative corporations 860 
 
 Copyrisrhts, Valuation — 
 
 Intangible assets, valuation of 901 
 
 Corporations — 
 
 Adjustment due to improper valuation 899 
 
 Balance sheets illustrated '. 869 
 
 Capital adjustments 882 to 897 
 
 Capital, pre-war period 853 
 
 Denied right of comparison 898 
 
 Exempt corporations 792 
 
 Income from gold mining 792 
 
 Net income less than $3,000 792 
 
 Same corporations exempt as under Title II. (Cor- 
 poration Income Tax) 792 
 
 Foreign corporations 791, 849 
 
 Limitation of tax 806 
 
 Method of calculating tax .*.. 797 
 
 Organized prior to July 1, 1919 852 
 
 Rates of tax 794 
 
 Rate per cent, of tax 802 
 
 Reorganized after Jan. 1, 1911 850 
 
 Reorganized after March 3, 1917 851 
 
 Subject to tax 790 
 
 When credit exceeds 20% of capital (illustration) 803 
 
 Credits- 
 Excess profits 827 
 
 Illustration 814 
 
 War Profits Credit — 
 
 How determined 828 
 
 Alternative method 813 
 
 Defective AooonntinsT — 
 
 Where capital cannot be accurately determined 856 
 
 INDEX PAGE 50. 
 
WAR-PROFITS AND EXCESS-PROFITS TAX— Continued. 
 
 Paragraph 
 No. 
 
 Definitions 780 
 
 Dividends 785 
 
 Fiscal year 782 
 
 Paid or accrued 784 
 
 Personal Service Corporation ...783 
 
 Pre-war period 786 
 
 Taxable year 1 781 
 
 Dividends — 
 
 Allocation of 894 
 
 Received from foreign corporations 835 
 
 Excess Profits — 
 
 Excess profits credit 827 
 
 Method of computation 807 
 
 Rates of tax 794 
 
 When credit exceeds 20% of capital 803 
 
 Fiscal Year — 
 
 Amount paid under 1917 Act a credit 916 
 
 Computations 915 
 
 Partnership or personal service corporation 918 
 
 Proportionate amount payable 917 
 
 Refunds of taxes paid 919 
 
 Returns, due date of 789 
 
 Foreign Corporations — 
 
 Invested capital of 847 
 
 Not entitled to exemption 791 
 
 Stock of, in relation to invested capital 814 
 
 Gold Mining- — 
 
 Income derived from (exempt) 792 
 
 G-ovemznent Contracts — 
 
 50% or more from -. 831 
 
 ninstrations — 
 
 Balance sheets showing capital adjustments ....868 to 880 
 
 Limitation of tax 806 
 
 Methods of calculating 797 
 
 When excess profits credit exceeds 20% of invested 
 
 capital 803 
 
 Intangible Property 905 to 908 
 
 Defined 848 
 
 Stock issued for 900 
 
 Valuation of 901 
 
 As admissible or inadmissible assets — Law, page 94, 
 line 40. 
 
 Invested Capital — 
 
 See "Capital" for details. 
 
 Trade or business having 826 
 
 I^easeliolds — 
 
 Tangible property 848 
 
 I^imitation of Tax — 
 
 From sale of mines 921 
 
 Illustration 815 
 
 Mines- 
 Limit of tax from sale of 921 
 
 Net Income — 
 
 Average for pre-war period 839 
 
 Classification of 793 
 
 For calendar years 1911-1912 836 
 
 For fiscal year 1913 837 
 
 For taxable year 838 
 
 INDEX PAGE 51. 
 
WAR-PROFITS AND EXCESS-PROFITS TAX— Continued. 
 
 Paragraph 
 No. 
 
 Notes and Other Evidence of Indebtedness — 
 
 Tangible property 848 
 
 Paid or Accrued — 
 
 Definition of 785 
 
 Partnerships — 
 
 Credit for taxes 916 
 
 Fiscal year basis 918 
 
 Refunds of taxes paid under 1917 Act 919 
 
 Patents and Copyrifirhts — 
 Intangible Assets — 
 
 Valuation of 901 
 
 Pre-war Period — 
 
 Corporation not in existence during 831 
 
 No net income for 830 
 
 War profits credit 831 
 
 Property — 
 
 Intangible 848 
 
 Limitation on value of intangible 901 
 
 Limitation on value of tangible 923 
 
 Returns 787 
 
 Due date, calendar year 788 
 
 Due date, fiscal year 789 
 
 Sinking Pnnd Reserve—- 
 
 Segregation of surplus 897 
 
 Stock- 
 Constitutes tangible property 848 
 
 Issued for tangible property, or returned as a gift 902 
 
 Surplus — 
 
 Reconstruction of accounts 903 
 
 Tangible Property — 
 
 Bills and accounts receivable 848 
 
 Bonds 848 
 
 Construction oi term 848 
 
 Excess value of 902, 911 
 
 Leaseholds 848 
 
 Limitation on value of 923 
 
 Mixed aggregate of tangible a©d intangible 833 
 
 Notes, etc 848 
 
 Stock or shares issued for 923 
 
 Stocks _ 848 
 
 Tax, Rates of-— 
 
 Comparison with similar corporations 819 
 
 Computation for fiscal year 822 
 
 Credit for 1917 taxes 825 
 
 Determined by commissioner 820 
 
 Due to abnormal conditions 834 
 
 Foreign corporation 818 
 
 Limitation of 805 
 
 Limit of, in connection with mines 921 
 
 Method of calculating j* 794 
 
 Rate per cent on $500,000 „ 797 
 
 Rates for 1919 and subsequent years 922 
 
 When 50% or more of net income, conditions 821 
 
 When not satisfactorily determined 817 
 
 Taz-Pree Securities — 
 
 When income from, consists partly of profits from trad- 
 ings in 846 
 
 INDEX PAGE Sa. 
 
WAR-PROFITS AND EXCESS-PROFITS TAX— Continued. 
 
 Paragraph 
 No. 
 Undivided Surplus — 
 
 Employed in business 910 
 
 Reconstruction of accounts 903 
 
 Values — 
 
 Tangible property, other than cash paid in for stock or 
 
 shares 923 
 
 Excess value of tangible property 902 
 
 War-Profits Credit — 
 
 How computed 828 
 
 Alternative method 813 
 
 Foreign Corporations 814 
 
 INDEX PAGE 53. 
 
Estate Tax. 
 
 Section Page 
 
 Schedule of Tax Rates 401 100 
 
 Estate^ 
 
 Gross estate — Value of, how determined 402 101 
 
 Net estate — Value of, how determined : 402 102 
 
 Exemption allowed 102 
 
 Executor — 
 
 Definition 400 100 
 
 Notice of qualification 404 104 
 
 Statement by 404 104 
 
 Penalties 408 105 
 
 Returns 404 20 
 
 Failure to file 405 104 
 
 Where no administration is granted 405 104 
 
 False return 410 106 
 
 Payment of Tax — 
 
 When due 406 105 
 
 When paid 407 105 
 
 Where amount of tax cannot be determined 407 105 
 
 Receipts for 407 105 
 
 Failure to pay 408 105 
 
 INDEX PAGE 55. 
 
Transportation and Other Facilities and On 
 Insurance. 
 
 Section Page 
 Transportation — 
 
 Freight 500 (a) 107 
 
 502 109 
 
 Express 500 (b) 107 
 
 502 109 
 
 Passenger 500 (c) 107 
 
 Parlor car and sleeping car 500 (d) 108 
 
 Conditional tax on mileage books and tickets... 501 (b) 108 
 Taxes on : 
 
 Who pays 501 (a) 108 
 
 How applied 50J (c) 109 
 
 502 109 
 
 Payee to collect tax 502 109 
 
 Payee to make returns and pay tax 502 109 
 
 Refund of payment 502 110 
 
 Returns 502 110> 
 
 Payment of tax — when due -502 110 
 
 Oil by pipe line 500 (e) 108 
 
 501 (d) 109 
 
 502 109 
 
 Teleg'raph and Telephone — - 
 
 Telegraph messages 500 (f) 108 
 
 Telegraph leased wires 500 (g) 108 
 
 Telephone messages 500 (f) 108 
 
 Telephone leased wires 500 (g) 108 
 
 Cable messages 500 (f) 108 
 
 Insurance 503 110 
 
 Life insurance 503 (a) 110 
 
 Marine, inland and fire insurance 110 
 
 Casualty insurance _ 503 (b), 503 (c) 110 
 
 Exempt insurance 503 (d) 110 
 
 Insurance Co. to collect tax — 
 
 Tax assessed against insurer 503 110 
 
 Insurance Co. to make return and pay tax 504 110 
 
 Payment of tax — when due 504 110 
 
 ywrnrv -DAnir rfr 
 
Treasury Decisions. 
 
 The following is an index of Treasury Decisions, Court De- 
 cisions and other Income and Excess Profits Tax data promul- 
 gated under the Act of September 8th, 1916, as amended, and the 
 Act of October 3rd, 1917, which have been issued since the pub- 
 lication of the Standard Manual of Income Tax for 1918. Such 
 of these decisions as apply to the existing law have been digested 
 and embodied in the Manual for 1919. Others have no direct 
 bearing on the Revenue Act of 1918, and are published merely 
 for the guidance and benefit of those who may be required to 
 file amended returns for the year 1917 and also for information 
 where the subject matter pertains to the Revenue Act of 1918. 
 
 Page 
 
 T. D. 2649 1203 T. D. 
 
 T. D. 2652 1204 T. D. 
 
 T. D. 2654 1204 T. D. 
 
 T. D. 2659 1205 T. D. 
 
 T. D. 2660 1207 T. D. 
 
 T. D. 2661 1208 T. D. 
 
 T. D. 2662 1210 T. D. 
 
 T. D. 2663 1212 T. D. 
 
 T. D. 2665 1213 T. D. 
 
 T. D. 2666 1215 T. D. 
 
 T. D. 2668 - 1218 T. D. 
 
 T. D. 2670 1222 T. D. 
 
 T. D. 2671 1224 T. D. 
 
 T. D. 2672 1224 T. D. 
 
 T. D. 2673 1225 T. D. 
 
 T. D. 2674 1225 T. D. 
 
 T. D. 2677 * 1226 T. D. 
 
 T. D. 2678 1226 T. D. 
 
 T. D. 2679 1227 T. D. 
 
 T. D. 2683 1228 T. D. 
 
 T. D. 2686 - 1229 T. D. 
 
 T. D. 2687 1231 T. D. 
 
 T. D. 2688 1232 T. D. 
 
 T. D. 2689 1233 T. D. 
 
 T. D. 2691- 1235 T. D. 
 
 T. D. 2692 1235 T. D. 
 
 T. D. 2693 1237 T. D. 
 
 T. D. 2695 1238 T. D. 
 
 T. D. 2696 - 1238 T. D. 
 
 T. D. 2697 1241 T. D. 
 
 T. D. 2698 1245 T. D. 
 
 T. D .2700 1246 T. D. 
 
 T. D. 2702 1247 T. D. 
 
 T. D. 2705 1248 T. D. 
 
 T. D. 2706 1249 T. D. 
 
 T. D. 2707 1250 T. D. 
 
 Page 
 
 2708 1251 
 
 2709 1252 
 
 2711 1253 
 
 2715 1254 
 
 2716 "...1255 
 
 2720 1257 
 
 2721 1264 
 
 2722 1269 
 
 2723 1272 
 
 2724 1278 
 
 2725 1282 
 
 2726 - 1283 
 
 2729 1286 
 
 2730 ....1291 
 
 2731 1297 
 
 2732 1302 
 
 2733 1304 
 
 2734 1308 
 
 2735 1310 
 
 2736 1310 
 
 2737 1315 
 
 2740 1316 
 
 2744 1319 
 
 2747 1319 
 
 2754 1320 
 
 2755 1321 
 
 2756 1321 
 
 2759 1323 
 
 2762 1326 
 
 2763 1328 
 
 2770 1329 
 
 2771 1330 
 
 2772 1331 
 
 2773 1332 
 
 2778 1333 
 
 2783 ....1335 
 
Standard Manual of the 
 Income Tax 
 
 On the preceding pages will be found a digest of the new 
 Revenue Law. That digest was prepared to familiarize the 
 user of this book with the general provisions of the Act, par- 
 ticularly the changes therein, and to serve as a groundwork 
 for utilizing the more detailed information which follows. 
 
 INDIVIDUALS 
 Normal and Additional Tax 
 
 THE NORMAL TAX. 
 
 ^ 1— Who and What is Taxable. 
 
 Title II of the Revenue Act of 1918 imposes a normal tax 
 for the year 1918 as follows : 
 
 If 2 — Citizens and Residents. 
 
 (a) 6 per centum on the first $4,000 of net income in ex- 
 cess of the credits allowed ($1,000 or $2,000), received in the 
 preceding taxable year from all sources by an individual, a 
 citizen or resident of the United States, and 12 per centum 
 on all net income in excess of the first $4,000. 
 
 ^ 3 — Non-Resident Aliens. 
 
 (b) 12 per centum on the entire net income in excess of 
 the credits allowed, received in the preceding taxable year 
 from all sources within the United States by every indi- 
 vidual, a non-resident alien, including interest on bonds, 
 notes or other interest-bearing obligations of residents, cor- 
 porate or otherwise. 
 
 177 
 
INDIVIDUALS-^Continued NORMAL TAX 
 
 Ti 4 — Naturalized Citizens Residing Abroad. 
 
 Naturalized citizens who have brought upon themselves 
 the presumption of expatriation, under provisions of Section 
 2 of the Act of March 2, 1907, by protracted residence 
 abroad, may overcome such presumption only upon present- 
 ing satisfactory evidence, etc. — Letter of Secretary Bryan. 
 
 *[ 5— Citizenship. 
 
 Determination of the State Department of right to regis- 
 try is not conclusive upon the Treasury in fixing citizenship 
 for income tax purposes. The Treasury Department, there- 
 fore, holds that native and naturalized status remains unless 
 changed by affirmative action or forfeited by overt act. 
 
 |[ 6 — Income Tax Laws of Other Countries. 
 
 American citizens, whether residing at home or abroad, 
 and non-resident aliens, receiving incomes from property 
 owned and from business, trade or profession carried on 
 within the United States, are not reheved from tax liability 
 by being subject to the income tax laws of other countries. 
 
 ff 7— ADDITIONAL OR SURTAX. 
 
 The additional graduated tax rates and amounts of income 
 subject thereto imposed in accordance with the provisions 
 of the Revenue Act of 1918, on net incomes of more than 
 $5,000 for the year 1918, are as follows : 
 
 Amount 
 
 Net Income Taxable 
 
 A B C 
 
 $5,000 to $6,000 $1,000 
 
 6,000 to 8,000 2,000 
 
 8,000 to 10,000 2,000 
 
 10,000 to 12,000 2,000 
 
 12,000 to 14,000 2,000 
 
 14,000 to 16,000 2,000 
 
 16,000 to 18,000 2,000 
 
 18,000 to 20,000 2,000 
 
 20,000 to 22,000 2,000 
 
 22,000 to 24,000 2,000 
 
 24,000 to 26,000 2,000 
 
 26,000 to 28,000 2,000 
 
 28,000 to 30,000 2,000 
 
 178 
 
 
 
 Tax on 
 
 Taxed 
 
 Am'tAdd'l 
 
 Amt. in 
 
 At 
 
 Tax 
 
 Column B 
 
 JD 
 
 E 
 
 F 
 
 1% 
 
 $10 
 
 $10 
 
 2% 
 
 40 
 
 50 
 
 3% 
 
 60 
 
 110 
 
 4% 
 
 80 
 
 190 
 
 5% 
 
 100 
 
 290 
 
 6% 
 
 120 
 
 410 
 
 7% 
 
 140 
 
 550 
 
 8% 
 
 160 
 
 710 
 
 9rcf 
 
 180 
 
 890 
 
 10% 
 
 200 
 
 1,090 
 
 11% 
 
 220 
 
 1,310 
 
 12% 
 
 240 
 
 1,550 
 
 13% 
 
 260 
 
 1,810 
 
INDIVIDUALS— Continued ADDITIONAL OR SURTAX 
 
 Tax on 
 
 Amount Taxed Am't Add'l Amt. in 
 
 Net Income Taxable At Tax Column B 
 
 A B C D E F 
 
 30,000 to 32,000 2,000 14% $280 $2,090 
 
 32,000 to 34,000 2,000 15% 300 2,390 
 
 34,000 to 36,000 2,000 16% 320 2,710 
 
 36,000 to 38,000 2,000 17% 340 3,050 
 
 38,000 to 40,000 2,000 18% 360 3,410 
 
 40,000 to 42,000 2,000 19% 380 3,790 
 
 42,000 to 44,000 2,000 20% 400 4,190 
 
 44,000 to 46,000 2,000 21% 420 4,610 
 
 46,000 to 48,000 2,000 22% 440 5,050 
 
 48,000 to 50,000 2,000 23% 460 5,510 
 
 50,000 to 52,000 2,000 24% 480 5,990 
 
 52,000 to 54,000 2,000 25% 500 6,490 
 
 54,000 to 56,000 2,000 26% 520 7,010 
 
 56,000 to 58,000 2,000 27% 540 7,550 
 
 58,000 to 60,000 2,000 28% 560 8,110 
 
 60,000 to 62,000 2,000 29% 580 8,690 
 
 62,000 to 64,000 2,000 30% 600 9,290 
 
 64,000 to 66,000 2,000 31% 620 9,910 
 
 66,000 to 68,000 2,000 32% 640 10,550 
 
 68,000 to 70,000 2,000 33% 660 11,210 
 
 70,000 to 72,000 2,000 34% 680 11,890 
 
 72,000 to 74,000 2,000 35% 700 12,590 
 
 74,000 to 76,000 ^ 2,000 36% 720 13,310 
 
 76,000 to 78,000 2,000 37% 740 14,050 
 
 78,000 to 80,000 2,000 38% 760 14,810 
 
 80,000 to 82,000 2,000 39% 780 15,590 
 
 82,000 to 84,000 2,000 40% 800 16,390 
 
 84,000 to 86,000 2,000 41% 820 17,210 
 
 86,000 to 88,000 2,000 42% 840 18,050 
 
 88,000 to 90,000 2,000 43% 860 18,910 
 
 90,000 to 92,000 2,000 44% 880 19,790 
 
 92,000 to 94,000 2,000 45% 900 20,690 
 
 94,000 to 96,000 2,000 46% 920 21,610 
 
 96,000 to 98,000 2,000 47% 940 22,550 
 
 98,000 to 100,000 2,000 48% 960 23,510 
 
 100,000 to 150,000 50,000 52% 26,000 49,510 
 
 150,000 to 200,000 50,000 56% 28,000 77,510 
 
 200,000 to 300,000 100,000 60% 60,000 137,510 
 
 300,000 to 500,000 200,000 63% 126,000 263,510 
 
 500,000 to 1,000,000 500,000 64% 320,000 583,510 
 
 Exceeding 1,000,000 65% 
 
 An individual who is single with a net income of $5, 
 100,000 will be obliged to pay the normal and additional tax 
 
 179 
 
INDIVIDUALS— Continued ADDITIONAL OR SURTAX 
 
 calculated on the amounts in accordance with the following 
 methods : 
 
 Net *$5,100,000 
 
 Exemption 1,000 
 
 t$5,099,000 
 
 *Amt. on which additional tax is calculated. 
 fAmt. on which normal tax is calculated. 
 
 1i 8— CALCULATION OF ADDITIONAL TAX. 
 
 Amt. 
 
 Taxed at of Tax 
 Total 
 
 $5,000 None None 
 
 1,000 1% $10 
 
 2,000 2% 40 
 
 ' 2,000 3% 60 
 
 2,000 4% 80 
 
 2,000 5% 100 
 
 2,000 6% 120 
 
 2,000 7% 140 
 
 2,000 8% 160 
 
 2,000 9% 180 
 
 2,000 10% 200 
 
 2,000 11% 220 
 
 2,000 12% 240 
 
 2,000 13% 260 
 
 2,000 14% 280 
 
 2,000 15% 300 
 
 2,000 16% 320 
 
 2,000 17% 340 
 
 2,000 18% 360 
 
 2,000 19% 380 
 
 2,000 20% 400 
 
 2,000 21% 420 
 
 2,000 22% 4€0 
 
 2,000 23% 460 
 
 2,000 24% 480 
 
 2,000 25% 500 
 
 2,000 26% 520 
 
 2,000 27% 540 
 
 2,000 28% 560 
 
 2,000 29% 580 
 
 2,000 30% 600 
 
 2,000 31% 620 
 
 2,000 32% 640 
 
 2,000 33% 660 
 
 180 
 
INDIVIDUALS— Continued ADDITIONAL OR SURTAX 
 
 $2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 Ji,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 2,000 
 
 50,000 
 
 50,000 
 
 100,000 
 
 200,000 
 
 500,000 
 
 4,100,000 
 
 $5,100,000 
 
 ted at 
 
 of Tax 
 
 
 Total 
 
 34% 
 
 $680 
 
 35% 
 
 700 
 
 36% 
 
 720 
 
 37% 
 
 740 
 
 38% 
 
 70U 
 
 39% 
 
 380 
 
 40% 
 
 800 
 
 41% 
 
 820 
 
 42% 
 
 840 
 
 43% 
 
 860 
 
 44% 
 
 880 
 
 45% 
 
 900 
 
 46% 
 
 92a 
 
 47% 
 
 940 
 
 48% 
 
 960 
 
 52% 
 
 26,000 
 
 56% 
 
 28,000 
 
 60% 
 
 60,000 
 
 63% 
 
 126,000 
 
 64% 
 
 320,000 
 
 65% 
 
 2,665,000 
 
 
 $3,248,510 
 
 K 9— CALCULATION OF NORMAL TAX. 
 
 $5,099,000 Amount subject to normal tax. 
 4,000 At 6% $240 
 
 $5,095,000 Balance at 12%.__ 611,400 
 
 $611,640 Total normal tax. 
 3,248,510 Additional tax. 
 
 $3,860,150 Total tax due. 
 
 In the above example, for the purposes of the normal tax 
 only, he would be allowed to deduct from his net income all 
 amounts received as dividends on capital stock or from the 
 net earnings of corporations, the amount received as in- 
 terest from obligations of the United States and bonds is- 
 sued by the War Finance Corporation, plus the $1,000 or 
 
 181 
 
INDIVIDUALS— Continued ADDITIONAL OR SURTAX 
 
 $2,000 exemption allowed according to the marital status 
 of the individual, in addition to $200 for each dependent if 
 under 18 years of age, or incapable of self-support because 
 mentally or physically defective. 
 
 \\ 1 — Income from Dividends to Be Included. 
 
 For the purpose of additional tax, there shall be in- 
 cluded as income, the income derived from dividends on the 
 capital stock or from the net earnings of any corporation, 
 joint-stock company, or association, or insurance company, 
 except that in the case of non-resident aliens such income 
 derived from sources without the United States shall not be 
 included. 
 
 1111 — Tax Contingent on Undistributed Profits. 
 
 Section 220 of the Act provides that if any corporation, 
 however created or organized, if formed or availed of for 
 the purpose of preventing the imposition of the surtax upon 
 its stockholders or members through the medium of per- 
 mitting its gains and profits to accumulate beyond the 
 reasonable needs of the business instead of being divided or 
 distributed, such corporation shall not be subject to the cor- 
 poration income tax imposed by Section 230, but that the 
 stockholders or members thereof shall be subject to taxa- 
 tion in the same manner as partners. Such corporations are, 
 however, subject to the war-profits and excess-profits tax 
 imposed by Title III of the Revenue Act of 1918 and the 
 amount of that tax shall be deducted from the net income 
 before computing the proportionate share of each stock- 
 holder or member. 
 
 In other words, if the Commissioner of Internal Revenue 
 decides that a corporation has allowed its profits to accumu- 
 late beyond the reasonable needs of the business and for 
 the sole purpose of allowing the individual stockholder to 
 escape payment of the surtax on their individual incomes, 
 the profits, after deducting the war-profits and excess-profits 
 tax imposed by Title III of the Revenue Act of 1918, which 
 have been so accumulated shall be assigned to the individual 
 stockholders in proportion to their stockholdings and shall 
 be taxable to them, not as dividends received from corpora- 
 
 182 
 
INDIVIDUALS— Continued INCOME—Net Income 
 
 tions, but as a distribution of partnership profits and sub- 
 ject to both the normal tax of 6 and 12 per cent, and the 
 additional taxes. 
 
 With respect to a similar provision in the Act of Oct. 3, 
 1913 (old law), Treasury Decision 2135 held that the law 
 imposes no duty on the taxpayer to ascertain his distribu- 
 tive interest in the undivided surplus of corporations for the 
 purpose of making return of the amount, in addition to divi- 
 dends declared on his stock, unless the Secretary of the 
 Treasury has certified that, in his opinion, such accumula- 
 tion is unreasonable for the purpose of business. 
 
 INCOME. 
 
 NET INCOME. 
 
 ^ 12 — Definition of Net Income. 
 
 The net or taxable income of an individual is his gross in- 
 come, i. e., his total gains, profits and income derived from 
 every source, less the deductions allowed. 
 
 ^13 — Normal Tax — Upon What Computed. 
 
 In computing the taxable income for the purposes of the 
 normal tax there shall be deducted from the net income as 
 above ascertained : 
 
 (a) Dividends on the stock or from the net earnings of 
 corporations, joint-stock companies, or associations, or in- 
 surance companies which are taxable under the law. See 
 Law, page 73, Hhe 54, page 74, line 18. 
 
 (b) The amount received as interest upon obligations of 
 the United States, and bonds issued by the War Finance 
 Corporation, which is included in gross income. See tf 29. 
 
 (c) The personal exemption of $1,000 or $2,000, as the 
 case may be, and $200 for each dependent. See If 21 6, 21 7. 
 
 U 1 4 — Net Income — How Computed. 
 
 An individual shall compute net income upon the basis of 
 his annual accounting period (fiscal year or calendar year, 
 as the case may be) in accordance with the method of 
 
 183 
 
INDIVIDUALS— Continued INCOME— Gross Income 
 
 accounting regularly employed in keeping his books, but if 
 no such method of accounting has been employed or if it 
 does not clearly reflect the income, the computation shall be 
 made upon such basis and in such manner as in the opinion 
 of the Commissioner does clearly reflect the income. If the 
 taxpayer's annual accounting period is other than a fiscal 
 year or if the taxpayer has no annual accounting period or 
 does not keep books, the net income shall be computed on 
 the basis of the calendar year. If a taxpayer changes his 
 accounting period from fiscal year to calendar year, from 
 calendar year to fiscal year, or from one fiscal year to an- 
 other, the net income shall, with the approval of the Com- 
 missioner, be computed on the basis of such new account- 
 ing period, subject to the provisions of Section 226. See 
 H 247 to 251. 
 
 1115— GROSS INCOME. 
 
 The gross income of a taxable person includes : 
 Gains, profits and income derived from — 
 
 (a) Salaries, wages, or compensation for personal service 
 of whatever kind and in whatever form paid. (Including 
 in the case of the President of the United States, the judges 
 of the Supreme and inferior courts of the United States, and 
 all other officers and employes, whether elected or ap- 
 pointed, of the United States, Alaska, Hawaii, or any politi- 
 cal subdivision thereof, or the District of Columbia, the 
 compensation received as such.) 
 
 (b) Professions, vocations, businesses, trade, commerce, 
 or sales, or dealings in property, whether real or personal, 
 growing out of the ownership or use of, or interest in, real or 
 personal property. 
 
 (c) From interest, rent, dividends, securities, or the trans- 
 action of any business carried on for gain or profit, or gains 
 or profits, and income derived from any source whatever. 
 
 (d) Gains or profits and income derived from any source 
 whatever, including the income from, but not the value of, 
 property acquired by gift, bequest, devise or descent. 
 
 If the property so acquired (by gift, etc.) is subsequently 
 sold at a price greater than the fair market value on the date 
 
 184 
 
INDIVIDUALS— Continued INCOME— Gross Income 
 
 received, or the fair market value on March 1, 1913, if re- 
 ceived prior to that date, the gain in value is held to be in- 
 come and subject to tax under the provisions of the Federal 
 income tax law. 
 
 ^ 1 6 — Legacies — Bequests. 
 
 The general policy of the law and rule of interpretation 
 require that legacies in all cases, unless clearly inconsistent 
 with the intention of the testator, should be held to be 
 vested rather than contingent. 
 
 The legal definition of "vested" is any property interest 
 whether actually in possession or not that is not subject to 
 contingency or to conditions unperformed. 
 
 Where there is a vested interest, the income from such 
 interest, if undistributed, is taxable in the hands of the fidu- 
 ciary ; if distributed, it is taxable in the hands of the bene- 
 ficiaries, and the fiduciary is required to make return, for 
 information purposes, if the amount distributed to any one 
 beneficiary during the year 1918 equalled or exceeded $1,000 
 or $2,000, according to the marital status of the individual, 
 estate or trust for which he acts. 
 
 Tf 1 7 — Time of Accrual of Income. 
 
 Fixed and determinable income, becoming due and pay- 
 able since February 28, 1913, such as that derived from 
 salaries, wages, compensation, etc., or from interest on 
 bonds, should be returned as income for the year (calendar 
 or fiscal year) in which such income is received. Thus — 
 (Return made on basis of calendar year.) 
 
 (a) Coupons which fell due prior to Jan. 1, 1918, but 
 which were not paid until that date or later ; 
 
 (b) Income received by trustees prior to Jan. 1, 1918, but 
 not paid over to the beneficiary until that date or later ; 
 
 (c) Dividends declared prior to Jan. 1, 1918, but not paid 
 until that date or later ; 
 
 (d) Salary or wages earned in 1917, but not paid until 
 Jan. 1, 1918, or later — 
 
 all should be returned as income for the year ended Dec. 
 31, 1918. 
 
 185 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 U 1 8 — Receipt Basis. 
 
 Actual receipt is a reduction to possession. Constructive 
 receipt is where income is credited to or made available to 
 recipients and is to be reported as income; as credit to ac- 
 count of recipients of savings-bank interest, etc. 
 
 In the case of compensation for service renavired, where 
 no determination of compensation is had until the com- 
 pletion of the service, the amount received in consideration 
 of the service is income to be accounted for as for the cal- 
 endar year of its receipt. 
 
 Where the service and payment period is divided by the 
 end of the taxable year, the compensation for the period so 
 divided at the end of the year will be accounted for as 
 income for the year in which payment is actually received. 
 Where the service is compensated by fee, or is of such 
 nature that no part of the fee or compensation becomes 
 due until the completion of the service, the entire amount 
 rceived should be income to be accounted for as for the year 
 of receipt. 
 
 A person having a salary by the year ahd in addition 
 commissions on sales, the salary to be paid at the time 
 commissions are determined, and the determination of com- 
 missions is in the succeeding calendar year, the entire 
 amount of salary and commissions should be accounted for 
 as income of the calendar year of receipt. — Art. 4, Reg. 
 33, Revised. 
 
 DIVIDENDS. 
 
 ^ 1 9 — Income from Dividends. 
 
 Income from dividends, while not subject to normal tax, 
 must be included in every return. See jf 29. 
 
 The term "dividend" means any distribution made by a 
 corporation other than a personal service corporation to its 
 shareholders or members whether in cash or in other prop- 
 erty or in stock of the corporation out of its earnings or 
 profits accumulated since February 28th, 1913 ; or any such 
 distribution made by a personal service corporation out of 
 its earnings or profits accumulated since February 28th, 
 1913, and prior to January 1st, 1918. Any distribution 
 
 186 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 shall be deemed to have been made from earnings or profits 
 unless all earnings and profits have first been distributed. 
 Any distribution made in the year 1918 or subsequent years 
 shall be deemed to have been made from earnings or profits 
 accumulated since Feb. 28, 1913, or, in the case of a personal 
 service corporation, from the most recently accumulated 
 earnings or profits ; but any earnings or profits accumulated 
 prior to March 1, 1913, may be distributed in stock divi- 
 dends or otherwise, exempt from the tax, after the earnings 
 and profits accumulated since Feb. 28, 1913, have been 
 distributed. (The first income tax act became effective 
 March 1, 1913.) 
 ]f 20 — Cash Dividends. 
 
 Cash dividends or their equivalent paid from the net 
 earnings or established surplus or undivided profits of cor- 
 porations, accumulated since Feb. 28, 1913, constitute tax- 
 able income in the hands of shareholders or beneficiaries 
 when received, and should be included in the return when 
 the total net income of any individual is in excess of $1,000 
 or $2,000, according to the marital status of the taxpayer, 
 inclusive of such dividends, and the additional tax should be 
 paid thereon at the rates prescribed by law for the year in 
 which the dividends were received. 
 ^ 21— Stock Dividends. 
 
 There have been two court decisions in connection with stock dividends 
 which may ultimately have an important bearing on the present law. The 
 case of Towne vs. Eisner on January 7th, 1918, in which the United States 
 Supreme Court ruled that stock dividends paid during the years 1913, 1914 
 and 1915 were not taxable income; and the decision handed down by Judge 
 Mayer of the United States District Court on January 23rd, 1919, in which 
 it waB held that stock dividends were not taxable as income under the Act 
 of September 8th, 1916. 
 
 If this latter decision by the lower court is eventually upheld by the 
 Supreme Court, it may invalidate the provision of the present Act with 
 respect to the taxable status of stock dividends. 
 
 Until the highest court has passed upon the matter, however, the re- 
 cipient of stock dividends has no option and must make his return in ac- 
 cordance with the provisions of the Act. 
 
 In the event of the higher court affirming the opinion of Judge Mayer 
 of the District Court, the taxpayer would have recourse to an application 
 for refund of tax illegally assessed. 
 
 (In the case of Towne vs. Eisner, the United States Supreme Court held 
 that under the provisions of the Act of Oct. 3, 1913, effective from Mar. 1, 
 1913, to Dec. 31, 1915, stock dividends were not taxable income. That Act, 
 however, did not specify stock dividends as taxable income, and the tax 
 was levied under a ruling of the Treasury Department. This omission was 
 corrected in the Acts of 1916, 1917 and the present Act. 
 
 187 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 The court held in effect that a dividend paid in stock did not distribute 
 any assets of the company, but constituted merely a change in the form 
 of the evidence of ownership of such assets. The theory behind the specific 
 taxation of stock dividends in the Acts of 1916, 1917 and 1918 is obviously 
 that a corporation could indefinitely accumulate and conserve its profits, 
 and thus escape taxation on such profits during a period in which the Gov- 
 ernment needs every dollar of revenue.) 
 
 1122- 
 
 A stock dividend is a distribution by a corporation to the 
 stockholders of capital stock of the distributing corporation. 
 A distribution of capital stock other than that of the distri- 
 buting corporation is not a stock dividend but a dividend in 
 property. 
 
 112a- 
 
 A stock dividend shall be considered income to the amount 
 of the earnings or profits so distributed. 
 
 Here is an important distinction. In effect the law says 
 that the value of stock received as a dividend out of earn- 
 ings shall be for taxation purposes, not its market value, 
 but the valuation placed upon it by the distributing corpora- 
 tion, which should represent the amount of earnings, profits 
 or surplus distributed. 
 
 —ILLUSTRATION. 
 
 Corporation A, with a capital stock of $10,000,000 
 par value $100 per share and an accumulated surplus of 
 $5,000,000 decides to capitalize this accumulation and dis- 
 tribute the same to stockholders in the form of a dividend. 
 
 After such distribution is made the market price of the 
 $15,000,000 capital stock, may be, say, $75 per share, and 
 the market value of the $5,000,000 stock distributed would 
 be $3,750,000. 
 
 The corporation, however, has reduced its profit and loss 
 surplus by $5,000,000 and in its balance sheet has substituted 
 an item of $5,000,000 additional capital stock for the $5,000,- 
 000 profit and loss surplus. For taxation purposes, there- 
 fore, the value of the stock distributed is $5,000,000, and 
 the taxable value per share would be $100. 
 
 If the stock of a corporation had no par value, the distri- 
 bution might have been, say, 50,000 shares of stock, but the 
 value of the earnings or profits so distributed would be $100 
 
 188 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 per share, provided the assets distributed were valued at 
 $5,000,000 by the corporation. 
 
 1I24-. 
 
 Stock dividends are taxable to the recipient at the rates 
 of tax in effect during the calendar year in which received, 
 except that any stock dividend (1) received by a taxpayer 
 between January 1st and November 1st, 1918, both dates 
 inclusive, or (2) during such period is bona fide authorized 
 or declared, and entered on the bookg of the corporation, 
 and received by a taxpayer after November 1, 1918, and 
 before the expiration of 30 days after the passage of the 
 Revenue Act of 1918, then such stock dividend shall, in the 
 manner provided in Section 206 (parts of income subject to 
 rates for different calendar years) , be taxed to the recipient 
 at the rates prescribed by law for the years in which the 
 corporation accumulated the earnings or profits from which 
 such dividend was paid, but the dividend shall be deemed to 
 have been paid from the most recently accumulated earnings 
 or profits. 
 
 As an illustration of the above paragraph, assume that a 
 taxpayer received income for the calendar year 1918 as 
 follows : 
 
 Net income from ordinary sources $18,000 
 
 Dividends declared and paid in stock on March 1, 1918, designated 
 by the corporation as having been paid from surplus accumu- 
 lated during the year 1917 12,000 
 
 Total net income $30,000 
 
 Deduct dividends before computing normal tax 12,000 
 
 Net income less dividends $18,000 
 
 Specific exemption (married man) 2,000 
 
 Net income subject to normal tax $16,000 
 
 Normal tax (6% on first $4,000) 240 
 
 12% on balance of $12,000 1,440 
 
 Surtax on $18,000 (at 1918 rates) 550 
 
 Total normal and surtax (net income less stock dividends) at 
 
 1918 rates $2,230 
 
 Computation of tax on the above stock dividends (paid from 1917 
 
 earnings) : 
 Net income (exclusive of the stock dividends) $18,000 
 
 189 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 Sto.;k dividends $12,000 
 
 Total 1918 net income $30,000 
 
 Of the $12,000 of stock dividends the first $2,000 taxable at the 
 
 1917 rates between $15,000 and $20,000 @ 5%: 
 
 $2,000 @ 5% $100 
 
 The balance or $10,000 taxable at the 1917 rates between $20,000 
 
 and $40,000 @ S%: 
 $10,000 @ 8% $800 
 
 Surtax on stock dividends at rates in effect for the year 1917 $900 
 
 Add — normal and surtax (on net income less stock dividends) at 
 
 1918 rates 2,230 
 
 Total $3,130 
 
 It will be seen from the above computation that if the 
 stock dividends received in the year 1918 were taxable at 
 the rates in effect for the year 1918 instead of at the rates 
 of the year 1917, the amount of $12,000 would be taxable 
 at from 8 to 1 4 per cent, while the tax at the 1917 rate is 
 only from 5 to 8 per cent. 
 
 If 25 — Distribution of Assets in Liquidation. 
 
 Amounts distributed in the liquidation of a corporation 
 shall be treated as payments in exchange for stock, and any 
 gain or profit realized thereby shall be taxed to the distri- 
 butee as other gains or profits. 
 
 —ILLUSTRATION. 
 
 In 1912 John Doe purchased 100 shares of the stock of 
 Corporation B for $8,000. The fair value of this stock on 
 March 1, 1913, was, say $9,000. In the year 1918 Corpora- 
 tion B went into voluntary liquidation and by Dec. 31, 1918, 
 had distributed to John Doe cash or its equivalent to the 
 extent of $11,000. For taxation purposes, therefore, his 
 profit is the difference between $9,000 (the fair value of the 
 stock on March 1, 1913) and $11,000, or $2,000. 
 
 Any additional cash or its equivalent that might be dis- 
 tributed from the assets of the corporation in the year 1919 
 would be included as profits in John Doe's return for the 
 year 1919. 
 
 Conversely, if, after complete liquidation of the assets 
 of Corporation B, John Doe received less than $9,000, he 
 could deduct such difference as a loss, but only after the 
 
 190 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 liquidation of the assets of Corporation B had become a 
 completed and closed transaction. 
 
 ]j 26 — Dividends Paid With Securities. 
 
 Dividends declared by a corporation and paid with securi- 
 ties in which the surplus of the corporation has been in- 
 vested, regardless of the character of such securities, is to 
 be accounted for as a dividend for income-tax purposes by 
 the recipients of same to the extent that it represents a dis- 
 tribution of surplus accrued to the corpc|fation since March 
 1, 1913.— Art. 4, Reg. 33, Revised. 
 
 See 11 23 above. 
 
 If 27 — Dividend Payable in Liberty Bonds. 
 
 An opinion has been rendered that where stockholders of 
 a corporation receiving a dividend declared payable and dis- 
 tributable in Liberty bonds, the same should be returned as 
 income — Opinion Attorney General. — Treasury Decision 
 2512, June 8, 1917. 
 
 The Commissioner of Internal Revenue has ruled that 
 when dividends are paid in Liberty bonds, the amount to be 
 returned by the taxpayer as income shall be the market 
 value of the bonds at the time of receipt. 
 
 This ruling appears to be in conflict with the opinion of 
 the Attorney General, in which it was held that dividends 
 paid in Liberty bonds were taxable to the recipient "to the 
 amount of the earnings or profits invested by the corpora- 
 tion in the bonds." 
 
 These two contrary opinions will probably be clarified at 
 an early date by the issuance of a Treasury Decision. 
 
 If 28 — Dividends Paid Out of Amounts Set Aside for 
 Depreciation. 
 
 Dividends paid out of reserves set aside for depreciation 
 do not represent a distribution of capital assets. All such 
 dividends received by stockholders declared out of such re- 
 serves accumulated subsequent to March 1, 1913, constitute 
 income to the stockholders and must be accounted for in 
 returns of net income. — Treasury Decision 2540, October 
 10, 1917. 
 
 191 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 ^ 29 — Dividends to be Included in Return. 
 
 Dividends must be included in a return of income, but 
 persons subject to the normal tax only are permitted to 
 deduct from their net income the amounts so received. Un- 
 der the law, corporations, joint-stock companies, associa- 
 tions, etc., are taxed directly on the net income avail- 
 able for payment of such dividends ; theref ore,the individual 
 stockholder has indirectly paid the normal tax on income 
 derived from that source before receiving his dividends. 
 
 If 30 — Dividends Are Subject to Additional Tax. 
 
 For the purpose of ascertaining the amount upon which 
 the normal tax of 6 and 12 per cent, is chargeable, a person 
 having a net income of over $5,000, and therefore subject to 
 the additional tax, may deduct income received as dividends 
 from net income, to ascertain the normal tax, but the 
 additional tax is levied against net income exceeding $5,000, 
 including dividends. ♦ 
 
 —EXAMPLE. 
 
 For instance, a person having an income of $15,000 from 
 dividends and $15,000 from other sources may deduct from 
 his total net income of $30,000 the $15,000 received as divi- 
 dends, leaving a net income of $15,000, subject to the normal 
 tax. He would, however, be obliged to pay an additional tax 
 on the amount by which his total net income, including divi- 
 dends, exceeded $5,000. His income, subject to the addi- 
 tional tax, therefore, would be $25,000. 
 
 ^ 31 — Rentals Paid Direct to Bondholders and Stockholders. 
 
 While the payments made by the lessee direct to the bond- 
 holders or stockholders are rentals to both it and the lessor, 
 rentals paid in one case and rentals received in the other, to 
 the bondholders and the stockholders they are interest and 
 dividend payments received as from the lessor, and as such 
 will be accounted for in their returns of annual net income. 
 —Art. 103, Reg. 33 Revised. 
 ^ 32— Stock Trust Certificates. 
 
 Stock trust certificates or leased line certificates, as the 
 case may be, issued by the lessee for the purpose of securing 
 
 192 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 or holding control of the stock, of the lessor are held to be 
 issued in lieu of the certificates of capital stock, and for the 
 purpose of this tax will be treated as capital stock and the 
 amounts received by the holders of these certificates are 
 dividends to the holders, to be treated as rentals by both 
 lessee and lessor and constitute an allowable deduction in 
 the one case and an item of income in the other, accordingly 
 as they are paid and received. — Art. 104, Reg. 33, Revised. 
 
 T[ 33 — Dividends from Stock or Net Earnings of Foreign 
 Corporations. 
 
 Dividends received by citizens or residents from stock or 
 net earnings of foreign corporations not subject to payment 
 of the tax on net earnings imposed by this law, must be 
 included as income by persons subject either to the normal 
 tax only, or to the normal and additional /tax. Such divi- 
 dends cannot be deducted from gross income. 
 
 Tf 34 — Dividends Paid by Foreign Corporations from 
 Earnings Wholly in United States. 
 
 Dividends declared and paid by a foreign corporation 
 which derives its entire income from business done wholly 
 within the United States and pays, under the 'provisions of 
 the Federal Income Tax Law, a tax upon its net income, 
 should be treated in the same manner as dividends from 
 domestic corporations. — ^Treasury Decision 2090. 
 
 ^ 35 — Record Owner of Stocks When Another Is Actual 
 Owner. 
 
 Where a person holds, in his own name, stocks which 
 actually belong to another, such person is not required to 
 include dividends from such stocks in his own return, unless 
 a question be raised as to why such dividends were not in- 
 cluded. In such circumstances the record owner may be re- 
 quired to show that actual ownership rests with another. 
 
 —ILLUSTRATION. 
 
 On Jan. 1, 1918, John Doe purchases 100 shares of X. Y. Z. 
 stock at $100 per share through Smith, Jones & Co., his 
 brokers, and makes a partial payment of $1,000 on the total 
 
 193 
 
INDIVIDUALS— Continued INCOME— Dividends 
 
 purchase price of $10,000, borrowing the remainder from 
 his brokers and depositing with them the 100 shares of 
 stock as security for the loan. The stock is transferred to 
 the name of Smith, Jones & Co., the brokers, who thus be- 
 come the record owner, while John Doe is the actual owner. 
 
 On July 2, 1918, John Doe sells the 100 shares at 95, rep- 
 resenting a loss of $500, but meantime the record owners. 
 Smith, Jones & Co. have received two dividends on the stock 
 amounting to $400, which amount was duly credited to the 
 account of John Doe as actual owner. 
 
 The correct accounting of John Doe for tax purposes 
 would be as follows. 
 
 Cost price $10,000 
 
 *Commissions 25 
 
 Total cost $10,025 
 
 Sale price » 9,500 
 
 Deductible loss $525 
 
 *See H 125. 
 
 It will be noted that he received dividends of $400 from 
 X. Y. Z. stock and that amount would be included in his 
 statement of gross income from all sources, but for purposes 
 of the normal tax only, he is allowed to deduct that amount 
 as a credit. If he be subject to the additional tax the 
 amount must be included as income subject to such addi- 
 tional tax. 
 
 John Doe also paid to his brokers $270 as interest on the 
 loan of $9,000 for six months. This would be a separate 
 deduction from his net income under the head of interest 
 paid on indebtedness. 
 
 TI 36 — Scrip Dividends. 
 
 A dividend paid in scrip is held to be equivalent to a pay- 
 ment in cash, and should be returned as income to the 
 amount of its face value. Compare If 312. 
 
 A scrip dividend is a written promise of a corporation to 
 pay a fixed sum of money at a future date, in lieu of cash, 
 and is virtually the equivalent of a promissory note. 
 
 194 
 
INDIVIDUALS— Continued INCOME—Dividends 
 
 Tf 37 — State Taxes on Capital gtock of Banks. 
 
 State taxes on capital stock of banks, paid by banks are 
 assessed against the individual stockholder and constitute 
 an allowable deduction in the return of such individual. 
 If such individual is subject to the additional tax, the 
 amount of taxes so paid should be included in his return as 
 income, the said amount being included as additional divi- 
 dends to the amount of taxes paid. Claim for deduction of 
 the amount should then be made under the heading "Taxes.*' 
 
 ]f 38 — Compensation of Stockholders of a Close Corporation. 
 
 When a company composed of two stockholders divide 
 profits between them, calling it compensation, same cannot 
 be deducted as expense of business. Money paid out under 
 those circumstances is equivalent to dividends and must 
 be treated as income of the corporation. 
 
 With respect to amounts ostensibly paid as compensa- 
 tion for services of officers and employes of business enter- 
 prises, the Government is interested and authorized to see 
 that expenditures of this character are "necessary" as the 
 law provides that in the case of individuals and corpora- 
 tions only "the necessary expenses paid in carrying on 
 business" shall be allowed as a deduction. 
 
 The question of deductibiHty will be considered with pay- 
 ments made for services and amounts ordinarily paid for 
 like services in other enterprises of a similar character, or 
 whether the same include some other element. 
 
 The following will be taken into consideration in this con- 
 nection. 
 
 Any amount paid in form of compensLti' but not in 
 fact as the purchase price of services, is not deductible. 
 
 An ostensible salary may be a distribution of dividends, 
 which is likely to occur in corporations having a few stock- 
 holders, and a part of the salary in cases of this kind would 
 not be considered as being paid for services wholly ren- 
 dered. This condition may also arise where salaried em- 
 ployes own a majority of the stock, as the payment of an 
 ostensible salary may be in part a waste or appropriation of 
 assets of the corporation. 
 
 195 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 An ostensible salary may be paid in part payment for 
 property. This is occasioned by a partnership selling out 
 to a corporation, the partners continuing in the service of 
 the corporation, and it may be found that the salary in part 
 constitutes payment for the transfer of their business. 
 
 In the case of contingent compensation, consideration will 
 be taken of the fact as to whether the agreement was made 
 before or after the services were rendered, and the facts 
 surrounding the transaction. 
 
 For full details see Index "Treasury Decisions" ; Treasury 
 Decision No. 2696. 
 
 ^ 39 — Dividends Paid on Life Insurance Policies. 
 
 Dividends paid on life insurance policies that have not 
 matured are not taxable income. Dividends from paid-up 
 policies must be included as income — Treasury Decision 
 2137. 
 
 ^ 40 — Limited Partnerships. 
 
 Income from limited partnerships of the Pennsylvania 
 type, where the liability of all the members is limited and 
 the respective partnership shares are transferable much 
 the same as corporate shares, is to be treated as income re- 
 ceived from corporate dividends. 
 
 Limited partnerships of the New York type which cannot 
 limit the liabilities of the partners and where the respective 
 partnership shares are not transferable, the partners not 
 having the privilege of sueing in the partnership name are 
 not to be classed as corporations and the income received 
 from this class of partnerships is to be treated as ordinary 
 Pi itne^ship profits. — See Treasury Decision 2711. 
 
 H 41 — Personal Service Corporations. 
 
 (For definition of a "Personal Service Corporation," see 
 Law, page 52, line 45. 
 
 Personal service corporations shall not be subject to taxa- 
 tion as corporations, but will be required to make returns 
 as partnerships and the individual stockholders shall be 
 taxed in the same manner as the members of partnerships, 
 and all the profits of the taxable year shall be taxed to the 
 
 196 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 distributees and any portion remaining undistributed at the 
 end of the taxable year shall be assigned to the respective 
 shareholders in proportion to their stockholdings. 
 
 If 42 — Permanent Improvements Under Lease or Rental 
 Contracts. 
 
 When improvements become a part of real estate, the 
 difference between cost of the improvement and a rea- 
 sonable allowance for exhaustion, wear and tear, and obso- 
 lescence during the lease term, is gain or profit to the 
 lessor at the end of the lease term and is to be accounted 
 for as income at that time. — Treasury Decision 2442 ; also 
 Art. 4, Reg. 33, Revised. 
 
 —ILLUSTRATION. 
 
 A leases a plot of ground from B for a term of five years 
 under a stipulation that any permanent improvements made 
 thereon by A during the term of the lease, become the prop- 
 erty of lessor B at the termination of the lease. 
 
 Lessee A erects a public garage on the leased plot at a cost 
 of $3,000. At the end of five years title to this garage 
 passes to lessor B. 
 
 For income tax purposes the income of lessor B has been 
 increased by $3,000, the cost of the garage, less a reasonable 
 allowance for exhaustion, wear and tear, and obsolescence. 
 
 Tf 43 — Income from Sale of Property. 
 
 For the purpose of ascertaining the gain derived from the 
 sale or other disposition of property, real, personal, or 
 mixed, acquired before March 1, 1913, the fair market price 
 or value of such property as of March 1, 1913, shall be the 
 basis for determining the amount of such gain derived. 
 (Law, page 54, line 13.) 
 
 ^ 44 — Income from Sale of Personal Property on the 
 Installment Plan. 
 
 It has been ascertained that dealers in personal property 
 who sell on the installment plan adopt one of four ways of 
 protecting themselves in case of default, namely : 
 
 (1) A provision that title is to remain in the seller until 
 the buyer has performed his part of the agreement. 
 
 197 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 (2) A conveyance of title to the purchaser subject to a 
 lien for the unpaid portion of the purchase price. 
 
 (3) The conveyance to the purchaser and an immediate 
 reconveyance by way of chattel mortgage to the seller. 
 
 (4) Conveyance to a trustee in trust to hold the title 
 pending performance of the contract and subject to its pro- 
 visions. 
 
 The purpose is the same in all of these transactions. 
 
 In view of the fact that in a number of States it is held 
 that the form first mentioned shall not be enforced accord- 
 ing to its terms, but will be regarded as a sale with a chattel 
 mortgage back to secure the unpaid purchase price, it is 
 desirable that a uniform rule be established which will be 
 equitable and applicable to all. 
 
 The rule prescribed is that in the sale or contract for sale 
 of personal property on the installment plan, whether or not 
 title remains in the vendor until the property is fully paid 
 for, the income to be returned by the vendor will be that 
 proportion of each installment payment which the gross 
 profit to be realized when the property is paid for bears to 
 the gross contract price. If, for any reason, the vendee de- 
 faults in his installment payments and the vendor repos- 
 sesses the property, the entire amount received on install- 
 ment payments less the profit originally returned will be 
 income to the vendor to be so returned for the year in which 
 the property was repossessed. 
 
 (This ruling amends Articles 117 and 120 of Regulations 
 33, Revised, relating to the Revenue Act of 1916, and re- 
 vokes all previous decisions and rulings which are in conflict 
 herewith. — Treasury Decision 2707.) 
 
 K 45 — Method of Determining Value as of March 1 , 1 91 3. 
 
 No method of determining this value can be stated by the 
 department which will adequately meet all circumstances. 
 What that value was is a question of fact to be established 
 by any evidence which will reasonably and adequately make 
 it appear. — Art. 4, Reg. 33 Revised. 
 
 In the case of real property, if the fact can be estabhshed 
 that a bona fide offer was received approximately at this 
 
 198 
 
INDIVIDUALS— Continued INCOME— -Miscellaneous 
 
 date or a competent appraisal was made based on surround- 
 ing values, this would be an equitable basis upon which to 
 establish the fair market value as of this date. 
 
 In the case of securities, the average market value between 
 the opening and the closing price of March 1, 1913 is the 
 basis. 
 
 For income tax purposes, where there is an actual sale 
 and transfer, profit will be considered as realized even 
 though payment is to be made in installments, as notes for 
 deferred payments are secured by the title to the property 
 and presumably bear interest and are held to be worth, in 
 cash, their face value. 
 
 In case of default on installment payments there may be 
 charged off as bad debts the amount of such unpaid install- 
 ments less the salvage value of the real estate repossessed. 
 — Treasury Decision 2090. 
 
 Tf 46 — Income Received by Estates of Deceased Persons. 
 
 Income received by estates of deceased persons during the 
 period of administration or settlement of the estate is sub- 
 ject to the normal and additional tax, and will be taxed to 
 their estates. — Law, page 67, line 36. 
 
 Tf 47 — Income of Estates or Property Held in Trust. 
 
 Such income of estates or any kind of property held in 
 trust, including such income accumulated in trust for the 
 benefit of unborn or unascertained persons, or persons with 
 contingent interests, and income held for future distribution 
 under the terms of the will or trust, shall likewise be taxed. 
 Except where such income is returned for the purpose of tax 
 by the beneficiary,the tax in each instance will be assessed 
 to the executor, administrator or trustee. 
 
 Where the income is to be distributed annually or regu- 
 larly between existing heirs or legatees or beneficiaries, 
 the rate of tax and method of computing the same shall 
 be based in each case upon the amount of the individual 
 share distributed, and the tax shall be paid by the bene- 
 ficiaries and not by the fiduciary. 
 
 199 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 Tf 48 — Bonds Purchased Between Interest Dates. 
 
 Interest accrued to the time of purchase (advanced by 
 purchaser) is not to be accounted for as income by the 
 purchaser. Only the amount of interest assignable to 
 the portion of the interest period subsequent to the pur- 
 chase has a status of income for the purposes of return 
 and tax by purchaser. 
 
 The amount of accrued interest so advanced by the pur- 
 chaser is taxable income to be accounted for in the return 
 of the vendor. — Art. 4, Reg. 33, Revised. 
 
 Where a taxpayer purchases a 6% $100 coupon bond at 
 it face value, plus $1.50 — that is three months' accrued 
 interest — and three months later detaches a coupon there- 
 from and collects $3 interest, it is necessary to report in 
 your return only so much interest as accrued after the date 
 of your purchase. It is the seller's duty to report the bal- 
 ance. — Primer, Question 42. 
 
 If 49 — Bonds^ — Coupons Exchanged for Other Bonds. 
 
 Coupons from bonds for interest thereon, exchanged for 
 other bonds, are held to be the equivalent of payment of 
 the interest coupons and purchase of the new bonds with 
 the cash. The amount of the coupons is to be accounted 
 for as income for the calendar year in which the exchange 
 is made. — Art. 4, Reg. 33, Revised. 
 
 If 50 — Building and Loan Associations. 
 
 Amount credited to shareholders of building and loan 
 associations, when title to such credit passes to the share- 
 holder at the time of the credit, has a taxable status for 
 the normal and additional tax as for the year of the credit. 
 Where the amount of such accumulations does not "become 
 available to the shareholder until the maturity of a share, 
 the amount of a share in excess of the aggregate amount 
 paid in by the shareholder is income to be accounted for 
 as for the year of the maturity of the share for both the 
 normal and additional tax. — Art. 4, Reg. 33, Revised. 
 
 Tf 51 — Bonus in Common Stock. 
 
 Where common stock is received as a bonus in considera- 
 tion of the purchase of preferred stock, the entire proceeds 
 
 200 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 derived from the sale or transfer of such stock is income 
 subject to the normal and additional tax. — Art. 4, Reg. 33, 
 Revised. 
 
 U 52 — Commissions on Renewal Premiums for Insurance. 
 
 An amended return is required in cases where receipts 
 from this source were not included in 1913 return. — Treas- 
 ury Decision 2011. 
 
 Any commissions received by insurance agents on account 
 of business written are taxable income for the year in which 
 received. — Primer, Question 40. 
 
 Tf53 — Commission Retained by Agent on His Own Life 
 Insurance. 
 
 Commission retained by agent on his own life insurance 
 policy is held to be income accruing to the agent, and should 
 be included in his return of income for the assessment of 
 the income tax. 
 
 ^ 54 — Compensation for Service Upon an Annual, Monthly 
 or Weekly Basis. 
 
 Where a service and payment period is divided by the 
 end of a taxable year, the compensation for the period so 
 divided at the end of the year will be accounted for in the 
 return for the year in which payment is made and received. 
 Where the service is of such nature as to be compensated 
 by fee, or of such nature that no portion of the amount 
 becomes due until the service is completed, then the total 
 amount of the compensation should be included in the return 
 for the year in which the compensation is received. — Treas- 
 ury Decision 2090. 
 
 Tf 55 — Compensation Not Paid in Money. 
 
 Where service is rendered for stipulated price, wage, or 
 salary and paid with something other than money, the stipu- 
 lated value of service in terms of money is the value at 
 which the thing taken in payment is to be considered for 
 the purpose of the income tax. 
 
 Where there is no stipulation as to the value of service 
 and payment for service is made with something other 
 than money, the market or reasonable value of the thing 
 
 201 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 taken in payment is the amount to be included as income 
 for the purposes of the income tax. — Art. 4, Reg. 33, Re- 
 vised. 
 
 Where a person receives a cash compensation for services 
 rendered, and in addition thereto commissions, living ex- 
 penses and other allowances, a return is required in each 
 case where the cash compensation plus the value of the 
 allowances equals or exceeds $1,000 for the tax year. — 
 (Primer, Question 135.) 
 
 Board and lodging, or other consideration received in 
 lieu of rental or cash, is considered income equal in 
 amount to the indebtedness in payment of which it is 
 received, and should be included in any return of annual 
 net income its recipient is required to render. — Treasury 
 Decision 2137. 
 
 1156 — Farm Products — Income From — How Treated. 
 
 Income from farm products and crop-share rentals to 
 be included in return of income for year in which sold or 
 exchanged for money, or a money equivalent. — Treasury 
 Decision 2153. 
 
 T[ 57— Farm. 
 
 The term "farm" as herein used embraces the farm in the 
 ordinary accepted sense, plantations, ranches, stock farms, 
 dairy farms, poultry farms, fruit farms, truck farms and all 
 lands used for similar purposes; and for the purposes of 
 this decision all persons who cultivate, operate, or manage 
 farms for gain or profit, either as owners or tenants, are 
 designated as "farmers." 
 
 1158- 
 
 All gains, profits, and income derived from the sale or 
 exchange of farm products, whether produced on the farm 
 or purchased and resold by a farmer, shall be included in 
 the return of income for the year in which the products 
 were actually marketed and sold; and all allowable deduc- 
 tions, including the legitimate expenses incident to the 
 production of that year or future years, may be claimed in 
 the return of income for the tax year in which the right to 
 
 202 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 such deduction shall arise, although the products to which 
 such expenses and deductions are incidental may not have 
 been sold or exchanged for money, or a money equivalent 
 during the year for which the return is rendered. 
 
 Rents received in crop shares shall likewise be returned 
 as of the year in which the crop shares are reduced to money 
 or a money equivalent, and allowable deductions likewise 
 shall be claimed in the return of income for the tax year 
 to which they apply, although expenses and deductions 
 may be incident to products which remained unsold at the 
 end of the year for which the deductions are claimed. When 
 farm products are held for favorable market prices, no 
 deduction on account of shrinkage in weight or physical 
 value or losses by reason of such shrinkage or deterioration 
 in storage shall be allowed. — Art. 4, Reg. 33, Revised. 
 
 Tieo- 
 
 The value of grain, stock, and other products produced 
 on a farm is not considered taxable income until reduced to 
 cash or the equivalent of cash. Therefore, if crops and 
 stock were produced in 1917 on a farm owned and they 
 were sold in 1918, the total amount received therefor is 
 to be included under "Gross Income" in the 1918 return. 
 Crops and stock produced in 1918, and on hand December 31 
 of that year, need not be considered; but the amount re- 
 ceived therefor should be included in the return rendered for 
 the year during which they are sold. 
 
 Farmers who keep books according to some approved 
 method of accounting, which clearly show the net income, 
 may prepare their returns from such books, although the 
 method of accounting may not be strictly in accordance with 
 the above paragraph. — Primer, Question 28. 
 
 A farmer is not required to report the value of the farm, 
 produce which is consumed by himself and family ; but any 
 amount of expense incurred in producing garden truck, or 
 
 203 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 other products so consumed, cannot be claimed as a deduc- 
 tion. — Primer, Question 30. 
 
 The price placed by the merchant upon the goods ex- 
 changed for farm produce is to be included as income in the 
 farmer's return. — Primer, Question 31. 
 
 ^ 64 — Life Insurance. 
 
 Where insured receives, under any form of life insurance, 
 an amount in excess of premiums paid for the insurance, 
 such excess has a taxable status and is to be accounted for 
 as for the calendar year of its receipt. — ^Art. 4, Reg. 33, 
 Revised. 
 
 Tf 65 — Dividends on Paid-up Policies. 
 
 Dividends on paid-up policies are in the nature of cor- 
 porate dividends and are to be accounted for as income for 
 the purposes of the additional tax only. — ^Art. 4, Reg. 33, 
 Revised. 
 
 ^ 66 — Endowments. 
 
 Where a taxpayer receives $1,000 in 1918 on the maturity 
 of an endowment life insurance policy upon which pay- 
 ments have been made for 20 years, only the difference be- 
 tween the aggregate amount of premium paid and the 
 amount received upon the maturity of contract is to be in- 
 cluded in income tax return. 
 
 fl 67 — Other Taxable Income from Insurance. 
 
 For other taxable income from life insurance see Index, 
 "Life Insurance." 
 
 ^ 68 — Living Quarters Furnished as Part of Compensation. 
 
 Where an individual is furnished living quarters in addi- 
 tion to salary the rental value of such living quarters is 
 regarded as compensation subject to the income tax. — 
 Treasury Decision 2090; also, see H 55. 
 
 ^ 69— Mileage. 
 
 The difference between the amount received as mileage 
 and the amount of actual necessary expenses incurred on 
 
 204 
 
INDIVIDUALS— Continued INCOME— MisceUaneous 
 
 a journey shall be returned as income. — Treasury Decisions 
 2090 and 2079; also, see If 73. - 
 
 If 70 — Officer or Employe of a State. 
 
 An individual who enters into a contract with a State, 
 or any political subdivision thereof, for the doing of a 
 thing or things specified by the contract, the completion 
 of which will constitute a fulfillment of the contract on the 
 part of such individual, is not an officer or employee of the 
 State or political subdivision thereof within the meaning 
 and intent of Section 4 of the Income Tax Law and the 
 amount received by him from the State or political subdi- 
 vision thereof under the terms of the contract is to be 
 accounted for as income. — ^Art. 4, Reg. 33, Revised. 
 
 ^ 71 — Pensions. 
 
 Pensions paid by the United States, private institutions, 
 or individuals are to be accounted for, for income tax pur- 
 poses, in all cases where income of the pensioner is liable 
 for income tax. — Art. 4, Reg. 33, Revised. 
 
 II 72— Profit from the Sale of Stock. 
 
 When stock is sold from lots purchased at different times 
 and at different prices and the identity of the lots can not 
 be determined as to dates of purchase, the stock sold shall 
 be charged against the earliest purchases of such stock. 
 The difference between cost and amount realized on the 
 sale will be the profit to be accounted for as income if 
 the purchase was on or after March 1, 1913. Profit derived 
 from the sale of stock purchased prior to March 1, 1913, is 
 the difference between the fair market price or value as of 
 that date and the selling price. — Art. 4, Reg. 33, Revised. 
 
 Tf 73 — Per Diem Allowances in Lieu of Subsistence While 
 Traveling Under Orders. 
 
 The difference between the amount received as a per diem 
 allowances and the amount of actual necessary expenses in- 
 curred on a journey shall be returned as income. An amount 
 equal to ordinary home living expense should be excluded 
 as the same is not a proper deduction. 
 
 205 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 It 74— Proceeds of Sale of "Rights" Income. 
 
 In cases wherein corporations desiring to secure addi- 
 tional capital propose to issue and sell further shares of 
 stock, reserving to their stockholders the right to subscribe 
 for, at par or any other stipulated price, a certain number 
 of shares of the new stock issue, proportioned to the number 
 previously held, and if such stockholders shall sell their 
 rights, it will be held that the proceeds of such sale are in 
 their entirety income for the year in which the rights are 
 sold, and should be so returned by the stockholders, whether 
 they be individuals or corporations. — Art. 95, Reg. 33, Re- 
 vised. 
 
 If 75— Sale of Stock Acquired by Gift. 
 
 The fair market price or value of stock acquired by gift 
 subsequent to March 1, 1913, is the basis for computing 
 gain derived or loss sustained by the sale thereof. If ac- 
 quired by gift prior to March 1, 1913, the fair market price 
 or value as of that date is the basis for computation. — Art. 
 4, Reg. 33, Revised. 
 
 1j 76— Rent. 
 
 Amounts expended by tenants for taxes and necessary 
 repairs under agreement, in addition to a stipulated cash 
 rental, are items of taxable income, and as such should be 
 reported in the return of the landlord. A corresponding 
 amount may be deducted by the landlord. 
 
 Tl 76(a)— Retired Pay. 
 
 Retired pay of Army and Naval officers and judges of the 
 United States courts is subject to the income tax. 
 
 ]j 77— Royalty. 
 
 Royalty paid to a proprietor by those who are allowed to 
 develop or use property, or operate under some right be- 
 longing to him, is to be accounted for as income. — Art. 4, 
 Reg. 33, Revised. 
 
 ^ 78— Warrants of City, Etc. 
 
 In cases wherein warrants are issued by a city, town, or 
 other political subdivision of a State, and are accepted by 
 
 206 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 the contractor in payment for public work done, the face 
 value of such warrants must be returned as income for 
 the year in which they are received. If, for any reason, 
 the contractor upon conversion of the warrants into cash, 
 does not receive and can not recover the full face value of 
 the warrants so returned, he may allowably deduct from 
 gross income for the year in which the warrants' are 
 converted into cash, any loss sustained, which loss will be 
 measured by the difference between the face value of the 
 warrants returned as income and the amount actually re- 
 ceived for them in cash, or its equivalent, when redeemed 
 or disposed of. — Art. 108, Reg. 33, Revised. 
 
 Tl 7d — Compensation. 
 
 If an employe's total compensation, salary and bonus is 
 fixed, determined, and paid to him at one time, the same 
 should be considered income for the year in which received. 
 It follows that where a part of the compensation is in the 
 form of a salary payable monthly, and a part in the form 
 of a bonus not fixed and determined until on or after Jan- 
 uary 1 of the year following that in which the services 
 were rendered, the two parts of any one year's compensation 
 can not be considered together for the purpose of including 
 both amounts in the same year; but the fixed salary of 
 one year should be considered together with the bonus 
 received on or after January 1 of that year. Thus, if the 
 services were rendered in the year 1914 the employe's com- 
 pensation would be liable to tax together with the fixed 
 salary and the bonus paid on or after January 1, 1914. The 
 bonus to be paid on or after January 1, 1915, will belong 
 to the tax year 1915, together with the fixed salary re- 
 ceived during 1915. — Treasury Decisions 2135 and 2616. 
 
 Tl 80— Bonuses. 
 
 The question of when a bonus is taxable to the employe 
 receiving it and when it is exempt from taxation in his 
 hands has always been a perplexing one to a great many 
 taxpayers. 
 
 In most cases a bonus is in reality only additional salary 
 or compensation and not an actual gift. The determining 
 
INDIVIDUALS— Continued INCOME— Miscellaneous 
 
 factor is whether or not it has been charged off by the 
 payor (corporation, firm or individual) as an expense. If 
 the payor has not charged off as expense the amount paid 
 as bonuses, then it is, in fact, a gift to the employe and is 
 free of tax in his hands; but if the payor charges off the 
 bonuses on his books as an expense, the same as salary, it 
 naturally follows that the payor has paid no tax on this 
 amount so charged off and it is therefore not a gift but has 
 the status of additional salary or compensation and is tax- 
 able in the hands of the employe as such. 
 
 Tf 81 — Salary and Commissions. 
 
 A person receiving a salary and in addition a commission 
 of 1 per cent, on all sales, the exact amount due on account 
 of commissions not being determinable until February fol- 
 lowing the year in which the commissions were earned, at 
 which time both his salary for the preceding year and his 
 commissions are paid to him, should return as income, for 
 the year in which payment was made, the aggregate amount 
 received on account of salary and commissions. 
 
 ^ 82 — Salaries Paid by Organizations Exempt From the 
 Income Tax. 
 
 Salaries paid by exempt corporations are subject to the 
 income tax and should be returned as income by the indi- 
 vidual. — Treasury Decision 2090. 
 
 Tf 83 — Special Compensation for Service Rendered. ^ 
 
 Special compensation for service rendered must be in- 
 cluded as income. 
 
 If 84 — Voluntary Offerings. 
 
 Easter offerings, and fees received by clergymen for 
 funerals, masses, marriages, baptisms, etc., are considered 
 income subject to tax under the provision of the Income 
 Tax Law of October 3, 1913. Christmas gifts, however, are 
 not considered income within the meaning of the law and 
 should not be included in a return. — Treasury Decision 2090. 
 
 208 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 ^ 85^ — Where an Employe Is Paid Two Years' Salary 
 Conditionally. 
 
 Where an employe is paid a sum equal to two years' 
 salary on condition that he surrender his contract of em- 
 ployment, such sum should be reported by him on his annual 
 return as income. 
 
 ]\ 86 — Income Exempt from Tax. 
 
 (See Law, page 60, line 35.) 
 
 The following income is exempt from the provisions of 
 the law and is not to be included in a return of income : 
 
 (1) The proceeds of life insurance policies paid upon the 
 death of the insured to individual beneficiaries or to the 
 estate of the insured ; 
 
 (2) The amount received by the insured, as a return of 
 premium or premiums paid by him under life insurance, 
 endowment, or annuity contracts, either during the term or 
 at the maturity of the term mentioned in the contract or 
 upon the surrender of the contract. 
 
 (3) The value of property acquired by gift, bequest, 
 devise, or descent (but the income from such property shall 
 be included as income) . 
 
 (4) Interest upon (a) the obhgations of a State, Terri- 
 tory, or any political subdivision thereof, or the District of 
 Columbia, or (b) securities issued under the provisions of 
 the Federal Farm Loan Act of July 17, 1916; or (c) the 
 obligations of the United States or its possessions, or (d) 
 bonds issued by the War Finance Corporation. In the case 
 of obligations of the United States issued after September 
 1, 1917, and in the case of bonds issued by the War Finance 
 Corporation, the interest shall be exempt only if and to 
 the extent provided in the respective Acts authorizing the 
 issue thereof, and shall be excluded from gross income only 
 if and to the extent it is wholly exempt from taxation 
 to the taxpayer both under this title and under Title III. 
 
 Every person owning any of the obligations, securities or 
 bonds enumerated in paragraph (4) shall submit with his 
 return of income a statement in such form and with such 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 information as the Commissioner of Internal Revenue may 
 require, showing the number and amount of such obhga- 
 tions, securities and bonds so owned and the income re- 
 ceived therefrom. 
 
 (5) The income of foreign governments received from 
 investments in the United States in stocks, bonds, or other 
 domestic securities, owned by such foreign governments, 
 or from interest on deposits in banks in the United States 
 of moneys belonging to such foreign governments, or from 
 any other source within the United States. 
 
 (6) Amounts received, through accident or health insur- 
 ance or under workmen's compensation acts, as compensa- 
 tion for personal injuries or sickness, plus the amount of 
 any damages received whether by suit or agreement on 
 account of such injuries or sickness ; 
 
 (7) Income derived from any public utility or the exer- 
 cise of any essential governmental function and accruing 
 to any State, Territory, or the District of Columbia, or any 
 political subdivision of a State or Territory, or income 
 accruing to the government of any possession of the United 
 States, or any political subdivision thereof. 
 
 Whenever any State, Territory, or the District of Colum- 
 bia, or any pohtical subdivision of a State or Territory, prior 
 to September 8, 1916, entered in good faith into a contract 
 with any person or corporation, the object and purpose of 
 which is to acquirt;, construct, operate, or maintain a public 
 utiHty, no tax shall be levied under the provisions of this 
 title upon the income derived from the operation of such 
 public utility, so far as the payment thereof will impose a 
 loss or burden upon such State, Territory, District of Colum- 
 bia, or political subdivision; but this provision is not in- 
 tended to confer upon such person or corporation any finan- 
 cial gain or exemption or to relieve such person or corpora- 
 tion from the payment of a tax as provided for in this 
 title upon the part or portion of such income to which such 
 person or corporation is entitled under such contract; 
 
 (8) So much of the amount received by a person in the 
 military or naval forces of the United States as salary or 
 
 210 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 compensation in any form from the United States for active 
 services in such forces as does not exceed $3,500. 
 
 The word "United States" as used in this title shall be 
 construed to include the States, the Territories of Alaska 
 and Hawaii, and the District of Columbia. — Law, page 51, 
 line 20. 
 
 ^ 87 — Political Subdivision of State. 
 
 A political subdivision as here used is held to mean a 
 district, division, or community created by proper State 
 authority and which, by virtue of such authority is vested 
 with power to exercise certain governmental functions, such 
 as prescribing regulations for its government, the exercise 
 of certain police powers, the assessment and collection of 
 taxes, etc. — Art. 83, Reg. 33, Revised. 
 
 ^ 88 — Obligations of State, Etc. 
 
 Obligations issued by the duly constituted authorities of 
 such, a community so organized and empowered are the obli- 
 gations of a political subdivision of the State, and the 
 interest received on obligations of this character is ex- 
 empt from the taxes imposed by the Revenue Act of 1918 
 subject to the provisions of Section 213 (Law, page 60, 
 lines 10 and 48). However, a district without power to ex- 
 ercise any governmental function, created for the purpose 
 of making some improvement, primarily beneficial, to 
 the property located in and comprising the district, is 
 not, within the meaning of these acts, a political subdivision 
 of the State. Obhgations issued in payment for such im- 
 provement, although guaranteed by a county, municipality, 
 or other poHtical subdivision of the State, are not the 
 obligations of the State or of any political subdivision 
 thereof; but are rather the obligations of the benefited 
 property upon which they constitute a lien. Hence, the 
 income derived from obligations, which are a direct charge 
 against or lien upon benefited property, is not exempt from 
 these taxes, and must be returned as income of the recipient. 
 —Treasury Decision 1946.— Art. 84, Reg. 33, Revised. 
 
 211 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 If 89 — Obligations of the United States. 
 
 Section 213 of the Revenue Act of 1918 exempts from 
 the tax interest on the obligations of the United States 
 issued after September 1, 1917, only if and to the extent 
 provided in the Acts authorizing their issue 
 
 ^ 90 — United States Bonds and Certificates Issued Under 
 the Act of September 24, 1917. 
 
 Said Act provides that bonds and certificates issued there- 
 under shall be exempt from all taxes except estate or in- 
 heritance taxes, additional income taxes, commonly known 
 as surtaxes, and excess or war profits taxes — Art. 85, Reg. 
 33, Revised. 
 
 The exemption of interest received after January 1, 1918, 
 upon Liberty bonds is as follows : 
 
 Interest upon the first issue of 31/2S is totally exempt. If 
 bonds of the first non-taxable issue have been converted 
 into the second, third or fourth issues, they then have the 
 status of "obligations of the United States issued after Sept. 
 1, 1917" and the interest received upon the converted bonds 
 and the bonds of the second, third and fourth issues is ex- 
 empt from taxation to the following extent: If the tax- 
 payer holds no bonds of the fourth issue, the interest on an 
 aggregate amount of the second and third issues, not ex- 
 ceeding $5,000 of principal, is exempt. 
 
 As an example, assume the taxpayer has $10,000 of the 
 second issue upon which he receives $400 interest and $10,- 
 000 of the third issue upon which he receives $425 ; the in- 
 terest upon a total of $5,000 of the entire holding of the first 
 and second issues or $206.25 of the total of $825 interest re- 
 ceived would be exempt. 
 
 If the taxpayer holds any of the fourth issue, then the 
 interest on an amount of bonds of this issue, the principal 
 of which does not exceed $30,000, is exempt from tax. The 
 interest on bonds of the second and third issues, either con- 
 verted or unconverted, is exempt up to one and one-half 
 times the amount of the bonds of the fourth issue originally 
 subscribed for and held by the taxpayer at the time of 
 making his income tax return, not to exceed an aggregate 
 principal amount of $45,000. 
 
 212 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 Upon bonds of the first issue of 3i/^s which have been 
 converted into the fourth issue for the purpose of securing 
 any of the exemption privileges arising out of the owner- 
 ship of bonds of the fourth issue, the interest is exempt 
 from taxation to an amount of principal not exceeding 
 $30,000. 
 
 The above exemptions are in addition to the exemption 
 of an aggregate amount of $5,000 of principal of the second, 
 third and fourth issues, which is provided for in the Acts 
 authorizing the respective issues. 
 
 These privileges will remain in effect until two years 
 after the date of the termination of the present war with 
 Germany as fixed by proclamation of the President and are 
 accorded to all taxpayers whether individuals, partnerships, 
 associations or corporations. 
 
 As set forth in the above explanation, it is possible for a 
 taxpayer to secure exemptions on Liberty bonds to a total 
 of $110,000 principal amount, as follows : 
 
 Fourth issue $30,000 
 
 Second and Third 45,000 
 
 First converted into Fourth 30,000 
 
 Original exemption on Second, Third, Fourth 5,000 
 
 Total $110,000 
 
 If the owner of the bonds holds less than $30,000 worth 
 of the fourth issue, the amount of the second and third 
 issues exempt is one and one-half times the amount of the 
 fourth issue held, plus the further privileges as outlined 
 above. 
 
 ^ 91 — Dividends, Federal Reserve Bank. 
 
 The Federal Reserve Statute, Section 3, of the Act of 
 October 22, 1914, provides that Federal reserve banks and 
 the capital stock and surplus therein, are exempt from 
 taxation. 
 
 Under this provision of law the exemption provided for 
 in the Federal Reserve Act attaches to and follows the in- 
 come derived from dividends on stock of Federal reserve 
 banks into the hands of stockholders, that is to say, the divi- 
 
 213 
 
INDIVIDUALS— Continued • INCOME— Tax Exempt 
 
 dends received on the stock of Federal reserve banks are ex- 
 empt from the taxes imposed by the Acts of September 8, 
 1916, as amended, and of October 3, 1917. 
 
 This ruhng does not contemplate, however, that dividends 
 paid by member banks are exempt from the 2 per cent, tax 
 imposed by this title, but such dividends, in so far as they 
 may be received by other corporations, may be treated as 
 a credit against net income in computing the war income tax 
 imposed by Title I of the Act of October 3, 1917.— Art. 86, 
 Reg. 33, Revised. 
 
 ^ 92 — Federal Farm Loan Act. 
 
 Interest on securities issued under provisions of Federal 
 Farm Loan Act, July 17, 1916, is exempt from tax. — Art. 5, 
 Reg. 33, Revised. 
 
 ^ 93— Christmas Gifts. 
 
 Christmas gifts are not income within the meaning of 
 the law. — Treasury Decision 2090. 
 
 ^ 94 — Expense — Reimbursement of. 
 
 Amounts received from a railway company by way of 
 reimbursement for expenses incident to an accident are not 
 subject to the income tax. — Treasury Decision 2153. 
 
 H 95— Government Officers and Employes. 
 
 Treasury Decision 2079 holds that the amount received 
 for, or the money equivalent of. Quarters ; Heat and Light ; 
 Mileage; and Per diem allowance in lieu of subsistence, is 
 taxable income to the recipient, except that the actual cost 
 of a journey should be deducted from "Mileage" and the 
 actual amount expended for subsistence while traveling 
 should be deducted from "Per diem." 
 
 Section 213 of the Revenue Act of 1918 modifies the above 
 and provides that so much of the salary or compensation re- 
 ceived during the present war for active service in the 
 military or naval forces of the United States as does not 
 exceed $3,500 shall be exempt from income tax. 
 
 214 
 
INDIVIDUALS— Continued INCOME— Tax Exempt 
 
 If 96 — Income from Exempt Securities. 
 
 Where the entire income of an individual is from tax- 
 exempt bonds and where the amount of income other than 
 that from tax-exempt securities is less-^than the amount of 
 income for which a return is required, no return of income 
 is to be made. Interest from securities which is exempt 
 from tax under the Income Tax Law is not to be included 
 in returns of income. — Art. 26, Reg. 33, Revised. 
 
 U 97 — Annuity. 
 
 The amount paid under a life insurance, endowment or 
 annuity contract is not income when returned to the person 
 making the contract, either upon the maturity or surrender 
 of the contract ; but the amount by which the sum received 
 exceeds the sum paid and coming into the hands of the 
 person making the contract and payment, is income. — Treas- 
 ury Decision 2152. 
 
 ^ 98 — Dividends Paid on Life Insurance Policies. 
 
 Dividends paid on life insurance policies that have not 
 matured are not taxable income. Dividends from paid-up 
 policies must be included as income. — Treasury Decision 
 2137. 
 
 II 99 — Stock Dividends Declared from Special Surplus. 
 
 Stock dividends declared from a surplus created from the 
 revaluation of capital assets or a value placed upon trade- 
 mark, good will, etc., do not represent a distribution of earn- 
 ings or profits subject to tax in the hands of the recipient 
 shareholder. The entire proceeds derived by a shareholder 
 from the sale of such stock is income subject to both the 
 normal and additional tax and shall be accounted for in 
 the shareholder's return rendered for the year in which 
 sold. — Art. 4, Reg. 33, Revised. 
 
 HlOO—Salary Paid After Death. 
 
 Salary of an officer or employe paid for a limited period 
 after his death to his widow in recognition of the services 
 rendered by her husband, no services being rendered by the 
 widow, it is held that such payment is a gratuity and 
 
 215 
 
INDIVIDUALS— Continued DEDUCTIONS— Credits 
 
 exempt from taxation under the Income Tax Law. Such a 
 payment would not, however, be an allowable deduction as 
 an expense of carrying on business in the return of the 
 person, firm, or corporation paying same. — Treasury Deci- 
 sion 2090. 
 
 If 101 — State or Political Subdivision — Expenses in Con- 
 nection with Salary Received from, Not Allowable 
 Deduction. 
 
 Expenses incurred in earning income which is not subject 
 to tax under the Income Tax Law do not constitute allowable 
 deductions in computing net income from other sources 
 which are taxable under the law. — Treasury Decision 2137. 
 
 DEDUCTIONS, EXEMPTIONS AND CREDITS 
 T[102— ALLOWED. 
 
 In computing taxable income for purposes of the normal 
 tax the following exemptions and deductions are allowed. 
 
 If 103— Deductions. 
 
 For the purpose of the normal tax the law allows deduc- 
 tions for expenses, interest on indebtedness, taxes, losses, 
 depreciation, contributions, etc. These items are defined 
 under the head of "Deductions from Income Allowed." — 
 See If S6 (4), 90, 106. 
 
 ^ 1 04— CREDITS ALLOWED. 
 
 Income in a personal return for the normal tax shall be 
 credited with amounts received as dividends from a corpora- 
 tion which is taxable upon its net income and amounts re- 
 ceived as dividends from personal service corporations out 
 of earnings or profits upon which income tax has been im- 
 posed by Act of Congress. 
 
 The amount received as interest upon obligations of 
 the United States and upon bonds issued by the War 
 Finance Corporation, which is included in gross income un- 
 der Section 213.— See If 86 (4), 90, 106,; see also Law, 
 page 60, lines 10-48. 
 
 216 
 
INDIVIDUALS— Continued DEDUCTIONS—Expenses 
 
 If 105— PERSONAL EXEMPTION. 
 
 The law allows an exemption' in the nature of a deduction 
 from the taxable income the sum of $1,000 plus $1,000 addi- 
 tional if the person making the return be the head of the 
 family or a married person living with husband or wife, 
 and $200 additional for each dependent person. — See |f 216. 
 
 11 106— 
 
 DEDUCTIONS FROM INCOME ALLOWED. 
 
 (See Law, page 62, line 8.) 
 (For deductions allowed non-resident aliens, see T[ 455.) 
 In computing net income in the case of a citizen or resi- 
 dent of the United States for the purpose of the tax there 
 shall be allowed as deductions. 
 
 ^107— EXPENSES. 
 
 All the ordinary and necessary expenses paid or incurred 
 during the taxable year in carrying on any trade or 
 business, including a reasonable allowance for salaries or 
 other compensation for personal services actually rendered, 
 and including rentals or other payments required to be 
 made as a condition to the continued use or possession, for 
 purposes of the trade or business, of property to which the 
 taxpayer has not taken or is not taking title or in which he 
 has no equity. 
 
 11108- 
 
 This includes all amounts actually paid by a farmer for 
 labor in preparing his land for a crop and the cultivation, 
 harvesting, and marketing of the crop ; the cost of the seed 
 and fertilizer used ; the amounts expended for labor used in 
 caring for live stock and the cost of the feed; the cost of 
 stock purchased for the purpose of resale. (It should be 
 understood, however, that if such cost is claimed as a deduc- 
 tion, the entire proceeds received upon a sale of the stock 
 is to be returned as income.) The amounts actually paid 
 in making repairs to farm buildings, but not the dwelling 
 house; repairs to fences, farm machinery, etc.; the cost of 
 materials for immediate use and farm tools which are used 
 in the course of a year or two, such as binding twine, stock 
 
 217 
 
INDIVIDUALS— Continued DEDUCTIONS—Expenses 
 
 powders, pitchforks, spades, etc.; and the amount of rent 
 paid for a farm may also be claimed. The amounts paid for 
 live stock which is to be used for breeding purposes are 
 held to represent investment of capital and are not allow- 
 able as deductions. 
 
 If 109— 
 
 A merchant may claim as deductions the amounts paid 
 for advertising, hire of clerks, and other employes ; the cost 
 of the light, fuel, water, telephones, etc., used in or at his 
 place of business; drayage and freight bills; the cost of 
 operating delivery wagons, trucks, and repairs to same. 
 
 Tfiio— 
 
 A physician may claim as deductions the cost of medi- 
 cines and medical supplies used by him in the practice of his 
 profession, expenses paid in the operation and repair of an 
 automobile used in making professional calls, dues to med- 
 ical societies and subscriptions to medical journals, the ex- 
 penses of attending medical conventions, the rent paid for 
 office rooms and the hire of office assistants, the cost of the 
 fuel, light, water, telephone, etc., used in such office rooms. 
 Amounts expended for books, medical supplies, and surgical 
 instruments of a permanent character are not allowable as 
 deductions. 
 
 This in a general way outlines the ordinary and usual ex- 
 penses incurred by a farmer, a merchant, or a professional 
 man, which may be claimed as deductions, and the principles 
 underlying these allowances are equally applicable in the 
 case of anyone engaged in a business, trade, or profession. 
 In short, all expenses connected directly and solely with the 
 conduct of an income-producing business, trade, profession, 
 or vocation are allowable. 
 
 IfllZ- 
 
 Items of personal expense or items connected in any way 
 with the support, maintenance, and well-being of a family 
 are not allowed; neither are the amounts paid for tools. 
 
 218 
 
INDIVIDUALS— Continued DEDUCTIONS— Expenses 
 
 implements, vehicles, machinery, or surgical instruments 
 which are more or less permanent in character, nor the cost 
 of medical, law, or other professional books, nor are the 
 amounts expended in making permanent improvements or 
 betterments of any kind whatsoever, allowable as deduc- 
 tions. These latter items are held to be investments of cap- 
 ital upon which depreciation may be claimed. — Primer, 
 Question 59. 
 
 11 11 3— Alimony. 
 
 Alimony is a personal expense and as such is not deduct- 
 able by the payor and is not an item of income to the re- 
 cipient. This was decided by the United States Supreme 
 Court in the case of Gould vs. Gould, dated Nov. 19, 1917. 
 
 ^11 4 — Orchards and Ranches. 
 
 Amounts expended in the development of orchards and 
 ranches prior to the time when the productive stage is 
 reached constitute investments of capital. — Art. 4, Reg. 33, 
 Revised. 
 
 T[ 1 1 5 — Administration of Estates, Expenses of. 
 
 Referring to the difference between the expenses of ad- 
 ministration of estates, set forth as not allowable deduc- 
 tions in Treasury Decision 2090, and the expenses itemized 
 as allowable deductions on Form 1041, Revised, the distinc- 
 tion is sought to be made between such first expenses as are 
 properly chargeable against an estate as an entity, and such 
 other expenses incident to administration as may arise from 
 the nature of the properties and the details of business man- 
 agement. — Treasury Decision 2135. 
 
 Tl 110 — Allowances to Minor Children. 
 
 The father is legally entitled to the service of his minor 
 children. As a rule, allowances which he gives them, 
 whether said to be in consideration of service or otherwise, 
 are not allowable deductions, in his return of income nor are 
 they income to the children. — Art. 8, Reg. 33, Revised. 
 
 If a taxpayer employs a minor son or daughter to assist 
 him in his business or trade and pays them a salary or wage 
 
 219 
 
INDIVIDUALS— Continued DEDUCTIONS— Expenses 
 
 for such assistance, the amount paid them does not consti- 
 tute an allowable deduction in his return. If, however, the 
 son or daughter has attained his or her majority, the 
 amount of compensation paid for his or her services may be 
 so claimed. — Primer, Question 61. 
 
 Note: As the ruling was made under the Revenue Act of 
 1916, as amended by the Revenue Act of 1917, when a minor 
 child was not required to make a return of net income, it 
 would seem to follow that as the Revenue Act of 1918 re- 
 quires a minor child to make a return, the parent will be 
 allowed to deduct these amounts paid, and the minor re- 
 quired to pay a tax thereon if the sum is in excess of $1,000. 
 
 ]f 1 1 7 — Army Officers — Expenditures From Allowances. 
 
 The pay and allowance of Army officers are based on the 
 obligation of an officer to provide equipment and mounts as 
 a personal expense. The cost of mounts and equipment is 
 not therefore a deductible expense. — Art. 8, Reg. 33, Re- 
 vised. 
 
 The Revenue Act of 1918 provides that so much of the 
 amount received during the present war by a person in the 
 military or naval forces of the United States as salary or 
 compensation in any form from the United States for active 
 service in such forces as does not exceed $3,500, shall not be 
 included in income or be taxed to the recipient. 
 
 U 1 1 8 — Business Insurance. 
 
 Premiums paid in advance, covering a period of several 
 years, are to be taken as a deduction on the basis of one of 
 two methods : When the books are kept on a cash basis, the 
 entire amount is deductible in the year in which the prem- 
 ium is paid. Where the books are kept on an accrual basis 
 the premium is to be prorated over the period covered by 
 the insurance. — Art. 8, Reg. 33, Revised. 
 
 |[ 1 1 9 — Commission Paid to Real Estate Agent. 
 
 A commission paid to a real estate agent for collecting 
 rents and management of property is a legitimate business 
 expense and constitutes an allowable deduction in computing 
 net income. — Treasury Decision 2090. 
 
 220 
 
INDIVIDUALS— Continued DEDUCTIONS— Expenses 
 
 ^1 120 — Commissions Paid Salesmen. 
 
 Commissions paid salesmen as a part of the expense of 
 conducting business are allov/able deductions to the payer of 
 the commission. Such commissions, however, are income 
 and should be accounted for in the return of the person re- 
 ceiving them. 
 
 ^121 — Lobbying or Campaign Expenses — Not Deductible. 
 
 Sums of money expended for lobbying purposes, the pro- 
 motion or defeat of legislation, the exploitation of propa- 
 ganda, and contributions for campaign expenses are held not 
 to be an ordinary and necessary expense in the operation 
 and maintenance of the business of a corporation," and are 
 therefore not deductible from gross income in arriving at 
 the net income upon which the income tax is computed. — • 
 Treasury Decision 2137 ; also Art. 143, Reg. 33, Revised. 
 
 ^ 1 22^ — Assessments for Reorganization. 
 
 Amounts to be assessed and paid under a mutual agree- 
 ment between bondholders or stockholders of a corporation, 
 to be used in reorganization of a corporation, are held to be 
 investments of capital and not deductible for any purpose in 
 a return of income. — Art. 8, Reg. 33, Revised. 
 
 ^ 1 23 — Expenses Incurred in Earning Income Subject to 
 Tax. 
 
 Amounts paid from a salary received for all services ren- 
 dered, are deductible in returns of income as business ex- 
 penses, when the expenditures are occasioned by the service 
 in respect of which the salary is paid. — Art. 8, Reg. 33, 
 Revised. 
 
 ^ 1 24 — Expense — Architect's Services a Capital 
 Investment. 
 
 The amount expended for architect's services is part of 
 the cost of the building and not a deductible business ex- 
 pense. — Art. 8, Reg. 33, Revised. 
 
 If 1 25— Expense — Commissions Paid. 
 
 Commissions paid in purchasing and selling securities are 
 a part of the cost or selling price of the securities and not 
 
 221 
 
INDIVIDUALS— Continued DEDUCTIONS— Expenses 
 
 otherwise deductible. They do not constitute expense de- 
 ductions in a return of income. — Art. 8, Reg. 33, Revised. 
 
 11120 — Expenses Incurred in Earning Income Not Subject 
 to Tax. 
 
 Expenses incurred in earning income, which is not subject 
 to income tax do not constitute allowable deductions in com- 
 puting net income from other sources which are taxable 
 under the law. — Treasury Decision 2137. 
 
 I1 127 — Expense Incurred Entertaining Prospective 
 Customers. 
 
 Amounts expended by a business man in entertaining out- 
 of-town customers or prospective customers, can be claimed 
 as deductions if the sole purpose of the business man in mak- 
 ing such expenditures is to cultivate the good will of his 
 customers and secure an increase in trade. — Primer, Ques- 
 tion 63. 
 
 If 128— Farm. 
 
 Cost of stock purchased for resale is an allowable deduc- 
 tion under the item of expense, but money expended for 
 stock for breeding purposes is regarded as capital invested, 
 and amounts so expended do not constitute allowable deduc- 
 tions, except as hereinafter stated. — Art. 4, Reg. 33, Re- 
 vised. 
 
 11128(a)- 
 
 A person cultivating or operating a farm for recreation 
 or pleasure, on a basis other than the recognized principles 
 of commercial farming, the result of which is a continual 
 loss from year to year, is not regarded as a farmer. In such 
 cases if the expenses incurred in connection with the farm 
 are in excess of the receipts therefrom, the entire receipts 
 from the sale of products may be ignored in rendering a re- 
 turn of income, and the expenses incurred being regarded 
 as personal expenses, will not constitute allowable deduc- 
 tions in the return of income derived from other sources. — 
 Art. 4, Reg. 33, Revised. 
 
INDIVIDUALS— Continued DEDUCTIONS— Expenses 
 
 11128(b)- 
 
 Amounts expended for the purpose of making a farm 
 which is purchased in a run-down condition a profit-paying 
 property, cannot be claimed as deductions, as the amounts so 
 expended are held to be investments of capital, the result of 
 which is an improvement or betterment, and until the farm 
 becomes a paying proposition, no portion of the gross re- 
 ceipts is to be reported as income and no portion of the ex- 
 penses can be claimed as a deduction, either under the head 
 of "Business Expenses" or under the head of "Losses." — 
 Primer, Question 86. 
 
 11128(c)- 
 
 If a crop which is ready to be harvested, but has not been 
 sold, is destroyed by storm, flood, or fire, the value of that 
 crop cannot be claimed as a deduction, but it is understood, 
 of course, that the actual cost of producing or harvesting a 
 crop which has been so destroyed may be claimed as a deduc- 
 tion under the head of "Business Expense." — Primer, Ques- 
 tion 89. 
 
 1[ 1 29 — Farm Employes Compensation. 
 
 Where a taxpayer employs a man to assist in operating a 
 farm and a woman to assist about the house, the amount paid 
 to the male employe is allowed as a deduction in his return, 
 but a line is drawn as to the amount paid to the female em- 
 ploye. If her time is employed entirely in taking care of 
 milk and cream produced for sale, in the production of but- 
 ter, cheese, etc., the care of milk cans and churns, or, if a 
 separate table is maintained for laborers employed on the 
 farm and her services are used entirely in the preparation 
 and serving of the meals furnished the laborers and in car- 
 ing for their rooms, the compensation paid her constitutes an 
 allowable deduction. If, however, she is employed to assist 
 in caring for the farmer's own household, no deduction can 
 be claimed. — Primer, Question 60. 
 
 K 130— Farm Machinery. 
 
 The cost of farm machinery is not an allowable deduction 
 as an item of expense, but the cost of ordinary tools may be 
 included under this item. — Art. 4, Reg. 33, Revised. 
 
 223 
 
INDIVIDUALS— Continued DEDUCTIONS—Expenses 
 
 Tf 130(a) — Farm Repair Expenses on a Rental Basis. 
 
 Items of expense incurred and paid by a taxpayer during 
 the calendar year in connection with a farm which is leased 
 to another on a cash or crop-share rental basis, such as re- 
 pairs to fences, farm buildings, etc., are allowable as deduc- 
 tions. — Primer, Question 66. 
 
 If 131 —Farm Stock. 
 
 An individual engaged in raising and selling stock (cattle, 
 sheep, horses, etc.), is not entitled to claim as a loss the 
 value of such animals raised which die. The cost of raising 
 will have been taken as an expense deduction. In the case 
 of animals purchased, which die, the amount of purchase 
 money will be an allowable deduction, if not previously de- 
 ducted as a business expense. 
 
 In case of sale the total amount received for stock raised 
 and for stock purchased for resale is to be accounted for as 
 income. — Art. 4, Reg. 33, Revised. 
 
 ^ 132— Fees Earned, But Not Paid. 
 
 A professional man earning a fee in 1917, which was 
 never paid him, cannot claim such an amount as a deduction 
 for the reason that it was never returned as income. — 
 Primer, Question 96. 
 
 ^ 1 33 — Income Tax — Amount Paid Not Deductible. * 
 
 The Income Tax Law states that income taxes are not al- 
 lowable as deductions. Under this provision income tax 
 paid in 1918 on income received in 1917 or any previous year 
 cannot be deducted. — Primer, Question 79. 
 
 Tj 1 34 — Copyright and Plates — Investment of Capital in. 
 
 Amounts expended for securing copyright and plates 
 which remain in possession of and as property of the person 
 making the payments, are investments of capital and can 
 not be allowed as deductions in returns of income. — Art. 8, 
 Reg. 33, Revised. 
 
 ^ 1 35 — Titles to Property — Investment of Capital in. 
 
 Cost of defending title or perfecting title to property, con- 
 stitutes a part of the cost of the property and is not a busi- 
 ness expense. — Art. 8, Reg. 33, Revised. 
 
 224 
 
INDIVIDUALS— Continued DEDUCTIONS—Expenses 
 
 If 1 36 — Partnerships, As Such, Are Not Taxable. 
 
 For explanation, see "Partnerships" (see H 368.) 
 
 ^ 1 37 — Premium on Fidelity Bond. 
 
 Where an employe is required to furnish bond and pay 
 the premium on such bond as a necessary incident of his 
 employment, the premium on the bond will constitute an 
 allowable deduction in computing net income. — Treasury 
 Decision 2090. 
 
 I1 1 38— Premiums on Life and Fire Insurance. 
 
 Premiums paid for insurance on property which is not 
 occupied by the owner as a dwelling, but is rented or leased 
 to secure an income, constitute allowable deductions in com- 
 puting net income. 
 
 Premiums paid on life insurance policies by the insured do 
 not constitute allowable deductions under the Income Tax 
 Law. — Treasury Decision 2090. 
 
 If 1 39 — Rent or Capital Investment. 
 
 Where a leasehold is sold for a specified sum, the pur- 
 chaser may take as a deduction in his return an aliquot part 
 of such sum, each year, based on the number of years the 
 lease has to run. 
 
 ^ 1 40 — Rent for Residential Property. 
 
 In the case of a professional man who rents a property 
 for residential purposes but receives there, clients, patients, 
 or callers in connection with his professional work (the 
 place of business being elsewhere), no part of the rent 
 is deductible as business expense. 
 
 ^141 — Residential Property Used for Business Purposes. 
 
 Where a physician, or other professional or business man 
 rents a home and uses a portion of same for professional or 
 business purposes, the proportion of the rent paid which is 
 properly chargeable to the number of rooms so used may be 
 claimed as a deduction. — Primer, Question 72. 
 
 Tf 1 42^ — Salary in Conjunction With Room and Board. 
 
 If an employer agrees to pay an employe a certain stipu- 
 lated salary and furnish him with room and board, a fair 
 
 225 
 
INDIVIDUALS— Continued DEDUCTIONS— Interest 
 
 rental value is to be placed upon the room and upon the 
 meals furnished, and their amounts reported as income by 
 the employe. If the services of the employe are used in the 
 employer's business or trade, the latter may claim the rent 
 paid by him for the room, if any, and the actual cost of the 
 meals so furnished as a deduction under the head of "Busi- 
 ness Expenses." — Primer, Question 23. 
 
 ^ 143 — Taxes Paid by Tenant to Landlord. 
 
 Taxes paid by a tenant to a landlord are considered as 
 additional payment for rent and are deductible as an expense 
 of carrying on business. — Treasury Decision 2090. 
 
 ^ 1 44 — Special Compensation to Employes. 
 
 Special compensation to employes may be deducted from 
 gross income if clearly shown that such payment is made for 
 services rendered and is paid in pursuance of a contract ex- 
 pressed or implied. Not deductible if so-called compensa- 
 tion is a gratuity or voluntary payment. — Treasury Decision 
 2152. See If 38. 
 
 ^ 1 45 — Wages or Salary Drawn From Own Business. 
 
 Wages or salary drawn by a taxpayer from his own busi- 
 ness are more in the nature of a charge out of profits than a 
 charge against profits and therefore does not constitute an 
 allowable deduction. If such could be deducted it would 
 merely be added to his income, the effect of which would be 
 to take money out of one pocket and put it in another. — 
 Primer, Question 62. 
 
 11146— INTEREST. 
 
 All interest paid or accrued within the taxable year on 
 indebtedness, except on indebtedness incurred or continued 
 to purchase or carry obligations or securities (other than 
 obligations of the United States issued after September 24, 
 1917) , the interest upon which is wholly exempt from taxa- 
 tion under this title as income, is deductible. — Law, 
 page 62, Lines 8-20. 
 
INDIVIDUALS— Continued DEDUCTIONS— Taxes 
 
 14e(a) TAXES IMPOSED BY UNITED STATES, ITS 
 POSSESSIONS AND FOREIGN COUNTRIES 
 
 Following is a digest of the provisions of the provisions 
 of the law and a summary of paragraphs 147 to 152, which 
 follow : 
 
 (1) Taxes imposed on citizens or residents of the United States by 
 authority of the United States, Porto Rico and the Philippine Islands 
 (EXCEPT INCOME, WAR-PROFITS AND EXCESS-PROFITS TAXES), 
 are proper deductions from gross income. 
 
 (2) Taxes assessed against local benefits are not proper deductions. 
 
 (3) Taxes paid to a foreign government by a citizen or resident of 
 the United States (except income, war-profits and excess-profits taxes), 
 are proper deductions against gross income. 
 
 (4) Income, war-profits and excess-profits taxes paid by a citizen of 
 the United States to a foreign country, Porto Rico or the Philippine 
 Islands may be deducted from the amount of income taxes for which he 
 is liable under the Act. 
 
 (5) Subjects of foreign countries residing in the United States may use 
 as a credit income, war -profits and excess-profits taxes paid to Porto 
 Rico and the Philippine Islands. 
 
 (6) Subjects of foreign countries residing in the United States may 
 deduct as a credit against taxes due in the United States income^ war- 
 profits and excess-profits taxes providing the foreign country of which 
 the resident is a subject allows citizens of the United States residing in 
 such foreign country to deduct a similar credit. 
 
 If 147— Taxes. 
 
 Under the Revenue Act of 1918 the allowable deductions 
 from gross income as taxes are as follows: 
 
 ^ 1 48 — Taxes Imposed by Authority of the United States. 
 
 (a) Taxes paid or accrued within the taxable year im- 
 posed by the authority of the United States, except income, 
 war-profits and excess-profits taxes. 
 
 |] 1 49 — Taxes Imposed by Authority of Porto Rico and 
 Philippine Islands. 
 
 (b) With the exception of income, war-profits and excess- 
 profits taxes, the amount of all taxes paid or accrued within 
 the taxable year imposed by the authority of the govern- 
 ments of Porto Rico and the Philippine Islands, or by any 
 foreign government, are deductible from gross income. 
 
 227 
 
INDIVIDUALS— Continued DEDUCTIONS— Taxes 
 
 11149(a)- 
 
 A member of a partnership or a beneficiary of an estate 
 or trust may deduct as a credit his proportionate share of 
 such taxes so paid during the taxable year by the partner- 
 ship or by the estate or trust. 
 
 ^ 149(b)— 
 
 It is important to emphasize that the income, excess- 
 profits and war-profits taxes paid by a citizen or resident to 
 a foreign country, or to Porto Rico or the Philippine Islands, 
 are deductible as a credit, not from gross income, but from 
 the total amount of income tax, computed under the pro- 
 visions of the law for which a citizen or resident may be 
 liable— See T[ 151. 
 
 Thus, John Doe, who has paid an income or excess-profits 
 tax to a foreign country of $500, computes his total Federal 
 (U. S.) income taxes under the Revenue Act of 1918, at 
 $3,000. Under the provisions of Section 222 (Credit for 
 Taxes) he may deduct the $500 paid to a foreign country 
 from the $3,000 taxes so computed, leaving his net tax 
 liability $2,500. 
 
 K 1 50— Taxes Imposed by the Authority of a State, 
 Territory or Taxing Subdivision Thereof. 
 
 (c) Taxes paid or accrued within the taxable year im- 
 posed by the authority of any State or Territory or county, 
 school district, municipality, or other taxing subdivision of 
 any State or Territory are deductible from income. Such 
 deductible taxes, however, do not include those assessed 
 against local benefits. See U 157, 158. 
 
 jf 1 51 — Taxes Paid to a Foreign Government. 
 
 (d) Taxes paid or accrued within the year imposed upon 
 a citizen or resident of the United States by the authority of 
 any foreign country are deductible from gross income ex- 
 cept the amount of income, war-profits and excess-profits 
 taxes paid to any foreign country, the amount of which may 
 be deducted by a citizen or resident from the amount of 
 income taxes for which he is liable under the Act. See 
 II 149 and 149(b). 
 
INDIVIDUALS— Continued DEDUCTIONS— Taxes 
 
 H 1 52 — Foreign Taxes. 
 
 In the case of a citizen of the United States, the amount 
 of any income, war-profits and excess-profits taxes paid 
 during the taxable year (See H 151) to any foreign country, 
 upon income derived from sources therein, or to any pos- 
 session of the United States ; and in the case of a resident 
 of the United States, the amount of any such taxes paid dur- 
 ing the taxable year to any possession of the United States. 
 
 ^ 1 53 — Resident Aliens. 
 
 In the case af an ahen resident of the United States who is 
 a citizen or subject of a foreign country, the amount of any 
 such taxes (income, war-profits and excess-profits taxes) 
 paid during the year to such country, upon income derived 
 from sources therein, may be deducted from the total 
 amount of his taxes due to the United States, if such coun- 
 try in imposing taxes allows a similar credit to citizens of the 
 United States residing in such country; and in the case of 
 any such individual who is a member of a partnership or a 
 beneficiary of an estate or trust, his proportionate share 
 of such taxes paid during the taxable year by the partner- 
 ship or by the estate or trust to a foreign country or to any 
 possession of the United States, as the case may be. 
 
 —EXAMPLE. 
 
 A resident alien of the United States who is a subject of England owns 
 considerable real estate in the City of London and pays real estate taxes. 
 These taxes are a proper deduction against gross income received from the 
 United States and England. In addition to the real estate taxes he would 
 the income derived from his real estate holdings, and this income and 
 be obliged to pay to his own countiy income and excess -profits taxes on 
 excess-profits tax imposed by England could not be deducted as a credit 
 against his taxes due in the United States unless England allowed cit- 
 izens of the United States residing in England to charge off a like credit 
 for income and excess -profits taxes imposed by the United States. 
 
 T1 1 54 — Partnerships. 
 
 In the case of a member of a partnership where the 
 partnership has already given credit to the partner for 
 
 239 
 
INDIVIDUALS— Continued DEDUCTIONS—Taxes 
 
 the amount of any taxes so paid in his behalf and the part- 
 ner only accounts for the net amount received from the 
 partnership, the partner must not again take credit for the 
 taxes so paid as this would result in the taxpayers' having 
 taken a double deduction. 
 
 ^ 1 55 — Custom Duties. 
 
 Custom duties paid during the year by an individual are 
 allowable deductions as taxes or as part of the cost price, if 
 the individual is engaged in the importation of goods and 
 merchandise. 
 
 U 156 — Inheritance Taxes. 
 
 Inheritance taxes levied under the laws of a State and 
 being a charge against the corpus of the estate are not allow- 
 able as a deduction from income either to the estate or a 
 beneficiary thereof. 
 
 ]\ 1 57 — Local Benefits, Taxes Assessed Against. 
 
 Taxes paid pursuant to assessments levied by special dis- 
 tricts, such as irrigation, reclamation, drainage districts, 
 etc., for sidewalks in cities, street extension, grading, pav- 
 ing, etc., are held to be "taxes assessed against local bene- 
 fits." Such taxes are not allowable deductions in a return of 
 annual net income. — Treasury Decision 2090. See Law, 
 page, 62, line 48. 
 
 ^f 1 58 — Tax Assessments for Property Improvements. 
 
 Taxes assessed against an individual on property owned 
 by him to pay for the paving of a street contiguous to his 
 property, the construction of a sewer, sidewalk, etc., the 
 sprinkling or oiling of a street in front of his home, the con- 
 struction of levees to protect, or ditches to drain property 
 owned by him, cannot be claimed as deductions. In short, 
 such taxes as are not general in nature and are levied on ac- 
 count of some work or privilege the benefit of which accrues 
 to a limited number of property owners, of which the tax- 
 payer is one, are not allowable deductions. — Primer, Ques- 
 tion 78. 
 
 230 
 
INDIVIDUALS— Continued DEDUCTIONS— Taxes 
 
 U 1 59 — State Tax Assessed on Capital Stock of Banks. 
 
 Taxes on bank stock paid under legal requirement by the 
 bank for its stockholders are deductible by the stockholders 
 and not by the bank. Such payments are regarded as in the 
 nature of additional dividends and a proportionate amount 
 should be included by the stockholder in his dividends re- 
 ceived and then claimed as a deduction under the heading of 
 "Taxes."— Primer, Question 44; also Ar.t 8, Reg. 33, Re- 
 vised. 
 
 Where bank stock is sold and transferred between date 
 of assessment and payment of the tax, in the absence of 
 statute governing, the stockholder Hable for the tax (if the 
 tax was actually paid) will have the benefit of the tax deduc- 
 tion in return of income. This is a question of fact and 
 to be determined as such.— Art. 8, Reg. 33, Revised. 
 
 ^ leO— Taxes Paid by Tenant to Landlord. 
 
 Taxes paid by tenant to a landlord are considered an ad- 
 ditional payment for rent and are deductible as an expense 
 of carrying on business. — Treasury Decision 2090. 
 
 1)161— Taxes (Other Than Excess-Profits) Deductible. 
 
 AH taxes levied by the general taxing authority, levied 
 and paid on all taxable subjects, including tax imposed and 
 paid under the Revenue Act of 1917, except war-excess 
 profits, income taxes, and taxes assessed against local bene- 
 fits, are allowable deductions to the party paying the same. 
 Although excess-profits tax paid is not an allowable deduc- 
 tion in ascertaining the net income, the net income shown 
 on any return will be credited with the amount of excess- 
 profits tax for which the taxpayer will be liable for the same 
 year, in order to determine the amount of income-tax 
 liability. 
 
 In the case of business, excise, license, or privilege taxes, 
 they may be deducted either as taxes or items of expense, 
 but not under both heads. — Art. 8, Reg. 33, Revised. 
 
 231 
 
INDIVIDUALS— Continued DEDUCTIONS—Losses 
 
 LOSSES. 
 T1 1 82 — All Losses Deductible. 
 
 Losses sustained during the taxable year, if not compen- 
 sated by insurance or otherwise, are proper deductions in 
 arriving at net income for the purposes of the tax whether 
 such losses were incurred in the taxpayer's regular trade 
 or business or whether they were incurred in transactions 
 entered into for profit though not connected with the tax- 
 payer's regular trade or business; also losses of property 
 whether or not such property is connected with the tax- 
 payer's regular trade or business. 
 
 This is of especial interest to investors and brokers who 
 have sustained losses in investment or speculative accounts. 
 
 Non-resident aliens are allowed to deduct losses on trans- 
 actions entered into for profit and not connected with trade 
 or business only as to such transactions within the United 
 States. 
 
 ff 163— -Losses Defined. 
 
 The Revenue Act of 1918 defines deductible losses as fol- 
 lows: 
 
 (a) Losses sustained during the taxable year and not 
 compensated for by insurance or otherwsie, if incurred in 
 trade or business. 
 
 (b) Losses sustained during the taxable year and not 
 compensated for by insurance or otherwise, if incurred in 
 any transaction entered into for profit, though not connected 
 with trade or business. In the case of a non-resident ahen 
 individual, such loss is deductible only as to transactions 
 within the United States. 
 
 (c) Losses sustained during the taxable year of property 
 not connected with the trade or business if arising from 
 fires, storms, shipwreck or other casualty, or from theft, 
 and if not compensated by insurance or otherwise. In the 
 case of a non-resident alien individual, such loss is deduct- 
 ible only on property within the United States. 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 ^ 1 64 — Losses of Property or From Sale of Property. 
 
 For the purpose of ascertaining the loss sustained from 
 the sale or loss of property, real, personal, or mixed, ac- 
 quired before March 1, 1913, the fair market price or value 
 of such property as of March 1, 1913, shall be the basis for 
 determining the amount of such loss sustained. 
 
 Losses not compensated for by insurance or otherwise, are 
 easily ascertained, and there would not appear to be any 
 chance of erroneous construction as to these. 
 
 ^1 1 65— Losses by Fire in Standing Timber. 
 
 The actual amount of capital invested in standing timber, 
 if acquired on or after March 1, 1913, and later destroyed by 
 fire, may be claimed as a deduction if not reimbursed by in- 
 surance or otherwise. If the timber was acquired prior to 
 March 1, 1913, its fair market price or value as of that date 
 may be claimed. To illustrate the methods to be employed 
 in computing the amount of loss allowable as a deduction the 
 following is submitted : A tract of land was acquired prior 
 to March 1, 1913, and the estimated amount of timber stand- 
 ing on that tract on that date was 1,000,000 feet, board 
 measure, the fair market price or value per 1,000 feet, estab- 
 lished by the current prices prevailing in the locality of the 
 tract in question as of March 1, 1913, being $4. During the 
 year 1917, 400,000 feet of this timber was destroyed by fire. 
 In this case $1,600 is the amount which may be claimed as 
 a deduction. — Primer, Question 87. 
 
 Tj 1 66 — Loss From Reduction in Value of Inventory — 
 Rebates. 
 
 (a) At the time of filing return for the taxable year 1918 
 a taxpayer may file a claim in abatement based on the fact 
 that he has sustained a substantial loss (whether or not 
 actually reahzed by sale or other disposition) resulting from 
 any material reduction (not due to temporary fluctuation) 
 of the value of the inventory for such taxable year, or from 
 the actual payment after the close of such taxable year of 
 rebates in pursuance of contracts entered into during such 
 year upon sales made during such year. In such case pay- 
 ment of the amount of the tax covered by such claim shall 
 
 233 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 not be required until the claim is decided, but the taxpayer 
 shall accompany his claim, with a bond in double the amount 
 of the tax covered by the claim, with sureties satisfactory 
 to the Commissioner, conditioned for the payment of any 
 part of such tax found to be due, with interest. If any part 
 of such claim is disallowed then the remainder of the tax due 
 shall on notice and demand by the collector be paid by the 
 taxpayer with interest at the rate of 1 per centum per 
 month from the time the tax would have been due had no 
 such claim been filed. If it is shown to the satisfaction of 
 the Commissioner that such substantial loss has been sus- 
 tained, then in computing the tax imposed by this title the 
 amount of such loss shall be deducted from the net income. 
 
 (b) If no such claim is filed, but it is shown to the satisfac- 
 tion of the Commissioner that during the taxable year 1919 
 the taxpayer has sustained a substantial loss of the charac- 
 ter above described, then the amount of such loss shall be 
 deducted from the net income from the taxable year 1918 
 and the tax imposed by this title for such year shall be re- 
 determined accordingly. Any amount found to be due to the 
 taxpayer upon the basis of such redetermination shall be 
 credited or refunded to the taxpayer in accordance with the 
 provisions of Section 252. — See Law, page 85, line 55. 
 
 ^ 1 68 — Loss Does Not Include Any Element of Depreciation. 
 
 In determining the amount of deductible losses allowable 
 to individuals and foreign and domestic corporations, the 
 loss considered has in it no element of "depreciation" or "al- 
 lowance for wear and tear," or "compensation from insur- 
 ance or otherwise." It is to be such loss as is absolute and 
 complete and which has been actually sustained. — Treasury 
 Decision 2005. 
 
 11169 — Depreciation. 
 
 Depreciation to cover exhaustion, wear and tear, and obso- 
 lescence, as an allowable deduction has been separately pro- 
 vided for, and is not to be confused with loss. — See U 185. 
 
 234 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 If 1 70 — Bonds and Similar Securities Written Off at the 
 Direction of the Comptroller of the Currency. 
 
 The fact that bonds or similar securities were written off 
 at the direction of the Comptroller of the Currency or State 
 banking department is not material. A mere book entry 
 does not constitute either a loss or a gain for the purpose of 
 the income tax. The fact that bonds were written off does 
 not necessarily imply that they are a total loss, nor is this 
 act conclusive proof that any loss occurred during the year 
 for which return was made. 
 
 Losses of this character are only ascertainable when the 
 securities mature, are disposed of, or cancelled. — Art. 148, 
 Reg. 33, Revised. 
 
 ]f 1 71 — Loss or Depreciation Through Amortization of 
 Bonds. 
 
 This item is covered by H 204. 
 
 ^ 1 7Z — Losses on District Irrigation Bonds. 
 
 District irrigation bonds, as a rule, if not always, are a 
 lien upon the real estate affected by the irrigation project, 
 and until the corporation has taken such steps as are neces- 
 sary to protect its rights and enforce the collection of the 
 bonds, it does not appear that the corporation would be war- 
 ranted in writing out of its assets and deducting from in- 
 come, as a loss, the face value or any other arbitrarily 
 ascertained amount representing a loss or shrinkage in value 
 of such bonds. 
 
 ^ 1 73 — Assessment on Stock. 
 
 Assessments made by a corporation on its capital stock 
 are regarded as further investments of capital and do not 
 constitute an allowable deduction in the return of the indi- 
 vidual. But in the case of a shareholder in an irrigation 
 company where the purpose of the assessment is merely to 
 raise funds to keep the irrigation system in usable condition 
 and not to make extensions or betterments, the amount as- 
 sessed against each shareholder may be claimed as deduc- 
 tion. — Primer, Questions 70 and 71. 
 
 235 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 If 174— Loss— Good Will. 
 
 Good will does not represent a value attaching to physical 
 property. It is held to be an intangible asset whose value, 
 separate and apart from the business with which it is con- 
 nected, is not acapable of determination. For the purpose of 
 income tax it is capable of neither appreciation nor deprecia- 
 tion. An amount claimed to represent its decline in value is 
 not an allowable deduction from gross income in computing 
 the tax liability of an individual or corporation. — Art. 8, 
 Reg. 33, Revised. 
 
 T1 1 75 — Inventories. 
 
 Whenever in the opinion of the Commissioner the use of 
 inventories is necessary in order clearly to determine the 
 income of any taxpayer, inventories shall be taken by such 
 taxpayer upon such basis as the Commissioner, with the 
 approval of the Secretary, may prescribe as conforming 
 as nearly as may be to the best accounting practice in the 
 trade or business and as most clearly reflecting the income. 
 
 11176— Bad Debts. 
 
 (Law, page 54, line 51.) 
 
 There may be deducted from income all debts due to the 
 taxpayer actually ascertained to be worthless and charged 
 off within the taxable year. — Law, page 63, line 9. 
 
 In order that a debt may be claimed as a deduction, it 
 must be (a) a bona fide debt, (b) definitely ascertained to be 
 worthless and uncollectible during the year for which the 
 deduction is claimed, and (c) if books are kept it must be 
 charged off within the year for which the deduction is 
 claimed and no longer considered an asset or carried as such 
 on the books. — Primer, Question 90. 
 
 \\ 1 77 — Bad Debts — Compromise. 
 
 Where an indebtedness is claimed and contested and a 
 settlement is had by way of compromise whereby an 
 amount, less than the debt claimed, is accepted in full pay- 
 ment and satisfaction of the debt, the difference between the 
 amount paid and that claimed is not allowable as a deduction 
 for bad debts. Where the settlement in compromise con- 
 
 236 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 sists of a promise to pay an amount less than the debt 
 claimed, the amount promised to be paid forms the basis of 
 a new transaction, and upon failure to make good this prom.- 
 ise the question will arise as to the deductibility of the new 
 amount only. 
 
 |[ 178— Bad Debts— Further Definition. 
 
 Where all of the surrounding and attendant circumstances 
 indicate that a debt is worthless and uncollectible and that 
 legal action to enforce payment would in all probability not 
 result in the satisfaction of execution on a judgment, a 
 showing of these facts will be sufficient showing of the 
 worthlessness of the debt for purposes of deduction. 
 
 In a case where " A " indorses a note for " B " and the 
 latter has departed for parts unknown when the note be- 
 comes due in 1918 and " A " is required to make good his 
 indorsement, if he has no knowledge of " B*s '' present 
 whereabouts and has good reason to believe that he is pos- 
 sessed of no assets and that it is his intention never to make 
 payment, the amount so paid by " A " may be considered a 
 bad debt due him from " B ". — Primer, Question 93. 
 
 In the case where a taxpayer advances a certain sum to a 
 needy friend or relative with good reasons for believing that 
 the advance will never be returned, such amount cannot be 
 claimed as a deduction; partaking as it does somewhat of 
 the nature of a philanthropic donation or a goodwill offering, 
 it is not held to constitute a bona fide debt. — Primer, Ques- 
 tion 94. 
 
 ^ 1 79— Bad Debts Arising From Unpaid Wages, Salaries, 
 Rents, Etc. 
 
 Debts arising from unpaid wages, salaries, rents, and 
 items of similar taxable income will not be allowed as a de- 
 duction, unless the income they represent has been included 
 in the return of gross income for the year in which the de- 
 duction as a bad debt is sought to be made, or in a previous 
 year, and the debts themselves have been actually ascer- 
 tained to be worthless and charged off. 
 
 237 
 
INDIVIDUALS— Continued DEDUCTIONS— Losses 
 
 If 180 — Bad Debts — Bankruptcy. 
 
 Bankruptcy may or may not be an indication of worth- 
 lessness of a debt. Actual determination of worthlessness 
 in such cases is possible only when settlement in bankruptcy 
 shall have been had. Only the difference between the 
 amount received in distribution of assets of the bankrupt 
 and the amount of proved claim may be considered for the 
 purpose of deduction as a bad debt. 
 
 An amount loaned to a corporation or firm which has be- 
 come bankrupt cannot be claimed as a deduction unless the 
 affairs of the debtor have been fully adjusted, its assets sold 
 for the benefit of, or distributed to, its creditors, and its re- 
 ceiver in bankruptcy discharged. If all this has occurred 
 during the year 1918, so much of the debt as remains un- 
 paid after the receiver is discharged may be claimed as a 
 deduction for the year 1918. But it is not necessary that a 
 corporation or firm be declared a bankrupt before the 
 amount is claimed as a deduction. If the debtor corporation 
 has no assets whatsoever, and it is definitely known that 
 nothing whatsoever can be collected from debtor itself or 
 any person connected with it, a creditor need not go to the 
 expense of instituting bankruptcy proceedings in order to es- 
 tablish his right to claim the worthless debt as a deduction. 
 — Primer, Questions 91 and 92. 
 
 ^ 1 81 — Bad Debts — ^Foreclosure Sale on a Mortgage. 
 
 Where, under foreclosure, a mortgagee buys in the mort- 
 gaged property and credits the indebtedness with the pur- 
 chase price, the difference between purchase price and the 
 indebtedness will not be allowable as a deduction for bad 
 debt — the property which was security for the debt being 
 in possession and ownership of the mortgagee is, for the pur- 
 poses of income tax, held to be sufficient to justify a disal- 
 lowance of a claim for bad debt. 
 
 Only where purchaser for less than debt is another than 
 mortgagee may the difference between debt and net from 
 sale credited be deducted as bad debt. — Art. 8, Reg. 33, 
 Revised. 
 
 238 
 
INDIVIDUALS— Cont'd DEDUCTIONS— Depreciation 
 
 I1 182— Debts Due Prior to March 1, 1913. 
 
 All debts representing amounts that became due and 
 payable prior to March 1, 1913, and not ascertained to be 
 worthless prior to that date, whether representing income 
 or a return of capital, are held to be allowable deductions 
 . . . in a return of income for the year in which they are 
 actually ascertained to be worthless and are charged off. — 
 Treasury Decision 2224. 
 
 1(183- Bad Debts— Income if Collected. 
 
 Bad debts which have been claimed and allowed as a de- 
 duction in prior returns are considered income if subse- 
 quently collected. — Art. 4, Reg. 33, Revised. 
 
 Where a taxpayer in rendering his 1914 return claimed 
 a deduction to cover a debt then believed to be absolutely 
 worthless and in 1918 the debtor has discharged part of his 
 obligation, the amount should be considered as an item of 
 income and included under " Gross Income ** in the 1918 re- 
 turn. — Primer, Question 95. 
 
 Tf 1 84 — Default on Installment Payments. 
 
 See n 44, 45, 46. 
 
 ^85- 
 DEPRECIATION, DEPLETION AND AMORTIZATION. 
 
 A reasonable deduction may be made for the exhaustion, 
 wear and tear, and obsolescence, of property arising out of 
 its use or employment in the business or trade. — Law, 
 page 63, line 11. 
 
 As the rate at which depreciation may be claimed is de- 
 pendent, in a greater or less extent, upon local conditions, 
 the use to which the property is put, and its probable life- 
 time under normal business conditions, no specific rates at 
 which it may be claimed have ever been established. The 
 law states that a " reasonable allowance " may be claimed 
 and it is for the taxpayer to determine what constitutes a 
 " reasonable allowance." To compute the amount which 
 may be claimed, a taxpayer should determine the probable 
 lifetime of the property, then divide its cost to him by the 
 
 239 
 
INDIVIDUALS— Con^d DEDUCTIONS— Depreciation 
 
 number of years it will be usable in a business in which 
 employed, and the result thus obtained will represent the 
 amount which may be claimed each year as a deduction, 
 e. g., a frame building, the probable lifetime of which, with- 
 out repair or replacement, is 25 years, cost $5,000. Divide 
 $5,000 by 25 and claim $200 each year as depreciation. 
 
 Tjise- 
 
 While each taxpayer must determine the probable lifetime 
 of his property without regard to the following figures, it 
 has been estimated that the average usable lifetime of a 
 frame building is 25 years; a brick building, 35 years; a 
 stone building or a steel and concrete building, 50 to 100 
 years. The estimated lifetime of ordinary machinery is 10 
 years; that of automobiles used for business or farm pur- 
 poses and farm tractors, 4 to 5 years. 
 
 11187- 
 
 If a taxpayer wishes to claim the full amount of depreci- 
 ation estimated to have occurred in the value of a building, 
 or other property used for business or trade purposes, he 
 may do so, but this precludes his claiming a deduction to 
 cover any amount expended during the same year in making 
 repairs. If he wishes to claim a deduction on account of re- 
 pairs, their cost must be deducted from the full amount of 
 depreciation, and the balance may then be claimed as a 
 deduction under the heading of " Depreciation " ; that is, if a 
 taxpayer expends $100 in making repairs to a building which 
 will depreciate in value $200 during the calendar year he 
 may claim $100 as a business expense and $100 as depreci- 
 ation, or he may claim $200 as depreciation and nothing for 
 repairs. In short, the aggregate deductions claimed on ac- 
 count of repairs and depreciation must not exceed the full 
 amount of depreciation estimated to hav(B occurred. 
 
 (Note. — The repairs referred to in the above paragraph 
 are such as are general in character, representing replace- 
 ments, etc. Small items, such as replacement of broken 
 window panes, papering, minor repairs, etc., are allowable, 
 even though full amount of depreciation ha^ been claimed.) 
 
 240 
 
INDIVIDUALS— Cont'd DEDUCTIONS—Depreciation 
 
 11188- 
 
 In claiming depreciation the following fundamental prin- 
 ciples must be taken into consideration : 
 
 11189- 
 
 (a) Only such depreciation as results from exhaustion, 
 wear and tear, and obsolescence, of property, arising out of 
 its use or employment in business or trade, can be claimed. 
 Depreciation in the value of a home or any article of prop- 
 erty, such as automobiles, used for personal pleasure or con- 
 venience, cannot be claimed ; the property must be used for 
 the purpose of producing income. 
 
 11190- 
 
 (b) Depreciation other than that arising from wear and 
 tear, such as a lessening of values due to changes in the so- 
 cial or business conditions in the neighborhood in which a 
 property is located, changes of street grade, of fluctuations 
 in market values, etc., cannot be claimed. 
 
 11191- 
 
 (c) Depreciation in the value of land, whether improved 
 or unimproved, due to ordinary erosion, exhaustion, or any 
 other cause cannot be claimed. 
 
 11192- 
 
 (d) Where the value of a piece of machinery or any other 
 asset is lessened by reason of the production of an improved 
 machine or article, that depreciation cannot be claimed, as it 
 does not result from exhaustion, v/ear and tear. 
 
 (e) Where, in the course of years, the owner of property 
 has claimed its full cost as depreciation in his income tax 
 returns, no further claim will be allowed. 
 
 11194- 
 
 (f ) The value to be cared for by depreciation is the actual 
 amount invested in the property and not the value which 
 may be ai'bitrarily or otherwise fixed. — Primer, Question 99. 
 
 241 
 
INDIVIDUALS— Cont'd DEDUCTIONS— Depreciation 
 
 Losses due to the voluntary removal or destruction of 
 buildings, etc., incident to improvements are either a proper 
 charge to the cost of new additions or to depreciation already 
 provided, as the facts may indicate, but in no case is it a 
 proper deduction in determining net income. If, however, 
 a building is destroyed prior to the close of its lifetime, as 
 estimated for the purposes of making depreciation charges, 
 that portion of its cost which is properly chargeable to the 
 period it might have remained in a usable condition may be 
 considered a part of the cost of the new building when com- 
 puting the amount of the gain or profit derived from a sale 
 of the latter. — Prim.er, Question 100. 
 
 11196- 
 
 If the authorities of a municipality declare that a building 
 is unsanitary or unsafe for the purposes to which put and 
 its destruction is ordered, the losses sustained by the owner 
 cannot be claimed either as a loss or as depreciation. — 
 Primer, Question 101. 
 
 I1 1 97 — Amortization. 
 
 In the case of buildings, machinery, equipment, or other 
 facilities, constructed, erected, installed, or acquired, on 
 or after April 6, 1917, for the production of articles con- 
 tributing to the prosecution of the present war, and in the 
 case of vessels constructed or acquired on or after such date 
 for the transportation of articles or men contributing to 
 the prosecution of the present war, there shall be allowed a 
 reasonable deduction for the amortization of such part of 
 the cost of such f acihties or vessels as has been borne by the 
 taxpayer, but not again including any amount otherwise 
 allowed under this title or previous Acts of Congress as a 
 deduction in computing net income. At any time within 
 three years after the termination of the present war the 
 Commissioner may, and at the request of the taxpayer 
 shall, re-examine the return, and if he then finds as a re- 
 sult of an appraisal or from other evidence that the deduc- 
 
 243 
 
INDIVIDUALS— Cont'd DEDUCTIONS— Depreciation 
 
 tion originally allowed was incorrect, the taxes imposed by 
 this title and by Title III for the' year or years affected shall 
 be redetermined ; and the amount of tax due upon such re- 
 determination, if any, shall be paid upon notice and demand 
 by the collector, or the amount of tax overpaid, if any, shall 
 be credited or refunded to the taxpayer in accordance with 
 the provisions of Section 252. 
 
 If 1 98 — Oil and Gas Wells, Mines, Other Natural Deposits 
 and Timber — Depletion and Depreciation of. 
 
 In the case of mines, oil and gas wells, other natural de- 
 posits, and timber, a reasonable allowance for depletion and 
 for depreciation of improvements, according to the peculiar 
 conditions in each case, based upon cost including cost of 
 development not otherwise deducted, is allowed. In de- 
 termining cost, the fair market value as of March 1, 1913, 
 will be representative for property acquired prior to that 
 date and the actual cost if acquired subsequent to March 1, 
 1913. Mines, oil and gas wells, discovered by the taxpayer 
 by prospecting and exploration after March 1, 1913, the 
 fair market value of which is materially disproportionate 
 to the actual cost, the depletion allowance shall be based on 
 the fair market value of the property at the date of dis- 
 covery, or within 30 days thereafter. 
 
 The deductions provided in the above paragraph must be 
 computed under regulations prescribed by the Commissioner 
 of Internal Revenue. In the case of leases, the deduction 
 shall be equitably apportioned between the lessor and lessee. 
 
 ![i9a— 
 
 The value of mines as of March 1, 1913, must be deter- 
 mined upon the salable value en bloc. 
 
 11200— 
 
 This value (en bloc) having been ascertained, the num- 
 ber of units (tons, pounds, etc.) should be made. The en 
 bloc value, divided by the estimated number of units in the 
 mine, will determine the per unit value, which, multiplied by 
 the number of units mined and sold during any one year, 
 
 243 
 
INDIVIDUALS— Cont^d DEDUCTIONS—Depreciation 
 
 will determine the sum which will constitute an allowable 
 deduction from the gross income of that year on account of 
 depletion. — Treasury Decision 2446. 
 
 11201 — 
 
 The value to be cared for by depreciation is the actual 
 amount invested in the property and not the value which 
 may be arbitrarily or otherwise fixed. — Art. 8, Reg. 33, 
 Revised. 
 
 If 202 — Depreciation Not to Be Confused with Loss. 
 
 Depreciation as an allowable deduction in ascertaining net 
 income is not to be confused with loss. 
 
 ^ 203 — Book Values Not a Basis for Determining 
 Depreciation. 
 
 Book values which reflect a shrinkage in the value of 
 assets are not a basis for determining taxable income. — 
 Treasury Decision 2090. 
 
 Likewise and conversely any appreciation in the value 
 of assets due to an adjustment or appraisal and entered 
 upon the books of the individual or corporation is held not to 
 be income until such increase in value has been converted 
 into cash or its equivalent. Hence in the preparation of re- 
 turns mere book entries of appreciation in the value of cap- 
 ital assets will be disregarded. — See also T[ 205. 
 
 jf 204 — Amortization of Bonds. 
 
 The original regulations (Art. 135) were revised and par- 
 tially revoked by Treasury Decision 2005, which holds, in 
 effect, that neither increase nor shrinkage in book values, 
 due to market fluctuations or otherwise, is to be taken into 
 account in making returns of annual net income. By the 
 amended ruling (Treasury Decision 2161) corporations hold- 
 ing bonds which were purchased above , ar and proportion- 
 ately reducing the value of those bon^^s each year, are no 
 longer permitted to deduct such depreciation in a return of 
 income. In the case, however, of corporations selling their 
 own bonds at a discount, such discount, under conditions 
 shown in Art. 135, as revised, may be prorated over the life 
 
 ^ 244 
 
INDIVIDUALS— Cont^d DEDUCTIONS— Depreciation 
 
 of the bonds and an aliquot part deducted from gross income 
 each year. 
 
 H 205 — Depreciation in Book Values of Securities. 
 
 Depreciation in book values of bonds and similar securities 
 written down at direction of Comptroller of Currency are 
 not allowable, but Section 203 of the present Act provides 
 that, whenever in the opinion of the Commissioner of In- 
 ternal Revenue it is considered necessary in order to reflect 
 the true income, the taxpayer must take an inventory under 
 rules and regulations prescribed by the Commissioner, and 
 in such a manner as conforms as nearly as possible to the 
 best accounting practice in the trade or business most 
 clearly disclosing the correct income. 
 
 This section provides further that if the taxpayer con- 
 siders that he has sustained a loss resulting from a reduc- 
 tion in the value of the inventory for the taxable year, 
 either before the time of filing or subsequently, he may 
 present a claim for abatement or refund in the amount of 
 such loss ; and if the evidence submitted proves satisfactory 
 to the Commissioner the amount of the loss so claimed 
 shall be credited or refunded. 
 
 Under the previous Act the Commissioner ruled, with the 
 approval of the Attorney General, that dealers in securities 
 were allowed the privilege of inventorying securities either 
 at cost or market value whichever was lowest. It is problem- 
 atical whether this ruling will be made applicable to the 
 present Act on account of the unusual fluctuation of market 
 values due to the termination of the present war. 
 
 ^ 206 — Depreciation in Value of Patents. 
 
 If a taxpayer buys a patent for $5,000 which, under the 
 patent laws of the United States, had five years yet to run, 
 and the value of this patent depreciates each year on account 
 of the exhaustion of the patent period, the cost of the patent 
 divided by the number of years it has yet to run yields an 
 amount which may be claimed each year as depreciation. In 
 this case the amount is $1,000. — Primer, Question 102. 
 
 245 
 
INDIVIDUALS— Cont'd DEDUCTIONS— Depreciation 
 
 II 207 — Depreciation in Value of Stage Costumes. 
 
 If costumes purchased by actors and actresses are used 
 exclusively in the production of a play, and are not adapted 
 for occasional personal use and are not so used, a deduction 
 may be claimed on account of such depreciation in their 
 value as occurs during the year on account of wear and tear 
 arising from their use in the productions of the play or to 
 their becoming obselete at the close of the production. — 
 Treasury Decision 2090. 
 
 TI 208 — Depreciation — Farm Buildings. 
 
 Provision is made for "a reasonable allowance for the ex- 
 haustion, wear and tear of property arising out of its use or 
 employment * * *," there may be claimed a reasonable 
 allowance for depreciation on farm buildings (other than a 
 dwelling occupied by the owner) , farm machinery, and other 
 physical property, including stock purchased for breeding 
 purposes, but no claim for depreciation on stock raised or 
 purchased for resale will be allowed. 
 
 II 209 — Depreciation — Real Estate. 
 
 Real estate, as such, and as distinct from the improve- 
 ments thereon, is not reduced in value by reason of wear and 
 tear, and it therefore follows that the "allowance" contem- 
 plated by depreciation in the case of real estate corporations 
 does not apply to the ground, but is intended to measure 
 the decline in the measure of improvements, which decline 
 in value is due to wear and tear of such improvements. — 
 Treasury Decision 2137. 
 
 11 21 — Fiduciary — Depreciation. 
 
 Depreciation is not allowed fiduciaries as a deduction 
 from gross income in cases where no depreciation reserve is 
 maintained, but the amount claimed as a deduction is paid 
 to the beneficiary as income. — ^Treasury Decision 2267. 
 
 H 211.— Depreciation of Good Will. 
 
 Capable neither of appreciation nor depreciation. Amount 
 claimed as decline in value of, not allowable to either indi- 
 vidual or corporation. — Treasury Decision 2131. See 1[ 174. 
 
 246 
 
INDIVIDUALS— Continued DEDUCTIONS 
 
 fl 212 — Contributions. 
 
 Contributions or gifts made within the taxable year to 
 corporations organized and operated exclusively for religi- 
 ous, charitable, scientific, or educational purposes, or for the 
 prevention of cruelty to children or animals, no part of the 
 net earnings of which inures to the benefit of any private 
 stockholder or individual, or to the special fund for voca- 
 tional rehabilitation as authorized by Section 7 of the Voca- 
 tional Rehabilitation Act, to an amount not in excess of 15 
 per centum of the taxpayer's net income as computed with- 
 out the benefit of this paragraph. Such contributions or 
 gifts shall be allowable as deductions only if verified under 
 rules and regulations prescribed by the Commissioner, with 
 the approval of the Secretary. In the case of a non-resident 
 alien individual, this deduction shall be allowed only as to 
 contributions or gifts made to domestic corporations or to 
 such vocational rehabilitation fund. — Law — page 64, line 4, 
 
 ^ Contributions made by individuals to such organizations 
 as the American Red Cross, Knights of Columbus, Y. M. 
 C. A., Salvation Army and similar organizations are de- 
 ductible under the provisions of Section 214 (11). 
 
 There is much doubt, however, if, under the Act, corpora- 
 tions are permitted to deduct the amount of such contribu- 
 tions. They were not permitted to do so under the previous 
 law. 
 
 This doubt will likely soon be cleared up by a Treasury 
 ruling. 
 
 In connection with claim for the above deduction of con- 
 tributions on returns of income there shall be stated : 
 
 (a) The name and address of each organization to which 
 a gift was made. 
 
 (b) The date and amount of the gift in each case. 
 
 Where the gift is other than money, the basis for calcula- 
 tion of the value of the gift shall be the fair market value of 
 the property the subject of gift at the time of the gift. — 
 Art. 8, Reg. 33, Revised. 
 
 247 
 
INDIVIDUALS— Cont'd PERSONAL EXEMPTION 
 
 ^ 21 3 — Amounts Received as Dividends. 
 
 For the purpose of the normal tax only, the income 
 embraced in a personal return shall be credited with the 
 amount received as dividends upon the stock or from the net 
 earnings of any corporation, joint-stock company or associa- 
 tion, trustee, or insurance company, which is taxable upon 
 its net income as hereinafter provided, and with the amount 
 received as dividends from a personal service corporation 
 out of earnings or profits upon which income tax has been 
 imposed by Act of Congress — Law, page 65, line 30. 
 
 |[214 — Dividends — State Taxes on Bank Stock. 
 
 State taxes on capital stock of banks, paid by banks are 
 assessed against the individual stockholder and constitute 
 an allowable deduction in the return of such individual. 
 The individual should include his proportionate share of 
 such taxes in his return as income and then claim the 
 amount as a deduction under the heading "Taxes." — Primer, 
 Question 44 ; also Art. 8, Reg. 33, Revised. 
 
 ^ 21 5 — Amounts Received as Interest. 
 
 The amount received as interest upon obligations of the 
 United States, and upon bonds issued by the War Finance 
 Corporation is exempt from normal tax. 
 
 11216— PERSONAL EXEMPTION. 
 
 For the purpose of the normal tax only the law allows as 
 an exemption in the nature of a deduction from net income 
 the sum of $1,000 for an unmarried person not the head of a 
 family, and $1,000 additional, or $2,000 in the case of 
 
 1. The head of a family, whether married or not. 
 
 2. A married man with wife living with him. 
 
 3. A married woman with husband living with her. 
 
 11217- 
 
 (4) $200 for each person (other than husband or wife) 
 dependent upon and receiving his chief support from the 
 taxpayer, if such dependent person is under 18 years of 
 
 248 
 
INDIVIDUALS— Cont'd PERSONAL EXEMPTION 
 
 age or is incapable of self-support because mentally or phys- 
 ically defective. 
 
 For further explanation of the status of husband and wife 
 under the law, see H 226 to H 242. 
 
 11218- 
 
 A citizen or resident of the United States may secure the 
 benefit of personal exemption to which he is entitled when 
 receiving a payment of Interest on bonds containing so- 
 called " tax-free " or " no-deduction " clause by attaching to 
 the interest coupons an income-tax exemption certificate, 
 Form 1001, Revised. If exemption is not desired, Form 
 1000, Revised, should be used. — Primer, Question 129. 
 
 If 219 — Head of a Family — Definition. 
 
 The head of a family is held to be a person who is the chief 
 support of one or more individuals who are closely con- 
 nected with him by blood relationship, relationship by mar- 
 riage or by adoption and whose right to exercise family 
 control and provide for these dependent individuals is based 
 upon some moral or legal obligation. 
 
 The head of a family shall be allowed an additional ex- 
 emption of $200 for each person (other than husband or 
 wife) dependent upon and receiving his chief support from 
 the taxpayer, if such dependent person is under 18 years of 
 age or is incapable of self-support because mentally or phys- 
 ically defective. 
 
 ^ 220 — Guardians and Trustees. 
 
 Guardians or trustees are allowed to make this personal 
 exemption as to income derived from the property of which 
 such guardian or trustee has charge in favor of each ward or 
 cestui que trust. 
 
 In no event shall a ward or cestui que trust be allowed a 
 greater personal exemption than a single individual. 
 
 11221 — Estates of Deceased Persons. 
 
 There shall be allowed an exemption from the amount of 
 net income of estates of deceased citizens or residents of the 
 United States during the period of administration or settle- 
 
 249 
 
INDIVIDUALS— Continued 
 
 ment, and of trust or other estates of citizens or residents 
 of the United States, the income of which is not distributed 
 annually or regularly, the sum of $1,000, including such de- 
 ductions as allowed. 
 
 ff 222—Husband and Wife. 
 
 See H's 226 to 242 for further information as to the 
 status of husband and wife under the law. 
 
 For the year 1913 the tax was computed from March 1, 
 when the Act became effective, to December 31. Ten- 
 twelfths of the specific exemptions and deductions were 
 allowed. 
 
 tf 223— Intent of the Law. 
 
 The intent and purpose of the Income Tax Law is that all 
 gains, profits, and income of a taxable class shall be charged 
 and assessed with the corresponding income tax, normal and 
 additional, and such tax shall be paid by the owner of such 
 income or the proper representative thereof having the re- 
 ceipt, custody, control, or disposal of the same. In any case 
 where the conditions which obtain do not appear to fall 
 within the law and regulations for the assessment and col- 
 lection of the income tax, the proper tax shall be assessed in 
 the particular case by the Commissioner of Internal Revenue 
 upon his findings concerning the same. Ownership of in- 
 come and liability for tax thereon shall be determined as of 
 the year for which the return is required to be rendered. — 
 Art. 49, Reg. 33, Revised. 
 
 Tf 224— Record to be Kept. 
 
 Every individual, partnership, corporation, or association 
 liable to any tax imposed under the internal revenue laws of 
 the United States or for the collection thereof, shall keep 
 such records and render such statements and return, under 
 oath, as shall be prescribed by the Commissioner of Internal 
 Revenue. — Art. 50, Reg. 33, Revised. 
 
 Tl 225 — Tax Withheld at Source Credit Against Income Tax. 
 
 Income upon which any tax is required to be withheld at 
 the source under this section shall be included in the return 
 
 250 
 
INDIVIDUALS— Continued HUSBAND AND WIFE 
 
 of the recipient of such income, but any amount of tax so 
 withheld shall be credited against the amount of income 
 tax as computed in such return. 
 
 If 226— HUSBAND AND WIFE. 
 
 If the combined income of husband and wife, living to- 
 gether, and dependent children equaled or exceeded $2,000, 
 all such income must be reported, either on one return or 
 on separate returns. Husband and wife should make sepa- 
 rate returns if either is subject to the surtax. The addi- 
 tional or surtax imposed by the act will be computed on 
 the basis of the separate income of each individual; that 
 is, on the amount of each individual's income in excess of 
 the minimum amount upon which the surtax at the grad- 
 uated rates is to be calculated. 
 
 ^ 227 — When Exemption Exceeds Net Income. 
 
 Personal exemptions from tax are granted in respect of 
 the normal income tax only. Where the total of allowable 
 exemptions and credits exceeds the amount of net income, 
 the excess of such exemptions may not be availed of as 
 against the additional tax. — Art. 14, Reg. 33, Revised. 
 
 II 228 — When Living Apart. 
 
 Every single person and every married person not living 
 with husband or wife in the sense below defined, who has 
 a net income exceeeding $1,000 per annum, is liable to pay 
 the normal tax under the law, but in making return for such 
 tax such person may claim an exemption of $1,000 from his 
 or her total net income. 
 
 U 229 — When Living Together. 
 
 Husband and wife living together are entitled to an ex- 
 emption of $2,000 and $200 additional for each person (other 
 than husband or wife) dependent upon and receiving his 
 chief support from the taxpayer, if such dependent person 
 
 351 
 
INDIVIDUALS— Continued HUSBAND AND WIFE 
 
 is under eighteen years of age or is incapable of self -support 
 because mentally or physically defective. 
 
 ^ 230 — ^When Separated and Living Apart. 
 
 However, when the husband and wife are separated and 
 living permanently apart from each other each shall be en- 
 titled to an exemption of $1,000. 
 
 11 231 — Husband and Wife Filing Separate Returns. 
 
 Where husband and wife file separate returns of income, 
 one of them being filed in time and the other delinquent, 
 such returns are not supplemental of each other and de- 
 linquency must be answered for by the one in connection 
 with whose return it occurred. — Art. 26, Reg. 33, Revised. 
 
 If 232 — Living Apart — Exemption. 
 
 A husband who has a wife and children whom he sup- 
 ports, but who is living apart from his wife under an agree- 
 ment to do so, there being no judicial decree of separation, 
 is entitled only to the specific exemption of $1,000. — Treas- 
 ury Decision 2692: 
 
 TI 233 — When Nnt Living Apart, But Having Separate 
 Estates. 
 
 If the husband and wife not living apart have separate 
 estates, the income from both may be made on one return, 
 but the amount of income of each, and the full name and 
 address of both, must be shown in such return. 
 
 II 234— Husband Should Make Return for Both. 
 
 The husband, as the head and legal representative of the 
 household and general custodian of its income, should make 
 and render the return of the aggregate income of himself 
 and wife, and for the purpose of levying the income tax it 
 is assumed that he can ascertain the total amount of said 
 income. 
 
 H 235— When Wife Has Separate Estate Managed by 
 Herself. 
 
 If a wife has a separate estate managed by herself as her 
 own separate property and receives an income of $1,000 or 
 
INDIVIDUALS—Continued HUSBAND AND WIFE 
 
 over, she may make return of her own income, and if the 
 husband has other net income, making the aggregate of 
 both incomes more than $2,000, the wife's return should be 
 attached to the return of her husband, or his income should 
 be included in her return, in order that a deduction of $2,000 
 may be made from the aggregate of both incomes. The 
 tax in such case, however, will be imposed only upon so 
 much of the aggregate income of both as shall exceed $2,000. 
 
 If 236— When Either Has an Income of $1,000 or Over. 
 
 If either husband or wife separately has an income equal 
 to or in excess of $1,000, a return of annual net income is 
 required under the law, and such return must include the 
 income of both, and in such case the return must be made, 
 even though the combined income of both be less than 
 $2,000. 
 
 ^ 237— When Income of Both Is in Excess of $2,000. 
 
 If the aggregate net income of both exceeds $2,000, an 
 annual returji of their combined incomes must be made in 
 the manner stated, although neither one separately may 
 have an income of $2,000 per annum. They are jointly and 
 separately liable for such return and for the payment of 
 the tax. 
 
 ^ 23d — When Either Dies During the Year. 
 
 Where either dies during the year having a net taxable 
 income of $1,000 or more, a return should be made by the 
 executor or administrator of the deceased as of the date 
 of his death, and the executor or administrator may claim an 
 exemption of $2,000. The survivor, when making a return 
 at the end of the year for the entire year, will be allowed 
 the applicable exemption for the single or married status 
 existing at the close of the year. — ^Treasury Decision 2090. 
 
 ^ 239 — Deceased Husband — Amount of Specific Exemption 
 Allowed. 
 
 If the income of a deceased husband during the taxable 
 year in which he died necessitates the filing of a return the 
 specific exemption of $2,000 should be claimed. 
 
 253 
 
INDIVIDUALS— Continued RETURNS 
 
 ^ 240 — Income of Wife From Sale of Special (Magazine) 
 Articles. 
 
 Unless the wife has a separate estate which requires her 
 to file a separate return of income or to join with her hus- 
 band in a return which shall set forth her income separately, 
 a husband having a taxable income of his own should in- 
 clude in his return the income accruing to his wife from the 
 sale of special magazine articles. If neither has an income 
 of $1,000 or more, but together they have an aggregate in- 
 come exceeding $2,000, a return of the joint income is re- 
 quired to be filed by either the husband or wife, and the 
 income derived by the wife as above set forth should be 
 included in such return. The actual proceeds coming into 
 the wife's possession during the tax year constitute the 
 income to be included, and not the amounts estimated prior 
 to publication and payment. — Treasury Decision 2135. 
 
 ^241 — Single or Married Status — When Determined. 
 
 The single or married status of the person claiming the 
 specific exemption shall be determined as of the time of 
 claiming such exemption if such claim be made within the 
 year for which return is made, otherwise the status at the 
 close of the year. 
 
 If 242 — ^When an American Woman Marries a Foreigner. 
 
 An American woman who marries a foreigner takes the 
 nationality of her husband and cannot claim personal 
 exemption. — Treasury Decision 2090. 
 
 ANNUAL RETURNS OF INDIVIDUALS. 
 
 11 243— Who Shall Make Returns and When Returns Shall 
 Be Made. 
 
 Every person having a net income for the taxable year of 
 $1,000 or over, if single, or if married and not living with 
 husband or wife ; or of $2,000 or over if married and living 
 with husband or wife, shall make under oath a return on 
 or before March 15, 1919, for the year 1918, stating specfi- 
 cally the items of his gross income and the deductions and 
 credits allowed by this title. If a husband and wife living 
 
 854 
 
INDIVIDUALS— Continued ' RETURNS 
 
 together have an aggregate net income of $2,000 or over, 
 each shall make such a return on or before March 15, 1919, 
 for the year 1918, unless the income of each is included in a 
 single joint return. Returns filed on the basis of a fiscal 
 year shall be made on or before the fifteenth day of the 
 third month following the close of the fiscal year. 
 
 If the taxpayer is unable to make his own return, the re- 
 turn shall be made by a duly authorized agent or by the 
 guardian or other person charged with the care of the per- 
 son or property of such taxpayer. 
 
 If by reason of illness, absence, or non-residence a tax- 
 payer is unable personally to render his return, he may 
 appoint an agent to act for him, and the return executed by 
 the agent will be accepted if he makes affidavit that he has 
 sufficient knowledge to make a complete and accurate re- 
 turn for his principal and assumes responsibility for making 
 the return and incurring the penalties provided for a de- 
 linquent, erroneous, false, or fraudulent return. — Primer, 
 Question 6. 
 
 11243(a)— 
 
 Forms of returns are provided by the Commissioner of 
 Internal Revenue, and are to be had from the collectors of 
 internal revenue of the several collection districts. — ^Art. 
 23, Reg. 33, Revised. 
 
 [The various forms of return prescribed for the present 
 Act will be treated in a supplement to this book as soon as 
 they become available.] 
 
 If 244 — Return Made and Mailed in Time. 
 
 If a return is made and placed in the United States mail, 
 properly addressed, and postage paid, in ample time, in due 
 course of mail, to reach the office of the collector or deputy 
 collector on or before the last due date, no penalty will be 
 held to attach should the return not be actually received 
 by such officer until subsequent to that date. — Art. 52, Reg. 
 33, Revised. 
 
 H 245 — Dividends to Be Included in Annual Return. 
 
 In every return shall be included the income derived from 
 dividends on the capital stock, or from the net earnings of 
 
 255 
 
INDIVIDUALS— Continued RETURNS 
 
 any corporation, etc., except that in the case of non-resident 
 aliens, such income derived from sources without the United 
 States shall not be included. 
 
 Tf 246 — Period Covered by Return. 
 
 Jan. 1 to Dec. 31, 1918, and each calendar year thereafter, 
 unless fiscal year has been designated. 
 
 Tf 247 — Changing from Fiscal Year to Calendar Year. 
 
 If a taxpayer, with the approval of the Commissioner, 
 changes the basis of computing net income from fiscal year 
 to calendar year, a separate return shall be made for the 
 period between the close of the last fiscal year for which the 
 return was made and the following December 31st. Law, 
 page 72, line 43. 
 
 H 248 — Change from Calendar Year to Fiscal Year. 
 
 If the change is from calendar year to fiscal year, a sepa- 
 rate return shall be made for the period between the close 
 of last calendar year for which the return was made and 
 the date designated as the close of the fiscal year. 
 
 ^ 249 — Change from One Fiscal Year to Another Fiscal 
 Year. 
 
 If the change is from one fiscal year to another fiscal year, 
 a separate return shall be made for the period between the 
 close of the former fiscal year and the date designated as 
 the close of the new fiscal year. 
 
 T[250 — First Return on Fiscal Year Basis. 
 
 If a taxpayer making his first return for income tax keeps 
 his accounts on the basis of a fiscal year, he shall make a 
 separate return for the period between the beginning of 
 the calendar year in which such fiscal year ends and the 
 end of such fiscal year. 
 
 ^ 251 — Computation of Net Income (First Year). 
 
 In all the above cases the net income shall be computed on 
 the basis of such period for which separate return is made 
 and the tax shall be paid thereon at the rate for the cal- 
 endar year in which such period is included ; and the credits 
 
 256 
 
INDIVIDUALS— Continued RETURNS 
 
 provided in subdivisions (c) (exemptions of $1,000 and 
 $2,000) and (d) ($200 additional for dependent person) of 
 Section 216 shall be reduced respectively to amounts which 
 bear the same ratio to the full credits provided in such sub- 
 divisions as the number of months in such period bears to 
 twelve months. 
 
 H 252— Where Returns Shall Be Filed. 
 
 Returns shall be made to the collector for the district in 
 which is located the legal residence or principal place of 
 business of the person making the return, or, if he has no 
 legal residence or principal place of business in the United 
 States, then to the collector at Baltimore, Maryland. 
 
 Persons in the military or naval service of the United 
 States may file their returns of income with the collector of 
 internal revenue of the district in which they have a legal 
 residence, or with the collector of internal revenue at Balti- 
 more, Md. — ^Art. 26, Reg. 33, Revised. 
 
 ^ 253 — By An Individual Residing in a Foreign Country. 
 
 In the case of an individual having no legal residence or 
 place of business in the United States, the return should be 
 filed with the collector of internal revenue at Baltimore, Md. 
 
 11254 — Form of Return— What to Contain. 
 
 The required return will be made on Form 1040 Revised 
 in accordance with the instructions printed thereon, and will 
 specifically set forth — 
 
 1. All income received from each specific source and the 
 total thereof. 
 
 2. All the separate items of deduction claimed. 
 
 3. The amount of specific personal exemption claimed. 
 
 4. All amounts of income upon which tax has been with- 
 held at source by withholding agent or agents on tax-free 
 bonds. 
 
 H 255 — Amended Returns. 
 
 Amended returns are not required when individuals, fidu- 
 ciaries, or withholding agents are found subject to a further 
 tax.— I. T. Mim. 1232. 
 
 257 
 
INDIVIDUALS—Continued RETURNS 
 
 Return may be made on a basis other than that of actual 
 receipts and disbursements. 
 
 ^ 256 — Adjustment of Tax By Commissioner. 
 
 As soon as practicable after the return is filed, the Com- 
 missioner shall examine it. If it then appears that the cor- 
 rect amount of the tax is greater or less than that shown in 
 the return, installments shall be recomputed. If the 
 amount already paid exceeds that which should have been 
 paid on the basis of the installments as recomputed, the 
 excess so paid shall be credited against the next install- 
 ments so due, and if the amount already paid exceeds the 
 correct amount of the tax, the excess shall be credited or re- 
 funded to the taxpayer in accordance with the provisions of 
 the Income Tax Law. If the amount already paid is less 
 than that which should have been paid, the difference shall, 
 to the extent not covered by any credits then due to the tax- 
 payer under Section 252, be paid upon notice and demand by 
 the collector. In such case, if the return is made in good 
 faith and the understatement of the amount in the return 
 is not due to any fault of the taxpayer, there shall be no 
 penalty because of such understatement. 
 
 ^ 257 — Returns Under Section 3176 of Revised Statutes. 
 
 If a return is made pursuant to Section 3176, Revised 
 Statutes, as amended, the amount of tax determined to be 
 due under such return shall be paid upon notice and demand 
 by the collector. Section 3176 provides that the collector 
 is to file returns in case of failure to file, or of fraudulent re- 
 turns. — See Law, page 169, line 17. 
 
 If 258— When Tax Shall Be Paid. 
 
 The tax shall be paid in four equal installments — ^the first 
 at the time fixed by law for fihng the return, the second on 
 the fifteenth day of the third month thereafter (June 15), 
 the third on the fifteenth day of the sixth month thereafter 
 (September 15), and the fourth on the fifteenth day of the 
 ninth month thereafter (December 15). 
 
 258 
 
INDIVIDUALS— Continued RETURNS 
 
 ^ 259 — Payment Where Extension Is Granted. 
 
 "Inhere an extension of time for filing a return is granted 
 the time for payment of the first installment shall be post- 
 poned until the date of the expiration of the period of the 
 extension, but the time for payment of the other install- 
 ments shall not be postponed unless the Commissioner so 
 provides in granting the extension. 
 
 In any case in which the time for the payment of any 
 installment is at the request of the taxpayer thus postponed 
 there shall be added as part of such installment interest 
 thereon at the rate of one-half of 1 per cent, per month 
 from the time it would have been due if no extension had 
 been granted, until paid. 
 
 If any installment is not paid when due, the whole amount 
 of the tax unpaid shall become due and payable upon notice 
 and demand by the collector. 
 
 If 260 — Payment Optional. 
 
 The tax may, at the option of the taxpayer, be paid in a 
 single payment instead of in installments, in which case the 
 total amount shall be paid on or before the time fixed by 
 law for filing the return (March 15th) , or where an exten- 
 sion of time for fihng the return has been granted, on or 
 before the expiration of the period of such extension. 
 
 II 261 — Beneficiary Under Trust Etate or Otherwise to 
 Make His Own Return. 
 
 Unless the beneficiary is under some disability which re- 
 quires the fiduciary to act, the beneficiary will make his own 
 return and account for the tax upon his entire income. — 
 Treasury Decision 2090. 
 
 If such fiduciary is legally authorized to act for such bene- 
 ficiary as agent or attorney in fact, he may in such case, 
 in addition to his return as fiduciary, make the personal 
 return for the beneficiary on Form 1040, Revised. 
 
 ^ 262 — Executor or Administrator to Make Return in Case 
 of Death. 
 
 In the case of the death of a person whose net income 
 from Jan. 1 of the year in which he died was $1,000 or 
 
 259 
 
INDIVIDUALS—Continued RETURNS 
 
 $2,000 according to the marital status of the decedent. A 
 return for such decedent must be made by the executor or 
 administrator of the estate of the deceased, on Form 1040, 
 Revised, and in computing the taxable income of such 
 estate there shall be allowed the specific exemption pro- 
 vided by law. — Treasury Decision 2090. 
 
 ^ 263 — Notice of Failure to File Return to Be Served on 
 Guardian or Agent of Non-resident Alien. 
 
 When the required return has not been made by a person 
 acting as guardian, agent of a non-resident alien, or by one 
 acting in any other capacity in which the law makes it a 
 duty for him to represent the individual, notice of failure to 
 make such return will be served upon such guardian or 
 agent. 
 
 If 264 — Returns to Be Prepared by Collector in Certain 
 Cases. 
 
 If any person liable to pay an income tax for himself or 
 others shall fail to make and deliver the return required 
 by law, but shall consent to disclose the particulars of any 
 business or occupation hable to pay such tax, it shall be the 
 duty of the collector or deputy collector to make such list 
 or return, which being distinctly read and consented to, 
 signed and verified by oath or affirmation by the person 
 liable to make such return, the same may be received as the 
 Hst or return of such person. — Sec. 3173 R. S. 
 
 If 264(a) — Refusal or Neglect to Make Return. 
 
 If any person, corporation, company, or association fails 
 to make and file a return or list at the time prescribed by 
 law, or by regulations made under authority of law, or 
 makes, wilfully or otherwise, a false or fraudulent return 
 or list, the collector or deputy collector shall make the 
 return or list from his own knowledge and from such in- 
 formation as he can obtain through testimony or other- 
 wise. In any such case the Commissioner may, from his 
 own knowledge and from such information as he can obtain 
 through testimony or otherwise, make a return or amend 
 any return made by a collector or deputy collector. Any 
 
 260 
 
INDIVIDUALS— Continued RETURNS 
 
 return or list so made and subscribed by the Commissioner, 
 or by a collector or deputy collector and approved by the 
 Commissioner, shall be prima facie good and sufficient for 
 all legal purposes.* 
 
 ♦For method of procedure in such cases, see Section 3173 (page 167). 
 
 If 265 — False Returns. 
 
 There is no necessity to construe the word "false" where 
 it is used with reference to the time in which Commissioner 
 shall act, to mean fraudulently false. — Treasury Decision 
 2198. 
 
 ^ 266 — Refund Portions of Amounts Paid as Penalties for 
 Failure to File Return for the Year 1913. 
 
 On March 4, 1915, Congress authorized the refundment 
 to individuals of all amounts paid as penalties for failure to 
 file returns for the tax-year 1913, in excess of $5. For 
 further particulars, see Treasury Decision 2175. 
 
 H 267—25 Per Cent. Penalty. 
 
 Where taxpayers make application for blanks disclosing 
 their liability in time no 25 per cent, penalty accrues, pro- 
 vided said return is filed within 30 days after receipt of 
 necessary blanks. 
 
 T[ 26a— 50 Per Cent. Penalty. 
 
 If a party liable to tax for entire year falsely states that 
 he is liable for only portion of year, return so made is false 
 and 50 per cent, penalty applies in full. 
 
 ^ 266 — Liability of Individuals to — 
 
 Specific penalties provided by the income tax are held to 
 attach to the person and in case of death of such person are 
 non-enforceable. 
 
 Ad valorem penalties (those measured by income) attach 
 to income and are to be enforced regardless of the death of 
 the owner of the income by which the penalty is measured. 
 
 ^ 270 — ^Waiver After Expiration of Time Limit for 
 Assessment. 
 
 Where the Hmitation of the statute as to assessment has 
 run and a written waiver of exemption from assessment is 
 
 361 
 
INDIVIDUALS— Continued RETURNS 
 
 given by the taxpayer, the ad valorem penalties of 25 per 
 cent, addition to tax, is not to be assessed for delinquency 
 in filing return. 
 
 If 271— Returns to Be Verified by Oath. 
 
 The annual return must be verified by oath of the person 
 making the same. Collectors are directed by law to require 
 every return to be so verified by the person rendering it. 
 The affidavit may be made before the collector for the dis- 
 trict or before any officer authorized by law to administer 
 oaths. 
 
 TI 272— Oaths. 
 
 (1) A return of income rendered by an individual residing 
 abroad may be acknowledged before any duly appointed offi- 
 cer of the country in which he resides authorized to ad- 
 minister oaths and use an official seal. 
 
 (2) If a return is executed in a State before a notary 
 who is not required by the laws of the State to use a seal, 
 and none is used, the notary should file with the Com- 
 missioner of Internal Revenue the certificate of an officer 
 possessing a seal, showing that he is duly commissioned and 
 authorized to administer oaths; otherwise the certificate 
 will not be recognized. 
 
 (3) Returns acknowledged before commanding officers of 
 naval vessels while at sea or in foreign ports will be 
 accepted. 
 
 (4) Returns executed before a summary court officer, 
 United States Army, will not be accepted. — Treasury De- 
 cision 2090. 
 
 (5) May be made before Justice of Peace or any officer 
 authorized by law to administer oaths. — Treasury Decision 
 2174. 
 
 11273- 
 
 Persons in the naval or military service of the United 
 States may verify their returns before any official of those 
 services authorized to administer oaths for the purposes of 
 those services. 
 
 262 
 
INDIVIDUALS— Continued RETURNS 
 
 Income tax returns executed abroad may be attested free 
 of charge before United States consular officers. 
 
 Where a foreign notary or other official having no seal 
 shall act as attesting officer, the authority of such attest- 
 ing officer should be certified to by some judicial official or 
 other proper officer having knowledge of the appointment 
 and official character of the attesting officer. — Art. 26, Reg. 
 33, Revised. 
 
 Tf 274 — Extension of Time to File Return May Be Granted 
 by Collector. 
 
 When the return is not filed within the required time by 
 reason of sickness or absence of the individual, an extension 
 of time, not exceeding 30 days from March 15, within which 
 to file such return may be granted by the collector, provided 
 a written application therefor is made by the individual 
 within the period for which such extension is desired. 
 
 If 275 — Extension of Time by Commissioner. 
 
 The Commissioner may grant a reasonable extension of 
 time for filing returns wherever in his judgment good 
 cause exists and he shall keep a record of every such exten- 
 sion and reason therefor, except in the case of taxpayers 
 who are abroad, no such extension shall be for more than 
 six months. 
 
 ^ 27G — Extension to Citizens of the United States, 
 
 Non-resident Individuals and Corporations Abroad. 
 
 An extension of time has been granted to non-resident 
 alien individuals and corporations and American citizens re- 
 siding abroad who because of war conditions cannot file re- 
 turns, up to and including ninety days after the proclama- 
 tion of the President of the United States announcing the 
 close of the war v/ith Germany. — Treasury Decision 2581. 
 
 If 277 — Returns — Five-Year Limitation. 
 
 Except in the case of false or fraudulent returns, the 
 amount of tax due under any return shall be determined 
 and assessed by the Commissioner within five years after 
 the return was due or was made and no suit or proceed- 
 
 263 
 
INDIVIDUALS— Continued RETURNS 
 
 ings for the collection of any tax shall be begun after the 
 expiration of five years after the return was due or was 
 made. 
 
 11278 — Reasonable Cause. 
 
 Section 3176, Revised Statutes, as amended by Revenue 
 Act of 1918, provides that if after delinquency has ensued, 
 the delinquent individual or corporation shall have filed 
 with the collector of internal revenue a return and shall 
 accompany such return with a showing "that the failure to 
 file it (in time) was due to a reasonable cause and not to 
 wilful neglect, no such addition shall be made to the tax." 
 
 "Reasonable cause," for the purpose of this article of the 
 regulations, is held to be such a condition of fact as had the 
 taxpayer in default exercised ordinary business care and 
 prudence it would have been impracticable or impossible for 
 him to have filed return on the prescribed time. — Art. 54, 
 Reg. 33, Revised. 
 
 If 279 — Receipts for Taxes. 
 
 Every collector to whom any payment of any tax is made 
 under the provisions of this title shall upon request give to 
 the person making such payment a full written or printed 
 receipt, stating the amount paid and the particular account 
 for which such payment was made; and whenever any 
 debtor pays taxes on account of payments made or to be 
 made by him to separate creditors, the collector shall, if re- 
 quested by such debtor, give a separate receipt for the tax 
 paid on account of each creditor in such form that the 
 debtor can conveniently produce such receipts separately to 
 his several creditors in satisfaction of their respective de- 
 mands up to the amounts stated in the receipts; and such 
 receipts shall be sufficient evidence in favor of such debtor 
 to justify him in withholding from his next payment to his 
 creditor the amount therein stated; but the creditor may, 
 upon giving to his debtor a full written receipt acknowledg- 
 ing the payment to him of any sum actually paid and accept- 
 ing the amount of tax paid as aforesaid (specifying the 
 
 264 
 
INDIVIDUALS— Continued RETURNS 
 
 same) as a further satisfaction of the debt to that amount, 
 require the surrender to him of such collector's receipt. 
 
 H 280 — Penalty and Interest. 
 
 If upon review of a return by the Commissioner of In- 
 ternal Revenue, an understatement is found to be due to 
 negligence on the part of a taxpayer, but without intent to 
 defraud, there shall be added as part of the tax 5 per cent, of 
 the total amount of the deficiency plus interest at the rate of 
 1 per cent, per month on the amount of the deficiency of 
 each installment from the time the installment was due. 
 
 If 281 -—Payment of Taxes. 
 
 An excess payment of tax in one year can be offset against 
 an assessment of tax for a subsequent year. 
 
 In the payment of income tax a fractional part of a cent 
 shall be disregarded unless it amounts to a half-cent or 
 more, in which case the fraction shall be increased to 1 cent. 
 —Art. 41, Reg. 33, Revised. 
 
 H 282— -Status of Income Tax. 
 
 Tax due on income has the status of a debt due to the 
 United States. Persons receiving property charged with 
 such indebtedness must answer for the debt. — Art. 39, Reg. 
 33, Revised. 
 
 If 283— Penalty— Failure to File Return. 
 
 Any individual, corporation, or partnership required un- 
 der this title to pay or collect any tax, to make a return or 
 to supply information, who fails to pay or collect such tax, 
 to make such return or to supply such information at the 
 time or times required under the Revenue Act of 1918 shall 
 be liable to a penalty of not more than $1,000. (This is in 
 addition to the 25 per cent, penalty which will be assessed 
 for failure to file return within the time required by law.) 
 
 Every person having a net income of $1,000, or $2,000, 
 according to marital status for the calendar year is required 
 to render a return, and the penalty provided by law for 
 refusal or neglect to file a return will be enforced regardless 
 of the fact that the net income may be less than the exemp- 
 
 265 
 
INDIVIDUALS— Continued RETURNS 
 
 tion to which the individual is entitled. — Treasury Deci- 
 sion 2090. 
 
 fl 284 — False or Fraudulent Understatements. 
 
 If the understatement is false or fraudulent and with in- 
 tent to evade the tax, then in addition to the other penalties 
 provided by law for false and fraudulent returns, there shall 
 be added as part of the tax 50 per cent, of the amount of the 
 deficiency. In these cases the amount of tax due may be de- 
 termined at any time after the return is filed and the tax 
 may be collected at any time after it becomes due. 
 
 II 285— Penalty— Wilful Attempt to Evade Tax or File 
 Return. 
 
 Any individual, corporation, or partnership, or any officer 
 or employe of any corporation, or member or employe of 
 a partnership, who wilfully refuses to pay or collect such 
 tax, to make such return or to supply such information at 
 the time or times required under this title, or who wilfully 
 attempts in any manner to defeat or evade the tax imposed 
 by the Revenue Act of 1918 shall be guilty of a misdemeanor 
 and shall be fined not more than $10,000 or imprisoned for 
 not more than one year, or both, together with the cost of 
 prosecution. 
 
 H 286— Failure to Pay Tax. 
 
 If any tax remains unpaid after the date when it is due 
 and for ten days after notice and demand by the Collector, 
 then, except in the case of the estates of insane, deceased 
 or insolvent persons, there shall be added as part of the tax 
 the sum of 5 per cent, on the amount due but unpaid plus 
 interest at the rate of 1 per cent, per month upon such 
 amount from the date it became due. 
 
 T[ 287— Abatement of Taxes. 
 
 Nothing in the law or the regulations shall be construed 
 to release a taxable person from liability for income tax, nor 
 shall any contract entered into after the Act of October 3, 
 1913 took effect be valid in regard to any Federal income 
 tax imposed upon a person liable to such payment. 
 
 266 
 
INDIVIDUALS— Continued RETURNS 
 
 fl 288 — Income Tax Law^ — Constitutionality — Injunction 
 to Prevent Collection. 
 
 The courts have persistently refused an injunction or 
 other extraordinary process of law to aid taxpayers in 
 attempting to defeat collection of the tax. The question of 
 constitutionality of the law can be considered in a suit to 
 recover the tax, but not in a proceeding to enjoin collection 
 ■—Treasury Decision 2142. 
 
 ^28d — Taxes Illegally Assessed — Jurisdiction of Suits to 
 Recover. 
 
 Suit to recover taxes alleged to have been illegally 
 assessed and collected may be brought directly against the 
 United States in the U. S. District Court. — Treasury De- 
 cision 2188. 
 
 ^ 290 — Claims for Abatement of Tax. 
 
 Claims for abatement of taxes erroneously assessed 
 (Form 47), or which are excessive in amount, may, prior to 
 collection thereof, be filed under the provisions of said Sec- 
 tion 3220, Revised Statutes. 
 
 Form 47 for Claiming Abatement may be had upon appli- 
 cation to the collector. 
 
 II 290(a)--Return Filed on Behalf of Persons Due to 
 Sickness. 
 
 If such person, owing to serious illness, is unable to make 
 the return and application above provided for, the return 
 and appHcation may be made by an agent, he making oath 
 on certificate (Form 1040, Revised) that he has sufficient 
 knowledge of the affairs and property of the non-resident 
 alien to enable him to make a full and complete return for 
 him or her, and that the return and application made by 
 him are full and complete. 
 II 290(b)— Claims for Refund Tax. 
 
 When tax is collected in excess, recourse may be had only 
 on presentation of a claim for refund (on Form 46) under 
 the provisions of Section 3220, Revised Statutes. 
 
 Section 3220, Revised Statutes, prescribes that the Com- 
 missioner of Internal Revenue, subject to regulations pre- 
 scribed by the Secretary of the Treasury, is authorized, on 
 appeal to him made, to remit, refund, and pay all back taxes 
 
 267 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 erroneously or illegally assessed or collected, all penalties 
 collected without authority, and all taxes that appear to be 
 unjustly assessed or excessive in amount, or in any manner 
 wrongfully collected ; also to repay to any collector or deputy 
 collector the full amount of such sums of money as may be 
 recovered against him in any court, etc. 
 
 Tf 290(c) — Statute of Limitations Removed from Certain 
 Claims for Refund. 
 
 Claims can now be made for refund of taxes paid under 
 the Act of August 5, 1909 (excise tax), Act of October 3, 
 1913 (income tax), Act of September 8, 1916 (income tax) 
 and Act of October 3, 1917 (income tax and excess-profits 
 tax) if the question involves a review of the return. 
 
 WITHHOLDING AND PAYMENT OF TAX AT 
 THE SOURCE. 
 
 If 291 — Withholding Provisions of the Law. 
 
 CITIZENS AND RESIDENT INDIVIDUALS. 
 The withholding provisions of the law in respect to citi- 
 zens and residents applies only to income from bonds con- 
 taining a tax-free covenant. — See Law, page 69, line 748. 
 
 11 291 (a)— NON-RESIDENT ALIEN INDIVIDUALS 
 
 The law provides that all persons, firms and corporations 
 having control, receipt or payment of any income, of a non- 
 resident individual (other than dividends from corporations 
 which is taxable under the law on its net income) shall with- 
 hold and pay the government a tax of 8% on such income, 
 except in the case of income derived from bonds containing 
 a tax-free covenant, when the amount of tax to be withheld 
 and paid is 2%. — See Law, page 69, line 27-48. 
 
 The Commissioner, however, may authorize the deduction 
 and withholding of a tax on income from any securities at 
 the rate of 8% where the owners of such income are not 
 known. 
 TI 291 (b)— NON-RESIDENT ALIEN CORPORATIONS. 
 
 In the case of income of foreign corporations not having 
 an office or place of business in the United States, there 
 
 268 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 shall be withheld and paid a tax of 10% (exclusive of divi- 
 dends from corporations whose net income is taxable) ex- 
 cept in the case of income derived from bonds or other obli- 
 gations containing a tax-free clause, withholding will be at 
 the rate of 2%. — See Law, page 79, line 55. 
 
 Foreign corporations having an office or place of business 
 in the United States have the status of domestic corpora- 
 tions, and are not subject to withholding of tax at the 
 source. 
 
 Tf 292— "Debtors" or Withholding Agents. 
 
 All persons, firms, etc., mentioned in the above paragraph 
 are referred to in the regulations as "debtors" or "with- 
 holding agents," and the word "source" is to apply to the 
 place where the income originated and is payable. 
 
 ^ 293 — Exempt Organizations Are Subject to Provisions of 
 the Law as Withholding Agents. 
 
 By a revised ruling of the Commissioner of Internal 
 Revenue, organizations exempted by law from payment of 
 tax are now subject to the withholding provisions of the 
 present law. — Art. 81, Reg. 33, Revised. Also Treasury De- 
 cision 2407. 
 
 ^ 294— Individual Income from Which the Tax Is NOT to 
 Be Withheld— Dividends. 
 
 In the case of non-resident alien individuals, there shall 
 not be withheld any tax on dividends on capital stock or 
 from the net earnings of corporations and joint-stock com- 
 panies or associations and insurance companies subject to 
 like tax. 
 
 ^295 — Dividends Declared and Paid by Foreign 
 
 Corporations from Earnings in United States. 
 
 Dividends declared by a foreign corporation which de- 
 rives its entire income from business transacted in the 
 United States should be treated in the same manner as 
 dividends from domestic corporations. 
 
 TI 299— * Forms and Certificates. 
 
 Tax withheld from income other than bond interest will 
 be accounted for on Income Tax Form 1042, and separate 
 
 * The forms here referred to are old forms. 
 
 269 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 reports of the payments entered on Form 1042 will be made 
 on Form 1098. Tax withheld from bond interest will be 
 accounted for monthly on Income Tax Form 1012, and an 
 annual summary of these will be made on Income Tax Form 
 1013. The annual return only will be verified. — Art. 43, 
 Reg. 33, Revised. 
 
 Ij 297 — Ownership Certificates. 
 
 The owners of bonds of domestic and resident corpora- 
 tions shall, when presenting interest coupons for payment, 
 file a certificate of ownership for each issue of bonds, show- 
 ing the name and address of the debtor corporation, the 
 name and address of the owner of the bonds, whether the 
 payee is married or the head of a family, and the amount 
 of interest.— Art. 43, Reg. 33, Revised. See If 309 (H) 
 to (J). 
 
 ^ 298— Tax to Be Paid at the Source. 
 
 The forms here referred to are old forms. 
 
 Form 1000, Revised, shall be used (a) when no personal 
 exemption is claimed against interest on bonds containing 
 a "tax-free" covenant by citizens or residents of the United 
 States; (b) by non-resident alien individuals, foreign cor- 
 porations having no office or place of business in the United 
 States, whether or not such bonds contain a "tax-free" 
 covenant; and (c) in the case where coupons are received 
 not accompanied by certificates of ownership. The first 
 bank receiving coupons not accompanied by ownership cer- 
 tificates will make a certificate crossing out "owner" and in- 
 serting "payee" and will enter the amount of interest on 
 line 4.— Art. 43, Reg. 33, Revised. See H 309 (H) to (J). 
 
 If 299— Tax Not to Be Paid at the Source. 
 
 The forms here referred to are the old froms. 
 
 Form 1001, Revised, shall be used (a) when personal 
 exemption is claimed against interest on bonds containing a 
 "tax-free" covenant by citizens or residents of the United 
 States, also when presenting coupons from bonds not con- 
 taining a "tax-free" covenant; (b) by domestic partner- 
 ships, corporations, or associations; (c) by non-resident 
 alien partnerships ; and (d) by foreign corporations having 
 
 270 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 an office or place of business in the United States, whether 
 or not such bonds contain a "tax-free" covenant. 
 
 In case a citizen or resident individual receives interest on 
 bonds containing a "tax-free" covenant in excess of the 
 amount of personal exemption which the individual may- 
 claim, any such excess must be reported on Form 1000, Re- 
 vised.— Art. 43, Reg. 33, Revised. If 309 (H) to (J). 
 
 The department will furnish blank forms of certificates 
 to be used in connection with the collection of the income 
 tax to such parties as may make application for the same. 
 Private corporations and others may under certain condi- 
 tions have these certificates printed for their own use. — 
 Treasury Decision 1939. 
 
 If 300, 301, 302, 303 Void— [Ed.] 
 
 T[ 304— When Taxes Withheld Are to Be Paid. 
 
 In the monthly list returns as now prescribed a space 
 is provided to show the amount of interest paid (tax-free 
 bonds) on which the withholding agent will be held liable for 
 the tax. The withholding agents will not, however, forward 
 to the collector the tax on such amounts until the filing of 
 the annual return. 
 
 If 305 — Filing Annual Returns. 
 
 Withholding agents should file an annual return on Form 
 1013 showing amounts of tax withheld in the aggregate for 
 each month on tax-free bonds as reported on monthly re- 
 turns Form 1012 during the year. 
 
 If 306 — Returns to Be Made to Collector of Internal 
 Revenue. 
 
 Withholding agents who are required to make monthly 
 returns will, on or before the 20th day of each month, file 
 with the collector for their respective districts such returns 
 for the preceding month, accompanied by all certificates re- 
 lating thereto; on or before the 1st day of March in each 
 year said withholding agents shall likewise file their annual 
 returns for the preceding calendar year. 
 
 an 
 
INDIVIDUALS—Cont'd WITHHOLDING AT SOURCE 
 
 If 307 — Penalty for Giving Information from Withholding 
 Returns. 
 
 The law is specific and mandatory with regard to safe- 
 guarding from publicity the information acquired by reason 
 of its requirements relative to annual returns of income. 
 The law imposes the penalty of "fine, imprisonment, dis- 
 missal from office, and discharge from employment," for 
 making known in any manner not provided by law the 
 amount or source of income, or any particular thereof, set 
 forth or disclosed in any income return by any person. 
 
 ^ 308 — Amended Returns. 
 
 Amended returns not required when individuals or fidu- 
 ciaries are found subject to a further tax. — See I. T. Mim. 
 1232. 
 
 Income Derived from Interest Upon Bonds and Mortgages 
 
 or Deeds of Trust or Other Similar Obligations of 
 
 Corporations, etc., Containing a Tax-Free Covenant. 
 
 ]f 309— Tax Withheld on Tax-Free Bonds. 
 
 In any case where bonds, mortgages, or deeds of trust, 
 or other similar obligations of a corporation contain a con- 
 tract or provision by which the obligor agrees to pay any 
 portion of the tax imposed by this title upon the obligee, or 
 to reimburse the obligee for any portion of the tax, or to 
 pay the interest without deduction for any tax which the 
 obligor may be required or permitted to pay thereon or to 
 retain therefrom under any law of the United States, the 
 obligor shall deduct and withhold a tax equal to 2 per 
 centum of the interest upon such bonds, mortgages, deeds 
 of trust or other obligations, whether such interest is pay- 
 able annually or at shorter or longer periods and whether 
 payable to a non-resident alien individual or to an individual, 
 citizen or resident of the United States or to a partnership. 
 
 If309(a)« 
 
 The Commissioner of Internal Revenue, however, may au- 
 thorize such tax to be deducted and withheld in the case of 
 interest upon any such bonds, mortgages, deeds of trust or 
 other obligations, the owners of which are not known to the 
 withholding agents. 
 
 27» 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 H 309(b)~ 
 
 Such deduction and withholding shall not be required in 
 the case of a citizen or resident entitled to receive such 
 interest, if he files with the withholding agent on or before 
 February 1, a signed notice in writing claiming the benefit 
 of the credits provided in subdivisions (c) and (d) of Sec- 
 tion 216 [see page 66] ; nor in the case of a non-resident 
 alien individual if so provided for in regulations prescribed 
 by the Commissioner under Section 217 (See page 67). 
 
 Every individual, corporation, or partnership required to 
 deduct and withhold any tax under this Section shall make 
 return thereof on or before March 1st of each year and 
 shall on or before June 15th pay the tax to the official of 
 the United States Government authorized to receive it. 
 Every such individual, corporation, or partnership is hereby 
 made liable for such tax and is hereby idemnified against 
 the claims and demands of any individual, corporation, or 
 partnership for the amount of any payments made in ac- 
 cordance with the provisions of this Section. 
 
 ^ 309(c) — Tax-Free Covenant — Contract Between Issuing 
 Corporation and Bondholder. 
 
 The Government has consistently held that the so-called 
 tax-free covenant in bonds is a contract between the issu- 
 ing corporation and its bondholders with which the Gov- 
 ernment has no concern. Inasmuch, however, as the great 
 majority of the tax-free covenants in bonds are to the ef- 
 fect that the issuing corporation "will pay coupons, etc., 
 without deduction for any Federal income taxes which the 
 corporation is obliged by law to retain and pay" the pro- 
 vision limiting the amount to be retained and paid at the 
 source to 2 % was probably designed as a measure of rehef 
 to minimize*the obhgation of the issuing corporation to its 
 bondholders. 
 
 11309(d)— 
 
 The 2 % tax on bond interest to be withheld and paid at 
 the source in the case of bonds containing a tax-free cove- 
 nant is only a part of the tax assessed on interest from 
 bonds, the bondholder being Hable for tax on such interest 
 at the full normal and super-tax rates prescribed by law. 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 He may, however, take credit for the 2 % tax withheld 
 in his behalf in his annual return in the manner indicated 
 on the form of return. 
 
 tf 309 (e)— Bonds Which Do Not Contain a Tax-Free 
 Covenant. 
 
 The Commissioner has ruled that under the law, a cor- 
 poration issuing bonds without a tax-free covenant is not 
 permitted to deduct or pay tax at the source with respect 
 to the interest thereon; except in cases where bonds are 
 owned by a non-resident individual or corporation not hav- 
 ing an office or place of business in the United States. 
 
 The withholding provisions of the law apply to the nor- 
 mal income tax derived from interest payments upon bonds 
 which do not contain a tax-free covenant clause only in cases 
 where the bondholders are non-resident alien corporations 
 or individuals. 
 
 If interest payments are made to citizens or residents of 
 the United States from bonds which are not tax-free, such 
 income must be reported on Form 1001,* Revised, as there 
 is no provision for reporting this income as subject to 
 withholding. 
 
 *0r its equivalent under any new regulations. 
 
 Should a corporation desire to reimburse its bondholders 
 in such cases, it may do so, as this is a matter wholly be- 
 tween the parties concerned and one in which the Govern- 
 ment is not interested. However, such income should not 
 be reported as subject to withholding and this office will not 
 accept tax deducted in such cases by the withholding agent. 
 
 11309(f) — Tax-Free Bonds — Important Distinction for 
 Income Tax Purposes. 
 
 Read also If 309(e). The method of reimbursing the 
 bondholder for a specific amount of the tax on interest as- 
 sumed by the corporation issuing bonds without a tax-free 
 covenant or contract is a matter with which the Govern- 
 ment has nothing to do. In these circumstances some 
 corporations issuing bonds without such covenant but 
 which voluntarily assume a tax of, say 2 per cent., in be- 
 half of the bondholder, may use the simple expedient of 
 paying coupons at 1 02 per cent, of their face value. 
 
 274 
 
INDIVIDUALS—Cont'd WITHHOLDING AT SOURCE 
 
 In order to make the proper certificates of ownership 
 when cashing coupons and to make a proper return of in- 
 come it is desirable that the bondholder inform himself not 
 only whether his bond contains a tax-free covenant, but 
 also whether the issuing corporation interprets such cove- 
 nant as obliging it to withhold and pay the tax. 
 
 If 309(g)- 
 
 Here are some facts based upon official information: 
 
 (1) Not all corporations issuing bonds with a so-called 
 tax-free covenant are observing the apparent terms of 
 such covenant. 
 
 (2) Many corporations issuing bonds without a tax-free 
 covenant are reimbursing the holder for a tax of 2 per 
 cent, or more. 
 
 (3) Some corporations issuing bonds with a tax-free 
 covenant are assuming more than the 2 per cent, tax which 
 by law they are required to retain and pay in behalf of the 
 bondholder. 
 
 (4) Other corporations are paying coupons without de- 
 duction of the 2 per cent, tax only where a certificate of 
 ownership is filed showing that the holder is not exempt 
 from the tax. 
 
 11309(h)— 
 
 USE OF CERTIFICATES OF OWNERSHIP. 
 
 The regulations provide that in collecting coupons or in- 
 terest orders the bondholder must file a proper certificate of 
 ownership with the bank or collecting agency. See If 297. 
 
 BONDS CONTAINING TAX-FREE COVENANT- 
 EXEMPTION CLAIMED. 
 
 With respect to bonds which contain a tax-free covenant 
 and where it has been ascertained that the corporation will 
 abide by the apparent terms of such covenant, the holder 
 should file Form 1001 (yellow certificate) if he claims ex- 
 emption from the tax. In this case his coupons will be paid 
 at face value and the corporation need not withhold and pay 
 the tax in his behalf. See H 299. 
 
 875 
 
INDIVIDUALS— Contd WITHHOLDING AT SOURCE 
 
 ff309(i)- 
 
 BONDS CONTAINING TAX-FREE COVENANT- 
 EXEMPTION NOT CLAIMED. 
 
 Under the same conditions shown in the preceding para- 
 graph, but where the holder does not claim exemption, he 
 should file Form 1000 (white certificate). In this case a 
 tax of 2 per cent, (read jf 309(d)) will be withheld and 
 paid by the issuing corporation in his behalf, and he will 
 receive the face value of his coupons. See TJ 298. 
 
 !I308(j)— 
 
 ALL OTHER BONDS— INCLUDING BONDS WHICH 
 , ARE ^TAX-FREE" BUT ISSUED WITHOUT A 
 SPECIFIC TAX-FREE COVENANT. 
 
 [A "tax-free" bond under this category is a bond a cer- 
 tain amount of tax on the interest from which has been vol- 
 untarily assumed by the issuing corporation, but which 
 does not contain a specific tax-free covenant or contract.] 
 
 The holder of these bonds should file Form 1001 (yel- 
 low certificate) filled out according to his taxable status 
 under the law. His coupon will be paid at face value. 
 
 See H 297 and 298. 
 
 If 31 — Investment Certificates. 
 
 Investment securities issued by a corporation for a term 
 of years are corporate obligations within the meaning of 
 the income-tax law. — Treasury Decision 2090. See H 32. 
 
 If 31 1 — Promissory Note of Corporations. 
 
 A simple promissory note not exceeding one year in time 
 is not "similar to bonds, mortgages, or deeds of trust of cor- 
 porations," but the interest on such a note when payable to 
 a non-resident alien, is subject to withholding regardless of 
 the amount of interest payment. 
 
 ^312 — Scrip Dividend — (Amending Treasury Decision 
 2090). 
 
 Scrip certificates issued by a corporation to its stockhold- 
 ers in lieu of dividends, such scrip certificates bearing inter- 
 est and redeemable at a specified time not longer than one 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 year from date of issue, are not corporate obligations similar 
 to bonds, mortgages, or deeds of trust, and the interest pay- 
 able thereon will be considered income. Payment in scrip 
 is held to be equivalent to payment in cash. 
 
 \l 31 3— Income from Bonds of Exempt Organizations. 
 
 The owner of bonds issued by such an organization is not 
 relieved from the filing of certificates of ownership, with 
 coupons detached from such bonds when presenting same to 
 a bank or other collecting agency for collection or otherwise, 
 or to a debtor corporation or its duly designated paying 
 agent for payment. 
 
 ^ 31 4— Interest on State and Government Obligations 
 Exempt. 
 
 Income derived from the interest upon the obligations of 
 a State ; Territory ; or any political subdivision thereof ; the 
 District of Columbia ; securities issued under the provisions 
 of the Federal Farm Loan Act of July 17, 1916 ; the obliga- 
 tions of the United States or its possessions ; or bonds issued 
 by the War Finance Corporation, is not subject to the in- 
 come tax, and certificates of ownership in connection with 
 coupons or registered interest orders for such interest will 
 not be required. In the case of obHgations of the United 
 States issued after September 1, 1917, and In the case of 
 bonds issued by the War Finance Corporation, the interest 
 shall be exempt only if and to the extent provided in the 
 respective Acts authorizing the issue thereof. — Law, 
 page 60, line 48. 
 
 Tf 31 5 — Municipal District and Local Bonds — Special 
 Assessment Districts. 
 
 Special assemment districts created under the laws of the 
 several States for public purposes, such as the improvement 
 of streets and public highways, the provision for sewerage, 
 gas, and light, and the reclamation, drainage, or irrigation 
 of bodies of land, and levee and school districts, are held to 
 be political subdivisions of a State, and income derived from 
 interest upon the obligations of such districts shall not be 
 included in computing net income. — Treasury Decision 1946. 
 
 277 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 The requirement of law for information at the source 
 shall not apply to the payment of interest on obligations of 
 the United States. — Art. 37, Reg. 33, Revised. 
 
 1[316 — Public Utility Bonds Acquired by a Municipality. 
 
 Bonds of a public utility acquired by a municipality are 
 not an obligation of the municipahty within the meaning 
 of the law and income from such bonds is not exempt from 
 tax. 
 
 11317— The Term "Debtor''— To Whom It Applies. 
 
 The term "debtor," as hereinafter used, shall apply to all 
 corporations, joint-stock companies or associations, and in- 
 surance companies; and such "debtor" may appoint with- 
 holding and paying agents to act for it in matters pertaining 
 to the collection of this tax, upon filing with the collector 
 of internal revenue for the district a proper notice of the 
 appointment of such agent or agents. 
 
 This notice should be placed on file in the office of the 
 collector of internal revenue for the district in which the 
 debtor corporation is located or has its principal place of 
 business, and the said collector shall notify the collector of 
 internal revenue for the district in which the duly au- 
 thorized withholding agent is located — Treasury Decision 
 2135. 
 
 Where such withholding agent is so authorized by the 
 debtor corporation, he may file with the collector of his dis- 
 trict the required returns and accompanying certificates, in 
 which case the assessment of the tax withheld by him will 
 be made in that district. Unless such authority is given, 
 such reports, etc., will be furnished by the debtor corpora- 
 tion to the collector of its district (i. e., the district in which 
 its principal financial or business office is located), where, 
 in such case, assessment will be made. 
 
 ^ 31 8 — Non-Resident Aliens — Tax on Income from Bonds 
 to Be Deducted and Withheld by Debtor 
 Corporation — Certificates of Ownershop to 
 Accompany Interest Coupons for Collection. 
 
 For the purpose of collecting the tax on all coupons and 
 registered interest originating or payable in the United 
 
 278 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 States to non-resident aliens, the source shall be the debtor 
 (or its withholding and paying agent in the United States), 
 who shall deduct the tax when same is to be withheld, and 
 no other bank, trust company, banking firm, or individual 
 taking coupons or interest orders for collection or otherwise, 
 shall withhold the tax thereon, where coupons are accom- 
 panied by certificates of ownership signed by the owners of 
 the bonds upon which the interest matured. These certifi- 
 cates shall be made on the prescribed forms and shall be 
 made out by each owner of bonds for the coupons or interest 
 order for each separate issue of bonds or obligations of each 
 debtor. 
 
 ^ 31 9 — Sinking Fund and Similar Bonds Retired Within an 
 Interest Period. 
 
 Where bonds, under contract provisions in the bonds, are 
 retired within an interest period and prior to the expiration 
 of the full term of the bond, ownership certificates will be 
 required and should cover that part of the interest period 
 affected between the beginning of such period and the date 
 of the retirement of the bonds. — Treasury Decision 2090. 
 
 ^ 320 — Registered Bonds — Certificates of Ownership Not 
 Required to Accompany Interest Orders, Checks, Etc. 
 
 Certificates of ownership are not required to accompany 
 interest orders or checks in payment of interest on fully 
 registered bonds. — Treasury Decision .2006. Also see 
 
 T1329. 
 
 ^ 321 — Bonds of Foreign Corporations. 
 
 Bonds of foreign corporations payable as to interest 
 wholly within the United States, or within or without the 
 United States at the option of the owner of the bonds, to 
 be treated, for income-tax purposes, as domestic bonds, 
 when accompanied by certificates of ownership properly 
 executed. 
 
 In the case of items (payable in the United States) of 
 interest upon bonds of foreign countries and interest upon 
 bonds and dividends from stocks of foreign corporations, the 
 fiscal agent in the United States will be the source for pur- 
 
 279 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 poses of information. If no ownership certificate is received 
 with the item, the first bank or collection agent receiving 
 the same shall execute a certificate, Form 1001, showing the 
 name and address of the owner, if known, or the person 
 presenting the item, which certificate shall be forwarded to 
 the fiscal agent in the same manner as if the certificate had 
 been signed by the owner. — Art 35, Reg. 33, Revised. 
 
 ^ 322 — Coupon Bonds — Substitute Certificates, When 
 Permitted. 
 
 Responsible banks, bankers, and collecting agents receiv- 
 ing coupons for collection with the aforesaid certificates of 
 ownership attached, may present the coupons with the 
 attached certificates to the debtor or withholding agent for 
 collection, or such certificates may be detached and for- 
 warded direct to the Commissioner of Internal Revenue, 
 provided such bank, banker, or collecting agent shall sub- 
 stitute for such certificates its own certificate, and shall 
 keep a complete record of each transaction, showing — 
 
 1. Serial number of item received. 
 
 2. Date received. 
 
 3. Name and address of person from whom received. 
 
 4. Name of debtor corporation. 
 
 5. Class of bonds from which coupons were cut. 
 
 6. Face amount of coupons. 
 
 The substitute certificates above referred to cannot be 
 used when the owners of the bonds are non-resident aliens. 
 In all such cases the original certificates of ownership shall 
 be forwarded to the debtor corporation without substitu- 
 tion. — Treasury Decision 2589; also, Art. 43, Reg. 33, 
 Revised. 
 
 For the purpose of identification, such substitute certifi- 
 cates should be numbered consecutively, and corresponding 
 numbers given the original certificates of ownership. — Art. 
 43, Reg. 33, Revised. 
 
 ^ 323 — Number of Bonds Not Required. 
 
 Until further notice the regulations requiring the filling 
 in of the numbers of bonds on certificates are waived. — 
 Treasury Decision 2022. 
 
 880 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 If 324 — Revised Certificates. 
 
 Substitute certificates to be attached to interest coupons 
 when collection agent's certificate is substitute for the cer- 
 tificate of owner ; 
 
 Exemption claimed Form 1058 
 
 Exemption not claimed Form 1059 
 
 When proper certificate is filed with the Commissioner of 
 Internal Revenue the name of the bank or collecting agency 
 and the fac-simile signature of person authorized to sign 
 same may be printed or stamped on certificates 1058 and 
 1059.— Treasury Decision 1986. 
 
 Other revised certificates will be found under proper sub- 
 jects. 
 
 TI 325 — Execution of Ownership Certificates By Banks and 
 Trust Companies. 
 
 Name may be printed or stamped and fac-simile of person 
 authorized to sign may be used under provision specified in 
 Treasury Decision 2258. 
 
 Tf32G — Privilege of Substituting Certificates Extended to 
 Foreign Countries. 
 
 The permission here granted will extend to responsible 
 banks, bankers, and collecting agents in foreign countries, 
 through whom collection of such interest coupons is made. 
 
 ^ 327 — Normal Tax to Be Deducted Before Payment of 
 Interest. 
 
 A debtor whose bonds may be registered, both as to 
 principal and interest, shall deduct the normal tax of 8 per 
 cent, from the accruing interest on all bonds (excepting 
 bonds with a tax-free covenant), the owners of which are 
 non-resident alien individuals, before sending out checks 
 for said interest to registered non-resident owners or before 
 paying such interest upon interest orders signed by the reg- 
 istered holders of said bonds. 
 
 ^ 328 — Certificates of Ownership to Specify Bonds and 
 Amount of Interest Due. 
 
 The certificates of ownership shall accompany the cou- 
 pons, or, v/ith respect to the interest on registered bonds, 
 
 281 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 shall be filed with payer of said interest, and such certifi- 
 cates shall describe the bonds and show the amount of cou- 
 pons attached or the amount of interest due such owners 
 on registered bonds and the name and address of the own- 
 ers, and if registered in names other than the owners such 
 names with addresses shall also be given. Certificates must 
 be signed by the claimants, who shall use their ordinary 
 business signatures. The certificates shall also show 
 whether or not the claimant is single or married or the 
 head of a family, the post-office and street address of the 
 claimants, the internal-revenue district, and the date when 
 signed. 
 
 ^329 — Registered Bonds — Certificates of Ownership Not 
 Required to Accompany Interest Orders — Principal 
 and Interest. 
 
 Certificates of ownership are not required to accompany 
 interest orders or checks in payment of interest on fully 
 registered bonds. 
 
 As information to ownership of such bonds will be fur- 
 nished by the debtor organizations, and, as no withholding 
 occurs, where interest is paid to citizens or residents of the 
 United States (except where the bonds are guaranteed tax- 
 free), it will be necessary to file proper certificates with 
 debtors for information purposes. 
 
 Where proper certificates are filed, the said debtors shall 
 stamp or write on the interest orders or checks, as the case 
 may be, "Certificate filed with debtor," or, if the bonds are 
 tax-free, "Exemption claimed by certificate filed with debt- 
 or," or "Income tax withheld by debtor," if certificate is filed 
 not claiming exemption. 
 
 ^ 330 — Certificates May Be Signed by Duly Authorized 
 Agents, Etc. 
 
 Duly authorized agents may sign such certificates for the 
 persons for whom they act, also ownership certificates may 
 be executed for non-resident aliens by reputable foreign 
 banks or bankers. 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 ^331 — Certificates of Corporations. 
 
 Such certificate will be made on Form 1001 Revised, and 
 must be signed in the name of the firm or organization 
 (stating its place of business) by the president, secretary, 
 or some other principal officer of the said corporation or 
 organizations, or in the case of a firm or co-partnership, by 
 a person duly authorized to sign same, and must be prop- 
 erly dated. 
 
 In the case of a foreign corporation having an oflice or 
 place of business in the United States the certificate to be 
 used is Form 1001 Revised. 
 
 j[ 332 — Certificates of Non-Resident Aliens. 
 
 Coupons, or orders for registered interest, payable in the 
 United States, representing the interest on bonds owned 
 by non-resident alien individuals, must be accompanied by 
 the prescribed certificate. Form 1000 Revised. 
 
 (See "Registered Bonds, H 329.) 
 
 Foreign corporations having an office or place of business 
 in the United States are exempt from the withholding pro- 
 visions of the law and may file a certificate (Form 1001) 
 to prevent the withholding of the tax at the source. 
 
 The income of foreign corporations having no office or 
 place of business in the United States is subject to the with- 
 holding provisions of the law, and certificate Form 1000 
 should be used. 
 
 This form may be executed also by responsible banks 
 and bankers of the United States for or in behalf of non- 
 resident alien owners of bonds of United States corpora- 
 tions. — Treasury Decision 1988. 
 
 ^ 333^ — Foreign Partnership Composed of Non-Resident 
 Foreigners and Citizens of United States. 
 
 Where a foreign partnership or firm is composed of both 
 non-resident foreigners and citizens of the United States, 
 or foreigners residing in the United States or its posses- 
 sions, the certificate of ownership shall show this fact, and 
 the name and legal address of each member of said part- 
 nership who is a citizen of the United States, or who is a 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 foreigner residing in the United States, or its possessions, 
 shall be given on the back of said certificate, and no part of 
 said income shall be withheld. 
 
 If 334 — Monthly List Return-— Withholding Returns 
 
 Required of Corporations or Their Authorized 
 Agents. 
 
 A corporation, having bonded indebtedness, which has 
 withheld income tax during the preceding month on tax-free 
 bonds is required to file a monthly list return. Form 1012, 
 showing the amount of interest paid. Certificates of owner- 
 ship in which exemption is claimed to the extent of the 
 amount of payment need not be listed, and if this is the only 
 class of certificates received during the said preceding 
 month, no return is required. However, such certificates 
 should be forwarded to the proper collector of internal rev- 
 enue, together with a letter of transmittal. 
 
 11335— 
 
 The return should be filed with the collector of internal 
 revenue for the district in which the debtor corporation is 
 located or has its principal place of business, provided the 
 said debtor corporation has not filed with the said collector 
 of internal revenue a notice of the appointment of a duly 
 authorized withholding agent, in which case the debtor cor- 
 poration is not required to file a monthly list return. Form 
 1012, or the corresponding annual list return. Form 1013. 
 
 TI33e— 
 
 This notice of appointment should be placed on file in the 
 office of the collector of internal revenue for the district in 
 which the debtor corporation is located or has its principal 
 place of business, and the said collector should notify the 
 collector of internal revenue for the district in which the 
 duly authorized withholding agent is located. The duly au- 
 thorized withholding agent is required to file its return with 
 the collector of internal revenue for the district in which the 
 said withholding agent is located, and is not required to file 
 a return with the collector for the district in which the 
 debtor corporation is located. — Treasury Decision 2135. 
 
 284 
 
INDIVIDUALS— Cont^d WITHHOLDING AT SOURCE 
 
 H 337— 
 
 Withholding agents are required to file in duplicate a 
 monthly list return (Form 1012) giving the amount of tax 
 withheld. 
 
 Tf338— 
 
 The original ownership certificates, accompanied by the 
 monthly list returns in the case of interest on bonds of do- 
 mestic and resident corporations, when filed with the Com- 
 missioner of Internal Revenue shall constitute and be 
 treated as returns of information. — Art. 35, Reg. 33, Re- 
 vised. 
 
 *| 33S — Substitute Certificates of Ownership. 
 
 All substitute certificates (See If 322), of collecting 
 agents, authorized by regulations, that are received by 
 debtors or withholding agents will be considered the same 
 as certificates of owners, and in entering same in making 
 monthly list returns debtors or withholding agents will 
 enter the name and address of the collecting agent and the 
 number of the substitute certificate issued in lieu of the 
 original certificate containing the name and address of the 
 owner of the bonds. 
 
 ^ 340 — Registered Bonds— Interest Orders. 
 
 Responsible banks, bankers, or collecting agents receiving 
 for collection interest orders or checks bearing endorsement 
 "Certificate filed with debtor" may present said interest 
 orders or checks for collection without requiring that cer- 
 tificates of ownership be filed therewith. 
 
 Registered bonds of organizations exempt from tax 
 (If 320) may be treated in same manner as income from 
 domestic corporation. 
 
 See If 329. 
 
 If 341- 
 
 Where the coupons are not accompanied by certificates 
 as heretofore prescribed, the first bank, trust company, 
 banking firm, or individual, or collecting agency receiving 
 the coupons for collection or otherwise, shall attach to such 
 
 285 
 
INDIVIDUALS—Cont'd WITHHOLDING AT SOURCE 
 
 coupons crossing out the word "Owner" and inserting 
 "Payee" and will enter the amount of interest on line 4. 
 (Form 1000 Revised.) 
 
 ^ 342 — Execution of Ownership Certificates by Banks 
 and Trust Companies. 
 
 Name may be printed or stamped and fac-simile of signa- 
 ture of person authorized to sign may be used under pro- 
 vision specified in Treasury Decision 2258. 
 
 ^ 343 — Identity of Persons Presenting Interest Coupons to 
 Be Established. 
 
 Any corporation, collecting agency, or person first re- 
 ceiving from the owner any interest coupons * ♦ * 
 should require the persons tendering such coupons to satis- 
 factorily establish their identity. 
 
 ^ 344 — Monthly and Annual List Returns. 
 
 Withholding agents receiving coupons not accompanied 
 by certificates of owners are required to file monthly and 
 annual list returns in duplicate. 
 
 The monthly list return will be made on Form prescribed 
 by the Government. 
 
 Monthly list returns not to be made under oath. — Treas- 
 ury Decision 1997. 
 
 An annual list return is also required to be made by such 
 withholding agents, showing the amount of tax withheld on 
 tax-free bonds during the preceding year on income of this 
 character. This return must be filed on or before the 1st 
 day of March of each calendar year. 
 
 The monthly Hst returns in the form as required shall 
 constitute a part of the annual list return to be made, and 
 the withholding agent will not be required, in making an 
 annual list return of the tax thus withheld, to again make 
 an itemized list of the amount of tax withheld from each 
 person, but will give in the annual hst return the totals of 
 the monthly list returns for the year for which annual Ust 
 return is made. 
 
 286 
 
INDIVIDUALS— Cont'd WITHHOLDING AT SOURCE 
 
 ^ 345 — Where Person Receiving Payment is Not Actual 
 Owner. 
 
 When the person receiving a payment falhng within the 
 provisions of law for information at the source is not the 
 actual owner of the income received, the name and address 
 of the actual owner shall be furnished upon demand of the 
 person, corporation, partnership, or association paying the 
 income, and in default of a compliance with such demand 
 the payee becomes liable to a penalty of not less than $20 
 nor more than $1,000.— Art. 36, Reg. 33, Revised. 
 
 H 346 — Exempt Organizations Are Subject to Withholding 
 Provisions of the Law. 
 
 Organizations exempted by law from payment of tax 
 (such as labor, agricultural, horticultural organizations, 
 mutual savings banks, etc.) are subject to the provisions of 
 the law as withholding agents when their bonds contain a 
 tax-free clause, or if interest payments are made to non- 
 resident aliens. 
 
 ^ 347 — Tax to be Withheld by Banks on Interest Paid on 
 Deposits Paid to Non-resident Aliens. 
 
 Banks, bankers, trust companies, and other banking insti- 
 tutions receiving deposits of money, are required to with- 
 hold at the source the normal income tax of 8 per cent, on 
 interest paid, or accrued, or accruing to non-resident ahens, 
 whether on open accounts or on certificates of deposit. — 
 Treasury Decision 2627. 
 
 H 348 — Tax to Be Withheld on Payment of Interest Notes, 
 or Notes Given for Rent. 
 
 When a note shall have been given in payment of interest, 
 rents, or other income, the maker of the note, as the 
 "debtor" and as the "source" where the income originates, 
 is required, in paying such note, to withhold the normal tax 
 of 8 per cent, on the entire amount of the note, when paid 
 to a non-resident alien. 
 
 887 
 
INDIVIDUALS— Cont'd INFORMATION AT SOURCE 
 
 ^ 349 — Purchasers of Interest Notes on Which Tax Has 
 Not Been Withheld. 
 
 If any person who has purchased or discounted any such 
 notes omitted, in acquiring them from previous holder, to 
 make a deduction or allowance for said tax, when the 
 amount is paid to a non-resident alien he can look for relief 
 only to the person from whom the notes were obtained, as 
 the "debtor," the maker of said notes, is required to deduct, 
 withhold, and to pay to the collector of internal revenue, the 
 amount of the normal tax of 8 per cent, which may be due 
 thereon. 
 
 INFORMATION AT SOURCE. 
 ^ 350 — Returns Required for Information Purposes. 
 
 That all individuals, corporations, and partnerships, in 
 whatever capacity acting, including lessees or mortgagors 
 of real or personal property, fiduciaries, and employers, 
 making payment to another individual, corporation, or part- 
 nership, of interest, rent, salaries, wages, premiums, annui- 
 ties, compensations, remunerations, emoluments, or other 
 fixed or determinable gains, profits and income (other than 
 payments described in Sections 254 and 255), of $1,000 or 
 more in any taxable year, or in the case of such payments 
 made by the United States, the officers or employes of the 
 United States having information as to such payments and 
 required to make returns in regard thereto by the regula- 
 tions hereinafter provided for, shall render a true and ac- 
 curate return to the Commissioner, under such regulations 
 and in such form and manner as may be prescribed by him 
 with the approval of the Secretary, setting forth the 
 amount of such gains, profits, and income, and the name 
 and address of the recipient of such payment. 
 
 Such returns may be required, regardless of amounts (1) 
 in the case of payments of interest upon bonds, mortgages, 
 deeds of trust, or other similar obligations of corporations, 
 and (2) in the case of collections of items (not payable in 
 the United States) of interest upon the bonds of foreign 
 countries and interest upon the bonds of and dividends from 
 foreign corporations by individuals, corporations, or part- 
 
INDIVIDUALS— Cont^d INFORMATION AT SOURCE 
 
 nerships, undertaking as a matter of business or for profit 
 the collection of foreign payments of such interest or divi- 
 dends by means of coupons, checks, or bills of exchange. 
 
 When necessary to make effective the provisions of this 
 Section, the name and address of the recipient of the in- 
 come shall be furnished upon demand of the individual, cor- 
 poration, or partnership paying the income. 
 
 The provisions of this Section shall apply to the calendar 
 year 1918 and each calendar year thereafter, but shall not 
 apply to the payment of interest on obligations of the 
 United States. 
 
 T[ 350 (a) — Letter of Transmittal. 
 
 Returns of information for the preceding calendar year 
 shall be filed with the Commissioner of Internal Revenue on 
 or before March 1 of each year, accompanied by a letter of 
 transmittal, under oath (Form 1096), which will show the 
 number of returns filed and the aggregate amount repre- 
 sented by the payments. — Art. 34, Reg. 33, Revised. 
 
 ^ 351 — Returns of Payments of Dividends. 
 
 Every corporation subject to the tax imposed by this 
 title shall, when required by the Commissioner, render a 
 correct return duly verified under oath, of its payments of 
 dividends, stating the name and address of each stock- 
 holder, the number of shares owned by him, and the amount 
 of dividends paid to him. 
 
 11352— Return of Brokers. 
 
 Every individual, corporation, or partnership doing busi- 
 ness as a broker on any exchange or board of trade or other 
 similar place of business shall, when required by the Com- 
 missioner, render a correct return fully verified under oath, 
 under such rules and regulations as the Commissioner, with 
 the approval of the Secretary, may prescribe, showing the 
 names of customers for whom such individual, corporation, 
 or partnership has transacted any business, with such de- 
 tails as to the profits, losses, or other information which 
 the Commissioner may require, as to each of such cus- 
 
 289 
 
COLLECTION OF FOREIGN ITEMS— 
 
 tomers, as will enable the Commissioner to determine 
 whether all income tax due on profits or gains of such cus- 
 tomers has been paid. 
 
 INCOME DERIVED FROM COUPONS, CHECKS OR 
 BILLS OF EXCHANGE ON FOREIGN BONDS, 
 MORTGAGES, DIVIDENDS, ETC. 
 H 353— 
 
 Amounts received by citizens or residents of the United 
 States for or in payment of interest upon bonds issued in 
 foreign countries, and upon foreign mortgages or like obli- 
 gations, and for any dividends upon stock or interest upon 
 obligations of foreign corporations, associations, or insur- 
 ance companies engaged in business in foreign countries, 
 are subject to the income tax. — Treasury Decision 2090. 
 
 Note — Dividends paid by a foreign corporation which de- 
 rives its entire income from business transacted in the 
 United States, to be treated in same manner as income from 
 domestic corporations. 
 
 11 354 — Collection of Coupons, Checks, Bills of Exchange, 
 Etc. — License to Be Obtained. 
 
 All individuals, corporations, partnerships, or associ- 
 ations, undertaking as a matter of business or for profit 
 the collection of foreign payments of interest or dividends 
 by means of coupons, checks, or bills of exchange shall ob- 
 tain a license from the Commissioner of Internal Revenue, 
 and shall be subject to such regulations enabhng the Gov- 
 ernment to obtain the information required under this title 
 as the Commissioner of Internal Revenue, with the approval 
 of the Secretaiy of the Treasury, shall prescribe ; and who- 
 ever knowingly undertakes to collect such payments as 
 aforesaid without having obtained a license therefor, or 
 without complying with such regulations, shall be deemed 
 guilty of a misdemeanor, and for each offense be fined in a 
 sum not exceeding $5,000, or imprisonied for a term not 
 exceeding one year, or both, in the discretion of the court. 
 
 Definition of foreign corporation and method of proce- 
 dure in caes of interest on bonds of corporation. 
 
 290 
 
COLLECTION OF FOREIGN ITEMS— Continued. 
 
 ^ 355 — Application for License — ^Penalty for Failure to 
 Obtain License. 
 
 Applications for such license (Form 1017) will be made 
 to the collector for the district in which such business is to 
 be carried on. Upon the acceptance of such application the 
 collector will issue to the applicant without cost a license 
 (Form 1010) which will continue in force until revoked or 
 canceled. Blank forms of such license, bearing the fac- 
 simile signature of the Commissioner of Internal Revenue, 
 will be furnished collectors on requisition, who will in all 
 cases countersign the same before issuing it to applicant. 
 Failure to obtain a license or to comply with regulations is 
 punishable by a fine not exceeding $5,000 or imprisonment 
 not exceeding one year, or both, in the discretion of the 
 court. 
 
 License not required for collection of foreign pensions 
 paid to resident aliens or citizens of the United States. — 
 Treasury Decision 2090. 
 
 Tf 356 — License to Be Obtained for Branch Offices — 
 Application to Be Certified to Collector. 
 
 When any person, firm, or corporation shall have branch 
 offices and desire to collect foreign interest or dividend in- 
 come through said branch offices, the application for license 
 or licenses shall be made by the person, firm, or corpora- 
 tion through its principal office for its branch office or 
 offices. Application for licenses in such cases shall be made 
 to the collector of internal revenue for the district in which 
 the home office is located. The names and addresses of the 
 branch offices shall be furnished to the collector in the 
 application of the said principal, and if the requirements of 
 the foregoing regulations have been complied with to the 
 satisfaction of the collector, he shall certify this fact to the 
 collector of internal revenue for the district in which the 
 branch office is located, and the collector to whom this cer- 
 tification is made shall issue to such branch office a license. 
 
 If the foreign item is in form of a check or bill of ex- 
 change, the words "Information obtained and furnished by 
 (name of collecting agent)," Also name 
 
 291 
 
COLLECTION OF FOREIGN ITEMS— Continued. 
 
 and address of licensee as the case may be, shall be endorsed 
 or stamped thereon by such licensee ; but if the item is rep- 
 resented by a coupon or coupons from bonds, the licensee 
 shall attach thereto a statement identifying the same, and 
 the endorsement or stamp showing who will pay the tax is 
 to be placed on the statement instead of the coupon or cou- 
 pons. Said endorsement or stamp shall be sufficient evi- 
 dence showing that the information has been furnished. 
 
 TI 357 — Statement to Be Appended to Coupons, Checks, 
 Etc. 
 
 If the size or nature of such coupons, checks, etc., makes 
 it impracticable to make said indorsement thereon, a state- 
 ment identifying the item on which tax is to be paid and 
 bearing said indorsement may be attached thereto with 
 the same effect as if the indorsement was made directly 
 thereon.— Art. 58, Reg. 33. 
 
 ^ 357 (a) — Licensee to Furnish List. 
 
 Such licensee shall obtain the names and addresses of the 
 persons from whom such items are received and shall pre- 
 pare certificates on Form 1099 and make return on Form 
 1096. 
 
 ^ 358 — Annual List Return. 
 
 The annual list return in the form as required, together 
 with certificates, should be forwarded to the Commissioner 
 of Internal Revenue, Sorting Division, Washington, D. C, 
 on or before March 1, 1919. 
 
 ^ 359 — Interest on Foreign Bonds. 
 
 The provisions for collection of the tax on foreign obli- 
 gations herein set forth includes the interest upon all for- 
 eign bonds, even though the coupons may, at the option of 
 the holder, be payable in the United States as well as in 
 some foreign country. 
 
 If 360 — Licensee to Keep Records. 
 
 All person licensed shall keep their records in such man- 
 ner as to show from whom every such item has been re- 
 ceived, and such records shall be open at all times to the 
 inspection of internal-revenue officers. — Art. 62, Reg. 33. 
 
 »9» 
 
PARTNERSHIPS. 
 
 IT 381 — Salary Received by Foreign Employe of a Domestic 
 Corporation for Services Abroad. 
 
 Salary received by a foreign employe of a domestic cor- 
 poration for service rendered entirely in a foreign land is 
 not subject to deductions and withholding of the normal 
 tax at the source. 
 
 ^ 362 to Tf 367 Void.— [Ed.] 
 
 PARTNERSHIPS. 
 
 ^ 368— Partnership Profits. 
 
 Individuals carrying on business in partnership shall be 
 liable for income tax only in their individual capacity. There 
 shall be included in computing the net income of each part- 
 ner, his distributive share, whether distributed or not, of 
 the net income of the partnership for the taxable year. If 
 his net income for such taxable year is computed upon the 
 basis of a period different from that upon which the net 
 income of the partnership is computed, then his distributive 
 share of the net income of the partnership for any account- 
 ing period of the partnership ending within the fiscal or 
 calendar year upon the basis of which the partner's net in- 
 come is computed. 
 
 While partnerships, as such, are not taxable, every part- 
 nership nevertheless is required to make a return for each 
 taxable year, stating specifically the items of its gross in- 
 come and the deductions allowed and shall include ~in the 
 return the names and addresses of the individuals who 
 would be entitled to share in the net income if distributed 
 and the amount of the distributive share of each individual. 
 The return shall be sworn to by any one of the partners. 
 This is done for the information of the Government. 
 
 Tj 369 — Partnership Profits to Be Included in Returns 
 Made by Individual Partners. 
 
 The net annual profits of a partnership when divided and 
 paid to the members thereof shall be included by each indi- 
 vidual partner receiving same in his annual return of net 
 
 393 
 
PARTNERSHIPS— Continued. 
 
 income, and the tax shall be paid thereon as required by 
 law. When the annual profits of a partnership are not dis- 
 tributed and paid to the members thereof the respective 
 interest of each member in said profits shall be ascertained, 
 and the individuals entitled thereto shall include the said 
 amount in their annual return as a part of their gross in- 
 come, the same as if said profits had been distributed and 
 paid to them. 
 
 If a fiscal year of a partnership ends during a calendar 
 year for which the rates of tax differ from those for the 
 preceding calendar year, then (1) the rate for such pre- 
 ceding calendar year shall apply to an amount of each part- 
 ner's share of such partnership net income equal to the pro- 
 portion which the part of such fiscal year falling within such 
 calendar year bears to the full fiscal year and (2) the rates 
 for the calendar year during which such fiscal year ends 
 shall apply to the remainder. 
 
 In the case of an individual member of a partnership 
 which makes return for a fiscal year beginning in 1917 and 
 ending in 1918, his proportionate share of any excess-profits 
 tax imposed upon the partnership under the Revenue Act 
 of 1917 with respect to that part of such fiscal year falling 
 in 1917, shall, for the purpose of determining the tax im- 
 posed by this title, be credited against that portion of the 
 net income embraced in his personal return for the taxable 
 year 1918 to which the rates for 1917 apply. 
 
 Tf 370 — Private Bank Partnerships. 
 
 Private banks (which do not have the form of corporate 
 organizations) which transact business not in the name of 
 the bank but in the name of individuals who compose the 
 firm, as John Smith and Company, are held to be co-partner- 
 ships and, as such, are required to make a return. In such 
 cases the individuals who compose the firm, if they have 
 income in excess of $1,000, will be required to make indi- 
 vidual returns on Form 1040, accounting therein for their 
 respective incomes arising and accruing from the earnings 
 of the bank. 
 
 294 
 
PARTNERSHIPS— Continued. 
 
 11 371 — Income — ^When Accrued. 
 
 Income from a partnership accrues to the individual part- 
 ner at the time his distributive interest is determined and 
 reducible to possession. In returns of income made by indi- 
 viduals for the calendar year, therefore, there should be 
 included such income accruing from the business of partner- 
 ships for their business years as may have been definitely 
 ascertained by book balance, whether distributed or not. 
 In other words, members of partnerships are required to 
 make returns of income like other individuals for the cal- 
 endar year and should include in their returns the net pro- 
 ceeds of their interest in partnership profits ascertained at 
 the end of the business year falling within the calendar or 
 fiscal year for which the individual return is being rendered, 
 
 If 372 — Life Insurance Premiums of OflScers, Employes, 
 Etc. 
 
 That premiums paid on life insurance policies covering 
 the lives of officers, employes, or those financially interested 
 in any trade or business conducted by the taxpayer, shall 
 not be deducted in computing the net income of such tax- 
 payer when the taxpayer is directly or indirectly a bene- 
 ficiary under such policy. — Law, page 65, line 22. 
 
 1i 373 — Identity of Income. 
 
 The character of partnership profits divisible between 
 persons has no reference (except as otherwise specially pro- 
 vided) to any character which, as income accruing to the 
 partnership it may have borne prior to the receipt by the 
 partnership, and hence, with the exception noted, income 
 received from a partnership can not be traced to its source 
 behind the partnership for the purpose of claiming indi- 
 vidual exemption. Where the result of partnership opera- 
 tion is a net loss, the loss will be divisible between the part- 
 ners in the same proportion as net income would have been 
 divisible, and may be used by the individual partners in 
 their returns of income. — Art. 30, Reg. 33, Revised. 
 
 H 374 — Limited Partnerships. 
 
 For taxable status of limited partnerships under the law 
 
 . see K 40. 
 
 895 
 
PARTNERSHIPS— Continued. 
 H 375.— Void.— [Ed.] 
 
 t[37© — Net Income. 
 
 The net income of the partnership shall be computed in 
 the same manner and on the same basis as provided in Sec- 
 tion 212, except that the deduction for contributions shall 
 not be allowed. 
 
 11 377— Credits Allowed. 
 
 The partner shall, for the purpose of the normal tax, be 
 allowed as credits, in addition to the credits allowed to him 
 under Section 216, his proportionate share of such amounts 
 received as dividends and interest upon obligations of the 
 United States and bonds issued by the War Finance Cor- 
 poration, which are included in gross income. 
 
 Tf 378.— Fiscal Year. 
 
 A partnership shall have the same privilege of fixing and 
 making returns upon the basis of its own fiscal year as is 
 accorded to corporations, under this title. 
 
 Any partnership may, at its option, designate the last 
 day of any month as the close of its fiscal year. In each 
 case where the partnership's fiscal year differs from the 
 calendar year, it shall, not less than 30 days prior to March 
 15, give notice in writing to the collector of internal revenue 
 of the district in which its principal place of business is 
 located, that the day it has thus designated is the closing 
 day of its fiscal year. 
 
 Tf37d — llfdividual Partnership Profits. 
 
 Undivided annual net profits of partnerships thus re- 
 turned by the individual members thereof, and tax paid 
 thereon, shall not, when said profits are actually distributed 
 and paid to such members, be again included in their annual 
 return as part of their gross income. 
 
 H 380— Void.— [Ed.] 
 
FIDUCIARIES- 
 EFFECTIVE DATE OF TREASURY DECISIONS. 
 
 11381- 
 
 Treasury decisions promulgating rulings of the Internal 
 Revenue Bureau become effective upon the date of approval 
 unless otherwise stated therein. Cases previously adjusted 
 in contravention of law as pronounced in such decisions, are 
 subject to readjustment in accordance with the decision. — 
 Art. 38, Reg. 33, Revised. 
 
 FIDUCIARIES. 
 
 For summary of income of estates and trusts subject 
 to taxation see Law, page 57, line 33. 
 
 II 382.— Definition of Term "Fiduciary." 
 
 "Fiduciary" is a term which applies to all persons or cor- 
 porations that occupy positions of peculiar confidence toward 
 others, such as trustees, executors, or administrators; and 
 a fiduciary, for income-tax purposes, is any person or cor- 
 poration that holds in trust an estate of another person 
 or persons. 
 
 There may be a fiduciary relationship between an agent 
 and a principal; but the word "agent" does not denote a 
 "fiduciary" within the meaning of the income tax law. — 
 Treasury Decision 2090. 
 
 ^ 383 — Agent — Acting Under Power of Attorney. 
 
 An agent acting under power of attorney and having full 
 charge of property is not obliged to render a return as 
 fiduciary. — Treasury Decisions 2135 and 2137; also, see 
 II 423, 424. 
 
 Tl 384. — Fiduciary Returns. 
 
 Every fiduciary (except receivers appointed by authority 
 of law in possession of part only of the property of an indi- 
 vidual) shall make under oath a return for the individual, 
 estate or trust for which he acts (1) if the net income of 
 
 297 
 
FIDUCIARIES— Continued. 
 
 such individual is $1,000 or over if single or if married and 
 not living with husband or wife, or $2,000 or over if married 
 and living with husband or wife, or (2) if the net income 
 of such estate or trust is $1,000 or over or if any beneficiary 
 of such estate or trust is a non-resident alien, stating specifi- 
 cally the items of the gross income and the deductions and 
 credits allowed by this title.. Under such regulations as the 
 Commissioner with the approval of the Secretary may pre- 
 scribe, a return made by one or two or more joint fiduciaries 
 and filed in the district where such fiduciary resides shall be 
 a sufficient compliance with the above requirement. The 
 fiduciary shall make oath that he has sufficient knowledge 
 of the affairs of such individual, estate or trust to enable 
 him to make the return, and that the same is, to the best 
 of his knowledge and belief, true and correct. 
 
 11385— 
 
 Fiduciaries required to make returns under this Act shall 
 be subject to all the provisions of this Act which apply to 
 individuals. 
 
 11386— 
 
 Fiduciaries shall, on or before March 15 of each year, 
 make and render a return, in form prescribed by the Com- 
 missioner of Internal Revenue (Form 1041) of the income 
 coming into their custody or control and management from 
 each trust estate when the annual interest of any benefi-' 
 ciary in the income of said trust estate is $1,000 or $2,000, 
 according to the marital status of the beneficiary. 
 
 A trustee having charge of a trust estate, the net income 
 of which is regularly distributed among the beneficiaries, is 
 required to render a return only if any one of the benefi- 
 ciaries is unmarried and his or her distributive interest in 
 the net income of the trust equals or exceeds $1,000; and 
 also, if all the beneficiaries are married and the distributive 
 interest of any one equals or exceeds $2,000. 
 
 It should be understood, however ,that the above is appli- 
 cable only in a case where all the beneficiaries are citizens 
 or residents of the United States. If any portion of the 
 net income of an estate or trust is distributed to a non- 
 298 
 
FIDUCIARIES— Continued. 
 
 resident alien beneficiary, a return is required, and the nor- 
 mal income tax of 8 per cent, is to be deducted and withheld 
 from so much of the amount remitted to such beneficiaries 
 as was not derived from dividends or from the net earnings 
 of corporations, joint-stock companies, etc., subject to a like 
 tax, or has been subject to the withholding of the normal 
 tax at the source. — Primer, Question 113. 
 
 ^ 387 — Non-resident Alien Beneficiary. 
 
 Where a fiduciary in the United States is the recipient 
 of trust income for which there is but one beneficiary and 
 that beneficiary a non-resident alien, the fiduciary will be 
 required to make full and complete return on Income Tax 
 Form 1040 or 1040 A, as the case may be, for this trust 
 income on behalf of the non-resident alien and pay any and 
 all tax found by such return to be due. Where there are two 
 or more beneficiaries, one or all of whom are non-resident 
 aliens, the fiduciary shall render a return on Form 1041, 
 and a personal return on Form 1040 or 1040 A for each non- 
 resident alien beneficiary. — Art. 29, Reg. 33, Revised. 
 
 If 388 — Estates and Trusts. 
 
 The tax imposed by Sections 210 (normal tax on indi- 
 vidual) and 211 additional or surtax shall apply to the in- 
 come of estates or of any kind of property held in trust. 
 
 ^ 389 — Undistributed Income of Trust Estates Subject to 
 Both Normal and Additional Tax. 
 
 Income received by estates of deceased persons during 
 the period of administration or settlement of the estate, 
 shall be subject to the normal and additional tax and taxed 
 to their estates. 
 
 ^ 390 — Accumulated Income for Benefit of Unborn or 
 Unascertained Persons. 
 
 Income of estates or any kind of property held in trust, 
 including such income accumulated in trust for the benefit 
 of unborn or unascertained persons, or persons with con- 
 tingent interests, and income held for future distribution 
 under the terms of the will or trust, shall be hkewise taxed. 
 
FIDUCIARIES— Continued. 
 
 Tf 391 — Executors and Administrators. 
 
 Where, during the period of administration, an executor 
 converts the estate in his possession as such executor into 
 money for the purpose of setthng the estate and closing the 
 administration and in which conversion a profit is realized 
 which with other income exceeds $1,000, a return of income 
 should be made by the executor covering the period of 
 administration in which should be included all gains, profits, 
 and income of the estate during such period, and he should 
 pay the tax found by such return to be due. The income of 
 the estate being thus freed of income-tax liability may 
 thereafter be dealt with without further regard to income- 
 tax requirements. 
 
 11392—. 
 
 Proceeds of life insurance policies payable to the estate 
 of a decedent, when received by an executor, or adminis- 
 trator, are, in the amount by which such proceeds exceed 
 the premium or premiums paid by the decedent, income of 
 the estate to be accounted for by the executor or adminis- 
 trator. This return is to be made on Income Tax Form 1040 
 or 1040 A.— Art. 29, Reg. 33, Revised. 
 
 ^ 393— Two Estates. 
 
 A fiduciary acting for a beneficiary in more than one 
 estate or trust is required to account for each estate sepa- 
 rately when the amounts are such as to require the filing of 
 a return, and also a return of information. — Art. 29, Reg. 33, 
 Revised. 
 
 11394— 
 
 A fiduciary acting for a minor or insane person having a 
 net income of $1,000 or $2,000, according to the marital 
 status of such person, will be required to file a return for 
 such incompetent on Form 1040 and 1040 A and pay the 
 tax found by such return to be due. — Art. 29, Reg. 33, 
 Revised. 
 
 If 395— 
 
 Stock dividends paid from earnings or profits accumulated 
 after March 1, 1913, received by a fiduciary and retained as 
 
 800 
 
FIDUCIARIES— Continued. 
 
 an accretion to the estate under the terms of the will or 
 trust are held to be income to the estate and taxable as such 
 to the estate. — Art. 29, Reg. 33, Revised. 
 
 usee— 
 
 Income held for future distribution under the terms of 
 the will or trust shall be likewise taxed except when re- 
 turned by the beneficiary for the purpose of the tax. — Art. 
 29, Reg. 33, Revised. 
 
 11397- 
 
 The beneficiary will be required in the case of trust 
 estates to account for the actual amounts distributed or 
 credited to him. — Art. 29, Reg. 33, Revised. 
 
 If 398— Trust, Return of. 
 
 Where, in the case of more than one trust, the creator 
 of the trust in each instance is the same person and the 
 trustee in each instance is the same, the trustee should 
 make a single return on Form 1041 for all of the trusts 
 in his hands, notwithstanding the fact that they arise from 
 different instruments. When a trustee holds trusts created 
 by different persons for the benefit of the same beneficiary, 
 he should make return for each trust separately on Form 
 1041. This ruling is based on the identity of the creator 
 and the identity of the trustee of the various trusts, and 
 not upon the identity of the beneficiary. — Art. 29, Reg. 33, 
 Revised. 
 
 If 399 — Tax to Be Assessed to Fiduciary Direct — When. 
 
 The tax, in each instance, except when the income is re- 
 turned by the beneficiary, is to be assessed to the executor, 
 administrator, or trustee, as the case may be. 
 
 If 400— When Tax Is Not Paid by Fiduciary. 
 
 Where the income is to be distributed to the beneficiaries 
 periodically, whether or not at regular intervals, the tax 
 shall not be paid by the fiduciary, but there shall be included 
 in computing net income of each beneficiary his distributive 
 share, whether distributed or not, of the net income of the 
 
 301 
 
FIDUCIARIES— Continued. 
 
 estate or trust for the taxable year, or if his net income 
 for the taxable year is computed upon a basis different 
 from that upon the basis of which the net income of the 
 estate or trust is computed, then his distributive share of 
 the net income of the estate or trust for the last annual 
 accounting period of such estate or trust prior to the close 
 of the fiscal or calendar year upon the basis of which such 
 beneficiary's net income is computed. In such cases the 
 beneficiary shall, for the purpose of the normal tax, be 
 allowed as credits, in addition to the credits allowed to him 
 under Section 216, his proportionate share of dividends and 
 interest received upon obligations of the United States, any 
 State or political subdivision thereof as are received by the 
 estate or trust. 
 
 11401 — 
 
 In the following cases the tax shall be imposed upon the 
 net income of the estate or trust and shall be paid by the 
 fiduciary. In such cases the estate or trust shall, for the 
 purpose of normal tax, be allowed the same credits as are 
 allowed to single persons under Section 216. (See Law, 
 page 65, line 30.) (1) Income received by estate of de- 
 ceased persons during the period of administration or set- 
 tlement of the estate; (2) Income accumulated in trust for 
 the benefit of unborn or unascertained persons, or persons 
 with contingent interests; (3) Income held for future dis- 
 tribution under the terms of the will or trust. 
 
 Notice of failure to file a return as required shall be 
 served upon the fiduciary. 
 
 If 402 — Depreciation — Deduction in Return of. 
 
 In the case of a trust estate where the terms of the will 
 or trust or the decree of a court of competent jurisdiction 
 provides for keeping the corpus of the estate intact, and 
 where physical property forming a part of the corpus of 
 such estate has suffered depreciation through its employ- 
 ment in business, a deduction from gross income for the pur- 
 pose of caring for this depreciation, where the deduction is 
 applied or held by the fiduciary for making good such de- 
 preciation, may be claimed by the fiduciary in his return of 
 
 802 
 
FIDUCIARIES— Continued. 
 
 income. Fiduciaries should set forth in connection with 
 their returns the provision of law, trust, or decree requiring 
 such depreciation deduction where any exists or when actual 
 depreciation occurs, the amount thereof, and that the same 
 has been or will be preserved and applied as such. All 
 amounts paid by fiduciaries to beneficiaries of trust estates 
 from the income of such trust estates, whether from re- 
 serves or otherwise, are held to be distributions of income 
 and will be treated for income-tax purposes in accordance 
 with the provisions of law and regulations applicable to in- 
 come of such beneficiaries. — Art. 29, Reg. 33, Revised. 
 
 ]l 403 — Returns of Joint Fiduciaries. 
 
 A return made by one of two joint fiduciaries filed in the 
 district where such fiduciary resides, shall be a sufficient 
 compliance with the requirements of the law. 
 
 If 404 — Withholding by Fiduciaries. 
 
 Any part of the annual income of trust estates not dis- 
 tributed becomes an entity, and as such, is liable for the 
 normal and additional tax, which must be paid by the fidu- 
 ciary. When the beneficiary is not in esse and the income 
 of the estate is retained by the fiduciary, such income will 
 be taxable to the estate as for an individual and the fidu- 
 ciary will pay the tax, both normal and additional. * * * 
 When the gross net income not distributed and remaining 
 in the hands of a fiduciary is less than $5,000, the estate 
 will be listed as a beneficiary and only the normal income 
 tax will be assessable, and such tax will be paid by the fidu- 
 ciary. When the gross net income not distributed and re- 
 maining in the hands of a fiduciary exceeds $5,000 such 
 income is subject to both the normal and additional tax, and 
 the estate will be listed as a beneficiary and both the normal 
 and additional tax will be paid by the fiduciary. 
 
 ]| 405---Trust Estates As Entities. 
 
 Where income is accounted for in a return of income by 
 the executor, administrator, or trustee, as the case may be 
 and the tax shall have been assessed and paid under such 
 
 303 
 
FIDUCIARIES— Continued. 
 
 return, such income is thereby freed of all tax liability and 
 may be thereafter dealt with without further regard to the 
 provisions of the income tax law. 
 
 11400— 
 
 Under the provisions of the Law it is held that estates 
 during the period of administration have but one benefi- 
 ciary, and that beneficiary is the estate. Therefore, a return 
 on Form 1040 or 1040 A, subject to all the deductions and 
 exemption, shall be made by the executor or administrator 
 for such beneficiary and the entire tax paid thereon. — Art. 
 29, Reg. 33, Revised. 
 
 If 407 — Fiduciaries Acting for Incompetents. 
 
 In all cases where fiduciaries act for incompetents they 
 are held, for the purpose of the income tax, to be acting 
 as the agents of such incompetents and must pay all tax 
 (normal and additional) chargeable on such income in their 
 hands as though the persons for whom they act were acting 
 for themselves. 
 
 ^ 408 — Fiduciaries Indemnified for Taxes Paid in Behalf of 
 Beneficiary. 
 
 Trustees, executors, administrators and other fiduciaries 
 are indemnified against the claims and demands of every 
 beneficiary for all payments of taxes which they shall be 
 required to make under the provisions of the law; and 
 they shall have credit for the amount of such payments 
 against the beneficiary or principal in any accounting they 
 make as such trustees or other fiduciaries. 
 
 ]\ 409 — Return to Include Only Income Accruing From 
 Trust, Unless Otherwise Authorized by 
 Beneficiary. 
 
 As each such fiduciary acts solely in behalf of the bene- 
 ficiaries of the trust, the annual return required in such 
 cases has reference only to the income accruing and pay- 
 able through said fiduciary, and not to the income of the 
 beneficiary derived from other sources. If, however, such 
 fiduciary is legally authorized to act for such beneficiary as 
 
 804 
 
FIDUCIARIES— Continued. 
 
 agent or attorney in fact, he may in such case also make for 
 the beneficiary the personal annual return (Form 1040, Re- 
 vised) required by law.- 
 
 If 41 — Expenses of Administration of Estates Not 
 Deductible. 
 
 Expenses of administration of an estate, such as court 
 costs, attorney's fees, executors' commissions, etc., are 
 chargeable against the corpus of the* estate and are not 
 allowable deductions in a return of a fiduciary on Form 
 1041.— Treasury Decision 2090. 
 
 ^411 — Administrator or Executor. 
 
 Administrators or executors may, immediately after their 
 discharge, upon final accounting, file with the proper col- 
 lector of internal revenue a return of income for the income 
 of the estate for the calendar year in which the administra- 
 tion was closed, and should pay the tax found by such return 
 to be due immediately upon receipt of notice and demand 
 for the amount of such tax. There should be attached to 
 this return a' copy of the certificate, under seal, setting 
 forth the fact of final accounting and discharge of the execu- 
 tor or administrator. The liability for return is fixed by 
 the law as of December 31, and return will be required in 
 accordance with the provisions of law existing on that date. 
 
 11412— 
 
 An ancillary administrator is held to be merely an agent 
 of the domici|i^ry administrator and should transmit to him 
 all information as to income of the estate received by the 
 ancillary administrator, to the end that the original admin- 
 istrator may make a return covering the entire income of 
 the estate.— Art. 26, Reg. 33, Revised. 
 
 11413— Deed of Trust. 
 
 A deed of trust must be absolute so far as the conveyance 
 of title is concerned and irrevocable by the donor, other- 
 wise the income from the property in question will accrue 
 to the donor and must be accounted for by him. — Art. 29, 
 Reg. 33, Revised. 
 
 305 
 
FIDUCIARIES— Continued. 
 
 ^414 — Fiduciary Depreciation. 
 
 Depreciation not allowed fiduciaries as a deduction from 
 gross income in cases where no depreciation reserve is 
 maintained, but the amount claimed as a deduction is paid 
 to the beneficiary as income. — Treasury Decision 2267. 
 
 Ti 41 5 — Inspection of Executor's Return — Beneficiary Not 
 
 Entitled To. • 
 
 An executor acts for his principal and not for the benefi- 
 ciaries of the estate of his principal. Beneficiaries are not 
 entitled, as such, to an inspection of returns of income filed 
 by such executor. — Art. 26, Reg. 33, Revised. 
 
 ^ 41 6 — Annual Return to Include List of Beneficiaries, 
 Showing Amount Paid to Each. 
 
 The annual return of the fiduciary shall contain a hst of 
 the name and full address of each beneficiary and the share 
 of said income to which each may be entitled. There must 
 also be entered opposite the name of each beneficiary the 
 amount of exemption, if any, claimed by him, the amount 
 of income on which the beneficiary is liable for tax, and the 
 said return shall be signed and sworn to by the fiduciary, if 
 an individual, making same, and his full address must be 
 stated. If the fiduciary is an organization, the return shall 
 be signed and sworn to by the president, secretary, or 
 treasurer of said organization. 
 
 If 41 7 — Personal Exemption Allowed to Each Ward or 
 Cestui Trust. 
 
 Guardians or trustees are allowed to make a personal 
 exemption of $1,000, or if married, $2,000, from the net 
 income received from all sources of each ward or cestui 
 trust. 
 
 H 41 8 — No Penalty for Delay in Payment of Tax from 
 
 Estates of Insane, Deceased or Insolvent Persons. 
 
 When a personal return from such estates or persons has 
 been rendered, delay in payment of taxes assessed against 
 such persons or estates is not penalized. 
 
 306 
 
FIDUCIARIES— Continued. 
 
 ^ 41 9 — Income of a Beneficiary-r-Liability to Tax. 
 
 A beneficiary is liable for the normal tax upon the 
 amount of net income derived by him from a taxable 
 source through a fiduciary, less the amount of exemption 
 claimed, and is also liable for the additional tax assessable 
 on the amount of net income received by him in excess of 
 $5,000 ; and in order to determine whether the net income of 
 a beneficiary is or is not in excess of $5,000 and subject 
 to the additional tax, the amount derived by him from an 
 estate and all other taxable sources is required to be shown 
 on his personal annual return. 
 
 ^420 — Personal Representative to Make Return of 
 Individual in Case of Death. 
 
 If the net income of a decedent from January 1 of the 
 year in which he died to the date of his death was $1,000 
 or over, a return for such decedent must be made by his 
 personal representative on Form 1040, Revised, and such 
 representative may claim all deductions and exemption to 
 which the decedent would have been entitled under the law. 
 
 Ti 421 — Administrator or Executor. 
 
 Liability for payment of income tax attaches to the per- 
 son of an executor or administrator for income tax up to 
 and including the date of his discharge, regardless of the 
 fact that the time in which claim is made and filed against 
 the estate has expired or where, prior to distribution and 
 discharge, the executor or administrator had notice of his 
 obligations to the Federal Government or where he failed 
 to exercise due diligence in determining whether or not such 
 obligations existed. 
 
 11422— 
 
 Liability for the tax due from a deceased person, or from 
 his estate, also attaches to the estate itself, and when by 
 reason of distribution of the estate and discharge of the 
 executor or administrator it shall appear that collection of 
 the tax can not be made from the executor or administrator, 
 the collector will make demand on the distributees for their 
 proportionate share of the tax due and unpaid. — Art. 29, 
 Reg. 33, Revised. 
 
 307 
 
FIDUCIARIES— Continued. 
 
 If 423— Agents. 
 
 Agents not acting in a fiduciary capacity have no respon- 
 sibility with reference to making return of income turned 
 over to resident aliens or citizens of the United States. — 
 Treasury Decision 2090. 
 
 For responsibility of the agent or representative of non- 
 resident aliens, see If 472. 
 
 Tf424 — Power of Attorney — Fiduciary Relation Cannot Be 
 Created By. 
 
 A fiduciary relationship for the purposes of the income 
 tax can not be created by a power of attorney. An agent 
 having entire charge of property with authority to effect 
 and execute leases with tenants entirely on his own respon- 
 sibility and without consulting his principal, paying taxes 
 and expenses and all other charges in connection with the 
 property out of funds in his hands from collection of rents, 
 merely turning over the net profits from the property 
 periodically to his principal by virtue of authority conferred 
 upon him by a power of attorney, is not a fiduciary within 
 the meaning of the income tax law. In all cases where no 
 legal trust has been created in the estate controlled by the 
 agent and attorney the liability under the law rests with 
 the principal. — Art. 29, Reg. 33, Revised. 
 
 U 425 — Guardians, Trustees, Executors, Etc., as Fiduciary 
 Agents, to File Returns. 
 
 Guardians, trustees, executors, administrators, agents, 
 receivers, conservators, and all persons, corporations, or 
 associations acting in any fiduciary capacity, hereinafter 
 referred to as fiduciary agents, who hold in trust an estate 
 of another person or persons, shall file returns. 
 
 ^ 42e—Certificates. 
 
 Certificates are required to be filed for information pur- 
 poses. See index, "Reporting at the Source." 
 
 T[ 427 — Form 1015 — Exemption Claimed. 
 
 Certificate Form 1015, Revised, may be filed when exemp- 
 tion is claimed. 
 
 303 
 
FIDUCIARIES— Continued. 
 
 ^ 428 — Form 1019-— When Exemption is Not Claimed. 
 
 When such exemption is not claimed, notice thereof on 
 Form 1019, Revised, should be filed with the withholding 
 agent. Form 1019, Revised, however, cannot be used when 
 the income affected is payable by the fiduciary to a bene- 
 ficiary who would not be liable under the statute for incom-e 
 tax, if such income were payable to such beneficiary 
 directly. — Treasury Decision 2231. 
 
 When the fiduciary uses Form 1019, Revised, the debtor 
 organization becomes the source for the deduction and 
 withholding of the normal tax in the case of tax-free bonds. 
 
 fl 429 — Certificates to Be Filed for Each Issue of Bonds and 
 for Each Trust— Certificates 1015 and 1019 May 
 Be Adapted. 
 
 Fiduciaries are required to file Forms 1015, Revised, or 
 1019, Revised, according to the nature of the claim to be 
 made by the fiduciary, for each issue of bonds and for each 
 trust. 
 
 Therefore, where fiduciaries have custody and control of 
 more than one estate or trust, and said estates or trusts 
 have as assets bonds of corporations of the same issue, the 
 said fiduciaries may adapt Forms 1015 and 1019, Revised, 
 by changing the words "estate or trust" in lines 1, 2 and 3 
 of said forms to the plural, and writing on the blank line 
 provided for (name of estate or trust) the words; "As 
 noted on the back hereof." 
 
 In such cases the notation on the back of the certificate 
 should show for each estate or trust: 
 
 (a) The name of the estate or trust. 
 
 (b) The amount of bonds. 
 
 (c) The amount of the interest. 
 
 In all other respects the certificates should be filled out 
 as indicated thereon. — Treasury Decision 1987. 
 
 11430 — Non-resident Alien Fiduciaries — Certificates of 
 
 Ownership to Be Used With Coupons Detached 
 from Bonds of Domestic Corporations. 
 
 Form 1000, Revised, is provided to be attached to coupons 
 from bonds or other obligations of domestic corporations 
 
 309 
 
FIDUCIARIES— Continued. 
 
 owned by non-resident alien individuals, organizations and 
 fiduciaries, for the purpose of declaring ownership of bonds 
 of domestic corporations, etc., and to be attached to interest 
 coupons detached from said bonds when presenting same for 
 payment. 
 
 If 431 — Returns of Fiduciaries Paying $1,000 or More. 
 
 All persons, corporations, partnerships, associations and 
 insurance companies, in whatever capacity acting, including 
 lessees or mortgagors of real or personal property, trustees 
 acting in any trust capacity, executors, administrators, re- 
 ceivers, conservators and employers, making payment to an- 
 other person, corporation, partnership, association, or insur- 
 ance company, of interest, rent, salaries, wages, premiums, 
 annuities, compensation, remuneration, emoluments, or 
 other fixed or determinable gains, profits and income (other 
 than payments described in Sections 254 and 255) of $1,000 
 or more in any taxable year, or, in the case of such payments 
 made by the United States, the officers or employes of the 
 United States having information as to such payments and 
 required to make returns in regard thereto by the regula- 
 tions hereinafter provided for, are hereby authorized and 
 required to render a true and accurate return to the Com- 
 missioner of Internal Revenue, under such rules and regula- 
 tions and in such form and manner as may be prescribed by 
 him, with the approval of the Secretary of the Treasury, 
 setting forth the amount of such gains, profits and income, 
 and the name and address of the recipient of such payment : 
 Provided, That such returns shall be required, regardless 
 of amounts, in the case of payments of interest upon bonds 
 and mortgages or deeds of trust or other similar obligations 
 of corporations, joint-stock companies, associations and in- 
 surance companies, and in the case of collections of items 
 (not payable in the United States) of interest upon the 
 bonds of foreign countries and interest from the bonds and 
 dividends from the stock of foreign corporations by persons, 
 corporations, partnerships, or associations, undertaking as 
 a matter of business or for profit the collection of foreign 
 payments of such interest or dividends by means of coupons, 
 checks, or bills of exchange. 
 
 310 
 
NON-RESIDENT ALIENS— 
 
 When necessary to make effective the provisions of this 
 Section the name and address of the recipient of income 
 shall be furnished upon demand of the person, corporation, 
 partnership, association, or insurance company paying the 
 income. 
 
 The provisions of this Section shall apply to the calendar 
 year nineteen hundred and seventeen and each calendar 
 year thereafter, but shall not apply to the payment of in- 
 terest on obligations of the United States. 
 
 NON-RESIDENT ALIENS. 
 
 H 432— Definition. 
 
 Non-resident aliens have been defined as citizens or sub- 
 jects, firms, corporations or organizations of a foreign coun- 
 try who are not a resident of the United States. — ^Treasury 
 Decision 1977. 
 
 ^ 433 — Aliens Temporarily Residing in United States. 
 
 Aliens who are physically present in the United States 
 but only temporarily resident or employed therein (as for a 
 season or other similarly definite term, and with the expec- 
 tation or intention of leaving the United States upon the 
 termination of employment or accomplishment of the pur- 
 pose which necessitated presence in the United States) are 
 within the class of "Persons residing elsewhere." — ^Treasury 
 Decision 2242. 
 
 ^ 434 — American Wife of Non-resident Alien. 
 
 An American woman who marries a foreigner takes the 
 nationahty of her husband. — Treasury Decision 2090. 
 
 Tl 435 — Resident Aliens. 
 
 For purposes of the income tax it is held that where for 
 business purposes or otherwise an alien is permanently lo- 
 cated in the United States, has there his principal business 
 establishment and is there permanently occupied or em- 
 ployed, even though his domicile may be without the United 
 States, he will be held to be within the definition of "Every 
 person residing in the United States, but not a citizen 
 thereof." — Treasury Decision 2242. 
 
 811 
 
NON-RESIDENT ALIENS—Continued. 
 
 11 436 — Method of Establishing Residence in United States. 
 
 Aliens coming to the United States with the intention of 
 becoming residents thereof within the meaning and intent 
 of the income tax statute, may establish that fact and have 
 the privilege of resident aliens under the statute by filing 
 with withholding agents a certificate (Form 1078) under 
 oath, and which certificate shall be filed by said withholding 
 agents with Collectors of Internal Revenue as justification 
 for withholding on the basis of "residence in the United 
 States." — Treasury Decision 2242. 
 
 II 437 — Income Subject to Tax. 
 
 Subject to the deductions allowed, and set forth below, the 
 income of non-resident aliens subject to the normal and ad- 
 ditional tax consists of only the gross income from sources 
 within the United States, including interest on bonds, notes 
 and other interest-bearing obligations of residents, cor- 
 porate or otherwise, dividends from resident corporations, 
 and including all amounts received (although paid under a 
 contract for the sale of goods or otherwise) representing 
 profits on the manufacture and disposition of goods within 
 the United States. 
 
 1l 438 — Non-resident Alien Individuals. 
 
 A non-resident alien individual shall make a full and ac- 
 curate return of all net income received from sources within 
 the United States, regardless of amount, unless the tax on 
 such income has been fully paid at the source ; and is not en- 
 titled to the benefit of the several deductions and credits 
 provided, unless such return is filed by him or his authorized 
 agent. — Art. 32, Reg. 33, Revised. 
 
 If 43d — Non-resident Aliens. — Services Rendered by, in a 
 Foreign Country. 
 
 Compensation paid for services rendered in a foreign coun- 
 try, including per diem allowance for business and travel ex- 
 pense, not taxable. — Treasury Decision 2152. 
 
 ^ 440 — Royalties Paid to Non-resident Aliens 
 
 Royalties paid to non-resident aliens are held to be income 
 accruing by reason of property owned or business carried on 
 within the United States. — Treasury Decision 2137. 
 
 312 
 
NON-RESIDENT ALIENS— Continued. 
 
 ^441— .Sale of Stock. 
 
 When a non-resident alien who owns stock in an American 
 corporation disposed of same by sale, the sale and dehvery 
 being made within the United States, the profit will be held 
 to have been derived from sources within the United States 
 and is to be included for the purposes of income tax. — Art. 4, 
 Reg. 33, Revised. 
 
 51 442 — Income from Dividends. 
 
 In making return of income from dividends on capital 
 stock or from the net earnings of corporations, etc., non- 
 resident aliens shall not include such income derived from 
 sources without the United States. 
 
 ^443. — Individual Income From Dividends Subject to 
 Additional Tax Only. 
 
 In the case of non-resident alien individuals the amount 
 received on the stock or from the net earnings of domestic 
 corporations which are taxable on their net income are sub- 
 ject to the additional tax only. Income from dividends 
 should be included in every return, but for purposes of the 
 normal tax only, the amount of such income may be deducted 
 as a credit. 
 
 ]j 444 — Income From Dividends Accruing to Foreign 
 Corporations. 
 
 Foreign corporations not engaged in business within the 
 United States and not having any office or place of business 
 therein, are not subject to the tax on dividends received 
 from the net earnings of domestic corporations. 
 
 NOTE. — Record owners of stock under the Provisions of 
 the Revenue Act of 1916, as amended, were required to 
 disclose, by ownership certificate (Form 1087) the name and 
 address of the actual owner of stock in order to determine 
 tax liability, and if the record owner did not exercise his 
 right to disclose actual ownership, the tax was withheld by 
 the debtor corporation. 
 
 Under the Revenue Act of 1918, provision is made that 
 dividends paid by domestic corporations to non-resident 
 alien individuals are not subject to the normal tax, but are 
 
 313 
 
NON-RESIDENT ALIENS— Continued. 
 
 subject to additional tax, and that dividends paid by domes- 
 tic corporations to foreign corporations, not having a place 
 of business in the United States are not taxable. 
 
 As there will be no withholding in connection with divi- 
 dends paid under the Revenue Act of 1918, it is not known 
 whether the procedure of filing ownership certificates by 
 record owners will be required disclosing the names of the 
 actual owners. 
 
 ![445 — Record Owner Liable for Tax. (See ^444 above.) 
 Dividends on stock of domestic corporations or resident 
 alien corporations are held, prima facie, to be income to the 
 record owner of the stock, and such record owner will be 
 liable for income tax, normal or additional, according to his 
 or its individual or corporate status, unless a disclosure of 
 actual ownership is made to the Commissioner of Internal 
 Revenue which will show who the owner is and his address, 
 and that the record owner is not the actual owner. (Form 
 1087 is provided for this purpose.) 
 
 j[ 446 — Record Owner to Make Return and Pay Tax. (See 
 
 T[ 444 above.) 
 In all cases where the actual owner is a non-resident alien 
 individual and the record owner is an individual, firm or cor- 
 poration in the United States, citizen or resident alien, or a 
 non-resident alien, and the aforesaid showing of actual own- 
 ership is made, the record owner will be held, for income tax 
 purposes, to have receipt, custody, control and disposal of 
 the dividend income, and will be required to make return for 
 the actual owner and pay the additional tax found by such 
 return to be due. 
 
 ^447 — Certificate to Disclose Actual Ownership of Stock. 
 
 (See II 444 above.) 
 A certificate has been provided for disclosing actual own- 
 ership (Form 1087, Revised) for the use of the foreign 
 (actual) owner — whether an individual, firm or organiza- 
 tion — to be filed with his, her or its representative in the 
 United States. This certificate is to be filed with the record 
 owner by the non-resident alien person, firm or corporation 
 for whom the record owner acts. 
 
 314 
 
NON-RESIDENT ALIENS— Continued. 
 
 A certificate once filed disclosing the actual owner will be 
 held to answer for all the requirements under this regulation 
 until ownership shall change, when it will be necessary to 
 disclose the actual owner as in the first instance. 
 
 When a return is not required to be filed by or on behalf 
 of the actual owner, the showing may be made upon the 
 certification of the record owner. — Art. 32, Reg. 33, Revised. 
 
 Upon the showing thus made, either by certification or 
 return, as the circumstances may require, the Commisisoner 
 of Internal Revenue will make such assessments and issue 
 such instructions to debtors and withholding agents as will 
 insure the proper collection of tax in accordance with the 
 respective tax liabilities. — Art. 32, Reg. 33, Revised. 
 
 ^ 448 — Returns of Dividends When Actual Owner is a 
 Non-resident Individual. 
 
 When the actual owner is a non-resident alien individual, 
 a return (Form 1040) shall be made. When the net amount 
 exceeds $5,000 said custodian shall pay the additional tax on 
 such income. 
 
 If 449 — ^When Actual Owner is a Non-resident Corporation. 
 
 Where the actual owner is a non-resident alien corpora- 
 tion, return (Form 1031 or 1030 for insurance companies) 
 will be made regardless of amount of the dividend paid. 
 
 ^ 450 — When Actual Owner is a Non-resident Alien 
 Partnership. 
 
 When it shall appear from the disclosure provided for 
 that the actual owner is a non-resident ahen partnership, all 
 certificates making such disclosure shall be transmitted to 
 the collector for information of the Commissioner of In- 
 ternal Revenue. 
 
 ^ 451 — Proceduce When Stockholder of Record is Other 
 Than the Non-resident Alien Individual Actual 
 Owner, and is a Non-resident Alien. 
 
 Dutch Administration offices being non-resident alien cor- 
 porations not engaged in business or trade in the United 
 States, and not having an office or place of business therein, 
 
 315 
 
NON-RESIDENT ALIENS— Continued. 
 
 and such Dutch Administration offices being the registered 
 owners of stock of domestic or other resident corporations 
 in theUnited States, are prima facie liable for the normal 
 income tax on income derived from dividends on capital 
 stock or from the net earnings of the aforesaid domestic or 
 other resident corporations in the United States and to hav- 
 ing the tax deducted and withheld from such income. It ap- 
 pearing that such Dutch Administration offices, while reg- 
 istered owners of stock, are not the actual owners thereof, 
 but that they have issued their bearer certificates, with 
 coupons attached, against said stock, and that dividends on 
 said stock are collected for the account of the holders of said 
 bearer certificates, and that the relation sustained by said 
 Dutch Administration offices to the said bearer-certificate 
 holders is that of agent. For the purpose of administration, 
 the Dutch Administration offices may appoint an agent in 
 the United States and give notice of that fact by filing, in 
 duplicate, with each corporation issuing the stock so held by 
 said Dutch Administration offices. — Treasury Decision 2386. 
 
 Tf 452 — When Record Owner is Non-resident Alien 
 Corporation. 
 
 For the purpose of claiming exemption from withholding 
 at the source on domestic dividend payments, non-resident 
 alien corporations who are record owners are authorized the 
 use of certificate (Form 1087), to disclose actual ownership 
 of stock. The certificate should be modified by striking out 
 the words "to be filed with representative in the United 
 States of such Foreign Principal" in the caption and the 
 words "in the United States" in the body of the form. — 
 Treasury Decision 2452. 
 
 II 45a-Void— [Ed.] 
 
 % 454 — Deductions Allowed. 
 
 A non-resident alien individual shall receive the benefit of 
 the deductions and credits provided for in this section only 
 by filing or causing to be filed with the Collector of Internal 
 Revenue a true and accurate return of his total income, re- 
 
 ^ 316 
 
NON-RESIDENT ALIENS— Continued. 
 
 ceived from all sources, corporate or otherwise, in the United 
 States, in the manner prescribed by this title, including 
 therein all the information which the Commissioner may 
 deem necessary for the calculation of such deductions and 
 credits; and in case of his failure to file such return, the 
 collector shall collect the tax on such income, and all prop- 
 erty belonging to such non-resident alien individual shall be 
 Hable to distraint for the tax. — Law, page 66, line 8. 
 
 ^ 455 — AUowable Deductions Specified. 
 
 In computing the net income of a non-resident alien there 
 shall be allowed as deductions — 
 
 T[ 456— EXPENSES. 
 
 All the ordinary and necessary expenses paid or incurred 
 during the taxable year in carrying on any trade or business, 
 including a reasonable allowance for salaries or other com- 
 pensation for personal service actually rendered and includ- 
 ing rentals or other payments required to be made as a con- 
 dition to the continued use or possession, for purposes of 
 trade or business, of property to which the taxpayer has not 
 taken or is not taking title or in which he has no equky. 
 
 ^ 457— INTEREST. 
 
 The proportion of all interest paid within the taxable year 
 by such person which the amount of his gross income from 
 sources within the United States bears to the amount of his 
 gross income from all sources within and without the United 
 States. 
 
 H 458— TAXES. 
 
 Taxes paid or accrued within the taxable year imposed 
 by the authority of the United States (except income, 
 war-profits and excess-profits taxes), or by the authority 
 of any of its possessions, or by the authority of any State 
 or territory, or any county, school district, municipality, or 
 other taxing subdivision of any State or territory, not in- 
 cluding those assessed against local benefits. 
 
 317 
 
NON-RESIDENT ALIENS— Continued. 
 
 1|45d— LOSSES. 
 
 Losses sustained during the taxable year, and not com- 
 pensated for by insurance or otherwise, if incurred in trade 
 or business. 
 
 Losses sustained during the taxable year and not com- 
 pensated for by insurance or otherwise, if incurred in any 
 transaction entered into for profit though not connected 
 with the trade or business to the extent of transactions 
 entered into within the United States. 
 
 Losses sustained during the taxable year of property 
 within the United States, not connected with the trade or 
 business, if arising from fires, storms, shipwreck, or other 
 casualty, or from theft, and if not compensated for by insur- 
 ance or otherwise. 
 
 ^ 460— BAD DEBTS. 
 
 Debts ascertained to be worthless and charged off within 
 the taxable year. 
 
 fl 461— SUMMARY OF DEDUCTIBLE LOSSES. 
 
 The summary of deductible losses allowed citizen and res- 
 ident individuals (Pars. 163 to 183) will furnish further de- 
 tails as to losses allowed as a deduction to non-resident 
 aliens. 
 
 Tl 462 — Depreciation. 
 
 A reasonable allowance for the exhaustion, wear and 
 tear, and obsolescence of property within the United States 
 arising out of its use or employment in the business or trade. 
 
 11463- ■ :ii 
 
 In the case of buildings, machinery, equipment, or 
 other facihties, constructed, erected, installed, or acquired, 
 on or after April 6, 1917, for the production of articles con- 
 tributing to the prosecution of the present war, and in the 
 case of vessels constructed or acquired oft or after such date 
 for the transportation of articles or men contributing to 
 the prosecution of the present war, there shall be allowed a 
 reasonable deduction for the amortization of such part of 
 
 318 
 
NON-RESIDENT ALIENS— Continued. 
 
 the cost of such facihties or vessels as has been borne by the 
 taxpayer, but not again including any amount otherwise 
 allowed under this title or previous Acts of Congress as a 
 deduction in computing net income. At any time within 
 three years after the termination of the present war the 
 Commissioner may, and at the request of the taxpayer 
 shall, re-examine the return, and if he then finds as a result 
 of an appraisal or from other evidence that the deduction 
 originally allowed was incorrect, the taxes imposed by this 
 title and by Title III for the year or years affected shall be 
 redetermined; and the amount of tax due upon such re- 
 determination, if any, shall be paid upon notice and demand 
 by the collector, or the amount of tax overpaid, if any, shall 
 be credited or refunded to the taxpayer in accordance with 
 the provisions of section 252. 
 
 ^ 464 — Mines, Oil and Gas Wells, Other Natural Deposits 
 and Timber. 
 
 In the case of mines, oil and gas wells, other natural de- 
 posits, and timber, a reasonable allowance for depletion and 
 for depreciation of improvements, according to the peculiar 
 conditions in each case, based upon cost including cost of 
 development not otherwise deducted, is an allowable deduc- 
 tion from gross income. In the case of such properties ac- 
 quired prior to March 1, 1913, the fair market value of the 
 property (or the taxpayer's interest therein) on that date 
 shall be taken in lieu of cost up to that date. In the case 
 of mines, oil and gas wells, discovered by the taxpayer, on 
 or after March 1, 1913, and not acquired as the result of 
 purchase of a proven tract or lease, where the fair market 
 value of the property is materially disproportionate to the 
 cost, the depletion allowance shall be based upon the fair 
 market value of the property at the date of the discovery, 
 or within 30 days thereafter. Such reasonable allowance 
 in all the above cases to be made under rules and regulations 
 to be prescribed by the Commissioner with the approval of 
 the Secretary. In the case of leases the deductions provided 
 by this paragraph shall be equitably apportioned between 
 the lessor and lessee. 
 
 819 
 
NON-RESIDENT ALIENS—Continued. 
 
 ^ 465-— Deductions for Improvements. 
 
 Deduction shall not be allowed for any amount paid out for 
 improvements made to increase the value of any property or 
 estate. 
 
 T[ 466 — Contributions, Gifts, Etc. 
 
 Contributions or gifts made within the taxable year to 
 corporations organized and operated exclusively for re- 
 ligious, charitable, scientific, or educational purposes, or for 
 the prevention of cruelty to children or animals, no part of 
 the net earnings of which inures to the benefit of any pri- 
 vate stockholder or individual, or to the special fund for 
 vocational rehabilitation authorized by Section 7 of the Vo- 
 cational Rehabilitation Act, to an amount not in excess of 
 15 per centum of the taxpayer's net income as computed 
 without the benefit of this paragraph. Such contributions 
 or gifts shall be allowable as deductions only if verified 
 under rules and regulations prescribed by the Commissioner, 
 with the approval of the Secretary. This deduction shall 
 be allowed only as to contributions or gifts made to domestic 
 corporations, or to such vocational rehabilitation fund. 
 
 1[ 467 — Deductions by Non-resident Aliens. 
 
 The deductions for Expenses, Losses incurred in trade or 
 business, Debts, Depreciation, Amortization of cost of spe- 
 cial property. Depreciation and Depletion of Mines, etc., and 
 Losses of previous years, as set out in paragraphs 463, 404, 
 respectively, shall be allowed non-residents aliens only if and 
 to the extent that they are converted with income arising 
 from sources within the United States. The proper appor- 
 tionment and allocation of such deductions with respect to 
 sources of income within and without the United States 
 shall be determined under rules and regulations prescribed 
 by the Commissioner of Internal Revenue. 
 
 The benefit of all deductions and credits may be had only 
 if the non-resident alien files, or causes to be filed, with the 
 collector, and in the manner prescribed by the Commis- 
 sioner, a true and accurate return of his total income re- 
 ceived from all sources within the United States. However, 
 the benefit of the credits provided in t[ 453, in the discretion 
 
 320 
 
NON-RESIDENT ALIENS— Continued. 
 
 of the Commissioner and except as otherwise provided, may 
 be received by filing a claim therefor with the withholding 
 agent. 
 
 11468— 
 
 At the time of fihng return for the taxable year 1918 
 a taxpayer may file a claim in abatement based on the fact 
 that he has sustained a substantial loss (whether or not 
 actually realized by sale or other disposition) resulting from 
 any material reduction (not due to temporary fluctuation) 
 of the value of the inventory for such taxable year, or from 
 the actual payment after the close of such taxable year of 
 rebates in pursuance of contracts entered into during such 
 year upon sales made during such year. In such case pay- 
 ment of the amount of the tax covered by such claim shall 
 not be required until the claim is decided, but the taxpayer 
 shall accompany his claim with a bond in double the amount 
 of the tax covered by the claim, with sureties satisfactory 
 to the Commissioner, conditioned for the payment of any 
 part of such tax found to be due, with interest. If any part 
 of such claim is disallowed then the remainder of the tax 
 due shall on notice and demand by the collector be paid by 
 the taxpayer with interest at the rate of 1 per centum per 
 month from the time the tax would have been due had no 
 such claim been filed. If it is shown to the satisfaction of 
 the Commissioner that such substantial loss has been sus- 
 tained, then in computing the tax imposed by this title the 
 amount of such loss shall be deducted from the net income. 
 
 ^469 — 
 
 If no such claim is filed, but it is shown to the satis- 
 faction of the Commissioner that during the taxable year 
 1919 the taxpayer has sustained a substantial loss of the 
 character above described then the amount of such loss shall 
 be deducted from the net income for the taxable year 1918 
 and the tax imposed by this title for such year shall be re- 
 determined accordingly. Any amount found to be due to 
 the taxpayer upon the basis of such redetermination shall 
 be credited or refunded to the taxpayer in accordance with 
 the provisions of Section 252. 
 
 331 a 
 
NON-RESIDENT ALIENS— Continued. 
 
 fl 470— -Credits Allowed. 
 
 For the purpose of the normal tax only there shall be 
 allowed the following credits: 
 
 (a) The amount received as dividends from a corporation 
 which is taxable under this title upon its net income, and 
 amounts received as dividends from a personal service cor- 
 poration out of earnings or profits upon which income tax 
 has been imposed by Act of Congress ; 
 
 (b) The amount received as interest from obligations of 
 the United States, and bonds issued by the War Finance 
 Corporation, which is included in gross income; 
 
 (c) In the case of a single person, the personal exemption 
 of $1,000, or in the case of the head of a family or a mar- 
 ried person living with husband or wife, a personal exemp- 
 tion of $2,000. A husband and wife living together shall 
 receive but one personal exemption of $2,000 against their 
 aggregate net income, and in case they make separate re- 
 turns, the personal exemption of $2,000 may be taken by 
 either, or divided between them ; 
 
 (d) $200 for each person (other than husband or wife) 
 dependent upon and receiving his chief support from the 
 taxpayer, if such dependent person is under eighteen years 
 of age or is incapable of self-support because mentally or 
 physically defective. 
 
 11471- . 
 
 The marital credit and the credit for dependents as pro- 
 vided in subdivisions (c) and (d) of Section 216 shall be 
 allowed to non-resident alien only if such country, which 
 imposes an income tax, of which he is a citizen or subject, 
 allows a similar credit to citizens of the United States not 
 residing in such country. 
 
 See paragraph 454 for further conditions under which 
 non-resident aliens shall have benefit of deductions and 
 credits. 
 
 TJ 472 — Returns — Agents or Representatives of Non- 
 resident Aliens to Make Returns and Pay Tax 
 
 The responsible heads, agents, or representatives of said 
 non-resident aliens who are in charge of the property owned 
 
NON-RESIDENT ALIENS— Continued. 
 
 or business carried on within the United States by non- 
 resident aliens shall make fuUand complete return of the 
 income therefrom on Form 1040, Revised, and shall pay any 
 and all tax, normal and additional, assessed upon the said 
 income of non-resident aliens, except where the income tax 
 on income so in their receipt, custody or control, shall have 
 been withheld at the source. — Treasury Decisions 2109 
 and 2313. 
 
 11473- 
 
 The liabihty, under the provisions of the law, to render 
 personal returns, on or before March 15 next succeeding the 
 tax year, of annual net income accrued to them from sources 
 within the United States during the preceding calendar year, 
 attaches to non-resident aliens as in the case of returns 
 required from citizens and resident ahens. Therefore, a 
 return on Form 1040, Revised, is required except in cases 
 where the total tax liability has been or is to be satisfied at 
 the source by withholding or has been or is to be satisfied 
 by personal return on Form 1040, Revised, rendered in their 
 behalf. Returns should be rendered to the collector of in- 
 ternal revenue for the district in which a non-resident 
 alien carries on his principal business within the United 
 States or, in the absence of a principal business within the 
 United States and in all cases of doubt, to the collector of 
 internal revenue at Baltimore, Maryland, in whose district 
 Washington is situated. — Treasury Decision 2313. 
 
 11474- 
 
 Where non-resident aliens have various sources of income 
 within the United States so that at any one source or from 
 all sources combined, the amount of income shall call for the 
 assessment of additional tax and a return of income shall 
 not be filed by or on behalf of a non-resident alien for the 
 purpose of the assessment of income tax, the Commissioner 
 of Internal Revenue will cause a return of income to be made 
 and include therein the income of the non-resident alien 
 from all sources concerning which he has information and 
 shall assess the tax and collect the same from one or more 
 
 323 
 
NON-RESIDENT ALIENS— Continued. 
 
 or all of the sources of income within the United States of 
 said non-resident alien, without allowance for deductions 
 and credits. — Art. 32, Reg. 33, Revised. 
 
 ^ 475 — Exempt Income. 
 
 Non-resident aliens will not be required to make return 
 of any of the classes of income specified as exempt and 
 received by them from sources in the United States. — Art. 
 32, Reg. 33, Revised. 
 
 ^ 476 — Fiduciaries. 
 
 A fiduciary acting in the capacity of trustee, executor, or 
 administrator, when there is only one beneficiary and that 
 beneficiary a non-resident alien, shall render a return on 
 Form 1040, Revised ; but when there are two or more bene- 
 ficiaries, one or all of whom are non-resident aliens, the fidu- 
 ciary shall render a return on Form 1041, Revised, and a 
 personal return on Form 1040, Revised, for each non-resi- 
 dent alien beneficiary. 
 
 Tf 477 — Non-resident Alien — Agent for. 
 
 Agent for non-resident alien, whether an individual or 
 corporation, stands in place of the principal and should exe- 
 cute Form 1040, Revised, for principal, when principal is 
 liable to tax on income passing through agent's hands. — 
 Treasury Decision 2135. 
 
 II 478 — Withholding at Source of Income. 
 
 The person, firm, corporation, etc., in the United States, 
 citizen or resident alien, in whatever capacity acting, hav- 
 ing control, receipt, disposal or payment, etc., of fixed or de- 
 terminable annual or periodic gains accruing to a non- 
 resident alien individual from sources within the United 
 States, including income from corporate obligations (other 
 than dividends of domestic corporations) , shall deduct a tax 
 equal to 8 per cent, thereof, with the exception of tax-free 
 bonds which shall be at the rate of 2 per cent. 
 
 TI479- 
 
 When all income tax to which income of a non-resident 
 alien is subject is not withheld at the source, a return of 
 income will be required to be filed by or on behalf of said 
 
 324 
 
NON-RESIDENT ALIENS— Continued. 
 
 non-resident alien, and penalty for failure to make return 
 in time will attach. All property in the United States of a 
 non-resident alien will be subject to distraint for collection 
 of tax and penalty. 
 
 11 480 — Salary, Rents, Etc. 
 
 It is held that salaries, wages, commissions, and rents 
 paid by domestic corporations, resident individuals, or part- 
 nerships to non-resident alien employes for services ren- 
 dered entirely in a foreign country and for property located 
 in a foreign country are not subject to deduction and with- 
 holding of the normal tax, and such payments of income 
 win not be subject to the income tax in the hands of the 
 recipient as from a source within the United States. — Art. 
 32, Reg. 33, Revised. 
 
 Tf 481 — Return By Agent. 
 
 The agent of a non-resident alien is responsible for a cor- 
 rect return of all income accruing to his principal within 
 the purview of the agency, and the agent will be held re- 
 sponsible for a complete return of all such income. The 
 agency appointment will determine how completely the 
 agent is substituted for the principal for income-tax pur- 
 poses. — Art. 32, Reg. 33, Revised. 
 
 ]] 482 — Income of Foreign Corporations Having No OiTice 
 or Place of Business in United States Subject to 
 Withholding. 
 
 All provisions of the law relating to withholding the nor- 
 mal tax from the income of non-resident alien individuals 
 from sources within the United States, apply also to the 
 income of corporations not engaged in business in the 
 United States and not having any office or place of business 
 therein. 
 
 11483— 
 
 The withholding provisions of the law relating to such 
 corporations apply — 
 
 335 
 
NON-RESIDENT ALIENS— Continued. 
 
 11484- 
 
 To income derived from bonds, etc., of domestic or other 
 resident corporations, regardless of amount. Tax to be 
 withheld 8 per cent., except on tax-free bonds a tax of 2 per 
 cent shall be withheld. 
 
 11485- 
 
 The normal tax on the character of income specified and 
 payable to non-resident firms, corporations, etc., will be de- 
 ducted, withheld and paid to the proper officer of the United 
 States Government authorized to receive it, unless the firm, 
 corporation, etc., entitled to the payment shall file a certifi- 
 cate (Form 1086) , under penalty of false claim, as provided, 
 and only those firms, corporations, etc., which have "an 
 office or place of business" in the United States can use such 
 certificate. The corporations which are permitted to use 
 such certificate are required to make and render a return of 
 income to the Collector of Internal Revenue for the district 
 in which they have their office or place of business. — Treas- 
 ury Decision 2374. 
 
 ^486 — Foreign Firms, Corporations, Etc., Which Are 
 Exempt from Withholding of Their Income. 
 
 To enable debtor corporations to distinguish between 
 foreign firms, corporations, etc., which have, and those 
 which have not "any office or place of business within the 
 United States," a certificate (Form 1086) has been provided 
 for the use of such firms, organizations, etc., as "have an 
 office or place of business in the United States" to claim 
 exemption from having their income withheld at the source. 
 
 ^ 487— Refund, On Return. 
 
 Where, upon filing return of income, it appears that a 
 non-resident alien is not liable for income tax, but neverthe- 
 less, income tax shall have been withheld at the source, in 
 order to obtain a refund on the basis of the showing made 
 by the return there shall be attached to the return a state- 
 ment showing accurately the amounts of tax withheld, with 
 the names and post office addresses of all withholding 
 agents. — Art. 32, Reg. 33, Revised. 
 
 326 
 
CORPORATIONS, ETC. 
 
 RELATING TO THE INCOME TAX IMPOSED BY 
 
 SECTION 230 OF THE REVENUE ACT OF 1918, ON 
 
 CORPORATIONS, JOINT-STOCK COMPANIES, 
 
 ASSOCIATIONS, AND INSURANCE 
 
 COMPANIES. 
 
 11488— 
 
 In lieu of the taxes imposed by Section 10 of the Revenue 
 Act of 1916, as amended by the Revenue Act of 1917 ; and 
 by Section 4 of the Revenue Act of 1917, the Revenue Act 
 of 1918 imposes upon the net income of every corporation, 
 joint-stock company, association, and insurance company 
 for the calendar year 1918, a tax of 12 per cent, of the 
 amount of such income in excess of the credits provided 
 under Section 236. See Law, page 79, line 29. 
 
 f[ 48d— Term "Taxable Year." 
 
 The term "taxable year" or "taxable period" means the 
 calendar year or the fiscal year ending during such calendar 
 year upon the basis of which the net income is computed. 
 
 j[ 490— Term "Corporation." 
 
 The term "corporation" includes joint-stock companies, 
 associations, and insurance companies. 
 
 11491 — ^Joint-Stock Companies and Associations Denied. 
 
 The term "joint-stock companies" or "associations" shall 
 include associations, common-law trusts, or organizations by 
 whatever name known which carry on or do business in an 
 organized capacity, whether created under and pursuant to 
 State laws, trust agreements, declarations of trust, or other- 
 wise, the net income of which, if any, is distributed or dis- 
 tributable among the members or shareholders on the basis 
 of the capital stock which each holds or, where there is no 
 capital stock, on the basis of the proportionate share or cap- 
 ital which each has, or has invested, in the business or 
 property of the organization, all of which joint-stock com- 
 panies or associations shall in their organized capacity be 
 
 327 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 subject to the tax imposed by this Act, and shall make re- 
 turns of annual net income accordingly. — Art. 58, Reg. 33, 
 Revised. 
 
 Tf 492 — Philippine and Porto Rican Corporations. 
 
 In Porto Rico and the Philippine Islands the income tax 
 shall be levied, assessed, collected and paid in accordance 
 with the provisions of the Revenue Act of 1916, as amended 
 by the Revenue Act of 1917; Provided: That the Porto 
 Rican or Philippine Legislature shall have power by due 
 enactment to amend, alter, modify, or repeal the income tax 
 laws in force in Porto Rico or the Philippine Islands, re- 
 spectively. For the purpose of credits and deductions under 
 the Revenue Act of 1918, taxes imposed in Porto Rico or 
 the Philippine Islands shall not be considered as having been 
 levied under the provisions of said Act. 
 
 See H 777. 
 
 If 493 — Incomplete Corporations. 
 
 Corporations which have applied for but have never re- 
 ceived charters and corporations which have received char- 
 ters but have never perfected their organizations and which 
 as entities have transacted no business and had no income 
 from any source may, upon presentation of the facts to the 
 collector, be relieved from the necessity of making returns, 
 so long as they remain in this unorganized condition. In 
 the absence of a showing to this effect to the collector of in- 
 ternal revenue, such companies will be required to make re- 
 turns and will be liable to the penalties of the law for fail- 
 ure to do so. — Art. 60, Reg. 33 Revised. 
 
 1[ 494^ — Corporations Dissolved. 
 
 A corporation which was dissolved in 1918, prior to 
 passage of the Revenue Act of 1918, is subject to tax. 
 (Brady et al. v. Anderson, 240 Fed., 665). A corpora- 
 tion so situated will make a return on Revised Form 1031, 
 covering the period in 1918 during which it was in business 
 prior to its dissolution. If it shall have previously made a 
 return covering this period and shall have paid any excess 
 profits tax under the Revenue Act of 1917, it shall be 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 entitled to credit for the amount of such tax so paid 
 against any excess-profits tax assessable against it under 
 the Revenue Act of 1918. 
 
 Dissolved corporations whose fiscal year coincides with 
 the calendar year will make returns covering the period 
 from January 1 to the date of dissolution, and corporations 
 having a fiscal year other than the calendar year will make 
 returns covering the period from the beginning of the fiscal 
 year to the date of dissolution. — Treasury Decision 2090. 
 
 ^ 495 — Limited Partnerships. 
 
 Limited partnerships — that is, partnerships having one 
 or more special partners who may share in the profits of the 
 firm but whose liability for the debts of the company is lim- 
 ited to the amount of capital invested by such special part- 
 ner or partners — are held to be associations within the 
 meaning of this title, and as such are required to make re- 
 turns of annual net income and pay any tax thereby shown 
 to be due. The income received by the members out of the 
 earnings of such limited partnerships will be treated in their 
 personal returns in the same manner as if it were dividends 
 on the stock of corporations and will be subject to the 
 additional or surtaxes in the hands of the recipient. — ^Art. 
 62, Reg. 33 Revised. 
 
 II 496 — Common-law Partnerships. 
 
 Common-law partnerships are not associations within the 
 meaning of the income tax law, and are not taxable as such. 
 They must, however, make returns. 
 
 11 497 — Private Banks — Associations. 
 
 Private banks which have the form of corporate organi- 
 zations, elect officers and a board of managers, have a dis- 
 tinctive name, a fixed situs, and distribute their net earnings 
 upon the basis of the amount of capital invested by the 
 members or owners, are held to be associations within the 
 meaning of the Federal income tax law, and in their organ- 
 ized capacity should make returns of annual net income and 
 pay any income tax thereby shown to be due. 
 
 329 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 11498 — 
 
 The holders of the stock or the owners of the bank will 
 be exempt from the normal tax to the extent of the divi- 
 dends or earnings which they receive from such private 
 banks as make returns in their organized capacity and pay 
 income tax in accordance therewith. The individual owners 
 of the bank will not be required to return as income for the 
 purpose of the normal tax any dividends or earnings re- 
 ceived from the private bank which pays the tax on its 
 net earnings, but for the purpose of the surtax the divi- 
 dends will be returned as income by the individual stock- 
 holders or owners. — Treasury Decision 2137. 
 
 If 499 — Private Banks as Associations — Assessments 
 Against. 
 
 It is not purposed to assess tax against such banking as- 
 sociations and then, also, against the individual members 
 of such associations. — Treasury Decision 2152. 
 
 K 500 — Private Banks — Individual Ownership. 
 
 When it can be clearly shown that a private bank is 
 owned by one man, it is evident that such bank is not an 
 association within the meaning of the Federal income tax 
 law, and that therefore such bank will not be required to 
 make a return such as corporations and associations are 
 required to make, but the individual owner, if he has a net 
 income of $1,000 or more, will be required to make a return 
 on Form 1040, showing in such return the income which he 
 receives not only from the bank but from all other sources. 
 — Treasury Decision 2137. 
 
 fl 501 — Corporations Required to Make Returns — Mutual 
 Telephone and Mutual Insurance Companies 
 Not Exempt. 
 
 Every corporation not specifically enumerated as exempt 
 shall make the return of annual net income required by law 
 whether or not it may have any income liable to tax, or 
 whether or not it shall be subordinate to or controlled by 
 another corporation. — See H 711, "Consolidated Returns." 
 
 330 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 |[ 502 — Liability of Close Corporation. 
 
 A corporation formed as a family affair to hold property 
 together and not to sacrifice in selling does not come within 
 the class of corporations specifically enumerated as exempt 
 from the requirements of the Federal income tax law, and 
 is required to make a return of annual net income showing 
 therein all income arising and accruing to it from all sources 
 and to pay any income tax shown by such returns to be due. 
 — Treasury Decision 2137. 
 
 Tf 503 — Income of Contracting Companies. 
 
 The Department requires no special system of bookkeep- 
 ing, neither does it require any specific method by which the 
 net income to be returned by corporations shall be deter- 
 mined. 
 
 In the case of a large contracting company, which has 
 numerous uncompleted contracts which probably, in some 
 cases, run for periods of several years, there does not ap- 
 pear to be any objection to such corporations preparing its 
 return in such manner that its gross income will be arrived 
 at on the basis of completed work — that is to say, on jobs 
 which have been finally completed and payments made dur- 
 ing the year in which the return is made. If the gross in- 
 come is arrived at in this method, the deductions from gross 
 income should be limited to the expenditures made on ac- 
 count of such completed contracts. 
 
 Tf 504 — Domestic Corporation Doing Foreign Business. 
 
 A domestic corporation doing the greater part of its busi- 
 ness in the United States and having its principal place of 
 business in this country and transacting business in Porto 
 Rico through a branch office, is required to report in its re- 
 turn of annual net income its entire earnings from all 
 sources, including those arising and accruing to the branch 
 in Porto Rico or elsewhere. 
 
 The return of such corporation will be made to the col- 
 lector of internal revenue of the district in this country in 
 which is located its principal place of business. — ^Treasury 
 Decision 2137. 
 
 331 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 jf SOS — Returns of Holding Companies. 
 
 In a case wherein a holding company actually takes up 
 each month on its books its proportionate share of the earn- 
 ings of the underlying companies, such holding company 
 will be required to include in its gross income the amounts 
 thus taken up regardless of the fact that the same may not 
 have been actually paid to it in cash. The fact that the 
 underlying companies credit to the holding company the 
 amount of earnings to which it is entitled on the basis of 
 the stock it holds, together with the fact that the holding 
 company takes up on its books the amount thus credited, 
 renders it incumbent upon the holding company to return 
 these amounts as income, regardless of the fact that the 
 underlying companies needed these earnings and used them 
 in making extensions and improvements and in furtherance 
 of their business. 
 
 Expenditures for such extensions and improvements being 
 chargeable to the property account of the subsidiary com- 
 panies are not deductible from the gross income and will 
 therefore not have the effect to reduce the earnings to their 
 respective shares of which the stockholders are entitled. — 
 Treasury Decision 2137; also see tf 711, "Consolidated 
 Returns." 
 
 11 SOB — Subsidiary Companies Required to Make Returns. 
 
 Parent and subsidiary companies are distinct entities and 
 each must make detailed returns and each is required to pay 
 the tax. Net earnings of subsidiary companies turned over 
 to parent company are dividends within meaning of the law. 
 — Treasury Decision 2137; also see H 711, "Consolidated 
 Returns." 
 
 ^ SOT — Place of Filing Returns by Domestic Corporations 
 Having Principal Place of Business in Foreign 
 Country. 
 
 In the case of domestic corporations whose books of ac- 
 count and other data are kept in foreign countries, the re- 
 turns should be made to the collector of internal revenue of 
 the district in which they have branch offices in this coun- 
 try, if they have such branch offices. Otherwise, the returns 
 
 332 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 of annual net income of such corporations should be made to 
 the collector of the district in which are located the statu- 
 tory offices of the corporations. — Treasury Decision 2137. 
 
 ^ 508 — Tentative Returns. 
 
 In cases wherein foreign corporations or domestic cor- 
 porations doing business in foreign countries are unable to 
 assemble their data in time to make their returns of annual 
 net income within the prescribed time, it will be permissible 
 for such corporations upon a showing of this fact to file with 
 the collector of internal revenue a tentative return in which 
 there shall be approximated, as nearly as possible, the actual 
 business tranacted during the year. 
 
 This tentative return will be substituted by a true and 
 accurate return as soon as the necessary data to make such 
 true and accurate return shall be available. 
 
 ^ 509— 
 
 Collectors of internal revenue are authorized to grant 
 an extension of time not in excess of 30 days from the date 
 when returns are due, such extension to be granted only in 
 cases wherein the neglect to file the return within the pre- 
 scribed time was due to the sickness or absence of an officer 
 whose signature to the return was necessary. Foreign cor- 
 porations or domestic corporations doing business in for- 
 eign countries cannot be granted an extension of tim.e 
 merely for the reason that they are unable to assemble 
 their data to make the return within the prescribed time. 
 In all such cases, liabiHty to the penalty of the Act can be 
 obviated only by filing a tentative return as hereinbefore 
 indicated. — Treasury Decision 2137. 
 
 11510— 
 
 The Revenue Act of 1918 provides that the Commissioner 
 of Internal Revenue may grant an extension of time for 
 the filing of returns when in his judgment good reason ex- 
 ists therefor. 
 
 1[ 51 1 —Return Period. 
 
 The return for a completed period must be made inde- 
 pendently of any other period. A corporation changing 
 
 333 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 from the basis of a calendar year to a fiscal year, and be- 
 cause of said change having a part of the calendar year for 
 which return is to be made, will be required to make a sep- 
 arate return for the fraction of the calendar year, and an- 
 other separate return for the entire fiscal year; as June 30 
 being designated as the end of the fiscal year, the part of the 
 calendar year from January 1 to June 30 must be covered 
 in a return to be made on or before March 1 then following, 
 and on or before 60 days next following June 30 (next 
 after the filing of return for the fractional part of a cal- 
 endar year) a return must be made and returned for the en- 
 tire fiscal year of the corporation. — Treasury Decision 
 2029. 
 
 ^BIS^-Rent. 
 
 Payments measured by a fixed percentage on the stock 
 of a railroad corporation whose lines are leased by another 
 railroad corporation and which rent is payable by the lessee 
 directly to the stockholders of the lessor corporation, have, 
 under the income tax law with respect to the corporation 
 paying such sums, the status of a rental payment. 
 
 In such cases there are two corporations involved, the 
 lessor and the lessee — one the rent payer and the other the 
 rent receiver. To the lessee rental payments are an expense 
 of operation ; to the lessor the rentals are an income. 
 
 A contract which provides that the rentals shall be paid 
 to a third party, not a party to the contract, does not change 
 the character of the payment, nor relieve the lessor from 
 liability to tax on the rental income which the lessee pays 
 to it or to such third party. The income of the third party, 
 the stockholder, is dividends on the stock which he holds in 
 the lessor company. Dividends cannot be paid unless the 
 lessor has an income out of which to pay them. Hence the 
 lessor company is required under the law to return as income 
 the rentals which the lessee is required to pay. In paying 
 direct to the stockholders the lessee is acting as the agent of 
 the lessor, and the amounts received by stockholders are, in 
 effect and in fact, dividends received out of the earnings of 
 the lessor. — Treasury Decision 2090. 
 
 331 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 If 51 3 — Leased Properties. 
 
 When a corporation shall have leased its property in con- 
 sideration that the lessee shall pay in lieu of rental an 
 amount equivalent to a certain rate of dividend on its capi- 
 tal stock or the interest on its outstanding indebtedness, to- 
 gether with taxes, insurance, or other fixed charges, such 
 payments shall be considered rental payments and shall be 
 returned by the lessor corporation as income, notwithstand- 
 ing the fact that the dividends and interest are paid by the 
 lessee direct to the stockholders and bondholders of the 
 lessor. The lessee, in making these payments direct to the 
 bondholders and the stockholders, does so as the agent of the 
 lessor, and the latter is none the less liable to return the 
 amounts thus paid as income and to pay any tax that may be 
 due thereon. — Treasury Decision 2620; also Art. 102, Reg. 
 33, Revised. 
 
 The fact that a corporation has conveyed or let its prop- 
 erty and has thus parted with its management and control 
 or has ceased to engage in the business for which it was 
 originally organized will not relieve it from liability to in- 
 come tax. If it has or may have income directly or indirectly 
 from any source, it must make a return, account for all such 
 income, and pay any tax assessable upon such income. — 
 Art. 102, Reg. 33, Revised. 
 
 ^ 51 4 — Interest Deduction by Corporations Operating 
 Leased or Purchased Lines. 
 
 A railroad company operating leased or purchased lines 
 shall include all receipts derived therefrom, and, if bonded 
 indebtedness of such lines has been assumed, such operating 
 company may deduct the interest paid thereon to be com- 
 puted as indicated in 1| 610 and 679. 
 
 If 51 5 — Lessee Corporations Not to Include Capital Stock or 
 Indebtedness of Lessor Corporations. 
 
 Corporations operating leased lines should not include the 
 capital stock of the lessor corporations in their own state- 
 ment of capital stock outstanding at the close of the year. 
 The indebtedness of such lessor corporations should not be 
 included in the statement of the indebtedness of the lessee 
 
 335 
 
CORPORATIONS— Continued. DEFINITIONS 
 
 unless the lessee has assumed the same. Each leased or sub- 
 sidiary company will make its own separate return, ac- 
 counting for therein all income which it may have received 
 by way of dividends, rentals, interest, or from any other 
 source. — See H 711, "Consolidated Returns." 
 
 Tf 51 — Foreign Corporations Having Branch Offices in 
 United States to Designate Principal Office. 
 
 A foreign corporation having several branch offices in the 
 United States should designate one of such branches as its 
 principal office and should also designate the proper officers 
 to make the required return. 
 
 II 51 7 — Fiscal Year Returns of New Corporations. 
 
 In the case of new corporations, if they shall file or shall 
 have filed within the prescribed time, a notice designating 
 the last day of some month as the close of the fiscal year, 
 such corporations will be permitted to make their returns as 
 of the period ended with the date designated, provided the 
 period intervening between the date of organization of the 
 corporation and the date designated as the close of its fiscal 
 year does not exceed 12 months. If such period does 
 exceed 12 months, the corporation will make a return for 
 the portion of the calendar year preceding the beginning 
 of the fiscal year, which return must be filed on or before 
 the 15th day of March next following the calendar year of 
 which it is a part. Corporations partially organized during 
 the year 1918 should file a return for the period ended 
 December 31, 1918, unless they shall have established a 
 fiscal year for this purpose, and if they shall have actually 
 done no business during the period for which the return 
 is made, that fact will be set out in a notation on or a 
 rider attached to the return. 
 
 TI 51 8 — Change of Name of Corporation. 
 
 The mere change in name does not constitute a new cor- 
 poration. If the business was continuous throughout the 
 year, no change in ma^nagement or operation other than the 
 change of name, the return should be made covering the 
 business transacted throughout the year, such return to be 
 
 336 
 
CORPORATIONS— Continued. EXEMPT 
 
 made by the corporation in the name which it bears at the 
 end of the year, with a notation on the return to the effect 
 that the name had been changed, giving both the old and 
 new names. If, however, a distinct new corporation was 
 organized to take over the property of the old, both corpora- 
 tions will be required to make separate returns covering the 
 periods of the year during which they were respectively in 
 charge of the business. 
 
 All corporations having an existence as such during all or 
 any portion of a year, unless coming within the classes spe- 
 cifically enumerated as exempt, are required to make re- 
 turns. New corporations will make returns for the period 
 from the date of their organization to December 31. The 
 net income in all such cases will be ascertained in the man- 
 ner provided in Section 232 of the Revenue Act of 1918 and 
 the specific credit shall be reduced to an amount which bears 
 the same ratio to the full credit as the number of months 
 in the period bears to twelve months. 
 
 ^f 51 9 — Corporations Organized During the Year to Make 
 Returns. 
 
 A corporation organized and transacting no business 
 within the calendar year of its organization must, neverthe- 
 less, make and file a return on the basis of the calendar 
 year unless such corporation shall designate a fiscal year 
 other than the calendar year in the manner and form as 
 provided for that purpose. The duty to make a return de- 
 pends upon corporate or associational existence and not 
 upon the receipt of income. — ^Treasury Decision 2090. 
 
 EXEMPT CORPORATIONS. 
 
 Tf 520 — Corporations Exempt from Tax — Conditional. 
 
 Corporations or associations organized and operated ex- 
 clusively for religious, charitable, scientific, or educational 
 purposes, business leagues, chambers of commerce, boards 
 of trade, civic leagues, cemetery companies, and pleasure and 
 recreation clubs, are not, as such, exempt from the require- 
 ments of this title. Their exemption is conditional, and in 
 
 337 
 
CORPORATIONS— Continued. EXEMPT 
 
 order to be relieved from liability under the law they must 
 file with the collector of internal revenue an affidavit set- 
 ting out the character and purpose of the organizations, and 
 showing that no part of any income which they receive 
 inures to the benefit of any private stockholder or individ- 
 ual, and that such income is used exclusively for the pro- 
 motion of the purposes for which organized as indicated in 
 the particular paragraphs under which exemption is 
 claimed. — Art. 67, Reg. 33, Revised. 
 
 ^521 — Corporations — ^When Not Exempt. 
 
 A corporation is not exempt simply and only because it is 
 primarily not organized and operated for profit. If income 
 within the meaning of the law arises and accrues to a cor- 
 poration which is not organized for profit, such income will 
 be subject to tax. — Treasury Decision 2137 ; also see U 528. 
 
 U 522 Corporations Exempt from Tax — Unconditional. 
 
 The Act specifically enumerates and exempts from its pro- 
 visions the income of the following corporations, associa- 
 tions, etc.: 
 
 1. Labor, agricultural, or horticultural organizations ; 
 
 2. Mutual savings banks not having a capital stock repre- 
 sented by shares ; 
 
 3. Fraternal beneficiary societies, orders or associations 
 (a) operating under the lodge system or for the exclusive 
 benefit of the members of a fraternity itself operating under 
 the lodge system, and (b) providing for the payment of life, 
 sick, accident, or other benefits to the members of such 
 society, order or association or their dependents. — See U — ; 
 
 4. Domestic building and loan associations ; and co-opera- 
 tive banks without capital stock organized and operated for 
 mutual purposes and without profit ; 
 
 5. Cemetery companies owned and operated exclusively 
 for the benefit fo their members ; 
 
 6. Corporations organized and operated exclusively for 
 religious, charitable, scientific, or educational purposes 
 or for the prevention of cruelty to children or animals, no 
 part of the net income of which inures to the benefit of any 
 private stockholder or individual ; 
 
CORPORATIONS— Continued. EXEMPT 
 
 7. Business leagues, chambers of commerce, or boards of 
 trade, not organized for profit and no part of the net income 
 of which inures to the benefit of any private stockholder 
 or individual ; 
 
 8. Civic leagues or organizations not organized for profit, 
 but operated exclusively for the promotion of social welfare ; 
 
 9. Clubs organized and operated exclusively for pleasure, 
 recreation, and other non-profitable purposes, no part of the 
 net earnings of which inures to the benefit of any privato 
 stockholder or member; 
 
 10. Farmers' or other mutual hail, cyclone, or fire in- 
 surance company ; 
 
 Mutual ditch or irrigation companies; 
 
 Mutual or co-operative telephone companies; 
 or like organizations of a purely local character, the in- 
 come of which consists solely of assessments, dues, and fees 
 collected from members for the sole purpose of meeting 
 expenses ; 
 
 11. Farmers', fruit growers', or like associations, or co- 
 operative societies, organized and operated as sales agents 
 for the purpose of marketing the products of members and 
 turning back to them the proceeds of sales, less the neces- 
 sary selling expense, on the basis of the quantity of produce 
 furnished by them ; 
 
 12. Corporations organized for the exclusive purpose of 
 holding title to property, collecting income therefrom, and 
 turning over the entire amount thereof, less expenses, to 
 an organization which itself is exempt from the tax imposed 
 by this title; 
 
 13. Federal land banks and national farm-loan associa- 
 tions as provided in Section 26 of the Act approved July 
 17, 1916, entitled "An Act to provide capital for agricultural 
 development, to create standard forms of investment based 
 upon farm mortgage, to equalize rates of interest upon farm 
 loans, to furnish a market for United States bonds, to create 
 Government depositaries and financial agents for the United 
 States, and for other purposes;" or 
 
 14. Personal service corporations. 
 
 339 
 
CORPORATIONS— Continued. EXEMPT 
 
 ^523 — Labor, Agricultural and Horticultural 
 Organizations. 
 
 Agricultural or horticultural organizations, which are ex- 
 empt under this title, do not include those corporations 
 engaged in growing agricultural or horticultural products, 
 raising live stock or similar products for profit, but will in- 
 clude only those organizations which, having no net income 
 inuring to the benefit of their members, are educational or 
 instructive in character, and which have for their purpose 
 the betterment of the conditions of those engaged in these 
 pursuits, the improvement of the grade of their products, 
 and the encouragement and promotion of those industries to 
 a higher degree of efficiency. — ^Treasury Decision 2090 ; also 
 Art. 73, Reg. 33, Revised. 
 
 Included in this class as exempt are those organizations 
 such as county fairs and like associations of a quasi-public 
 character, which, through a system of awards, prizes, or pre- 
 miums, are designed to encourage the production of better 
 live stock, better agricultural and horticultural products, and 
 whose income, derived from gate receipts, entry fees, dona- 
 tions, etc., is used exclusively to meet the necessary ex- 
 penses of upkeep and operation. — Art. 73, Reg. 33, Revised. 
 
 Societies or associations which have for their purpose the 
 holding of annual or periodical race meets, and from which 
 profits inure or may inure to the benefit of the members or 
 stockholders do not come within the terms of this exemp- 
 tion. — Art. 73, Reg. 33, Revised. 
 
 11524- 
 
 Corporations engaged in agricultural or horticultural pur- 
 suits for plantations and disposing of the products thereof 
 are held to be operating for profit and are not entitled to 
 exemption as agricultural organizations. — Treasury Decis- 
 ion 2090. 
 
 If 525 — Agricultural Organizations. 
 
 Corporations owning sugar or other plantations and dis- 
 posing of the products thereof are held to be operating for 
 profit and are not entitled to exemption as agricultural or- 
 ganizations. — Treasury Decision 2090. 
 
 340 
 
CORPORATIONS— Continued. EXEMPT 
 
 ^ 528— Societies Not Agricultural or Horticultural. 
 
 A corporation engaged in the business of raising stock 
 or poultry, or growing grain, fruits, or other products of 
 this character, as a means of livelihood and for the purpose 
 of gain, is an agricultural or horticultural society only in 
 the sense that its name indicates the kind of business in 
 which it is engaged and, as such, is not exempt from the 
 requirements of the law, and must make returns and pay 
 any income tax thereby shown to be due. — Treasury Decision 
 2090 ; also Art. 74, Reg. 33, Revised. 
 
 U 527 — Domestic Building and Loan Associations. 
 
 A domestic building and loan association entitled to ex- 
 emption is one organized under and pursuant to the laws 
 of the United States or under and pursuant to the laws of 
 some State or Territory thereof, and which is actually 
 carrying on for the benefit of its members a building and 
 loan association business in accordance with the laws under 
 which it is organized. The fact that such an association 
 issues fully paid or prepaid shares, calling for a specified 
 rate of interest or dividends, will not disqualify it for ex- 
 emption. The exemption is without qualification other than 
 that the association is a domestic building and loan asso- 
 ciation. If a corporation by any other name is carrying on 
 an exclusive building-and-loan business, before it is entitled 
 to exemption it will be incumbent upon it to show to the 
 satisfaction of the Commissioner of Internal Revenue that 
 it is in fact a building and loan association. — Art. 70, Reg. 
 33, Revised. 
 
 ^ 528 — Qualifications for Exemption. 
 
 In every instance wherein exemption is conditioned upon 
 the ground that no part of the net income received by cor- 
 porations inures to the benefit of any private stockholder 
 or individual, it will be necessary, before such organizations 
 will be classed as exempt, for them to show to the satisfac- 
 tion of the collector or the Commissioner of Internal Revenue 
 
 (1) The character and purpose of the organization; 
 
 (2) The source from which all its income is derived ; 
 
 (3) What disposition is made of such incomes; and 
 
 341 
 
CORPORATIONS— Continued. EXEMPT 
 
 (4) Whether or not any of it is credited to surplus or 
 inures or may inure to the benefit of any private stockholder 
 or individual. — Art. 78, Reg. 33, Revised. 
 
 ^ 529 — Organizations, Exemption Doubtful. 
 
 Any corporation which entertains any doubt as to its 
 status under the law, for the reason that it does not clearly 
 come within one or another of the classes of those specifical- 
 ly enumerated as exempt, should, within the prescribed time, 
 file a return and attach thereto for the consideration of the 
 collector, a statement setting out fully the nature and pur- 
 pose of the organization, the source of its income, what dis- 
 position is made of it, and particularly of any surplus which 
 it may receive over and above its reasonable needs. 
 
 If the collector is in doubt, he will refer the statement and 
 return to the Commissioner of Internal Revenue for de- 
 cision, and withhold listing for assessment until a decision 
 is reached. — Treasury Decision 2090 ; also. Art. 79, Reg. 33, 
 Revised. 
 
 ^ 630 — Exemption Established. 
 
 When a corporation or organization has established its 
 right to exemption under any of the paragraphs of Section 
 11 of this title, it will be unnecessary for it to make a return 
 or to make any further showing thereafter with respect to 
 its status under the law, unless it changes the character of 
 its organization or the purpose for which it was originally 
 created. (Exempt corporations are enumerated in Section 
 231 of the Revenue Act of 1918.) 
 
 Collectors will keep a list of all corporations whose ex- 
 emption is conditional, to the end that they may occasionally 
 inquire into their status and ascertain whether or not they 
 are violating the conditions upon which their exemption is 
 predicated. — Art. 80, Reg. 33, Revised. 
 
 ^531 — Exempt Corporations. 
 
 In cases wherein corporations have, by affidavit or other- 
 wise, clearly established the fact and satisfied collectors 
 of internal revenue that they are exempt from the require- 
 ments of the Federal income tax law, or are defunct, dis- 
 solved, or obsolete, and are no longer carrying on any busi- 
 
CORPORATIONS— Continued. EXEMPT 
 
 ness and have no property or income, returns will not be 
 required of them after such condition has been clearly es- 
 tablished. But one showing of this character as to each 
 such particular corporation will be required unless it shall 
 later appear that any such corporation shall have such in- 
 come within the meaning of the law as brings it within its 
 requirements. — Treasury Decision 2137. 
 See also H 528. 
 
 ^ 532 — Society or Association Subject to Exemption 
 Defined. 
 
 A society or association "operating under the lodge sys- 
 tem" is considered to be one organized under a charter or 
 dispensation, with properly appointed or elected officers, 
 with an adopted ritual or ceremonial, holding meetings at 
 stated intervals, and supported by fees, dues or assessments. 
 See H 522. 
 
 1i SSa— Clubs. 
 
 All clubs are not exempt from the provisions of the in- 
 come tax law, even though not operated for profit. A club 
 desiring to be registered as an exempt organization should 
 file with the Commissioner of Internal Revenue a copy of 
 its charter, or an affidavit of its principal officer, setting 
 forth the nature of its organization, the purpose for which 
 organized, the source, if any, from which it derives income, 
 and the disposition made of such income as is received by it 
 for consideration and determination as to whether or not 
 it comes within the class of organizations held to be exempt 
 under the provisions of paragraph G of the income tax law. 
 — Treasury Decision 2029; also see Tf 522. 
 
 U 534— Social Clubs. 
 
 Social clubs organized and operated exclusively for pleas- 
 ure, recreation, and other non-profitable purposes are ex- 
 empt from the tax, provided no part of any net income which 
 they receive inures to the benefit of any private stockholder 
 or individual. This exemption will reach practically an 
 social arid recreation clubs which are supported by member- 
 ship fees, dues, and assessments. 
 
 343 
 
CORPORATIONS— Continued. EXEMPT 
 
 If a club, by reason of the comprehensive powers granted 
 in its charter, engages in traffic, in agriculture, or horti- 
 culture, in the sale of real estate, timber, etc., for profit, it 
 will be held that such club is not organized and operated 
 exclusively for pleasure, recreation, or social purposes. It 
 thus becomes a business or commercial enterprise, and any 
 profit realized from such activities is subject to the tax im- 
 posed by this title, and the club so operated must make 
 returns of annual net income. — Art. 72, Reg. 33, Revised. 
 
 ^ 535 — Cemetery Companies Organized for Benefit of Their 
 Members Exempt. 
 
 A cemetery company having a capital stock represented 
 by shares, or which is operated for profit or for the benefit 
 of others than its members, does not come within the ex- 
 empted class, and will be required to make returns of an- 
 nual net income and pay any income tax thereby shown to 
 be due. 
 
 In the case of such company a reserve set aside out of 
 profits as a "maintenance fund'' is not deductible from gross 
 income, and any accretions to such fund will be held to be 
 income and, as such, must be returned by the corporation. 
 The expenses of maintenance will be deductible as they are 
 paid. — Art. 71, Reg. 33, Revised. 
 
 1J535(a) — Co-operative Dairies and Like Organizations. 
 
 Co-operative dairies and like organizations do not fall 
 within the classes of organizations enumerated in Tf 520 
 to 541 as exempt, and are required to make returns of an- 
 nual income. — Treasury Decision 1996; also see 536. 
 
 \\ 536 — Co-operative Dairy Defined. 
 
 Co-operative dairy companies or associations not having 
 capital stock and engaged in collecting milk and disposing 
 of the same or the products thereof, and distributing the 
 proceeds of the business, less necessary operating expenses, 
 among their patrons, upon the basis of the quantity of butter 
 fat in the milk furnished by such patrons, are held to be 
 exempt from the tax imposed by this title. 
 
 If, however, a dairy company purchases milk at k stipu- 
 lated price and disposes of the same, or its products, through 
 
 844 
 
CORPORATIONS— Continued. EXEMPT 
 
 sale or otherwise, at a profit, and such profit inures to the 
 benefit of the company or its members, on any basis other 
 than the butter-fat content of milk furnished, such com- 
 pany will come within the requirements of the law, and will 
 be subject to the tax. — Treasury Decision 1996; also. Art. 
 76, Reg. 33, Revised. 
 
 If 537 — Co-operative Associations Defined. 
 
 Co-operative associations, in order to come within the ex- 
 emption provided in paragraph "eleventh" must establish to 
 the satisfaction of the collector or Commissioner of Internal 
 Revenue the fact that, for their own account, they have no 
 net income, their business being to market the products of 
 their members, and that the entire proceeds of such mar- 
 keting, less necessary selling expenses, are turned back or 
 paid to the members on the basis of the quantity of produce 
 furnished by them — quality and grade being considered — as 
 the purchase price of such produce. 
 
 If in the course of their business such associations pur- 
 chase for cash at a stipulated price articles of produce with 
 a view to selling them for gain, it will be held that such as- 
 sociations are organized for profit and such associations will 
 be required to make returns of annual net income and in- 
 clude therein, for the purpose of the tax, all income derived 
 from such transactions (Treasury Decision 2090). If 
 amounts paid to members are based solely upon the quantity 
 of produce furnished, such amounts may be deducted from 
 the gross proceeds of sales, and the taxable net income will 
 be the amount of earnings passed to surplus, or distributed 
 or distributable among members on the basis of their stock 
 holdings. — Art. 75, Reg. 33, Revised. 
 
 If 538 — Foreign Governments Not Taxable. 
 
 The income of foreign governments received from invest- 
 ments in the United States in stocks, bonds, or other domes- 
 tic securities, owned by such foreign governments, or from 
 interest on deposits in banks in the United States of moneys 
 belonging to such foreign governments, or from any other 
 source within the United States, shall not be subject to the 
 tax levied under this Act. 
 
CORPORATIONS— Continued. EXEMPT 
 
 ^ 539— When Income from Public Utilities Is Not Taxable. 
 
 The income derived from any public utility or from the 
 exercise of any essential governmental function, which 
 income accrues to any State, Territory, the District of Co- 
 lumbia, or any political subdivision of a State or Territory 
 or any income accruing to the government of any possession 
 of the United States, or any political subdivision thereof — 
 shall not be subject to the tax imposed by this Act. 
 
 Whenever any State, Territory, or the District of Co- 
 lumbia, or any political subdivision of a State, or Terri- 
 tory, shall have, prior to September 8, 1916, contracted in 
 good faith with any person or corporation to acquire, con- 
 struct, operate, or maintain a public utility, no income tax 
 pursuant to this Act shall be levied upon the income derived 
 from the operation of such public utility, so far as the as- 
 sessment and payment of such tax will impose a loss or 
 burden upon such State, Territory, District of Columbia, or 
 political subdivision, but the person or corporation is not re- 
 lieved from the payment of the tax upon that portion of the 
 income accruing to him, or it, under such contract. 
 
 ^540 — Public Utility, With Mortgage Indebtedness 
 Purchased by a Municipality. 
 
 Where a municipality purchases a public utility subject 
 to a mortgage, the mortgage retains its original character, 
 even though the municipality assumes the mortgage indebt- 
 edness and pays the interest thereon. Therefore, the in- 
 debtedness secured by such mortgage is not an obligation 
 of the municipality within the meaning of the income tax 
 law. — (See ^'Mortgage Property Purchased Subject To.") — 
 Treasury Decision 2090. 
 
 TI 541 — Partnerships Not Taxable as Corporations. 
 
 Ordinary copartnerships are not, as such, subject to the 
 tax imposed by this Act, but the individual members of any 
 such partnership are liable for income tax only in their in- 
 dividual capacity on their respective shares of the earnings 
 of such partnership,, whether such earnings be distributed 
 or not. 
 
 346 
 
CORPORATIONS—Continued. CAPITALIZATION 
 
 ^ 541 (a) — Definition of Personal Service Corporation. 
 
 The term "personal service corporation" means a corpora- 
 tion whose income is to be ascribed primarily to the activi- 
 ties of the principal owners or stockholders who are them- 
 selves regularly engaged in the active conduct of the affairs 
 of the corporation and in which capital (whether invested or 
 borrowed) is not a material income-producing factor; but 
 does not include any foreign corporation, nor any corpora- 
 tion 50 per centum or more of whose gross income consists 
 either ( 1 ) of gains, profits, or income derived from trading 
 as a principal, or (2) of gains, profits, commissions, or other 
 income, derived from a government contract or contracts 
 made between April 6, 1917, and November 11, 1918, both 
 dates inclusive. 
 
 CAPITALIZATION. 
 
 ^ 542--What Constitutes Paid-Up Capital Stock. 
 
 Full amount of stock, as represented by the par value of 
 the shares issued, is to be regarded as the paid-up capital 
 stock, except when such stock is assessable on account of 
 deferred payments, or payable in installments, in which case 
 the amount actually paid on such shares will constitute the 
 actual paid-up capital stock of the corporation. — Art. 181, 
 Reg. 38, Revised. 
 
 U 543— Paid-Up Capital Stock— Definition. 
 
 For the purpose of income tax corporations must report 
 total par value of its stock, both common and preferred, 
 outstanding at close of year. Stock outstanding at the close 
 of year and upon the basis of which dividends are or may 
 be paid is held to be paid-up capital stock within meaning 
 of law. Immaterial whether stock be paid for in cash, prom- 
 issory notes or other assets. The fact that notes are given 
 in payment of the stock issued and that notes have not been 
 paid in full at time of return is immaterial. — Treasury De- 
 cision 2137. 
 
 ^ 544 — Capital of a Corporation. 
 
 The amount received by a corporation for the original 
 issue and sale of its capital stock is held to be the capital of 
 
 347 
 
CORPORATIONS— Continued. INCOME 
 
 the corporation. In cases where the stock, as originally is- 
 sued, is sold at a price greater or less than the par value, 
 neither the premium nor the discount will be taken into ac- 
 count in determining the net income of the corporation for 
 the year in which the stock is sold. This is purely a capital 
 transaction and the income is neither increased nor de- 
 creased by reason of the sale, per se, of the stock at a price 
 greater or less than its par value. — Treasury Decision 2090 ; 
 also see If 542. 
 
 If 545 — Donations to Corporations of Capital Stock. 
 
 If, for the purpose of enabling a corporation to secure 
 working capital, or for any other purpose, the stockholders 
 donate or return to the corporation to be resold by it certain 
 shares of stock of the company previously issued to them, 
 the sale of such stock will be considered a capital transac- 
 tion, and the proceeds of such sale will be treated as capital 
 and will not constitute income to the corporation. — Art. 99, 
 Reg. 33, Revised. 
 
 INCOME. 
 
 For Definition of Gross Income, see H 559. 
 
 tl 546— Basis of Tax. 
 
 The corporation income tax of 12 per cent, apphes to the 
 net income received by every taxable corporation in the 
 calendar year 1918. 
 
 If 547— Fiscal Year. 
 
 In the case of a corporation making return for a fiscal 
 year beginning in 1917 and ending in 1918, its income tax 
 for the first taxable period under the Revenue Act of 1918 
 shall be the sum of (1) the same proportion of a tax for 
 the entire period computed under Title I of the Revenue 
 Act of 1916 (Income Tax) as amended by the Revenue Act 
 of 1917 and under Title I. of the Revenue Act of 1917 (War 
 Income Tax), which the portion of such period falling 
 within the calendar year 1917 is of the entire period, and 
 (2) the same proportion of a tax for the entire period 
 
 348 
 
CORPORATIONS— Continued. .INCOME 
 
 computed under this title at the rate for the calendar year 
 1918 which the portion of such period falling within the 
 calendar year 1918 is of the entire period. 
 
 In computing the tax as above provided, the tax com- 
 puted for the entire period under Title II. of the Revenue 
 Act of 1917 (War Excess-Profits Tax) shall be credited 
 against the net income computed for the entire period 
 under Title I. of the Revenue Act of 1916 as amended by the 
 Revenue Act of 1917 and under Title I. of the Revenue Act 
 of 1917, and the tax computed for the entire period under 
 Title III. of this Act (War-Profits and Excess-Profits Tax) 
 at the rates prescribed for the calendar year 1918 shall be 
 credited against the net income computed for the entire 
 period under this Title. 
 
 In the case of a personal service corporation the amount 
 to be paid shall be only that specified in clause (1). 
 
 Any amount heretofore or hereafter paid on account of 
 the tax imposed for such fiscal year by Title I. of the Rev- 
 enue Act of 1916 as amended by the Revenue Act of 1917, 
 and by Title I. of the Revenue Act of 1917, shall be credited 
 against the payment of the tax for such fiscal year by the 
 Revenue Act of 1918, and if the amount so paid exceeds the 
 amount of the tax imposed by said Act, or in the case of a 
 personal service corporation the amount resulting from 
 clause (1), the excess shall be credited or refunded in ac- 
 cordance with the provisions of Section 252. See If 634 (a) . 
 
 ^ 548— Credits. 
 
 The above tax is levied upon the net income in excess 
 of the following credits as outlined in Section 236. 
 
 In the case of a domestic corporation a specific exemption 
 of $2,000. 
 
 The amount received as interest upon obligations of the 
 United States and bonds issued by the War Finance Cor- 
 poration, which is included in gross income under Section 
 233. 
 
 The amount of any taxes imposed by Title III for the same 
 taxable year (War-Profits and Excess-Profits Tax), ex- 
 cept in the case of a corporation which makes a return 
 
 S40 
 
CORPORATIONS— Continued. INCOME 
 
 for a fiscal year beginning in 1917 and ending in 1918 
 in computing the tax for such fiscal year as provided 
 by Section 205 (a) the tax computed for the entire 
 period under Title II. (war-profits tax) of the Revenue Act 
 of 1917 shall be credited against the net income computed 
 for the entire period under Title I. (Income Tax) of the 
 Revenue Act of 1916 as amended by the Revenue Act of 
 1917, and under Title I. (Income Tax) of the Revenue Act 
 of 1917, and the tax computed for the entire period under 
 Title III. (War-Profits and Excess-Profits Tax) of the Rev- 
 enue Act of 1918 at the rates prescribed for the calendar 
 year 1918 shall be credited against the net income computed 
 for the entire period under the corporation income tax of 
 the Revenue Act of 1918. 
 
 ^ 549 — How Determined. 
 
 The following definitions and rules are given for deter- 
 mining the gross income of various classes of corporations : 
 
 ^ 550 — Banks and Financial Institutions. 
 
 Gross income of banks and other financial institutions 
 consists of the total revenue received within the year for 
 which the return is made frofn the operation of the business, 
 including income, gains, or profits from the sale of capital 
 assets and from all other sources. 
 
 In cases where securities or other assets, real, personal, 
 or mixed, acquired prior to March 1, 1913, are disposed of 
 during the year, the gain or loss thereon will be based upon 
 the difference between the price at which disposed of and 
 the fair market price or value of such assets as of March 1, 
 1913, or the difference between the price at which disposed 
 of and the cost if acquired subsequent to that date. — Art. 
 90, Reg. 33, Revised. 
 
 Tf551 — Insurance Companies. 
 
 Gross income of insurance companies consists of the total 
 revenue derived from the operation of the business, includ- 
 ing income, gains, or profits from all other sources, as shown 
 by the entries on the books of account within the calendar 
 or fiscal year for which the return is made, except (1) such 
 
 350 
 
CORPORATIONS— Continued. INCOME 
 
 portion of any actual premium received from any individual 
 policyholder as is paid back or ciredited to or treated as an 
 abatement of premium of such policyholder within the tax- 
 able year, and (2) mutual marine insurance companies shall 
 include in gross income the gross premiums collected and 
 received by them less amounts paid for reinsurance. 
 
 If 552 — Other Income. 
 
 All other income or earnings not hereinbefore referred to 
 will form a part of and must be reported as taxable income. 
 —Art. 242, Reg. 33, Revised. 
 
 TI 553 — Income from Sale of Personal Property on the 
 Installment Plan. 
 
 It has been ascertained that dealers in personal property 
 who sell on the installment plan adopt one of four ways of 
 protecting themselves in case of default, namely: 
 
 (1) A provision that title is to remain in the seller until 
 the buyer has performed his part of the agreement. 
 
 (2) A conveyance of title to the purchaser subject to a 
 lien for the unpaid portion of the purchase price. 
 
 (3) The conveyance to the purchaser and an immediate 
 reconveyance by way of chattel mortgage to the seller. 
 
 (4) Conveyance to a trustee in trust to hold the title 
 pending performance of the contract and subject to its pro- 
 visions. 
 
 The purpose is the same in all of these transactions. 
 
 In view of the fact that in a number of States it is held 
 that the form first mentioned shall not be enforced accord- 
 ing to its terms, but will be regarded as a sale with a chattel 
 mortgage back to secure the unpaid purchase price, it is 
 desirable that a uniform rule be estabHshed which will be 
 equitable and applicable to all. 
 
 The rule prescribed is that in the sale or contract for sale 
 of personal property on the installment plan, whether or not 
 title remains in the vendor until the property is fully paid 
 for, the income to be returned by the vendor will be that 
 proportion of each installment payment which the gross 
 profit to be realized when the property is paid for bears to 
 the gross contract price. If, for any reason, the vendee de- 
 
 8Si 
 
CORPORATIONS— Continued. INCOME 
 
 faults in his installment payments and the vendor repos- 
 sesses the property, the entire amount received on install- 
 ment payments less the profit originally returned will be 
 income to the vendor to be so returned for the year in which 
 the property was repossessed. 
 
 (This ruling amends Articles 117 and 120 of Regulations 
 33, Revised, relating to the Revenue Act of 1916, and re- 
 vokes all previous decisions and rulings which are in conflict 
 herewith. — ^Treasury Decision 2707.) 
 
 ^ 554 — Cost of Manufactured Products. 
 
 A m.anufacturing corporation may include as an element 
 of the cost of manufactured products, the cost of the raw 
 material, the cost of labor of the men who actually work on 
 such products, as well as the cost of supervisory, of what 
 may be denomiated as "unproductive" labor, such as that 
 of the foremen, inspectors, overseers, etc., provided such ex- 
 penditures are not separately deducted from gross income in 
 the return of annual net income. 
 
 The overhead charges referred to in Form 1031 should 
 include the salaries of officers, clerk hire, and such other 
 office expenses as do not have to do directly with the manu- 
 facture of the product. — Treasury Decision 2152. 
 
 ^ 555 — Miscellaneous Corporations. 
 
 Gross income of miscellaneous corporations consists of the 
 total revenue derived from the operation and management of 
 the business and property of the corporation making the 
 return, together with all amounts of income, including the 
 income gains, or profits from all other sources, including 
 dividends. — Art. 93, Reg. 33, Revised. 
 
 1} 556 — Operating Corporation Controlled by Stock 
 Ownership. 
 
 A railroad company operating leased or purchased lines as 
 an integral part of its line or system, and keeping no sepa- 
 rate books of account as to such leased or purchased line, 
 and the income from the operation of which can not be 
 segregated, shall include in its income all receipts derived 
 therefrom, and if bonded or other indebtdnss of the leased 
 or purchased line has been assumed by the operating com- 
 
 352 
 
CORPORATIONS— Continued. INCOME 
 
 pany, it may deduct from its gross income the interest paid 
 on such indebtedness, provided the interest so paid plus 
 the interest paid on its own indebtedness is not in excess of 
 the hmit fixed by the law. In this event the leased or pur- 
 chased line so long as it has a corporate existence will make 
 return of annual net income setting out that on its own ac- 
 count it has neither income nor expenses, and that both are 
 taken up in the return of the operating company, naming it» 
 
 ^ 557 — Lessor Must Make Return. 
 
 If the leased or purchased line keeps separate books of 
 account, or the income from its operations is, or can be se- 
 gregated, or if the lessee or operating company pays it a cer- 
 tain rental, or in lieu of rental pays a certain per cent, of 
 dividends on its stock, interest on its bonds, taxes, etc., it 
 (the lessor) will return the same as its income and will be 
 subject to tax accordingly, and the lessee or operating com- 
 pany will make its return as though it were in no way re- 
 lated to the leased line. — Art. 125, Reg. 33, Revised. 
 
 Tf 558 — Income from Real Estate Transactions. 
 
 Sains and profits resulting from a real estate transaction 
 are subject to income tax in so far as they represent actual 
 net income for the year in which the transaction occurred. 
 The amount of income to be returned for the purpose of the 
 income tax in the case of the sale of capital assets is the 
 amount received upon the sale of the property in excess of 
 its original cost, provided both the purchase and sale of the 
 property took place since March 1, 1913. If the property 
 was acquired prior to March 1, 1913, the difference between 
 the fair market value of that date and the selling price will 
 be considered income to the corporation. 
 
 In determining the amount of income to be accounted for 
 on this basis the corporation will consider mortgages, mort- 
 gage notes, or any other credits received in payment of the 
 property as though they were cash, and if it should occur 
 that the purchaser of any of the property should later de- 
 fault in payment, the corporation will be entitled to take 
 credit as a loss for the amount of loss actually sustained 
 by reason of the default. 
 
 853 
 
CORPORATIONS— Continued. INCOME 
 
 In determining the cost of the property for the purpose 
 of arriving at the profit realized upon the sale it will be 
 permissible for the corporation to add to the initial cost such 
 carrying charges as interest, taxes, insurance, etc., pro- 
 vided such carrying charges have not been deducted from 
 net income which the corporation may have had and re- 
 turned for years subsequent to March 1, 1913, and prior to 
 the date of the sale of the property.-^— Also see H 553. 
 
 ^ 559 — Gross Income Defined. 
 
 Gross income embraces not only the operating revenues 
 but also income, gains, or profits from all other sources, 
 such as rentals, royalties, interest, and dividends from stock 
 owned in other corporations; and also profits made in other 
 corporations ; and also profits made from the sale of assets, 
 investments, etc. A true and accurate record of all income 
 received, as well as of all disbursements or charges against 
 income, should be kept, in order that it may be identified and 
 verified by an internal-revenue officer if an examination of 
 the books should be deemed advisable. — Art. 88, Reg. 33, 
 Revised. 
 
 II 560 — Earnings or Dividends from Subsidiary Companies 
 Not Deductible. 
 
 Every corporation, no matter how closely related, it may 
 be to any other corporation, is required to make return of 
 annual net income and to pay any income tax thereby shown 
 to be due. 
 
 Parent, holding, or other corporations must include in 
 their gross income, and cannot deduct therefrom, any divi- 
 dends or share of earnings which they may receive from 
 a subsidiary, related, or any other corporation. The fact 
 that the parent or holding company owns all the stock of 
 the subsidiary company is immaterial and will not warrant 
 such parent company in omitting or deducting dividends 
 from gross income. 
 
 The Federal income tax law fixes a specific rule by which 
 the net income, for the purposes of the tax, is to be com- 
 puted. That rule makes no provision for the exclusion or 
 deduction from the taxable income of dividends received. — 
 Treasury Decision 2090. 
 
 8M 
 
CORPORATIONS— Continued. INCOME 
 
 The Federal income tax law .specifically sets out that 
 there shall be returned as gross income all income received 
 from all sources during the year for which the return is 
 made, and it specifically enumerates the items which may 
 be allowably deducted from such gross income. There is 
 no provision of the law whereby dividends received from 
 other corporations may be excluded from gross income. 
 Each corporation is a separate and distinct entity and must 
 return, for the purposes of the tax, the income which it 
 receives (except interest on obligations of a State or its 
 political subdivisions or on the obHgations of the United 
 States or its possessions), regardless of the source from 
 which such income is received or regardless of the fact that 
 a portion of such income may constitute dividends from 
 other corporations subject to tax. — Treasury Decision 2137. 
 
 If a corporation shall have returned as income, interest 
 received on bonds, the interest upon which the debtor cor- 
 poration had agreed to pay without deduction of income 
 taxes, and if the debtor corporation shall have actually paid 
 the income tax assessable on such interest income, it will 
 be permissible for the corporation receiving such interest 
 to take credit against the tax assessable on the basis of 
 its net income returned, for the amount of tax paid thereon 
 by the debtor corporation. — Art. 199, Reg. 33, Revised. 
 
 H 561 — Dividends — Deductions from Gross Income. 
 
 When a company composed of two stockholders divide 
 profits between them, calHng it compensation, same cannot 
 be deducted as expense of business. Money paid out under 
 those circumstances is equivalent to dividends and must 
 be treated as income of the corporation. 
 
 Tf 562 — Interest on Exempt Bonds, Corporation. 
 
 Interest on State, municipal and United States bonds 
 received by corporations is not taxable to the corporation 
 for the purposes of the Corporation Income Tax. Upon 
 amalgamation with other funds of the corporation such 
 income loses its identity. When distributed to stockholders 
 as a dividend, the entire amount of the dividend is subject 
 
 855 
 
CORPORATIONS— Continued. INCOME 
 
 to inclusion in returns of income for the purposes of the 
 income tax. 
 
 The foregoing holds true for scrip payments of interest. 
 —Art. 4, Reg. 33, Revised. 
 
 fl 563 — Sinking Fund Reserve. 
 
 When a corporation sets aside a part of its earnings for 
 the purpose of creating a sinking fund with which to retire 
 its bonded or other indebtedness, the annual additions to 
 such funds are not allowable deductions from gross income 
 as or in lieu of depreciation or on any other account. The 
 earnings thus set aside are an asset of the corporation and 
 any accretion thereto must be accounted for as income. — 
 Treasury Decision 2161. 
 
 This ruling will not, however, forbid the deduction from 
 gross income of a reasonable allowance for depletion of 
 natural deposits even though the amount so deducted be 
 used in whole or in part in the payment of its bonded or 
 other indebtedness. — Art. 166, Reg. 33, Revised. 
 
 5| 564 — Sinking Funds Invested in Bonds of Corporation. 
 
 If the trustees of a sinking fund established by a corpora- 
 tion have invested the amount of the sinking fund reserve 
 or any portion of it in the bonds of the corporation and 
 such corporation pays to the trustees the interest on these 
 bonds, such corporation will be permitted to deduct such 
 interest from its gross income, provided the amount of the 
 interest thus paid, plus the interest on any other outstand- 
 ing indebtedness which it may have, does not exceed the 
 limit fixed by law. The interest paid to the trustees, to- 
 gether with all other earnings on investments made by the 
 trustees of the sinking fund, must be included in the gross 
 income of the corporation. — Treasury Decision 2161; also 
 Art. 189, Reg. 33, Revised. 
 
 ^ 565 — Voluntary Payments by Stockholders. 
 
 In cases wherein a corporation requires additional funds 
 for conducting its business and obtains such needed money 
 through voluntary pro rata payments by its stockholders, 
 and such amounts received are credited to its surplus ac- 
 count or to a special capital account, the amounts so re- 
 
 866 
 
CORPORATIONS— Continued. INCOME 
 
 ceived will not be considered income, although, as repre- 
 senting this additional fund, there is no increase in out- 
 standing shares of stock or liabiHty of the corporation. 
 The payments under such circumstances are in the nature 
 of voluntary assessments upon, and represent an additional 
 price paid for, the shares of stock held by the individual 
 stockholders, and will be treated as an addition to and as 
 a part of the operating capital of the company. — Art. 96, 
 Reg. 33, Revised. 
 
 ^ 566— -Treasury Stock—When Taxable. 
 
 Treasury stock, wherever and whenever that term is 
 used in connection with the accounts of the corporation or 
 for income-tax purposes, will be held to mean stock which 
 had been previously issued by the corporation and which 
 had been repossessed by it through purchase or otherwise 
 and then carried on its books as an asset. If such stock 
 is resold at a price in excess of its cost upon repossession, 
 such excess shall be returned as income for the year in 
 which resold. Unissued stock, which had been retained by 
 the corporation for the purpose of future sale, will not, for 
 the purpose of the income tax, be considered "Treasury 
 stock," and when sold no part of the proceeds of such sale 
 will be considered taxable income. Nor will there be any 
 deductible loss if such stock is sold at a price less than par. 
 —Art. 98, Reg. 33, Revised. 
 
 ^ 567 — Gifts to Corporation — Income. 
 
 The value or amount of a gift to a corporation is held to 
 be income to such corporation and should be returned as 
 such for the year in which the gift is received. The pro- 
 vision of the Act of October 3, 1913, which exempts gifts, 
 bequests, etc., from the tax imposed by the Act applies to 
 individuals and not to corporations. — Treasury Decision 
 2090. 
 
 ]\ 568 — Bonds — Interest On. 
 
 The exchange of interest coupons for funding bonds is 
 a payment of interest on the bonds and the income tax 
 should be imposed and paid upon such interest as income 
 for the year in which it matures and such payment is made, 
 
 357 
 
CORPORATIONS— Continued. INCOME 
 
 and in the absence of proper claim for exemption the tax 
 should be deducted and withheld on the amount repre- 
 sented by the coupons. — Treasury Decision 2090. 
 
 ^569 — Income from Damages Recovered. 
 
 When a corporation as a result of suit or otherwise se- 
 cures payment for damages which it may have sustained, 
 and the amount of such payment is in excess of an amount 
 necessary to make good the damage or damaged property, 
 the amount of such excess shall be considered and returned 
 as income for the year in which received. If the entire or 
 an estimated amount of the damage shall have been previ- 
 ously charged off and deducted from gross income, then 
 the amount recovered shall be returned as income. 
 
 If the amount recovered is less than the damage sustained 
 or less than an amount necessary to make good the damage, 
 the difference between the actual amount of damage sus- 
 tained and the amount recovered will be deductible as a loss. 
 —Art. 94, Reg. 33, Revised. 
 
 11 570— Sale of Patents. 
 
 A corporation disposing of patents by sale, should de- 
 termine the profit or loss arising therefrom, by computing 
 the difference between the selling price and the cost, or 
 value as of March 1, 1913, if acquired before that date. 
 The apparent profit or loss should be increased or decreased, 
 as the case may be, by the amounts deducted since March 
 1, 1913, as a return of capital invested in such patents. — 
 Art. 109, Reg. 33, Revised. 
 
 T[ 571 — Exchange of Property for Stock. 
 
 In cases wherein property was taken over in exchange 
 for the capital stock of a corporation at a par value in 
 excess of the fair market value of the property, and such 
 property should be later sold, it will be necessary to ascer- 
 tain as nearly as possible the fair market value of the 
 property at the time it was taken over or as of March 1, 
 1913, if acquired before that date, and any excess over 
 this ascertained fair market value at which the property 
 
 358 
 
CORPORATIONS— Continued. INCOME 
 
 is sold will be held to be profit or income to the corporation 
 for the year in which the sale was made.^Art. Ill, Reg. 
 33, Revised. 
 
 If 572 — Excess Value. 
 
 Similar action may be taken in cases wherein corpora- 
 tions acquire property prior to March 1, 1913, for a mere 
 nominal sum and which had, as of March 1, 1913, a value 
 greatly in excess of such nominal sum. A careful estimate 
 of the fair market value of such property, as of March 1, 
 1913, may be made and set up as the capital invested in the 
 property, and if such property is thereafter disposed of 
 at a price in excess of such fair market value, the amount 
 so in excess will be treated as income to be accounted for 
 in preparing the return of annual net income of the year 
 in which the property is sold. The value of the property 
 fixed in the manner and for the purpose hereinbefore in- 
 dicated will be subject to the approval of the Commis- 
 sioner of Internal Revenue. 
 
 If the property was acquired subsequent to March 1, 
 1913, the amount for which it is later sold or disposed of 
 in excess of the cost price, regardless of the fact that it 
 may have been acquired for a mere nominal price, will con- 
 stitute income for the year in which the property was 
 disposed of and must be so returned. — Art 112, Reg. 33, 
 Revised. 
 
 ^ 573--Royalties from Patent Rights. 
 
 Royalties received by a corporation in accordance with 
 a contract by which it has assigned the patent rights to 
 manufacture machines, etc., are income and should be so 
 accounted for. The owner of the patent may deduct from 
 gross income each year, until the capital invested therein 
 is extinguished, a sum ascertained by dividing the cost of 
 the patent by the number of years constituting its life or 
 by a number representing the years of its life remaining 
 after the date of acquirement. — Art. 113, Reg. 33, Revised. 
 
 Tf 574 — Bank Discounts. 
 
 In cases wherein banks or other corporations loan money 
 by discounting bills or notes, one of two methods shall be 
 
 359 
 
CORPORATIONS— Continued. INCOME 
 
 used in determining the amount of discount that is to be 
 reported as income, namely (1) if the bank or corporation 
 makes a practice of crediting such discount directly to a 
 "discount account" or to profit and loss, the total amount 
 thus credited during the year shall be considered income 
 and shall be so reported, regardless of the fact that a por- 
 tion of this amount may represent discount paid in advance 
 and not then earned ; (2) if the bank or corporation follows 
 the practice of crediting such discount to an "unearned 
 discount account," and later, as the discount becomes 
 earned, debits the unearned account and credits an "earned 
 discount account" with the amount so earned, the total 
 amount credited to the "earned discount account" during 
 the year shall be considered income and shall be so returned. 
 The corporation having income of this character should 
 state in a memorandum attached to its return which of 
 the two methods was used in determining the amount of 
 discount returned as income. — Art. 114, Reg. 33, Revised. 
 
 ^ 575 — Income from Sale of Capital Assets. 
 
 If a corporation sells its capital assets in whole or in 
 part, it will include in its gross income for the year in which 
 the sale was made an amount equivalent to the excess of 
 the sales price over the fair market price or value of such 
 assets, as of March 1, 1913, if acquired prior to that date, 
 or over costs if acquired subsequent to that date. 
 
 If the purchase price is paid with stock issued by a pur- 
 chasing company, the purchase price will be the actual value 
 at the time of the stock issued in payment for such assets. 
 —Art. 101, Reg. 33, Revised. 
 
 If 576 — Capital Assets, Value of; When Exchanged for 
 Capital Stock. 
 
 In cases wherein property was taken over in exchange 
 for the capital stock of a corporation at a par value greatly 
 in excess of the true value of the property, and such prop- 
 erty should be later sold, it will be necessary to ascertain 
 as nearly as possible the true value of the property at the 
 time it was taken over, and any excess over this ascertained 
 
 3«Q 
 
CORPORATIONS— Continued. INCOME 
 
 true value at which the property is sold will be held to be 
 profit or income to the corporation. 
 
 Similar action may be taken in cases wherein corpora- 
 tions acquire property for a mere nominal sum and which 
 had at the time of its acquirement a value greatly in excess 
 of such sum. A careful estimate of the value of such 
 property at the time it was acquired may be fixed and set 
 up as the value representing the cost of the property, and 
 any excess over such fixed value at which such property 
 may be thereafter disposed of will be treated as income to 
 be accounted for in accordance with the rules of this de- 
 partment in the case of the sale of capital assets. The 
 value of the property fixed in the manner and for the 
 purpose hereinbefore indicated will bei subject to the ap- 
 proval of the Internal Revenue Bureau. — Treasury Decision 
 2161. 
 
 For the purpose of determining the amount of profit or 
 loss arising from the sale of capital assets acquired prior 
 to March 1, 1913, which shall be taken into account by 
 corporations in making their returns of annual net income, 
 the gain or loss is represented by the difference between 
 fair market value of such assets, as of March 1, 1913, and 
 the selling price. To any gain thus apportioned and to be 
 included in income there should be added any amount, or 
 amounts, which had been charged against and deducted 
 from gross income since March 1, 1913, on account of de- 
 preciation and which had not been paid out in making good 
 the depreciation — that is, any amount charged off later 
 than March 1, 1913, on account of the depreciation of the 
 assets sold and not used to make good such depreciation 
 shall be added to the gain apportioned to these years and 
 will be included in the income of the year in which the 
 property was sold. Likewise, for the purpose of a deduc- 
 tion from gross income of the year in which the assets 
 were sold, loss resulting from any such sale, apportionable 
 to the years subsequent to March 1, 1913, will be reduced 
 by the amount of the unused portion of the depreciation 
 charged off with respect to such assets March 1, 1913. — 
 Treasury Decision 2077. 
 
 361 
 
CORPORATIONS— Continued. INCOME 
 
 This ruling, in so far as it relates to depreciation, applies 
 only to such tangible property as is subject to wear and 
 tear, exhaustion and obsolescence, and is not to be con- 
 strued as recognizing any gain or loss due to jfluctuations 
 in the market value or arbitrary changes in the book value 
 of securities and like assets, the gain or loss with respect 
 to which will be determined only when such assets mature, 
 or are sold or disposed of — that is, when there is a com- 
 pleted, a closed, transaction. — Treasury Decision 2005 and 
 2130. 
 
 H 577 — Carrying Charges Part of the Cost of Assets. 
 
 The foregoing is not intended to be so constructed that 
 carrying charges, if they consist of such expenditures as 
 constitute allowable deductions from gross income, are to 
 be added to the cost of the property if there is a gross 
 income from which such charges as constitute allowable 
 deductions may be deducted. It is intended, however, that 
 in the case of a holding or developing company which has 
 not yet reached the stage of having any income of con- 
 sequence resulting from its corporate operations, the carry- 
 ing charges or other excess over the incidental income re- 
 ceived may be added to and made a part of the cost of the 
 property. 
 
 As a general proposition involving the acquirement and 
 holding of property for future sale, which property was 
 acquired prior to the incidence of the tax and from which 
 property there is but a nominal income, insufficient to meet 
 the carrying charges, it would be proper for the corpora- 
 tion to add to the initial cost of the property the carrying 
 charges, such as interest, insurance and taxes actually paid, 
 and from that amount deduct the incidental income which 
 may have been received between the date of purchase and 
 the date of the incidence of the tax. The result then shown 
 will be the cost of the property or the amount to be excluded 
 from the proceeds as capital when the property is sold. — 
 Treasury Decision 2137. 
 
 ^578 — Sale to Other Corporation. 
 
 In determining the profits realized or the loss sustained 
 upon the sale of capital assets by one corporation to an- 
 
CORPORATIONS— Continued. INCOME 
 
 other, payment therefor being made in the stocks or bonds 
 of the purchasing corporation, the profit or loss, as the case 
 may be, from such sale will be ascertained upon the basis 
 of the difference between the cost of such assets to the 
 seller, in case they were acquired subsequent to March 1, 
 1913, or the fair market value as of March 1, 1913, if 
 acquired prior to that date, and the fair cash value of the 
 stock or bonds at the time the sale was made. — Treasury 
 Decisions 2077 and 2137; also Art. 118, Reg. 33, Revised. 
 
 11 579 — Sale by Subsidiary to Parent Corporation. 
 
 Where a subsidiary or other corporation sells or trans- 
 fers its assets to a parent or other corporation, accepting 
 in exchange therefor the stock or bonds of the purchasing 
 corporation, the question of gain or loss resulting from this 
 transaction will be determined upon the basis of the dif- 
 ference between the cost or market value as above indi- 
 cated of the assets sold and the actual value of the stock or 
 bonds given in exchange therefor. Any gain or loss thus 
 ascertained as resulting from such a transaction will be 
 added to or deducted from the entire gross income, as the 
 case may be, of the selHng corporation in the year in which 
 the capital assets were sold. — Treasury Decisions 2077 and 
 2137; also. Art. 119, Reg. 33, Revised. 
 
 ^ 580 — Stock Issued for Stock of Other Corporation. 
 
 In a case wherein a corporation acquires from stock- 
 holders the stock of another corporation, giving in exchange 
 therefor its own stock, it is held that the transaction is one 
 by which the corporation acquiring the stock becomes the 
 sole stockholder of the other corporation. As a result of 
 this transaction no income accrues to the corporation whose 
 stock is thus acquired. Neither will any income accrue to 
 this corporation if later the holding corporation should 
 cause the assets of the underlying company to be trans- 
 ferred to it for mere nominal consideration. 
 
 If, however, one corporation buys the assets of another 
 and issues direct to the selling company its own capital 
 stock in payment for the assets acquired, the transaction 
 
 363 
 
CORPORATIONS— -Continued. INCOME 
 
 will be treated by the selling company as a sale of its assets, 
 and the question as to whether profit or loss results from 
 the sale will depend upon whether or not the value of the 
 stock taken in payment for the assets is in excess of the 
 fair market price or value as of March 1, 1913, of the assets 
 sold or of their cost accordingly as they were acquired by 
 the selhng company prior or subsequent to that date. 
 
 If the value of the stock is so in excess, the amount of 
 such excess will be taxable income for the year in which 
 the assets were sold and must be so returned. 
 
 If the excess over values as of March 1, 1913, or over 
 cost, as the case may be, includes any surplus earned since 
 March 1, 1913, upon which the income tax has been paid, 
 the excess or profits resulting from the sale may be reduced 
 by the amount of such tax-paid surplus. 
 
 If the purchasing corporation takes over all the assets 
 including accounts receivable, bills receivable, surplus, etc., 
 of the selling corporation and assumes its liabilities, the 
 amount so assumed will be considered a part of the purchase 
 price, and to the extent that the entire purchase price ex- 
 ceeds the cost or value, as of March 1, 1913, as the case 
 may be, of the assets disposed, income will accrue to the 
 selling company. — Art. 124, Reg. 33, Revised. 
 
 t[581 — Shrinkage in Value of Securities Written Down by 
 Order of Comptroller of Currency or State 
 Banking Department Not Allowable Deduction. 
 
 The fact that bonds and similar securities were written 
 off at the direction of the Comptroller of the Currency or 
 the State Banking Department is not material. A mere 
 book entry does not constitute either a loss or a gain for 
 the purpose of the income tax. The fact that bonds were 
 written off does not necessarily imply that they are a total 
 loss, nor is this act a conclusive proof that any loss oc- 
 curred during the year for which return was made. Losses 
 of this character are only ascertainable when the securities 
 mature, are disposed of, or cancelled. — Treasury Decision 
 2152. 
 
 364 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 ^ 582 — Inventories of Merchandise and Securities. 
 
 That whenever in the opinion of the Commissioner of 
 Internal Revenue the use of inventories is necessary in order 
 clearly to determine the income of any taxpayer, inventories 
 shall be taken by such taxpayer upon such basis as the Com- 
 missioner, with the approval of the Secretary, may prescribe 
 as conforming as nearly as may be to the best accounting 
 practice in the trade oi' business and as most clearly reflect- 
 ing the income. 
 
 IT 583 — Premium or Discount on Sale of Capital Stock. 
 
 See "Capital of a Corporation," T[ 544. 
 
 If 584— Void— [Ed.] 
 
 If 585^ — Interest to Be Included in Gross Income. 
 
 A corporation doing a brokerage business, buying securi- 
 ties for its customers, who paid only a part of the purchase 
 price, paying interest on balances, the s corporation also 
 paying for the securities purchased only part of the pur- 
 chase price and owing balances on which it paid interest, 
 including in return of gross income the difference between 
 the interest received and the interest paid, made incorrect 
 return. Such interest received from customers should be 
 included in gross income. — Decision of Court. 
 
 DEDUCTIONS. 
 
 If 588 — Net Income — How Ascertained. 
 
 In computing the net income of a corporation subject to 
 the tax imposed by Section 230 there shall be allowed as 
 deductions : 
 
 (The deductions must in all cases be such as are author- 
 ized and within the limits fixed by law. — Art. 127, Reg. 33, 
 Revised.) 
 
 11 587 — Expenses. 
 
 Al] the ordinary and necessary expenses paid or incurred 
 during the taxable year in carrying on any trade or business, 
 including a reasonable allowance for salaries or other com- 
 pensation for personal services actually rendered, and in- 
 
 365 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 eluding rentals or other payments required to be made as a 
 condition to the continued use or possession of property to 
 which the corporation has not taken or is not taking title, or 
 in which it has no equity. 
 
 11 588— When Deductible. 
 
 Expenses of operation and maintenance shall include all 
 expenditures for material, labor, fuel, and other items en- 
 tering into the cost of the goods sold or inventoried at the 
 end of the year, provided such expenditures have not been 
 considered in determining the cost of goods or materials or 
 purchases thereof during the year, when the income derived 
 from operations is ascertained through inventory, and all 
 other disbursements necessary to the operation of the busi- 
 ness, except such as are required by the Act to be segre- 
 gated and stated separately in the return. 
 
 Expenditures which are taken into account in determining 
 the cost of products, finished or unfinished, are not to be 
 again deducted as expenses of operation and maintenance. — 
 Art. 129, Reg. 33, Revised. 
 
 ^ 589— Cost of Material. 
 
 In ascertaining expenses proper to be included in the de- 
 ductions to be made under the item of "Expenses," corpora- 
 tions carrying materials and supplies on hand should include 
 in such expense the charges for materials and supplies only 
 to the amount that the same are actually consumed and used 
 in operation and maintenance during the year for which the 
 return is made, provided that the cost of such material and 
 supphes has not been taken into account in determining the 
 net income for any previous year. 
 
 If a corporation carries materials or suppHes on hand for 
 which no record of consumption is kept or of which physical 
 inventories at the beginning and end of the year are not 
 taken, it will be permissible for the corporation to include in 
 its expenses and deduct from gross income the total cost 
 of such supplies and materials as were purchased during the 
 year for which the return is made. — Art. 130, Reg. 33, Re- 
 vised. 
 
 366 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 TI580 — Repairs. 
 
 The cost of incidental repairs which neither add to the 
 value of the property nor appreciably prolong its life, but 
 keep it in an ordinarily efficient operating condition, may be 
 deducted as expense, provided that the plant or property ac- 
 count is not increased by the amount of such expenditures. 
 Such repairs, to the extent that they arrest deterioration, 
 should have the effect to reduce the depreciation charge 
 otherwise deductible. — Art. 131, Reg. 33, Revised. 
 
 ^ 591 — Depositors' Guarantee Fund. 
 
 Banking corporations which, pursuant to the laws of the 
 States in which they are doing business, are required to set 
 apart, keep, and maintain in their banks the amount levied 
 and assessed against them by the State authorities as a 
 "Depositors* guarantee fund," may deduct from their gross 
 income in their returns of annual net income the amount so 
 set apart each year to this fund, provided that such fund, 
 when set aside and carried to the credit of the State banking 
 board or other duly authorized State officer, ceases to be an 
 asset of the bank, but may be withdrawn in whole or in 
 part, upon demand by such board or State officer to meet the 
 needs of these officers, as required by State laws, in re- 
 imbursing depositors in insolvent banks, and provided fur- 
 ther that no portion of the amount thus set aside and cred- 
 ited as returnable, under the existing laws of the State, to 
 the assets of the banking corporation. 
 
 If, however, such amount is simply set up on the books 
 of the bank as a reserve to meet a contingent liabiHty, and 
 remains an asset of the bank, it will not be deductible ex- 
 cept as it is actually paid out as required by law and upon 
 demand of the proper State officers. — Art. 146, Reg. 33, 
 Revised. 
 
 ^ 592 — Cost of Improvements. 
 
 Where old machinery, equipment, etc., is replaced with 
 new, the rule is that the cost of renewals with hke kind and 
 quality is allowable, but excess cost is not an allowable de- 
 duction from gross income. Amounts expended for im- 
 
 367 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 proving and adding to property, such as new buildings, 
 shops, machinery and additions to equipment are to be in- 
 cluded as income. — Treasury Decision 2210. 
 
 ]\ 593 — Additions and Betterments. 
 
 Amounts expended in additions and betterments or for 
 furniture and fixtures which constitute an increase in capital 
 investment and add to the value of the assets are not a 
 proper deduction, but such expenditures when capitalized 
 may be extinguished through annual depreciation deduc- 
 tions, which latter deductions will be computed upon the 
 basis of the cost and probable life of the property. — Art. 
 132, Reg. 33, Revised. 
 
 ^ 584 — Asset s^ — Carrying Charges Part of the Cost of, 
 When.— See If 577. 
 
 Tf 595 — Salaries Paid Officers and Employes. 
 
 In the case of salaries paid to officers and employes of 
 corporations, there has been fixed no definite amounts which 
 may be allowably deducted from gross income. Any amount 
 representing a fair and reasonable compensation for the 
 services rendered by the officers or employes will constitute 
 an allowable deduction from gross income. 
 
 For more detail as to allowable deductions for these items, 
 see Treasury Decision 2696. 
 
 ^ 596— -Definition of "Paid." 
 
 The term "paid," for the purposes of the deductions and 
 credits under the corporation income tax, means "paid or 
 accrued" or "paid or incurred" and the terms "paid or in- 
 curred" and "paid or accrued" shall be construed according 
 to the method of accounting upon the basis of which the net 
 income of the taxpayer is computed. 
 
 ^ 597 — Charged Against Current Earnings. 
 
 All expenses, including interest, taxes, and other neces- 
 sary charges, incidental and necessary to the creation or pro- 
 duction of the gross income or properly chargeable against 
 the same, being deductible from the gross income, whether 
 paid in cash or entered on the books as a liabiHty, can not, 
 
 368 
 
CORPORATIONS— Cont^d DEDUCTIONS— Expenses 
 
 if unpaid, be carried forward to be deducted from the gross 
 income of a subsequent year. — Art. 127, Reg. 33, Revised. 
 
 If 598 — Dividends — Deductions from Gross Income. 
 
 When a company composed of two stockholders divides 
 profits between them, calHng it compensation, same cannot 
 be deducted as expense of business. Money paid out under 
 those circumstances is equivalent to dividends and must be 
 treated as income of the corporation. — See t[ 614. 
 
 ]\ 599 — Holding or Development Company. 
 
 Carrying charges part of the' cost of assets. — See If 577. 
 
 ^ 600 — Spending Money. 
 
 So-called "spending or treating money" actually advanced 
 by the corporations to their traveling salesmen to be used 
 by them as a part of the expense incident to selling the 
 product of such corporations, is an allowable deduction in a 
 return of income by such corporation. The deduction of 
 such expenditures is conditioned upon a satisfactory show- 
 ing that all the allowance claimed as a deduction was actu- 
 ally expended for and was an ordinary and usual expense in- 
 curred in selling the product or merchandise of the cor- 
 poration. — Treasury Decision 2090 ; also Art. 133, Reg. 33, 
 Revised. 
 
 ^ 601 — Lobbying Expenses. 
 
 Sums of money expended for lobbying purposes, the pro- 
 motion or defeat of legislation, the exploitation of propa- 
 ganda, and contributions for campaign expenses are held not 
 to be an ordinary and necessary expense in the operation 
 and maintenance of the business of a corporation, and are 
 therefore not deductible from gross income in arriving at 
 the net income upon which the income tax is computed. — 
 Treasury Decision 2137 ; also Art. 143, Reg. 33, Revised. 
 
 Tf 602— Earnings of Public Utility Paid to City, Etc. 
 
 In case of a pubHc utility constructed, operated, or main- 
 tained by a corporation under contract with any city. State, 
 Territory, or the District of Columbia, with an agreement 
 that a portion of the net earnings of such public utility shall 
 be paid to the city, State, Territory, or the District of Col- 
 
 369 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 umbia, the amount so paid may be deducted by the pubHc 
 utility company as a necessary expense of transacting busi- 
 ness. — Treasury Decision 2090 ; also Art. 142, Reg. 33, Re- 
 vised. 
 
 ^ 603 — Expenses Incurred in Sale of Capital Stock. 
 
 Any and all expenses incidental to or connected with the 
 selling of the capital stock (common or preferred) of a cor- 
 poration for the purpose of raising capital to be by it in- 
 vested in property or employed in the business for which the 
 corporation is organized are not an "expense of operation 
 and maintenance" within the meaning of this title, and such 
 expense is not an allowable deduction from the gross income, 
 for the reason that such an expense is incurred in a capital 
 transaction ; that is, the raising of capital to be invested or 
 employed in the business. 
 
 Such expense, like the discount at which the shares of 
 stock may be sold, has the effect only to reduce the available 
 capital of the corporation and cannot be used to reduce the 
 income from operations ; that is to say, any expense incident 
 to the bringing of capital into the company, whether it be 
 a new or a going concern, can not be recouped out of or 
 charged against the operating income. It is a capital loss or 
 expense properly chargeable against the proceeds of the 
 sale of the stock and reduces the capital rather than the 
 earnings of the company. — ^Art. 145, Reg. 33, Revised. 
 
 ^ 804 — Expenses Deductible by Tenant Corporations. 
 
 In the case of corporations which occupy leased prem- 
 ises under a lease contract which requires such corporations 
 to make all necessary repairs or improvements, which re- 
 pairs or improvements revert to the owner of the fee at the 
 expiration of the lease, the tenant corporation is entitled to 
 charge the cost of all such repairs and improvements to the 
 expense of doing business. This expense of improvements, 
 somewhat permanent in character, should, however, be pro- 
 rated over the number of years constituting the term of the 
 lease, and the amount deductbile from gross income of 
 each year would be the aliquot part of the cost of such re- 
 pairs and improvements. — Treasury Decision 2137. 
 
 »70 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 If 605 — Additional Deductions by Insurance Companies. 
 
 In addition to the other deductions from gross income 
 enumerated herein, insurance companies are, under the pro- 
 visions of the Revenue Act of 1918, allowed the following 
 deductions : 
 
 (a) The net addition required by law to be made within 
 the taxable year to reserve funds (including in the case of 
 assessment insurance companies the actual deposit of sums 
 with State or Territorial officers pursuant to law as additions 
 to guarantee or reserve funds) ; and (b) the sums other 
 than dividends paid within the taxable year on policy and 
 annuity contracts; 
 
 In the case of corporations issuing policies covering life, 
 health, and accident insurance combined in one policy issued 
 on the weekly premium payment plan continuing for life 
 and not subject to cancellation, in addition to the above, 
 such portion of the net addition (not required by law) made 
 within the taxable year to reserve funds as the Commis- 
 sioner finds to be required for the protection of the holders 
 of such policies only ; 
 
 In the case of mutual marine insurance companies, there 
 shall be allowed amounts repaid to policyholders on account 
 of premiums previously paid by them, and interest paid upon 
 such amounts between the ascertainment and the payment 
 thereof ; 
 
 In the case of mutual insurance companies (other than 
 mutual life or mutual marine insurance companies) requir- 
 ing their members to make premium deposits to provide for 
 losses and expenses, there shall be allowed the amount oi 
 premium deposits returned to their policyholders and the 
 amount of premium deposits retained for the payment of 
 losses, expenses, and reinsurance reserves ; 
 
 ^ 605 (a) — Additions and Betterments to Property. 
 
 Additions and betterments to property, such as expendi- 
 tures for sidings or spur tracks, are not deductible. — Treas- 
 ury Decision 2210. 
 
 371 -^^ 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 ^ 60© — Cost of Improvements. 
 
 Where old rails are replaced with new or heavier rails, 
 wooden bridges and culverts with concrete and steel bridges 
 and culverts, the rule is that the cost of renewals with like 
 kind and quality is allowable, but excess cost is not allow- 
 able as a deduction. — Treasury Decision 2210. 
 
 U GOT — Expenditures Included in Income. 
 
 Amounts expended for improving and adding to the prop- 
 erty, such as building new stations and new shops, installing 
 new machinery, and making additions to equipment, are 
 included as income. — Treasury Decisions 2210. 
 
 ff 008 — Maintenance Expense. 
 
 Maintenance means the upkeep or preserving of the con- 
 dition of the property to be operated and does not mean 
 additions to the equipment, additions to the property, or 
 improvements of the former conditions of the road. Such 
 expense is therefore deductible. — Treasury Decision 2210. 
 
 Tf 609 — Payment for Labor and Materials. 
 
 Payment for labor and materials which go into the actual 
 operating of the road and the property are deductible. — 
 Treasury Decision 2210. 
 
 ^ 61 — Interest Paid or Accrued Within the Year. 
 
 The amount of interest paid or accrued within the taxable 
 year on its indebtedness, except on indebtedness incurred 
 or continued to purchase or carry obligations on securities 
 (other than obligations of the United States issued after 
 September 24, 1917) the interest upon which is wholly 
 exempt from the normal tax under the income tax law. 
 Law, page 76, line 15. 
 
 f|611 — Bank and Trust Companies — Interest Deduction. 
 Banks — Interest Deposits — Money Received for 
 Investment. 
 
 In the case of a bank, banking association, loan or trust 
 company, interest paid within the year on deposits or on 
 moneys received for investment and secured by interest- 
 
 ^" 372 
 
CORPORATIONS— ContM DEDUCTIONS—Expenses 
 
 bearing certificates of indebtedness issued by such bank, 
 banking association, loan or trust company shall be deducted 
 from gross income. 
 
 IJ 81 2— Taxes. 
 
 Taxes paid or accrued within the taxable year imposed 
 (a) by the authority of the United States, except income, 
 war-profits and excess-profits taxes ; or (b) by the authority 
 of any of its possessions, except the amount of income, 
 war-profits and excess-profits taxes allowed as a credit 
 under Section 238 ; or (c) by the authority of any State or 
 Territory, or any county, school district, municipality, or 
 other taxing subdivision of any State or Territory, not in- 
 cluding those assessed against local benefits; (d) in the 
 case of a domestic corporation, by the authority of any 
 foreign country, except the amount of income, war-profits 
 and excess-profits taxes allowed as a credit under Section 
 238: Provided, That in the case of obligors specified in 
 subdivision (b) of Section 221 no deduction for the pay- 
 ment of the tax imposed by this title or any other tax paid 
 pursuant to the contract or provision referred to in that 
 subdivision, shall be allowed. 
 
 ^ G1 3 — General Expenses. 
 
 Expenses of operation and maintenance shall include all 
 expenditures for material, labor, fuel, and other items enter- 
 ing into the cost of the goods sold or inventoried at the end 
 of the year, and all other expenses incurred in the operation 
 of the business except such as are ixaquired by the Act to be 
 segregated in the return. — Art. 129, Reg. 33, Revised. 
 
 ^ 61 4 — Bonuses or Additional Compensation. 
 
 Special payments, sometimes denominated gifts or bon- 
 uses, made by corporations, partnerships, or individuals to 
 officers or employes, will constitute allowable deduction 
 from gross income in ascertaining net income for the pur- 
 pose of the income tax, when such payments are made in 
 good faith and as additional compensation for the services 
 actually rendered by the officers or employes. If such pay- 
 ments, when added to the stipulated salaries do not exceed 
 a reasonable compensation for the services rendered they 
 
 373 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 will be regarded as a part of the wage or hire of the officer 
 or employe, and therefore an ordinary and necessary ex- 
 pense of operation and maintenance, and as such will be 
 deductible from gross income. 
 
 Special payments made to officers or employes who are 
 stockholders, in the guise of additional salaries or compen- 
 sation, the amount of which is based upon or bears a close 
 relationship to the stockholders of such officers or em- 
 ployes or the capital invested by them in the business of 
 the company, will be regarded as a special distribution of 
 profits, or compensation for the capital invested, and not 
 payment for services rendered. Payments under such latter 
 conditions being in the nature of dividends, will not be 
 deductible from gross income. 
 
 Salaries of officers or employes who are stockholders 
 will be subject to careful analysis, and if they are found 
 to be out of proportion to the volume of business transacted, 
 or excessive when compared with the salaries of like officers 
 or employes of other corporations doing a similar kind or 
 volume of business, the amount so paid in excess of reason- 
 able compensation for the services will not be deductible 
 from gross income, but will be treated as a distribution of 
 profits. — Art. 138, Reg. 33, Revised; also see Treasury De- 
 cision 2696. 
 
 Tl 61 5 — Redemption of Trading Stamps. 
 
 Corporations, mercantile or otherwise, which issue trad- 
 ing stamps, coupons, etc., for the purpose of increasing their 
 business, which stamps or coupons are redeemable in mer- 
 chandise, may allowably deduct from gross income as a 
 business expense the amount which such corporations 
 actually expended for such stamps or coupons, and also the 
 actual cost to the corporations of the merchandise given in 
 redeeming the same. 
 
 This rule contemplates that a reserve set up as a liability 
 equal to the redemption value of the stamps or coupons 
 issued is not, as such, an allowable deduction, the deduction 
 being hmited to the cost of the stamps or coupons and the 
 merchandise with which they are redeemed. — Art. 141, 
 Reg. 33, Revised. 
 
 374 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 \\ 616 — Life Insurance in Favor of Corporations. 
 
 That premiums paid on life insurance policies covering 
 the lives of officers, employes, or those financially inter- 
 ested in any trade or business conducted by an individual, 
 partnership, corporation, joint-stock company or associa- 
 tion, or insurance company, shall not be deducted in com- 
 puting the net income of such individual, corporation, joint- 
 stock company or association, or insurance company, or in 
 computing the profits of such partnership. 
 
 ^ 61 7 — Cost of Buildings on Leased Ground. 
 
 The cost of erecting permanent buildings, or of making 
 permanent improvements on ground leased by a company, 
 is held to be an additional rental and is therefore a proper 
 deduction from gross income, provided such buildings and 
 improvements, under the terms of the lease, revert to the 
 owner of the ground at the expiration of the lease. In such 
 case, however, the cost will be prorated according to the 
 number of years constituting the term of the lease and the 
 annual deduction will be an aliquot part of such cost. — Art. 
 140, Reg. 33, Revised. 
 
 ^ 61 8 — No Depreciation. 
 
 The cost of the buildings being a rental charge and de- 
 ductible on the prorated basis, the lessee corporation will 
 not be permitted to deduct from gross income any depre- 
 ciation with respect to such buildings, but the cost of in- 
 cidental repairs necessary to keep them in an efficient con- 
 dition for the purposes of their use, may be deducted as 
 an expense of operation and maintenance. 
 
 If, however, the life of the improvement is less than the 
 life of the lease, the depreciation may be taken by the 
 lessee, based upon the cost and life of the improvement. — 
 Art. 140, Reg. 33, Revised. 
 
 l[ 61 9 — Rental — Tenant Corporations Making Repairs, Etc. 
 
 Tenant corporations which occupy premises under a lease 
 which requires such corporations to make all necessary re- 
 pairs or improvements, which repairs or improvements re- 
 
 375 
 
CORPORATIONS— Cont'd DEDUCTIONS— Expenses 
 
 vert to the owner at expiration of lease, is entitled to charge 
 cost of such repairs, etc., to expense of doing business. For 
 method of prorating such expense, see H 617.. 
 
 H 620 — New Buildings, Permanent Improvements, 
 Betterments, Etc. 
 
 No deduction shall be allowed for any amount paid out 
 for new buildings, permanent improvements, or better- 
 ments, made to increase the value of any property or estate, 
 and no deduction shall be made for any amount of expenses 
 of restoring property or making good the exhaustion there- 
 of for which an allowance is or has been made, except in 
 the case of mines, oil, and gas wells, other natural deposits 
 and timber. 
 
 ti 621 — Commissions to Salesmen Paid in Stock. 
 
 Commissions allowed salesmen, paid in stock, may be 
 deducted as expense if so charged on the book at the actual 
 value of such stock. 
 
 li 622 — Additions and Betterments. 
 
 Amounts expended in additions and betterments which 
 constitute an increase in capital investment are not a proper 
 deduction. — Art. 132, Reg. 33; Revised. 
 
 II 623 — Compensation Paid in Stock. 
 
 Compensation paid an employe in capital stock of the 
 corporation may be deducted as an expense if so charged 
 on books at the actual value of such stock, and the recipient 
 of such stock, if he be a taxable person, will return such 
 stock at the same value as income. — Art. 139, Reg. 33 ; Re- 
 vised. 
 
 1[ 624 — Pensions. 
 
 Amounts paid for pensions to retired employes, or to 
 their families or others dependent upon them, or on account 
 of injuries received by employes, or lump-sum amounts 
 paid as compensation for injuries, are proper deductions as 
 "ordinary and necessary expenses." Such deduction shall 
 be limited to the amount not compensated for by insurance 
 or otherwise. 
 
 376 
 
CORPORATIONS— Cont'd DEDUCTION S-^Expenses 
 
 No deduction shall be made for contributions to a pension 
 fund the resources of which are held by the corporation, 
 the amount deductible in such case being the amount actu- 
 ally paid to the employe. — Art. 136, Reg. 33 ; Revised. 
 
 ti 625 — Salary Paid After Death of Employe. 
 
 When the amount of the salary of an officer or employe 
 is paid for a limited period after his death to his widow or 
 heirs, in recognition of the services rendered by the individ- 
 ual, no services being rendered by the widow or heirs, such 
 payment is not "ordinary and necessary" expense of trans- 
 acting business and does not constitute an allowable deduc- 
 tion.— Art. 137, Reg. 33 ; Revised. 
 
 1[ 626 — Special Compensation to Employes. 
 
 When deductible and not deductible. — See H 614. 
 
 Special payments made by a corporation as extra com- 
 pensation to certain of its employes may be deducted from 
 gross income, if it is clearly shown that such payments are 
 made as compensation for services rendered. 
 
 If so-called "compensation" is a gratuity or voluntary 
 payment, for which no service is rendered, the amounts so 
 paid are not deductible. In cases where the payments are 
 made as compensation for services rendered, the employees 
 receiving the same, if he be a "taxable person," will be 
 required to include the amount of such compensation in his 
 personal income tax return. — Treasury Decision 2152. 
 
 |[ 627 — Donations Deductible — When. 
 
 Donations made by a corporation for purposes connected 
 with the operation of the property, when limited to char- 
 itable institutions, hospitals or educational institutions, 
 conducted for the benefit of its employes or their depend- 
 ents, shall be a proper deduction as ordinary and necessary 
 expenses. Such deduction should, however, be reduced by 
 any amount repaid to the corporation by the employes. 
 
 Donations which legitimately represent a consideration 
 for a benefit flowing directly to the corporation as an inci- 
 dent of its business are allowable deductions from gross 
 
 377 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 income in ascertaining net income subject to the income 
 tax ; for example, a street railway corporation donates a sum 
 of money to an organization intending to hold a convention 
 in the city in which it operates, with the expectation that 
 the holding of such convention will augment its income 
 through a greater number of people using the cars. In such 
 case the donations would be an allowable deduction, the 
 deduction to be reduced by any portion of the donation 
 which may be returned to the corporation. — Art. 134, Reg. 
 33; Revised. 
 
 H 628 — Donations Not Deductible. 
 
 Donations made to employes and others, and which do 
 not have in them the element of compensation, are consid- 
 ered gratuities and are not allowable deductions from gross 
 income as expenses of operation or maintenance or under 
 any other item. — Treasury Decision 2090; also, Art. 135. 
 Reg. 33, Revised. 
 
 ^ 629 — Reserves for Insurance Not Deductible. 
 
 Funds set aside by a corporation for insuring its own 
 property are not a proper deduction, but if such funds are 
 set aside, or a reserve therefor is set up, any loss actually 
 sustained and charged to such funds or reserves may be 
 deducted. — Art. 144, Reg. 33 ; Revised. 
 
 11 630— LOSSES. 
 
 Losses sustained during the taxable year and not com- 
 pensated for by insurance or otherwise. Law, page 76, 
 line 52. 
 
 ^031— When Deductible. 
 
 The deduction for losses must represent losses not com- 
 pensated for by insurance or otherwise actually sustained 
 within the taxable year. 
 
 In the case of the sale of assets — real, personal, or mixed 
 — the loss will be the difference between the cost thereof, 
 or the value as of March 1, 1913, if acquired before that 
 date, and the price at which disposed of. When the loss is 
 claimed through the destruction of property by fire, flood, or 
 
 378 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 other casualty the" amount deductible will be the difference 
 between the value as of March 1, 1913, or the cost of the 
 property and the salvage value thereof, including in the 
 latter value the amount, if any, that has been or should have 
 been set aside and deducted in the current or previous years 
 from gross income on account of depreciation and which has 
 not been paid out in making good the depreciation sustained. 
 
 1[ 632— Mines, Oil and Gas Wells, Etc. 
 
 In the case of mines, oil and gas wells, other natural de- 
 posits, and timber, a reasonable allowance for depletion and 
 for depreciation of improvements, according to the peculiar 
 conditions in each case, based upon cost including cost of 
 development not otherwise deducted. 
 
 In the case of such properties acquired prior to March 
 1, 1913, the fair market value of the property (or the tax- 
 payer's interest therein) on thai: date shall be taken in lieu 
 of cost up to that date. 
 
 In the case of mines, oil and gas wells, discovered 
 by the taxpayer, on or after March 1, 1913, and not acquired 
 as the result of purchase of a proven tract or lease, where 
 the fair market value of the property is materially dispro- 
 portionate to the cost, the depletion allowance shall be 
 based upon the fair market value of the property at the 
 date of the discovery or within 30 days thereafter. 
 
 Such reasonable allowance in all the above cases to be 
 made under rules and regulations to be prescribed by the 
 Commissioner with the approval of the Secretary. 
 
 In the case of leases the deductions allowed by this para- 
 graph shall be equitably apportioned between the lessor 
 and lessee. 
 
 ]\ 633 — Losses On Judgments. 
 
 Any amount paid pursuant to judgment or otherwise on 
 account of damages is deductible from gross income to the 
 extent of, and when the amount is actually paid, less any 
 amount of such damages as may have been compensated 
 for by insurance. — Art. 158, Reg. 33 ; Revised. 
 
 379 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 If 634 — Losses in Inventory— Previous — First Time 
 Ascertained. 
 
 (a) At the time of filing return for the taxable year 1918 
 a taxpayer may file a claim in abatement based on the fact 
 that he has sustained a substantial loss (whether or not 
 actually realized by sale or other disposition) resulting from 
 any material reduction (not due to temporary fluctuation) 
 of the value of the inventory for such taxable year, or from 
 the actual payment after the close of such taxable year of 
 rebates in pursuance of contracts entered into during such 
 year upon sales made during such year. In such case pay- 
 ment of the amount of the tax covered by such claim shall 
 not be required until the claim is decided, but the taxpayer 
 shall accompany his claim with a bond in double the amount 
 of the tax covered by the claim, with sureties satisfactory 
 to the Commissioner, conditioned for the payment of any 
 part of such tax found to be due, with interest. If any part 
 of such claim is disallowed then the remainder of the tax due 
 shall on notice and demand by the collector be paid by the 
 taxpayer with interest at the rate of 1 per centum per 
 month from the time the tax would have been due had no 
 such claim been filed. If it is shown to the satisfaction 
 of the Commissioner that such substantial loss has been 
 sustained, then in computing the taxes imposed by this title 
 and by Title III. the amount of such loss shall be deducted 
 from the net income, (b) If no such claim is filed, but it is 
 shown to the satisfaction of the Commissioner that during 
 the taxable year 1919 the taxpayer has sustained a substan- 
 tial loss of the character above described, then the amount 
 of such loss shall be deducted from the net income for the 
 taxable year 1918 and the taxes imposed by this title and by 
 Title III. for such year shall be redetermined accordingly. 
 Any amount found to be due to the taxpayer upon the basis 
 of such redetermination shall be credited or refunded to the 
 taxpayer in accordance with the provisions of Section 252. 
 
 11 635— Bad Debts. 
 
 Debts ascertained to be worthless and charged off within 
 the taxable year. — Law, page 76, line 54. 
 
 380 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 j[ 63S~-Bad Debts or Doubtful Accounts. * 
 
 Losses which may be properly deducted from gross in- 
 come on account of bad debts or doubtful accounts are those 
 losses which have been definitely ascertained to have oc- 
 curred and which were charged off during the year for 
 which the return is made. It is not essential that the bad 
 debt or account shall be proved worthless by legal proceed- 
 ings before the deduction may be allowed but the corporation 
 must not only be satisfied that the debt or account is worth- 
 less, but must be able to satisfy the Commissioner or col- 
 lector of internal revenue that the accounts charged off 
 were definitely determined at the time to be worthless and 
 that they had not been recognized as worthless or without 
 value prior to the beginning of the year for which the re- 
 turn is made. 
 
 H 637— Bad Debts—Loss Must Be Definite. 
 
 In the absence of legal proceedings to determine the col- 
 lectibility of a debt or account, the question of whether or 
 not it is an asset without value will depend largely upon 
 the judgment of the creditor. The mere writing down of 
 the value of an account does not constitute such a loss as 
 may be allowably deducted. The deduction will be permis- 
 sible only when the debt or account is written out of the 
 assets of the corporation. — Art. 151, Reg. 33 ; Revised. 
 
 If 638 — Bad Debts^ — Arising from Unpaid Wages, Etc. 
 
 Bad debts arising from unpaid wages, salaries, rents and 
 items of similar taxable income will not be allowed as de- 
 ductions unless the income which they represent has been 
 included in a return of gross income for the year in which 
 the deduction as a bad debt is sought to be made or in a 
 previous year and the debts themselves have been actually 
 ascertained to be worthless and charged off. — Art. 8, Reg. 
 33; Revised. 
 
 ^ 639 — Bad Debts Recovered. 
 
 Bad debts or accounts charged off by a corporation be- 
 cause of the fact that they were determined to be worth- 
 less, and subsequently recovered, constitute income for the 
 
 381 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 year in which recovered, regardless of the date when the 
 amounts were charged off. Neither the date at which the 
 debt was charged off nor the fact that it was or was not 
 deducted from gross income in any return made for tax 
 purposes, will in any way affect its character as income of 
 the year in which recovered. — Art. 110, Reg. 33; Revised. 
 
 ^ 640 — Voluntary Removal of Buildings. 
 
 Loss due to the voluntary removal or demolition of old 
 buildings, the scrapping of old machinery, equipment, etc., 
 incident to renewals and replacements will be deductible 
 from gross income, in an amount representing the differ- 
 ence between the cost of such property demolished or 
 scrapped and an amount measuring a reasonable allowance 
 for the depreciation which the property had undergone 
 prior to its demolition or scrapping ; that is to say, the de- 
 ductible loss is only so much of the original cost, less sal- 
 vage, as would have remained unextinguished had a reason- 
 able allowance been charged off for depreciation during each 
 year prior to its destruction. — Art. 155, Reg. 33 ; Revised. 
 
 H 641 — Erection of New Buildings. 
 
 When a corporation buys real estate, upon which is lo- 
 cated a building or buildings, which it proceeds to raze, with 
 a view to erecting thereon another building or buildings, it 
 will be held that the corporation has sustained no deduct- 
 ible loss by reason of the demolition of the old building or 
 buildings. In such case it will be considered that the value 
 of the real estate, exclusive of old improvements, is equal 
 to the purchase price of the land and buildings. — Art. 156, 
 Reg. 33; Revised. 
 
 H 642--Void— [Ed.] 
 
 ^ 043 — Loss Due to Retirement of Bonds. 
 
 In a case wherein a corporation, under the terms of its in- 
 denture, securing an issue of bonds is required annually or at 
 certain specified periods to purchase and retire a certain 
 number of its bonds and in doing so pays more than par 
 for the bonds, the loss sustained is an allowable deduction 
 
 382 
 
CORPORATIONS— Cont'd DEDUCTIONS— Losses 
 
 from gross income for the year in which such purchase is 
 made, under the following conditions: 
 
 First. If the bonds were sold at par, then the loss is the 
 difference between par and the price at which they were 
 repurchased for retirement. 
 
 Second. If the bonds were sold at a premium and such 
 premium was accounted for as income for the year in which 
 issued, then the difference between par and the repurchase 
 price may be deducted as loss, but if the premiums at which 
 the bonds were issued had not been carried into the income 
 account then the loss to be claimed should be the difference 
 between the price at which the bonds were sold and the price 
 at which they were repurchased. 
 
 Third. If the bonds were sold at a discount and the dis- 
 count was charged against the earnings of the year in which 
 issued, the difference between par and the repurchase price 
 may be deducted as a loss, but if the discount on the bonds 
 was prorated over the life of the bonds and the annual pro- 
 portion charged against the yearly income, the amount to 
 be charged off as a loss for the year in which the bonds are 
 repurchased for retirement should be the difference between 
 the price at which the bonds were sold and the repurchase 
 price minus an allowance for the sum that had been charged 
 off annually on account of the prorated discount on such 
 bonds. — Treasury Decision 2137; also Art. 152, Reg. 33, 
 Revised. 
 
 Tf 644 — Losses — ^Previous. 
 
 If for any taxable year beginning after October 31, 1918, 
 and ending prior to January 1, 1920, it appears upon the 
 production of evidence satisfactory to the Commissioner 
 that any taxpayer has sustained a net loss, the amount of 
 such net loss shall under regulations prescribed by the Com- 
 missioner with the approval of the Secretary be deducted 
 from the net income of the taxpayer for the preceding tax- 
 able year ; and the taxes imposed by this title and by Title 
 III. for such preceding taxable year shall be redetermined 
 accordingly. Any amount found to be due to the taxpayer 
 upon the basis of such redetermination shall be credited or 
 refunded to the taxpayer in accordance with the provisions 
 
 383 
 
CORPORATIONS— Cont^d DEDUCTIONS— Depreciation 
 
 of section 252. If such net loss is in excess of the net in- 
 come for such preceding taxable year, the amount of such 
 excess shall under regulations prescribed by the Commis- 
 sioner with the approval of the Secretary be allowed as a 
 deduction in computing the net income for the succeeding 
 taxable year. 
 
 The benefit of this section shall be allowed to the members 
 of a partnership and the beneficiaries of an estate of trust 
 under regulations prescribed by the Commissioner with the 
 approval of the Secretary. 
 
 ^ 645 — Dividends Deductible. 
 
 Amounts received as dividends from a corporation which 
 is taxable under this title upon its net income, and amounts 
 received as dividends from a personal service corporation 
 out of earnings or profits upon which income tax has been 
 imposed by Act of Congress. 
 
 ^ 646— ' DEPRECIATION. 
 
 A reasonable allowance for the depreciation of property 
 
 used in the trade or business. Law, page 77, hne 3. 
 
 11 647 — Depreciation Deductible. 
 
 A reasonable allowance for the exhaustion, wear and 
 tear and obsolescence of property arising out of its use or 
 employment in the business or trade during the taxable year 
 shall be deducted from gross income. 
 
 Depreciation as here used must be differentiated from 
 depletion, and other losses elsewhere provided for. 
 
 The deduction for depreciation should be the amount of 
 the loss occurring during the year to which the return 
 relates, estimated on the cost of the physical property with 
 respect to which such deduction is claimed, which loss re- 
 sults from wear and tear due to the use to which the prop- 
 erty is put and which loss has not been made good through 
 expenditures for renewals, replacements, and repairs, de- 
 ducted under the heading of expense for maintenance and 
 operation. 
 
 384 
 
CORPORATIONS— Cont^d DEDUCTIONS— Depreciation 
 
 ^ 648 — Rate for Computing. 
 
 No definite rate has been fixed by which an allowable 
 deduction on account of depreciation in the value of any 
 class of property subject to wear and tear and obsolence is 
 to be computed, but it is contemplated that this allowance 
 shall be computed upon the basis of the cost of the property 
 and the probable number of years constituting its life. 
 
 The life of property necessarily depends upon its char- 
 acter, the uses to which it is put, and the conditions under 
 which it is used. These elements being taken into consid- 
 eration, corporations should, as a result of experience and 
 observation, very closely approximate the number of years 
 constituting the life of the property and upon this basis 
 determine the rate of depreciation which annually occurs. 
 
 ^ 649 — Rate Based Upon Life of Buildings. 
 
 In the case of buildings the deduction on account of de- 
 preciation shall not include any allowance for an estimated 
 loss due to lessening of rental value, nor shall the compu- 
 tation of the deduction be influenced by the changed 
 environment after a period of years, nor by its lack of 
 adaptability to the use originally intended nor to any other 
 outside influence affecting its value but an allowable de- 
 preciation shall be determined solely upon the estimated 
 life of such buildings after making due allowance for ordi- 
 nary repairs, the cost of which may be deducted as expenses 
 for maintenance and operation. — Art. 162, Reg. 33 ; Revised. 
 
 If 650 — Assets Not Subject to Wear and Tear. 
 
 Assets of any character whatever which are not afl^ected 
 by use, wear, and tear (except patents, copyrights, etc.) are 
 not subject to the depreciation allowance authorized by this 
 Act. Real estate as such, and as distinct from the improve- 
 ments thereon, is not reduced in value by reason of wear 
 and tear, and it therefore follows that the "allowance" con- 
 templated as an offset to depreciation in the case of real 
 estate corporations does not apply to the ground, but is in- 
 tended to measure the decline, by reason of wear and tear, 
 in the value of the improvements. — Treasury Decision 2152 ; 
 also Art. 162, Reg. 33 ; Revised. 
 
 385 
 
CORPORATIONS— Cont^d DEDUCTIONS— Depreciation 
 
 \] 651 — Buildings, Machinery, etc., Constructed for War 
 Purposes. 
 
 In the case of buildings, machinery, equipment, or other 
 facilities, constructed, erected,, installed or acquired on or 
 after April 6, 1917-, for the production of articles contrib- 
 uting to the prosecution of the present war, and in the case 
 of vessels constructed or acquired on or after such date 
 for the transportation of articles or men contributing to the 
 prosecution of the present war, there shall be allowed a 
 reasonable deduction for the amortization of such part of 
 the cost of such facilities or vessels as has been borne by 
 the taxpayer, but not again including any amount other- 
 wise allowed under this title or previous Acts of Congress 
 as a deduction in computing net income. At any time with- 
 in three years after the termination of the present war, the 
 Commissioner may, and at the request of the taxpayer shall, 
 re-examine the return, and if he then finds as a result of an 
 appraisal or from other evidence that the deduction origi- 
 nally allowed was incorrect, the taxes imposed by this title 
 and by Title III. for the year or years affected shall be 
 redetermined; and the amount of tax due upon such rede- 
 termination, if any, shall be paid by the taxpayer upon 
 notice and demand by the collector, or the amount of tax 
 overpaid, if any, shall be credited or refunded to the tax- 
 payer in accordance with the provisions of Section 252. 
 
 If 652 — VaRie to Be Estimated — When. 
 
 In determining the cost of the real estate upon which 
 depreciable property is located it frequently occurs that no 
 segregation is made of the cost of buildings as separate and 
 distinct from the cost of the ground upon which such 
 buildings stand. In such cases where the actual 
 cost of the building or improvements at the time 
 they were taken over by the corporation can not 
 be definitely determined, it will be sufficient for the purpose 
 of determining the rate of depreciation to be used in com- 
 puting the amount which will be deductible from gross in- 
 come to estimate the actual value at the time acquired, of 
 buildings or improvements if acquired after March 1, 1913, 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 or the fair marketj price or value as of that date if the 
 property was acquired prior to March 1, 1913, the value in 
 either case to be reduced by the amount of depreciation 
 previously sustained. — Treasury Decisions 2137 and 2152; 
 also, Art. 163, Reg. 33; Revised. 
 
 ti 653 — Diversion of Fund. 
 
 If a corporation at the end of the year finds it has a 
 certain net income, and, without making any provision for 
 depreciation, distributes such net income among its stock- 
 holders as dividends, it will be estopped from claiming in 
 its returns of annual net income for such year any deduc- 
 tion on account of depreciation unless it is shown conclu- 
 sively that the property account has been reduced by the 
 amount of depreciation claimed, or unless such amount has 
 been credited to a depreciation reserve account, and such 
 amount was in fact a reasonable allowance. 
 
 The depreciation allowance is intended to provide a fund 
 out of which the loss due to use, wear, and tear may be 
 made good, and the fund thus created can not be diverted 
 to the payment of dividends ; that is to say, a deduction 
 made under the guise of depreciation can not measure a loss 
 and at the same time be used in the payment of dividends. 
 
 The fact that no reserve was made for depreciation indi- 
 cates that there is no loss on this account to be provided for. 
 —Art. 161, Reg. 33 ; Revised. 
 
 U 654 — Use of Depreciation Reserve. 
 
 Depreciation set up on the books and deducted from gross 
 income can not be used for any purposes other than in 
 making good the loss sustained by reason of the wear and 
 tear of the property with respect to which it is claimed. 
 
 If, however, an investment is made in extensions, addi- 
 tions, or betterments of the company's own property, repre- 
 senting a part or the whole of the credit balance of the 
 depreciation reserve account, such investment will not be 
 considered a misuse or diversion of the depreciation deduc- 
 tion otherwise allowable. — Art. 164, Reg. 33 ; Revised. 
 
 Investments in additions and extensions are primarily 
 capital investments and the fact that the corporation is 
 
 387 
 
CORPORATIONS— Cont'd DEDUCTIONS—Depreciation 
 
 investing its depreciation funds in additions and better- 
 ments or improvements would seem to indicate that the 
 amounts set aside on account of depreciation were in excess 
 of a reasonable allowance which the law contemplates a 
 corporation may deduct from its gross income, and when 
 it shall appear that by reason of the investing of its depre- 
 ciation funds in additions, betterments, and improvements, 
 it actually adds to the value of its capital assets it will be 
 insisted upon that the amount by which the assets are in- 
 creased on this account shall be returned as income and be 
 subject to the income tax. 
 
 [I 655 — Depreciation In Excess of Cost. 
 
 If it develops that by reason of underestimating the life 
 of the property or by overestimating the rate of deteriora- 
 tion an amount in excess of the yearly depreciation has been 
 taken, the rate applicable to future years should at once be 
 reduced and the balance of the cost of the property not 
 provided for through a depreciation reserve should be spread 
 over the estimated remaining life of the property. — Art. 
 165, Reg. 33 ; Revised. 
 
 ^ 656 — Reserves for Depreciation. 
 
 Reserves for depreciation constitute proper deductions 
 from gross income if reasonable, and not to be disallowed 
 if converted into other forms of assets. 
 
 ^ 657 — Depreciation Must Be Charged Off. 
 
 Within the purview of this item depreciation, to an 
 amount measuring the decline in value due to exhaustion, 
 wear and tear of property arising out of its use, is a loss. 
 This loss, in order to constitute an allowable deduction from 
 gross income, must be charged off. The particular manner 
 in which the amount shall be charged off is not material, 
 except that the amount measuring a reasonable allowance 
 for depreciation must be either deducted directly from the 
 book value of the assets or credited to a depreciation reserve 
 account, and as such shall be reflected in the annual balance 
 sheet. (See Sec. 1001, Act of Oct. 3, 1917.) —Art. 159, 
 Reg. 33 ; Revised. 
 
 388 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 U 658 — Shrinkage in Book Values. 
 
 Depreciation in book values of capital assets shall be 
 treated in the return in the manner prescribed in the case 
 of loss from the sale of capital assets (U 575), but amounts 
 arbitrarily charged off will not be allowed as deductions 
 except so far as they represent an actual shrinkage in 
 values which may be determined to have taken place during 
 the year for which the return is made. 
 
 Book values which reflect a shrinkage in value of assets 
 are not a basis for determining taxable income. — Treasury 
 Decision 2090. 
 
 ^ 659 — Depreciation in Value of Stocks and Bonds. 
 
 Depreciation allowed by law does not include shrinkage 
 in value of stocks and bonds. 
 
 ^ 660 — Shrinkage in Securities. 
 
 A corporation possessing securities, such as stocks and 
 bonds, can not allowably deduct from gross income any 
 amount claimed as a loss on account of the shrinkage in 
 value of such securities through fluctuations of the market 
 or otherwise; the only loss to be allowed in such cases is 
 that actually suffered when the securities mature or are 
 disposed of. 
 
 In the case of banks or other corporations which are 
 subject to supervision by State or Federal authorities, and 
 which, in obedience to the orders of such supervisory of- 
 ficers, charge off as losses, amounts representing an alleged 
 shrinkage in the value of property, real, personal, or mixed, 
 the amounts so charged off do not constitute allowable de- 
 ductions. Deductible losses are those only which are de- 
 termined upon the basis of a closed or completed transac- 
 tion.— Treasury Decisions, 2005, 2130 and 2152. The fore- 
 going applies only to owners and investors and not to 
 dealers in securities, as to which see Treasury Decision 2609, 
 Art. 148, Reg. 33; Revised. 
 
 TI 661 — Irrigation Bonds — Losses on. 
 
 District irrigation bonds generally are a lien upon the 
 real estate affected by the irrigation project, and until a 
 corporation holding such bonds has taken the necessary 
 
 389 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 action to protect its interest and enforce the collection of 
 the bonds the corporation will not be allowed to deduct from 
 gross income, as a loss, the face value or any estimated 
 amount supposed to represent a loss or shrinkage in the 
 value of such bonds. Any estimated shrinkage in the value 
 of bonds or other securities does not constitute a loss with- 
 in the meaning of this title. So long as the value of a se- 
 curity is uncertain or unknown a loss can not be definitely 
 ascertained and is therefore not deductible. — Treasury De- 
 cisions 2005, 2130 and 2152. 
 
 H 662— Discount on Bonds Issued Prior to 1909. 
 
 Discount on bonds issued and sold prior to the year 1909, 
 if such discount was then charged against surplus or against 
 the income of the year in which the bonds were sold, is 
 held not to be deductible from! the income of subsequent 
 years, for the reason that the charging off prior to January 
 1, 1909, of the entire amount of the discount constitutes a 
 closed transaction, and such transaction can not be reopened 
 for the purpose of reducing the taxable income of a cor- 
 poration for subsequent years by deducting therefrom an 
 aliquot part of the discount. (C. & A. R. R. v. U. S., Court of 
 Claims.)— Art. 149, Reg. 33, Revised. 
 
 f[ 663 — Bond Discount and Expense to Be Amortized. 
 
 If, however, the bonds were sold subsequent to January 
 1, 1909, at a discount, and the amount of the discount was 
 then charged off on the books, either against earnings or 
 surplus, but not deducted in the corporation's return of 
 net income, such discount as was not then deducted in its 
 entirety, may be spread over the life of the bonds, and an 
 ahquot part of the discount may be deducted from the gross 
 income of each year until the bonds mature or are re- 
 deemed. 
 
 In cases wherein a corporation sells its bonds at a dis- 
 count plus a commission for selling, the amount of such dis- 
 count and commission, together with other expenses inci- 
 dental to issuing the bonds, constitute a loss, the aggregate 
 
 390 
 
CORPORATIONS— Cont'd DEDUCTIONS—Depreciation 
 
 amount of which loss will, for thfe purpose of an income tax 
 return, be prorated over the life of the bonds sold, and the 
 amount thus apportioned to each year will be deductible 
 from the gross income of each such year until the bonds 
 shall have been redeemed. 
 
 If a corporation having sold its bonds at a discount, the 
 discount having been deducted from gross income later re- 
 purchases or redeems the bonds at a price less than par, 
 the difference between the price at which they are redeemed 
 and their par value will be returned as income. If bonds 
 are sold at a premium the premium must be returned as in- 
 come. — Art. 150, Reg. 33, Revised. 
 
 ^ 6e4--Good Will. 
 
 "Good will" represents the value attached to a business 
 over and above the value of the physical property, and is 
 such an intangible asset that it is not subject to wear and 
 tear, and no claim for depreciation in connection therewith 
 can be allowed. Any loss resulting from or on account of 
 an investment in "good will" can be determined only when 
 the property or business to which the good will attaches is 
 sold or disposed of, in which case the profit or loss will be de- 
 termined upon the basis of the value of the assets includ- 
 ing good will if acquired prior to March 1, 1913, or their 
 cost if acquired subsequent to that date. — Art. 167, Reg. 
 33, Revised. 
 
 ^ 665 — No Deduction for Depreciation of Good Will, 
 Trade-marks, and Trade Brands. 
 
 No deduction will be allowed for the depreciation of good 
 will, trade-marks, and trade brands. If such assets shall have 
 been purchased at a determined price and shall be later sold 
 at a price less than such cost, or less than their determined 
 fair market value as of March 1, 1913, if acquired prior to 
 that date, the amount by which the selling price is less 
 than the cost or value, as the case may be, will be a loss de- 
 ductible from the gross income of the year in which such 
 assets were sold. — Art. 168, Reg. 33, Revised. 
 
 391 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 U eee — Patents, Deduction for Return of Capital Invested 
 Therein. 
 
 An allowable deduction for any given year for return of 
 capital invested in patents at time of issue will be an 
 amount equal to one-seventeenth of the actual cost, in cash 
 or its equivalent, of such patents. Where the patent has 
 been secured from the Government, its cost will be rep- 
 resented by the various Government fees, cost of drawings, 
 experimental models, attorneys' fees, etc., actually paid. 
 Where the patent has been purchased for a cash considera- 
 tion, the amount paid therefor would represent the capital 
 invested therein. If the corporation purchased a patent and 
 made payment therefor in stock or other securities, the ac- 
 tual cash value of such stocks or other securities at the time 
 of the purchase will represent the cost or capital invested in 
 the patent. If the patent was purchased after a part of its 
 life had expired, the cost for the purpose of a deduction for 
 return of capital will be ratably spread over the remaining 
 years of its life. If the patent becomes obsolete prior to 
 its expiration, it will be permissible for the corporation to 
 deduct from gross income such proportion of its original 
 cost (less any amount previously charged off) as the num- 
 ber of years of its remaining life bears to the whole number 
 of years intervening between the date it was acquired and 
 the date it legally expires. In determining the amount de- 
 ductible on account of the expiring life of patents only the 
 actual cost thereof and not an estimated value as of March 
 1, 1913, or any other date, will be considered. — Art. 174, Reg. 
 33, Revised. 
 
 Ij 667 — Cost of Successful Drawing, Models, Etc., Capital. 
 
 When a corporation has made expenditures for designs, 
 drawings, patterns or models representing work of an ex- 
 perimental nature, and such designs, drawings, patterns, or 
 models prove to be satisfactory and result in the produc- 
 tion of salable goods, they will be treated as a capital asset, 
 and the entire cost thereof, including experimental and de- 
 velopment expenses, will be capitalized, in which case no part 
 of such expenditures shall be included in expenses of run- 
 
 392 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 ning the business and shall not be treated as a deduction 
 from gross income. — Art. 175, Reg. 33, Revised. 
 
 ^ 868 — Cost of Unsatisfactory Models, Drawings, Etc., a 
 Loss. 
 
 If, however, the designs, drawings, patterns, or models 
 prove by actual experience to be unsatisfactory and do not 
 result in the production of salable goods and have no asset 
 value, such expenditures when charged off may be included 
 as a loss incident to running the business and as such 
 deducted from gross income, provided that the corporation 
 in taking credit for such expenditures in its income tax re- 
 turn shall make a full and complete explanation with respect 
 to the same and to the satisfaction of the Commissioner of 
 Internal Revenue. — Art. 176, Reg. 33, Revised. 
 
 ^ 660 — Obsolescence of Models, Drawings, Etc., 
 as a Loss. 
 
 If designs, drawings, patterns, or models result in the pro- 
 duction of goods which prove to be salable for a certain 
 length of time and then become obsolete and can not be sold, 
 the amount expended for such designs, drawings, patterns, 
 or models, less any amounts previously claimed as deprecia- 
 tion with respect to the same or as a return of capital, may 
 when charged oif , be included in, and deducted as a loss in- 
 cident to running the business, provided full and complete 
 information is reported in a manner satisfactory to the Com- 
 missioner of Internal Revenue. — Art. 177, Reg. 33, Revised. 
 
 ^ 67© — Obsolescence Deductible, Cost Less Depreciation and 
 Salvage. 
 
 Amounts representing losses on account of obsolescence of 
 physical property may be included as a deduction from gross 
 income as a loss, provided such amounts have been recorded 
 in the books following the condemnation and withdrawal 
 from use of the obsolete property. The amount of obsoles- 
 cence that may be claimed as a deduction shall be ascer- 
 tained by deducting from the cost of the property the total 
 amount that has been previously claimed and deducted on 
 account of the depreciation of the property, plus residual 
 value at time of obsolescence, or plus the amount received 
 
 393 
 
CORPORATIONS— Cont^d DEDUCTIONS— Depreciation 
 
 from the sale of the property. The obsolescence deduction 
 must not include the accumulated depreciation applicable 
 to prior years. — Art. 178, Reg. 33, Revised. 
 
 K 671 — Obsolescence When No Depreciation is Deducted. 
 
 If no depreciation has been charged off against such prop- 
 erty and deducted from gross income of prior years, the 
 amount allowable as a deduction for the year in which the 
 property becomes obsolete shall be ascertained by deducting 
 from the cost of the property its residual value plus an 
 amount equal to the depreciation actually sustained during 
 the prior period and which might have been deducted when 
 computed at the rate applicable to the same or similar prop- 
 erty. The amount of depreciation thus arrived at as ap- 
 plicable to former years may be made the basis of amended 
 returns and a claim for the refund of taxes overpaid by 
 reason of the fact that no depreciation deduction was 
 claimed in those years. — Art. 179, Reg. 33, Revised. 
 
 H 672— Sale of Patents. 
 
 A corporation disposing of patents by sale should deter- 
 mine the profit or loss arising therefrom by computing the 
 difference between the selling price and the value as of 
 March 1, 1913, if acquired prior to that date, or between the 
 selling price and the cost, if acquired subsequent to that 
 date. The profit or loss thus ascertained should be increased 
 or decreased, as the case may be, by the amounts deducted 
 on account of depreciation of such patents since March 1, 
 1913, or since the date or purchase if acquired subsequent to 
 that date. — Art. 157, Reg. 33, Revised. 
 
 ^ 673 — Rules far Timber-owning Lumber Companies. 
 
 Corporations owning timber land and logging off the tim- 
 ber and manufacturing it into lumber, will, if the timber is 
 acquired prior to March 1, 1913, be permitted to exclude 
 from gross income either through a deduction from gross re- 
 ceipts or through a charge into the cost of manufacturing 
 the timber into lumber, an amount equivalent to the fair 
 market price or value of the standing timber as of March 
 1, 1913. 
 
 394 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 In order to secure the benefit of this deduction such cor- 
 porations must set up on their books as of March 1, 1913, the 
 fair market price en bloc, of all the timber then owned by 
 them, and then, by dividing his en bloc value by the esti- 
 mated number of feet (board measure) in the entire timber 
 holdings, the per unit value or price as of March 1, 1913, 
 will be ascertained, which per unit price or value will be the 
 basis for measuring the amount which may be added to the 
 cost of manufacture, or deducted from gross income, until 
 the en bloc value of the entire holding as of March 1, 1913, 
 shall have been extinguished, after which no further deduc- 
 tion on this account shall be allowed. 
 
 The same rule will apply in the case of timber or timber 
 lands, purchased subsequent to March 1, 1913, the only dif- 
 ference being that actual cost — that is, the gross purchase 
 price — shall, in making the computation, be substituted for 
 en bloc price or value as of that date. If the entire market 
 price or value of both timber and lands as of March 1, 
 1913, or the entire cost, if acquired subsequent to that date, 
 is extinguished through a deduction from gross income for 
 timber used, or through a per unit charge to cost of manu- 
 facturing lumber, then the entire amount realized from the 
 logged-off lands or for other salvage will be returned as in- 
 come of the year in which such lands are sold or disposed of. 
 ""if the timber or timber lands are sold en bloc, the gain or 
 loss will be ascertained on the basis of the difference be- 
 tween the fair-market price, or cost, and the selling price, 
 according as the property was acquired prior or subsequent 
 to March 1, 1913. 
 
 The fair market price or value of timber or timber lands 
 as of March 1, 1913, is the price at which the property in its 
 then condition, and with the circumstances then surrounding 
 it, could have been sold for cash or its equivalent. This value 
 must not be speculative, but must be determined without 
 taking into account any prospective profits that may result 
 from the manufacture of the timber into lumber. It must 
 be, as the law contemplates, a fair market value and, once 
 determined, must be set up on the books and, as the measure 
 of a stumpage deduction for income-tax purposes, must re- 
 
 395 
 
CORPORATIONS— Cont'd DEDUCTIONS— Depreciation 
 
 main constant and can not be increased except as new pur- 
 chases are made at a higher average cost. The value so set 
 up as of March 1, 1913, will be subject to the approval of the 
 Commissioner of Internal Revenue. — Art. 173, Reg. 33, Re- 
 vised. 
 
 II 674 — Court Decision Relative to Depreciation of Property. 
 Under a decision of the United States District Court, 
 Western District of Michigan, Southern District, there may- 
 be deducted on account of depreciation, the difference be- 
 tween the original cost price of property and its increased 
 fair market value at the time of the incidence of the Special 
 Excise Tax of 1909. A lumber company in 1913 had paid 
 certain amounts for standing merchantable hardwood tim- 
 ber, pine timber and cut-over stump land, carrying the prop- 
 erty so acquired on its books at cost price. In its excise tax 
 returns for 1909 to 1912, inclusive, the company deducted 
 from gross receipts from sales of timber and stump lands, 
 for return to capital assets, an amount representing the dif- 
 ference in original cost and what was admitted to be a fair 
 market value at the time of the incidence of the special ex- 
 cise tax of 1909. The Government allowed the original cost 
 as a deduction, but assessed an additional tax on the increase 
 of value deducted by the company. The company sued to 
 recover the additional tax paid under protest and received 
 judgment for the amount of excess taxes so paid. 
 
 ^ 675 — Depreciation of Improvements. 
 
 In addition to the deduction to measure the loss due to de- 
 pletion, a corporation will be allowed depreciation on im- 
 provements at mines, oil and gas wells and all other natural 
 deposits in accordance with the peculiar conditions in each 
 case and based on life and cost. 
 
 ^ 676 — Corporations Leasing Oil or Gas Territories. 
 
 Corporations leasing oil or gas territory shall base their 
 depletion deduction in accordance with paragraph 677, 
 which shall be equitably apportioned between the lessor and 
 the lessee. 
 
 396 
 
CORPORATIONS— Cont'd DEDUCTIONS— Interest 
 
 ^ 677— Depletion— Mines, Oil and Gas Wells, Other Natural 
 Deposits and Timber. 
 
 In the case of mines, oil and gas wells, other natural de- 
 posits, and timber, a reasonable allowance for depletion and 
 for depreciation of improvements, according to the peculiar 
 conditions in each case, based upon cost including cost of de- 
 velopment not otherwise deducted. In the case of such 
 properties acquired prior to March 1, 1913, the fair market 
 value of the property (or the taxpayer's interest therein) 
 on that date shall be taken in lieu of cost up to that date. 
 In the case of mines, oil and gas wells, discovered by the tax- 
 payer, on or after March 1, 1913, and not acquired as the re- 
 sult of purchase of a proven tract or lease, where the fair 
 market value of the property is materially disproportionate 
 to the cost, the depletion allowance shall be based upon the 
 fair market value of the property at the date of the dis- 
 covery, or within 12 months thereafter. Such reasonable 
 allowance in all the above cases to be made under rules and 
 regulations to be prescribed by the Commissioner with the 
 approval of the Secretary. In the case of leases, the deduc- 
 tions allowed by this paragraph shall be equitably appor- 
 tioned between the lessor and lessee. 
 
 INTEREST. 
 
 1[ 678 — What Constitutes Allowable Interest Deduction. 
 
 All interest paid or accrued within the taxable year on its 
 indebtedness, except on indebtedness incurred or continued 
 to purchase or carry obligations or securities (other than 
 obligations of the United States issued after September 24, 
 1917) the interest upon which is wholly exempt from taxa- 
 tion under this title as income to the taxpayer. 
 
 If a corporation borrows money to purchase securities the 
 interest from which is not subject to the corporation income 
 tax, the interest paid on such borrowed money cannot be 
 used as a deduction. 
 
 See also H 679. 
 
 ^ 679 — Interest on Indebtedness as Rental. 
 
 Interest paid pursuant to contract on an indebtedness se- 
 cured by mortgage on real estate occupied and used by a 
 
 397 
 
CORPORATIONS— Cont'd DEDUCTIONS— Taxes 
 
 corporation, in which real estate the corporation has no 
 equity or to which it is not taking title, is an allowable de- 
 duction from gross income as a rental charge, payment of 
 which is required to be made as a condition to the continued 
 use and possession of the property. If, however, the cor- 
 poration has an equity in or is purchasing for its own use the 
 real estate upon which such mortgage is a prior lien, the in- 
 debtedness will be held to be indebtedness of the corporation 
 within the meaning of the law and the interest paid on such 
 mortgage will be deductible only to the extent that, includ- 
 ing interest on other obligations of the corporation, it is 
 within the limit fixed by the law. — Treasury Decisions 2090 
 and 1993 ; also. Art. 186, Reg. 33 ; Revised. 
 
 |[ 680 — Interest on Deposits. 
 
 In the case of banks and banking associations, loan or 
 trust companies, interest paid within the year on deposits 
 or on moneys received for investment and secured by inter- 
 est-bearing certificates of indebtedness issued by such bank, 
 banking association, loan or trust company, may be allow- 
 ably deducted from the gross income of such corporation. — 
 Art. 190, Reg. 33 ; Revised. 
 
 ^ 681 — Different Rates of Interest on Indebtedness. 
 
 Interest on bonded or other indebtedness bearing differ- 
 ent rates of interest may be deducted from gross income 
 during the year. 
 
 fl 682 — Interest Paid by Brokerage Corporation. 
 
 Interest paid by a brokerage corporation on part pur- 
 chases of securities for its customers is allowable as interest 
 payable on its bonded or other indebtedness. 
 
 ^ 683— TAXES. 
 
 Taxes paid or accrued within the taxable year imposed 
 (a) by the authority of the United States, except income, 
 war-profits and excess-profits taxes ; or (b) by the authority 
 of any of its possessions, except the amount of income, war 
 profits and excess profits taxes allowed as a credit under 
 Section 238 ; or (c) by the authority of any State or Ter- 
 
 398 
 
CORPORATIONS— Cont'd DEDUCTIONS— Taxes 
 
 ritory, or any county, school district, municipality, or other 
 taxing subdivision of any State or Territory, not including 
 those assessed against local benefits of a kind tending to 
 increase the value of the property assessed; or (d) in the 
 case of a domestic corporation, by the authority of any 
 foreign country, except the amount of income, war profits 
 and excess profits taxes allowed as a credit under Section 
 238 (income, war profits and excess-profits taxes paid to a 
 foreign country) ; or (e) in the case of a foreign corpora- 
 tion, by the authority of any foreign country (except in- 
 come, war profits and excess profits taxes, and taxes as- 
 sessed against local benefits of a kind tending to increase 
 the value of the property assessed), upon the property or 
 business : Provided, That in the case of obligors specified in 
 subdivision (b) of Section 221, no deduction for the payment 
 of the tax imposed by this title or any other tax paid pur- 
 suant to the contract or provision referred to in that sub- 
 division, shall be allowed. 
 
 H 684— -Tax-Free Bonds. 
 
 In the case of bonds or other forms of indebtedness issued 
 with a guaranty that the interest thereon shall be free from 
 taxation as against the holder the corporation paying the 
 tax pursuant to its guaranty, whether Federal, State, or mu- 
 nicipal, will not be permitted to deduct the tax so paid. The 
 tax assessable upon this income is a direct liability of the 
 recipient, and the debtor corporation paying it does so vol- 
 untarily or at least in pursuance of a contract voluntarily 
 entered into, which contract is in nowise binding upon or 
 to be recognized by the Government in determining the tax 
 liability of the corporation. Hence taxes so paid are not 
 deductible from the gross income of the debtor. — ^Treasury 
 Decision 2161 ; also. Art. 193, Reg. 33 ; Revised. 
 
 1| 685— Local Benefits. 
 
 So-called "taxes," more properly assessments, paid for 
 local benefits, such as street, sidewalk and other like assess- 
 ments, imposed because of and measured by some benefit 
 inuring directly to the property against which the assess- 
 ment is levied, do not constitute an allowable deduction from 
 
 399 
 
CORPORATIONS— Cont'd DEDUCTIONS— Taxes 
 
 gross income. Taxes deductible are those levied for the 
 public welfare by the proper taxing authorities at a like 
 rate against all property in the territory over which such 
 authorities have jurisdiction. 
 
 Special assessments, such as are hereinbefore contem- 
 plated and which are measured upon the basis of the benefit 
 flowing directly to the property, are not deductible, even 
 though an incidental benefit may inure to the public wel- 
 fare.— Treasury Decision 2090; also, Art. 194, Reg. 33; 
 Revised. '"'"^W^ 
 
 ^ 686— Excess Profits Tax as a Credit. 
 
 That in assessing income tax the net income embraced 
 in the return shall also be credited with the amount of any 
 war-excess profits tax imposed by Title III. of the Revenue 
 Act of 1918, and assessed for the same calendar or fiscal 
 year upon the taxpayer. 
 
 ^ 687— Bank Stock Taxes Paid for Shareholders. 
 
 Banks paying taxes assessed against their stockholders 
 on account of their ownership of the shares of stock issued 
 by such banks can not deduct the amount of taxes so paid 
 in making their returns for the purpose of the income tax 
 imposed by this title unless and to the extent that the laws 
 of the State in which they do business by specific terms 
 make the tax a direct liability of such banks that is a lien 
 upon its property. The shares of stock are the property 
 of the stockholders, and to the extent that the taxes as- 
 sessed on the value of the shares of stock are property 
 taxes the holders are primarily liable for their payment. 
 
 The fact that State laws make it the duty of banks to 
 pay the tax does not necessarily make the tax a liabihty of 
 the banks. These provisions of State laws are intended only 
 to provide a convenient means whereby the tax assessed 
 against the stock on the basis of its value can be the more 
 readily collected by the tax-collecting officers and do not 
 attempt to assert liability against the bank, as is evidenced 
 by the fact that in most, if not all, cases, the tax is a lien 
 upon the stock. For this purpose the Hability of the bank 
 is limited to the duty to collect or withhold from the stock- 
 
 400 
 
CORPORATIONS— Cont^d DEDUCTIONS— Taxes 
 
 holders the amount of taxes due and to pay the same over 
 to the proper tax-collecting offices. Federal statutes pro- 
 hibit States from imposing any tax upon national banks 
 except upon the value of their real estate. In cases where 
 States levy a tax on the stock of such banks and make it 
 the duty of the banks to pay such tax for the stockholders, 
 said payments are not deductible from the gross income of 
 such banks. — Treasury Decisions 2121, 2152. 
 
 This rule applies only to taxes levied upon the value of 
 the capital stock, and it is not intended to so operate as to 
 prevent banking corporations from deducting from their 
 gross income any State tax imposed against the corporation 
 itself on the value of its real estate, furniture and fixtures, 
 or as an excise or a franchise tax ; that is, a tax which the 
 corporation is required to pay to the State on account of its 
 own property or business in order that it may transact busi- 
 ness within the State is deductible. — ^Treasury Decisions 
 2153, 2121. 
 
 This rule hereinbefore set out will apply in the case of 
 corporations other than banks, upon the value of whose 
 stock taxes are assessed to the stockholders. — Art. 192, Reg. 
 33 ; Revised. 
 
 ^ 688 — Customs Duties Deductible as Expenses — ^Not 
 Taxes. 
 
 Import duties or taxes are not deductible under the item 
 of taxes paid during the year, but should be included in 
 arriving at the cost of goods under item (expenses) . 
 
 [In private letters the Department has held that customs duties are 
 deductible by an individual as taxes, or part of the cost price if the indi- 
 vidual is engaged in the importation of goods and merchandise. — Ed.] 
 
 If 689— Import or Tariff Duties. 
 
 Import or tariff duties levied by the act of Congress and 
 paid to the proper customs officers, stamp taxes, and all 
 other taxes (except income and excess profits taxes) im- 
 posed by internal-revenue laws and paid to collectors are 
 deductible as taxes imposed under authority of the United 
 States, provided they are not added to and made a part of 
 the cost of articles of merchandise with respect to which 
 
 401 
 
CORPORATIONS— Continued CREDITS 
 
 they are paid, in which case they will be reflected in the 
 cost of merchandise and can not be separately deducted. — 
 Art. 195, Reg. 33 ; Revised. 
 
 ^ 690— Credits Allowed. 
 
 That for the purpose only of the tax imposed by section 
 230 (which is the tax on net incomes of corporations) there 
 shall be allowed the following credits: 
 
 (a) The amount received as interest upon obligations of 
 the United States and bonds issued by the War Finance 
 Corporation which is included in gross income. 
 
 (b) The amount of any taxes imposed by Title III of 
 the-Revenue Act of 1918 for the same taxable year. In the 
 case of a corporation which makes return for a fiscal year 
 beginning in 1917 and ending in 1918, in computing the tax 
 as provided in subdivision (a) of Section 275 (tax based on 
 fiscal year beginning in 1917 and ending in 1918), the tax 
 computed for the entire period under Title II. of the Revenue 
 Act of 1917 (excess-profits tax), shall be credited against 
 the net income computed for the entire period under Title I. 
 of the Revenue Act of 1916 as amended by the Revenue Act 
 of 1917 and under Title I. of the Revenue Act of 1917 (In- 
 come Tax), and the tax computed for the entire period 
 under the war-profits and excess-profits title of the Revenue 
 Act of 1918 at the rates prescribed for the calendar year 
 1918 shall be credited against the net income computed for 
 the entire period under the income tax title of the Revenue 
 Act of 1918. 
 
 (c) In the case of a domestic corporation $2,000.. 
 
 The following example shows how these credits should 
 be treated in a return of annual net income : 
 
 A corporation with a net income of $100,000 — for the cal- 
 endar year 1918. Included in gross income is interest to 
 the extent of $5,000 from Liberty Bonds and bonds of the 
 War Finance Corporation. 
 
 402 
 
CORPORATIONS— Continued GENERAL 
 
 The amount of the War Excess Profits tax is $45,000. 
 
 Net income $100,000 
 
 Credits : 
 Interest on Liberty Bonds and bonds of 
 
 the War Finance Corporation $5,000 
 
 War excess-profits tax 45,000 
 
 Additional credit 2,000 
 
 Total credits 52,000 
 
 Taxable income $48,000 
 
 Corporation income tax ($48,000 at 12%) $5,760 
 
 Excess-profits tax 45,000 
 
 Total tax $50,760 
 
 ^ 691 — Foreign Corporations Subject to Tax. 
 
 Foreign corporations are subject to the normal tax of 
 12 per cent, upon the total net income received in the pre- 
 ceding calendar or fiscal year from all sources within the 
 United States. Such income includes interest on bonds, 
 notes, or other interest-bearing obligations of residents, cor- 
 porate or otherwise, and also the income derived from divi- 
 dends on capital stock or from the net earnings of resident 
 corporations, etc., whose net income is taxable under the 
 law, and including all amounts received (although paid 
 under a contract for the sale of goods or otherwise) repre- 
 senting profits on the manufacture and disposition of goods 
 within the United States. 
 
 While the dividends received must be included in gross 
 income they are not subject to the tax, being deducted from 
 gross income in arriving at the net income subject to tax. 
 
 ^ 692 — Returns of Domestic Corporations Whose Books Are 
 Kept in Foreign Countries — Where Filed. 
 
 See "Place of Filing Returns," TI 507. 
 
 403 
 
CORPORATIONS— Continued GENERAL 
 
 jf 693 — Deductions From Income Allowed. 
 
 Such net income shall be ascertained by deducting from 
 the gross amount of its income received within the year 
 from all sources within the United States — 
 
 jl 694 — Expenses Within United States. 
 
 All the ordinary and necessary expenses paid or incurred 
 within the taxable year to the extent that they are con- 
 nected with income arising from a source within the United 
 States, including a reasonable allowance for salaries or 
 other compensation for personal services actually rendered, 
 and including rentals or other payments required to be 
 made as a condition to the continued use or possession of 
 property to which the corporation has not taken or is not 
 taking title, or in which it has no equity. 
 
 The proper apportionment and allocation of the deduc- 
 tions under this caption with respect to sources of income 
 within the United States shall be determined under rules 
 and regulations prescribed by the Commissioner of Internal 
 Revenue. 
 
 U 695 — Interest on Indebtedness. 
 
 The proportion of interest paid or accrued within the 
 taxable year on its indebtedness, which the amount of its 
 gross income from sources within the United States bears to 
 the amount of its gross income from all sources within and 
 without the United States, except on indebtedness incurred 
 or continued to purchase or carry obligations or securities 
 (other than obligations of the United States issued after 
 September 24, 1917) the interest upon which is wholly ex- 
 empt from taxation under this title as income to the tax- 
 payer. 
 
 ^ 696 — Source Within United States. 
 
 It is not necessary that the foreign corporation shall be 
 engaged in business in this country or that it have an office, 
 branch, or agency in the United States. Liability to the 
 tax attaches with respect to the income, the source of which 
 is in the United States. 
 
 "Source" as here used means the place of origin of the 
 income. 
 
 404 
 
CORPORATIONS— Continued GENERAL 
 
 ^697— Taxes. 
 
 In the case of a foreign corporation, by the authority of 
 any foreign country (except income, war-profits and excess- 
 profits taxes, and taxes assessed against local benefits of a 
 kind tending to increase the value of the property assessed) , 
 upon the property or business. 
 
 That in the case of obligors specified in subdivision (b) 
 of section 221 (Payment of Tax at Source) no deduction 
 for the payment of tax imposed by this title or any other 
 tax paid pursuant to the contract or provision referred to 
 in that subdivision shall be allowed. 
 
 H 698 — Bonds Issued With Tax-Free Covenant Clause — 
 Interest From, Not Deductible. 
 
 In the case of bonds or other indebtedness which have 
 been issued with a guaranty that the interest payable there- 
 on shall be free from taxation, no deduction for the pay- 
 ment of the tax herein imposed or any other tax paid 
 pursuant to such guaranty shall be allowed. 
 
 jf 699— -Losses. 
 
 Losses sustained during the taxable year and not com- 
 pensated for by insurance or otherwise are deductible. For 
 apportionment and allocation, see 1[ 694. 
 
 11 700— -Debts. 
 
 Debts ascertained to be worthless and charged off within 
 the taxable year are deductible. For apportionment and 
 allocation, see jf 694. 
 
 11701— -Dividends. 
 
 Amounts received as dividends from a corporation which 
 is taxable under this title upon its net income, and amounts 
 received as dividends from a personal service corporation out 
 of earnings or profits upon which income tax has been im- 
 posed by Act of Congress are deductible. 
 
 1[ 702 — Depreciation. 
 
 A reasonable allowance for the depreciation of property 
 used in the trade or business. For apportionment and allo- 
 cation, see K 694. 
 
 405 
 
CORPORATIONS— Continued GENERAL 
 
 II 703 — No Deductions for New Buildings, Permanent 
 Improvements, Betterments, Etc. 
 
 Any amount paid out for new buildings or for permanent 
 improvements or betterments made to increase the value of 
 any property or estate shall not be allowed as a deduction. 
 
 li 704 — Restoration of Property. 
 
 Any amount expended in restoring property or in making 
 good the exhaustion thereof for which an allowance is or 
 has been made is not deductible. 
 
 |[ 705 — Amortization. 
 
 In the case of buildings, machinery, equipment, or other 
 facilities, constructed, erected, installed, or acquired, on or 
 after April 6, 1917, for the production of articles contrib- 
 uting to the prosecution of the present war, and in the case 
 of vessels constructed or acquired on or after such date 
 for the transportation of articles or men contributing to 
 the prosecution of the present war, there shall be allowed 
 a reasonable deduction for the amortization of such part 
 of the cost of such facilities or vessels as has been borne 
 by the taxpayer, but not again including any amount other- 
 wise allowed under this title or previous Acts of Congress 
 as a deduction in computing net income. At any time within 
 three years after the termination of the present war, the 
 Commissioner may, and at the request of the taxpayer 
 shall, reexamine the return, and if he then finds as a result 
 of an appraisal or from other evidence that the deduction 
 originally allowed was incorrect, the taxes imposed by this 
 title and by Title III. for the year or years affected shall 
 be redetermined ; and the amount of tax due upon such re- 
 determination, if any, shall be paid upon notice and demand 
 by the collector, or the amount of tax overpaid, if any, shall 
 be credited or refunded to the taxpayer in accordance with 
 the provisions of Section 252. 
 
 ^ 706 — Depletion and Depreciation. 
 
 In the case of mines, oil and gas wells, other natural de- 
 posits, and timber, a reasonable allowance for depletion and 
 for depreciation of improvements, according to the peculiar 
 
 406 
 
CORPORATIONS— Continued GENERAL 
 
 conditions in each case, based upon cost including cost of 
 development not otherwise deducted. In the case of such 
 properties acquired prior to March 1, 1913, the fair market 
 value of the property (or the taxpayer's interest therein) 
 on that date shall be taken in lieu of cost up to that date. 
 In the case of mines, oil and gas wells, discovered by the 
 taxpayer, on or after March 1, 1913, and not acquired as the 
 result of purchase of a proven tract or lease, where the fair 
 market value of the property is materially disproportionate 
 to the cost, the depletion allowance shall be based upon the 
 fair market value of the property at the date of the dis- 
 covery, or within 30 days thereafter ; such reasonable allow- 
 ance in all the above cases to be made under rules and 
 regulations to be prescribed by the Commissioner with the 
 approval of the Secretary. In the case of leases the de- 
 ductions allowed by this paragraph shall be equitably ap- 
 portioned between the lessor and lessee; 
 
 If 707 — How Deductions Shall Be Evidenced. 
 
 It is immaterial whether the deductions are evidenced by 
 actual disbursements in cash, or whether evidenced in such 
 other way as to be properly acknowledged by the corporate 
 officers and so entered on the books of the corporation as to 
 constitute a liability against the assets of the corporation 
 making the return. 
 
 Deductions for taxes should be the aggregate of the 
 amounts actually paid or accrued within the taxable year, 
 as shown on the books of the corporation. 
 
 ^ 708— Tax Withheld at Source. 
 
 In making its return a foreign corporation may take 
 credit against the tax assessable on the basis of the net 
 income so returned for any tax which may have been with- 
 held at the source, provided the income upon which the tax 
 was withheld is included in the return and provided that 
 the name of the withholding agent is given in the return. 
 —Art. 198, Reg. 33, Revised. 
 
 Deductions for losses should be confined to losses sus- 
 tained during the taxable year and not compensated by in- 
 surance or otherwise. 
 
 407 
 
CORPORATIONS— Continued RETURNS 
 
 Except as the same may be modified by the provisions of 
 the Act, limiting certain deductions and authorizing others, 
 the net income as returned for the purpose of the tax 
 should be the same as that shown by the books or the 
 annual balance sheet. 
 
 ]\ 70d — Inventories. 
 
 That whenever in the opinion of the Commissioner of 
 Internal Revenue the use of inventories is necessary in order 
 clearly to determine the income of any taxpayer, inventories 
 shall be taken by such taxpayer upon such basis as the 
 Commissioner may prescribe as conforming as nearly as 
 may be to the best accounting practice in the trade or busi- 
 ness and as most clearly reflecting the income. 
 
 RETURNS. 
 
 If 710 — Forms of Returns. 
 
 Four separate revised forms of annual return have been 
 provided for corporations as follows: 
 
 Corporations. 
 
 Form 
 
 (For all corporations except railroad and in- 
 surance companies) 1031 
 
 (Revised) 
 Insurance Companies. 
 
 (Including mutual life and mutual marine) 1030 
 
 (Revised) 
 Mutual Insurance Companies. 
 
 (Other than mutual life and mutual marine) 1030 A 
 
 Railroad Corporations. 
 (Railroad corporations) 1090 
 
 TJ 711 — Consolidated Returns. 
 
 That corporations which are affiliated within the meaning 
 of this Section shall, under regulations to be prescribed by 
 the Commissioner, with the approval of the Secretary, make 
 a consolidated return of net income and invested capital for 
 the purposes of this title and Title III., and the taxes there- 
 under shall be computed and determined upon the basis of 
 such return : Provided, That there shall be taken out of such 
 
 408 
 
CORPORATIONS— Continued RETURNS 
 
 consolidated net income and invested capital, the net income 
 and invested capital of any such affiliated corporation or- 
 ganized after August 1, 1914, and not successor to a then 
 existing business, 50 per centum or more of whose gross 
 income consists of gains, profits, commissions, or other in- 
 come, derived from a Government contract or contracts 
 made between April 6, 1917, and November 11, 1918, both 
 dates inclusive. In such case the corporation so taken out 
 shall be separately assessed on the basis of its own invested 
 capital and net income and the remainder of such affiliated 
 group shall be assessed on the basis of the remaining con- 
 solidated invested capital and net income. 
 
 In any case in which a tax is assessed upon the basis of 
 a consolidated return, the total tax shall be computed in the 
 first instance as a unit and shall then be assessed upon the 
 respective affiliated corporations in such proportions as 
 may be agreed upon among them, or, in the absence of any 
 such agreement, then on the basis of the net income prop- 
 erly assignable to each. There shall be allowed in comput- 
 ing the income tax only one specific credit of $2,000 (as 
 provided in Section 236) ; in computing the war-profits 
 credit (as provided in Section 311) only one specific exemp- 
 tion of $3,000 ; and in computing the excess-profits credit (as 
 provided in Section 312) only one specific exemption of 
 $3,000. 
 
 For the purpose of this Section two or more domestic 
 corporations shall be deemed to be affiliated (1) if one cor- 
 poration owns directly or controls through closely affiliated 
 interests or by a nominee or nominees substantially all the 
 stock of the other or others, or (2) if substantially all the 
 stock of two or more corporations is owned or controlled by 
 the same interests. 
 
 For the purposes of Section 238 a domestic corporation 
 which owns a majority of the voting stock of a foreign cor- 
 poration shall be deemed to have paid the same proportion 
 of any income, war-profits and excess-profits taxes paid 
 (but not including taxes accrued) by such foreign corpora- 
 tion during the taxable year to any foreign country or to 
 any possession of the United States upon income derived 
 from sources without the United States, which the amount 
 
 409 
 
CORPORATIONS— Continued RETURNS 
 
 of any dividends (not deductible under Section 234) re- 
 ceived by such domestic corporation from such foreign cor- 
 poration during the taxable year bears to the total taxable 
 income of such foreign corporation upon or with respect to 
 which such taxes were paid : Provided, That in no such case 
 shall the amount of the credit for such taxes exceed the 
 amount of such dividends (not deductible under Section 
 234) received by such domestic corporation during the tax- 
 able year. 
 
 ^ 712 — Forms to Be Furnished. 
 
 Under the authority conferred by this title, forms of re- 
 turn have been prescribed in which the various items speci- 
 fied in the law are to be stated. Blank forms of this return 
 will be forwarded to collectors and should be furnished to 
 every corporation, not expressly exempted, on or before 
 January 1 of each year, in the case of corporations making 
 their next returns for the calendar year; on or before the 
 first day of the next fiscal year in the case of corporations 
 filing returns for their fiscal year. Failure on the part of any 
 corporation, joint-stock company, association, or insurance 
 company liable to this tax to receive a prescribed blank 
 form will not excuse it from making the return required by 
 law or relieve it from any penalties for failure to make the 
 return within the prescribed time. 
 
 Tf 71 3 — Failure to Receive Returns. 
 
 Corporations not supphed with the proper forms for mak- 
 ing the return should make application therefor to the col- 
 lector of internal revenue in whose district are located their 
 principal places of business* in ample time to have their re- 
 turns prepared, verified, and filed with the collector on or 
 before the last due date defined by the law and these regula- 
 tions. 
 
 '•■The Principal of Business of a Corporation is the pince or office in which 
 are kept the books of account and other data from which the return is to be 
 prepared. — Treasury Decision 2090. 
 
 ^ 714— Twenty-five Per Cent. Additional Tax. 
 
 Failure in this respect subjects the corporation to not only 
 25 per cent additional tax, but to the specific penalty im- 
 posed by the law for deHnquency. Each corporation should 
 
 410 
 
CORPORATIONS— Continued RETURNS 
 
 carefully prepare its return so as to fully and clearly set 
 forth the data therein called for. Imperfect or incorrect 
 returns will not be accepted as meeting the requirements of 
 the law.— Art. 216, Reg. 33, Revised. 
 
 If 715 — Itemized Statement on Form 1031. 
 
 In the case of public-service and all other corporations it is 
 desired that the supplementary statement which forms a 
 part of the Return Form 1031, prescribed by the Secretary 
 of the Treasury for the use of such corporations in making 
 the returns of annual net income, shall be prepared as far as 
 practicable in detail. 
 
 It is not expected or required, however, that every par- 
 ticular item going to make up either gross income or the de- 
 ductions therefrom shall be set out in the supplementary 
 statement. It will be sufficient in the case of public-service 
 corporations and other similar concerns that they supply the 
 information by classes rather than giving the items in de- 
 tail, classifying the income and expenditures in the same 
 manner as is required as to these items by the Interstate 
 Commerce Commission. 
 
 Ti 71 6 — Instructions to Corporations With Respect to 
 Making Returns of Annual Net Income. 
 
 The officers of corporations should read carefully the fol- 
 lowing instructions, as well as those given on the Return 
 Form (1031), before inserting the figures in either the re- 
 turn proper or the supplementary statement. 
 
 Returns must be filed by all corporations, not specifically 
 enumerated as exempt, having existence during all or any 
 part of the year, and, if made on the basis of a calendar 
 year, must be filed on or before March 15 ; if on the basis of 
 a fiscal, other than the calendar, year they must be filed on 
 or before the fifteenth day of the third month next following 
 the close of the fiscal year. 
 
 Dissolved corporations, making returns on the basis of a 
 calendar year, will make final return covering the period 
 from January 1 to date of dissolution. Dissolved corpora- 
 tions making return on the basis of a fiscal, other than the 
 calendar, year will make a final return covering the period 
 
 411 
 
CORPORATIONS— Continued RETURNS 
 
 from the beginning of the fiscal year to the date of disso- 
 lution. Date of dissolution in either case must be noted on 
 the face of the return in red ink. 
 
 New corporations, organized during the year, must make 
 return covering the period from date of organization to De- 
 cember 31, unless the Collector is given written notice, not 
 less than 30 days prior to March 15, designating the last day 
 of some month, other than December, as the closing date 
 of the fiscal year. In this event a return will be made on or 
 before the fifteenth day of the third month after the close of 
 the fiscal year designated, provided the period from date of 
 organization to the closing date of the fiscal year does not 
 exceed 12 months. Further instructions will be given by 
 the collector. 
 
 Address in the heading must show where books are kept 
 from which return is prepared, and the return will be filed 
 in the district in which this address shows the books to be 
 kept. 
 
 ^ 717 — In the Absence of Notice, Fiscal Year Returns Not 
 Acceptable. 
 
 A return made on the basis of a fiscal year other than the 
 calendar year can not be accepted unless such fiscal year 
 shall have been established by proper notice to the Collector 
 of Internal Revenue of the district in which such corpora- 
 tion has its principal place of business (Treasury Decision 
 2090, 2152, 2137), and if in the absence of such notice and 
 designation a return is filed subsequent to the date when it 
 was required to be filed if made on a calendar-year basis, 
 it will be considered delinquent and the corporation will be 
 liable to the penalty imposed for failure to file the return 
 within the prescribed time. — Art. 203, Reg. 33, Revised. 
 
 U 718 — Paid-up Capital Stock. 
 
 Paid-up capital stock, to be entered under item 1 , should 
 represent total par value of paid-up stock issued, both com- 
 mon and preferred, outstanding at the close of the period 
 covered by the return. It is immaterial whether stock is 
 paid for in cash, promissory notes, or other assets. When 
 stock is assessable on account of deferred payments or is 
 
 413 
 
CORPORATIONS— Continued RETURNS 
 
 payable in installments, the amount actually paid on such 
 shares will constitute the actual paid-up capital stock of the 
 corporation, and the amount so actually paid in will be en- 
 tered under this item. 
 
 U 71 9 — Indebtedness. 
 
 Indebtedness, to be entered under item 2, should embrace 
 all outstanding interest-bearing indebtedness for which the 
 corporation has acknowledged liabihty, in the form of mort- 
 gage, note, bond, or other paper, said paper bearing interest, 
 not including indebtedness wholly secured by collateral the 
 subject of sale in the ordinary business of the corporation. 
 Such latter indebtedness should be included under item 6c 
 of the supplementary statement, at the lower margin of the 
 return proper, and should be properly explained. 
 
 Tj 720 — Banks and Other Financial Institutions. 
 
 Banks and other financial institutions will include as 
 Gross Income the total revenue, gains, or profits from all 
 sources, as shown by the entries on the books of account. 
 
 ^ 721 — Manufacturing Corporations. 
 
 Manufacturing corporations will ascertain Gross Income 
 from operations through the inventory computation on the 
 back of the form. In this computation "Sales" should repre- 
 sent the entire sales during the year, whether for cash or 
 otherwise. "Purchases" should include all purchases of raw 
 material, suppHes, etc., during the same period. "Pur- 
 chases" will not, however, include any expenses or other 
 items claimed as deductions shown by the return. (Pur- 
 chases of equipment, office furniture, fixtures, and so forth, 
 are considered to be capital investments and are not subject 
 to deduction as purchases or expenses.) Such items are to 
 be charged to capital account and are susceptible to depre- 
 ciation charge, which may be taken in the return if. such ac- 
 count is set up on the books of the corporation and so en- 
 tered on the books as to constitute a liability against the 
 assets of the company. "Inventories" should be as of the be- 
 
 413 
 
CORPORATIONS— Continued RETURNS 
 
 ginning and close of the period covered by the return and 
 will embrace finished and unfinished products, raw materials, 
 supplies, etc. 
 
 If 722 — Mercantile Corporations. 
 
 Mercantile corporations will ascertain "Gross Income from 
 Operations" in the same manner as manufacturing corpora- 
 tions, except that inventories will embrace merchandise or 
 stock in trade, or on hand, at the beginning and close of the 
 period, as well as the amount of the gross sales and pur- 
 chases during the period. 
 
 tl 723. — Other Corporations. 
 
 Other corporations will include as gross income the total 
 revenue derived from the operation and management of the 
 business and property of the corporation, together with all 
 amounts of income, gains, or profits arising or accruing 
 from all other sources, as shown by the books of account. 
 
 Deductions. 
 Tf 724 — Expenses, General. 
 
 General expenses should be segregated and entered under 
 the proper heading. The schedule should not include any 
 items that have been taken into consideration in the in- 
 ventory computation when ascertaining the "Gross Income 
 from Operations." 
 
 The schedule should embrace the expenses of non-produc- 
 tive, supervisory, executive and selling labor, commissions; 
 
 Light, heat, and power expense; 
 
 Ordinary rentals ; 
 
 Incidental repairs, whch do not add to the value or ap- 
 preciably prolong the life of the property, or which do not 
 constitute additions and betterments, the latter being prop- 
 erly chargeable to property account ; 
 
 Total salaries paid to officers ; 
 
 And such expenses as are not accounted for in any of the 
 above items, and should be classified under three or four 
 general heads. 
 
 414 
 
CORPORATIONS— Continued 
 
 If 725 — Losses. 
 
 Losses, to be deductible, must be definite, absolute, actu- 
 ally sustained during the period and will not include shrink- 
 age in the value of securities or other assets. 
 
 Appropriate explanation should be made in the space pro- 
 vided on the back of the form of each loss for which de- 
 duction is claimed. Decrease in value of stock inventory 
 is not a loss contemplated to be treated here, but will be 
 taken into account in the inventory in the computation of 
 the supplementary statement. Bad debts should be Hsted 
 and date of charging off stated as to each. If the space pro- 
 vided is not sufficient to make such list, use additional paper 
 and securely attach same to the return. Bad debts are not 
 deductible as a loss unless at some time, either through in- 
 ventory or otherwise, they shall have been taken up as 
 income. 
 
 K 728 — Depreciation Deductions. 
 
 Depreciation deductions should be appropriately explained. 
 If depreciation is claimed on more than one class of property 
 at different rates, the cost of each separate class will be 
 stated, with its corresponding probable life, the amount 
 charged off this and prior years. The amount deducted 
 must appear on the books of the corporation as a liability 
 against the assets, and must be reflected in the annual "Bal- 
 ance Sheet." Depreciation on merchandise or stock in trade 
 must not be deducted here, but should be taken into consid- 
 eration through the inventory at the close of the year. De- 
 duction as depreciation cannot be taken for such wear and 
 tear as has been made good by repairs. The depreciation 
 deduction cannot be cumulative, but will consist of an 
 amount measuring the loss due to use, wear and tear occur- 
 ring during the period for which the return is made. 
 
 11 727 — Interest Deductions. 
 
 Interest deductions should include only that paid or ac- 
 crued within the taxable year on its indebtedness except on 
 indebtedness incurred or continued to purchase or carry 
 obligations or securities (other than obligations of the 
 United States issued after September 24, 1917) the interest 
 
 415 
 
CORPORATIONS— Continued 
 
 upon which is wholly exempt from taxation under this title 
 as income to the taxpayer. 
 
 ^ 728 — Receivers, Trustees or Assignees of Corporations to 
 Make Return. 
 
 Section 13, paragraph C, of this title requires receivers, 
 trustees in bankruptcy, or assignees, who are in charge of 
 and are operating the property and business of corporations, 
 to make returns of annual net income and pay any income 
 tax thereby shown to be due, regardless of what disposition, 
 subject to the orders of the court, may be made of such 
 income. 
 
 Notwithstanding the fact that the powers and functions 
 of the corporation are suspended and that the property and 
 business are for the time in control and custody of the re- 
 ceiver, trustee, or assignee, subject to the orders of the 
 court, such receiver, trustee, or assignee stands in the place 
 of the corporate officers and is required for the purpose of 
 this title to perform all the duties and assume all the liabili- 
 ties which would devolve upon the officers of the corporation 
 were they in control. The income which he receives on ac- 
 count of the business transacted is the income of the cor- 
 poration and, no matter how such income is appHed, it is 
 subject to the tax imposed by this title in so far as it ex- 
 ceeds the deductions or allowances authorized by law. 
 
 The receiver, trustee, or assignee acting for the corpora- 
 tion, is required to make a true and accurate return of an- 
 nual net income covering each year or part of each year 
 during which he is in custody and control of the business or 
 properties and will be liable to all the penalties imposed by 
 this title for failure to meet any of its requirements. — Art. 
 209, Reg. 33, Revised. 
 
 ^729 — Prescribed Forms. 
 
 Returns made under this Act and pursuant to these in- 
 structions must be made on the forms prescribed by this 
 department for each particular year, and which are avail- 
 able at the offices of collectors. 
 
 416 
 
CORPORATIONS— Continued 
 
 It 730— Tentative Returns. 
 
 In the absence of a prescribed form a statement made by a 
 corporation disclosing its gross income and deductions there- 
 from may be accepted as a tentative return, and if filed 
 within the prescribed time a return so made will relieve the 
 corporation from liability to the penalties imposed by law, 
 provided that upon request and without delay such tentative 
 return be substituted by a return made on the regular 
 form. — Treasury Decision 2137. 
 
 ][ 731— Failure to Pay Tax. 
 
 If any tax remains unpaid after the date when it is due, 
 and for ten days after notice and demand by the collector, 
 then, except in the case of estates of insane, deceased, or in- 
 solvent persons, there shall be added as part of the tax 
 the sum of 5 per cent, on the amount due but unpaid, plus 
 interest at the rate of 1 per cent, per month upon such 
 amount from the time it became due. 
 
 If 732— Failure to File Return. 
 
 In case of any failure to make and file a return within the 
 time prescribed by law, or prescribed by the Commissioner 
 of Internal Revenue or the collector in pursuance of the law, 
 the Commissioner of Internal Revenue shall add to the tax 
 25 per cent, of its amount. 
 
 If 733— Reasonable Cause and Not Willful Neglect. 
 
 When a return is filed after the time required by law 
 (March 15th, unless extension is granted) and it is shown 
 that the failure to file was due to a reasonable cause and 
 not willful neglect, no such addition shall be made to the tax. 
 
 Tf 734 — False or Fraudulent Return. 
 
 In case a false or fraudulent return is made, the Com- 
 missioner of Internal Revenue shall add to the tax 50 per 
 cent, of its amount. 
 
 H 735— Specific Penalty. 
 
 Any individual, corporation, or partnership required under 
 this title to pay or collect any tax, to make a return or to 
 supply information, who fails to pay or collect such tax, 
 
 417 
 
CORPORATIONS— Continued 
 
 to make such return, or to supply such information at the 
 time or times required under this title, shall be liable to a 
 penalty of not more than $1,000. 
 
 ^ TSe—Willf uUy Refuses to File Return. 
 
 Any individual, corporation or partnership, or any officer 
 or employe of any corporation or member or employe of a 
 partnership, who willfully refuses to pay or collect such tax, 
 to make such return, or to supply such information at the 
 time or times required under this title, or who willfully 
 refuses to pay or collect such tax, to make such return, or 
 to supply such information at the time or times required 
 imder this title, or who willfully attempts in any manner to 
 defeat or evade the tax imposed by this title, shall be guilty 
 of a misdemeanor and shall be fined not more than $10,000 
 or imprisoned for not more than one year, or both, together 
 with the cost of prosecution. 
 
 Tf 737 — Verification of Return. 
 
 For the purpose of verifying the accuracy of a return, or 
 for making one where none is made, the books of corpora- 
 tions and all other relative data shall be open to the inspec- 
 tion of the Commissioner of Internal Revenue or his duly 
 authorized agents. — Art. 221, Reg. 33, Revised. 
 
 ^ 738— Tax Not to Be Re-collected When Once Paid. 
 
 That where any tax heretofore due and payable has been 
 duly paid by the taxpayer, it shall not be re-collected from 
 any withholding agent required to retain it at its source, 
 nor shall any penalty be imposed or collected in such cases 
 from the taxpayer, or such withholding agent whose duty it 
 was to retain it, for failure to return or pay the same, un- 
 less such failure was fraudulent and for the purpose of evad- 
 ing payment. 
 
 If 739 — Refund of Portions of Amounts Accepted in 
 Compromise Under Law. 
 
 On March 4, 1915, Congress authorized the Commissioner 
 of Internal Revenue to refund to corporations all amounts 
 paid by them in compromise on account of their failure to 
 
 418 
 
CORPORATIONS— Continued 
 
 make returns in the income tax year of 1913 so paid in ex- 
 cess of $10 ; also to refund, as to said tax year, all amounts 
 paid as penalties by corporations required to make return 
 but which, in their nature, are not subject to the income tax. 
 — Treasury Decision 2175. 
 
 The Act covers only amounts paid as offers in compromise 
 and accepted by the United States for the year 1913 and has 
 no reference to the 25 per cent, or 5 per cent, penalties col- 
 lected under the law. 
 
 ^ 740—50 Per Cent. Penalties. 
 
 If a party Hable to tax for entire year falsely states that 
 he is hable for only a portion of the year, return so made is 
 false and 50 per cent, penalty applies in full. 
 
 11741—25 Per Cent. Penalty for Failure to File Return is 
 Mandatory. 
 
 Government officers have no discretion to remit penalty 
 for failure to file return. 
 
 T[ 742 — Penalty for Giving Information from Withholding 
 Returns. 
 
 The law is specific and mandatory with regard to safe- 
 guarding from publicity the information acquired by reason 
 of its requirements relative to annual returns of income. 
 The law imposes the penalty of "fine, imprisonment, dis- 
 missal from office, and forfeiture of right to hold office," for 
 making known in any manner not provided by law the 
 amount or source of income, or any particular thereof, set 
 forth or disclosed in any income return by any person. 
 
 II 743 — False Returns. 
 
 There is no necessity to construe the word "false" where 
 it is used with reference to the time in which Commissioner 
 shall act, to mean fraudulently false. 
 
 ^ 744 — New Corporations — Fiscal Year Returns of — How 
 Made. 
 
 The Federal income tax law authorizes corporations, 
 joint-stock companies, etc., under certain conditions to make 
 their returns on the basis of an established "fiscal year" or 
 
 419 
 
CORPORATIONS— Continued 
 
 consecutive 12-months period, which may be other than the 
 calendar year. 
 
 If a taxpayer changes his accounting period from fiscal 
 year to calendar year, from calendar year to fiscal year, 
 or from one fiscal year to another, the net income shall, with 
 the approval of the Commissioner, be computed on the basis 
 of such new accounting period, subject to the following pro- 
 visions : 
 
 If a taxpayer, with the approval of the Commissioner, 
 changes the basis of computing net income from fiscal year 
 to calendar year a separate return shall be made for the 
 period between the close of the last fiscal year for which 
 return was made and the following December 31. If the 
 change is from calendar year to fiscal year, a separate return 
 shall be made for the period between the close of the last 
 calendar year for which return was made and the date desig- 
 nated as the close of the fiscal year. If the change is from 
 one fiscal year to another fiscal year a separate return shall 
 be made for the period between the close of the former fiscal 
 year and the date designated as the close of the new fiscal 
 year. If a taxpayer making the first return ior income tax 
 keeps his accounts on the basis of a fiscal year he shall make 
 a separate return for the period between the beginning of 
 the calendar year in which such fiscal year ends and the end 
 of such fiscal year. 
 
 ^ 745 — Computation on Fiscal Year Basis. 
 
 In all the above cases the net income shall be computed 
 on the basis of such period for which separate return is 
 made, and the tax shall be paid thereon at the rate for the 
 calendar year in which such period is included, and the cred- 
 its allowed shall be reduced respectively to amounts which 
 bear the same ratio to the full credits provided in such sub- 
 divisions as the number of months in such period bears to 
 12 months. 
 
 ^ 746 — Amended Instructions for Guidance in Determining 
 Fiscal Year. 
 
 Pursuant to this provision the following instructions are 
 issued for the guidance of collectors and other interested 
 parties : 
 
 420 
 
CORPORATIONS— Continued 
 
 (As amended by Treasury Decisions 2029 and 2090.) 
 For income-tax purposes, in the absence of designation 
 otherwise, all returns are required to be made on the basis 
 of the calendar year. The statute provides that returns 
 must be made on the basis of a calendar year unless the cor- 
 poration, etc., involved shall designate a fiscal year other 
 than the calendar year in the manner provided by the stat- 
 ute. When the calendar year shall have passed, a return 
 of income for the entire period of such calendar year is then 
 due and must be made out and filed with the proper collector 
 of internal revenue on or before March 15 then next follow- 
 ing. This is true even of corporations and institutions mak- 
 ing return as corporations, except that such corporations, 
 etc., are given the privilege of filing with the collector of 
 internal revenue (with whom their return must be filed) 
 not less than thirty days (more, but not less) prior to March 
 15 (the date when the return on the basis of a calendar 
 year is to be filed) , a notice, in writing, setting forth that 
 such corporation, etc., has designated the last day of some 
 month in the year (other than the last day of December) 
 as the day of the closing of its fiscal year, and that from the 
 date so desiganted as the close of its fiscal year its books 
 have been or will be kept on the basis of such designated 
 fiscal year. When this said notice is filed with the collector 
 of internal revenue, a return must then be made on or before 
 March 15 for such part of the calendar year elapsed as is 
 not included in the said designated fiscal year, and return 
 for the full designated fiscal year must be made and filed on 
 or before the 15th day of the third month next succeeding 
 the last day of said designated fiscal year. This rule will 
 apply whether the designation affects the future or past, 
 provided always that the return of income cannot cover 
 more than 12 consecutive months. 
 Example : 
 
 A X B C Y Z 
 
 Jan. 1 June 30 Dec. 31 Mar. 15 June 30 Aug. 29 
 AB is calendar year and C is March 15, the time when re- 
 turn on the basis of the calendar year must be filed. At 
 
 431 
 
CORPORATIONS—Continued 
 
 any time not less than 30 days prior to C a corporation may 
 file with the collector with whom its return of income must 
 be filed a notice in writing setting forth that said corpora- 
 tion, etc., has designated the last day of some month in the 
 year (other than December 31) as the day of the close of 
 its fiscal year, as June 30, represented by X ; thereafter, on 
 March 15, a return will be filed for the period AX. XY rep- 
 resents the first designated fiscal year, and for this said 
 fiscal year a return of income must be made (covering the 
 period XY) subsequent to June 30 and on or before Sep- 
 tember 15 ; in other words, the 15th day of the third month 
 next following the close of the fiscal year. Thereafter re- 
 turns of income will be made and filed annually subsequent 
 to June 30, and on or before September 15. — Treasury De- 
 cision 2090. 
 
 If it shall appear in any case that returns have been 
 made to the collector on the basis of a fiscal year not desig- 
 nated as hereinbefore indicated, the corporation making 
 such returns will be advised that such returns cannot be 
 accepted, but must be made to cover the business of the 
 calendar year. — Art. 215, Reg. 33, Revised. 
 
 ^ 747 — Collectors Must Make a Record of the Designation 
 of the "Fiscal Year." 
 
 Collectors of internal revenue receiving notices of the 
 selection and designation of the "fiscal years," as above in- 
 dicated, will make record of the same, recording (a) the 
 name of the corporation or like organization, (b) the date 
 when notice was given, (c) the day designated for the clos- 
 ing of the fiscal year, and (d) the date when the return 
 under such designation must be filed, . . 
 
 (Remainder superseded by Treasury Decision 2001.) 
 
 H 74a— Extension Not to Exceed 30 Days. 
 
 If the failure to file a return or list is due to sickness or 
 absence, the collector may allow such further time, not ex- 
 ceeding thirty days, for making and filing the return or hst. 
 
 422 
 
CORPORATIONS— Continued 
 
 If 749 — Furthen Extension Than 30 Days by Commissioner 
 of Internal Revenue. 
 
 The Commissioner may grant a reasonable extension of 
 time for fihng returns whenever in his judgment good cause 
 exists and shall keep a record of every such extension and 
 the reason therefor. 
 
 ^ 750 — Returns Properly Mailed in Time to Reach 
 
 Collector Not Subject to Penalty Under Certain 
 Conditions. 
 
 If a return is made and placed in the United States mails 
 in due course, properly addressed, and postage paid, in ample 
 time to reach the office of the collector or deputy collector 
 on or before the last due date, no penalty will be held to at- 
 tach should the return not be actually received by such 
 officer until subsequent to that date. In cases wherein a 
 question may be raised as to whether or not the return was 
 posted in ample time to reach the collector's office on or be- 
 fore the date due, the envelope in which the return was 
 transmitted should be preserved by the collector of internal 
 revenue and forwarded to the Commissioner of Internal Rev- 
 enue with the return. — Art. 220, Reg. 33, Revised. 
 
 ^751— "Last Due Date" Defined. 
 
 "Last due date," as used in these regulations, is con- 
 strued to mean the last day upon which a return is required 
 to be filed in accordance with the provisions of the law, or 
 the last day of the period covered by an extension of time 
 granted by the collector or Commissioner of Internal Rev- 
 enue. — Art. 218, Reg. 33, Revised. 
 
 If 752 — ^When Due Date Falls on Sunday or Legal Holiday. 
 
 When the last due date as above defined falls on Sunday 
 or a legal holiday the last due date for fihng returns will be 
 held to be the day following such Sunday or legal holiday 
 and the return should be made to the collector not later 
 than such following day, or, if placed in the mails, it should 
 be posted in ample time to reach the collector's office, under 
 ordinary handling of the mails, on or before the date on 
 which the return as here indicated is required to be filed in 
 the office of the collector. — Art. 219, Reg. 33, Revised. 
 
 423 
 
CORPORATIONS— Continued 
 
 T[ 753— -Return of Dividends. 
 
 Every corporation subject to the tax imposed by this title, 
 and every personal service corporation shall, v^hen required 
 by the Commissioner of Internal Revenue, render a correct 
 return, duly verified under oath, of its payments of divi- 
 dends, stating the name and address of each stockholder, 
 the number of shares owned by him, and the amount of divi- 
 dends paid to him. 
 
 ^ 754 — Returns by Brokers. 
 
 Every individual, corporation or partnership doing busi- 
 ness as a broker shall, when required by the Commissioner 
 of Internal Revenue, with the approval of the Secretary, 
 render a correct return duly verified under oath, showing the 
 names of customers for whom such individual, corporation, 
 or partnership has transacted any business, with such de- 
 tails as to the profits, losses or other information which the 
 commisioner may require, as to ecah of such customers, as 
 will enable the Commissioner of Internal Revenue to deter- 
 mine whether all income tax due on profits or gains of such 
 customers has been paid. 
 
 ^ 755 — Return by Corporations Making Payment of $1,000. 
 All individuals, corporations, and partnerships, in what- 
 ever capacity acting, including lessees or mortgagors of real 
 or personal property, fiduciaries, and employers, making 
 payment to another individual, corporation, or partnership, 
 of interest, rent, salaries, wages, premiums, annuities, com- 
 pensations, remunerations, emoluments or other fixed or de- 
 terminable gains, profits and income (other than payments 
 described in Sections 254 and 255), of $1,000 or more in any 
 taxable year, or in the case of such payments made by the 
 United States, the officers or employes of the United States 
 having information as to such payments and required to 
 make returns in regard thereto by the regulations here- 
 inafter provided for, shall render a true and accurate re- 
 turn to the Commissioner, under such rules and regula- 
 tions and in such form and manner and to such extent 
 as may be prescribed by him, with the approval of the 
 Secretary of the Treasury, setting forth the amount of 
 
 424 
 
CORPORATIONS— Continued PAYMENT OF TAX 
 
 such gains, profits and income, and the name and address 
 of the recipient of such payment. Such returns may be 
 required, regardless of amounts, in the case of payments of 
 interest upon bonds and mortgages or deeds of trust or other 
 similar obligations of corporations, and in the case of col- 
 lections of items (not payable in the United States) of in- 
 terest upon the bonds of foreign countries and interest from 
 the bonds and dividends from the stock of foreign corpora- 
 tions by individuals, corporations, or partnerships undertak- 
 ing as a matter of business or for profit the collection of for- 
 eign payments of such interest or dividends by means of 
 coupons, checks or bills of exchange. 
 
 When necessary to make effective the provisions of this 
 section, the name and address of the recipient of income 
 shall be furnished upon demand of the individual, corpora- 
 tion or partnership paying the income. 
 
 The provisions of this section shall apply to the calendar 
 year nineteen hundred and eighteen and each calendar year 
 thereafter, but shall not apply to the payment of interest 
 on obligations of the United States. 
 
 ^ 756 — Assessment and Payment of Taxes. 
 
 Unless the tax is withheld at the source it shall be paid in 
 four installments, each consisting of one-fourth of the total 
 amount of the tax. The first installment shall be paid at 
 the time fixed by law for filing the return, namely March 
 15th, and the second installment shall be paid on the fif- 
 teenth day of the third month, the third installment on the 
 fifteenth day of the sixth month, and the fourth install- 
 ment on the fifteenth day of the ninth month, after the 
 time fixed by law for filing the return. 
 
 ]f 757 — Payments Where Extension Is Granted. 
 
 Where an extension of time for fifing a return is granted 
 the time for payment of the first installment shall be post- 
 poned until the date of the expiration of the period of the 
 extension, but the time for payment of the other install- 
 ments shall not be postponed unless the Commissioner so 
 provides in granting the extension. In any case in which 
 the time for the payment of any installment is at the re- 
 
 425 
 
CORPORATIONS— Continued PAYMENT OF TAX 
 
 quest of the taxpayer thus postponed there shall be added 
 as part of such installment interest thereon at the rate of 1/2 
 of 1 per centum per month from the time it would have 
 been due if no extension had been granted, until paid. If 
 any installment is not paid when due, the whole amount of 
 the tax unpaid shall become due and payable upon notice 
 and demand by the collector. 
 
 If 758 — Single Payment. 
 
 The tax may at the option of the taxpayer be paid in a 
 single payment instead of in installments, in which case the 
 total amount shall be paid on or before the time fixed by law 
 for filing the return, or, where an extension of time for fiHng 
 the return has been granted, on or before the expiration of 
 the period of such extension. 
 
 REFUND OF TAXES FOUND TO HAVE BEEN OVER- 
 PAID UNDER ANY PREVIOUS OR 
 THE PRESENT ACT. 
 
 If 758(a) - 
 
 If it is found upon examination of returns made under the 
 provisions of either the present Act or any previous Act, an 
 amount of income, war-profits or excess-profits tax has been 
 paid in excess of the tax properly due, then notwithstanding 
 the provisions of section 3228 of the Revised Statutes, 
 (which provides that claims for taxes wrongfully collected 
 must be presented within two years after the cause of 
 action accrued) the amount of the excess shall be credited 
 against any income, war-profits or excess-profits taxes, or 
 installment thereof, then due from the taxpayer under any 
 other return, and any balance of excess shall be immediately 
 refunded to the taxpayer. 
 
 Tf 758 (b)— Limitation of Time for Filing Refund Claim. 
 
 No credit or refund with respect to amounts referred to 
 above shall be allowed or made unless the claim therefor 
 shall have been filed before the expiration of a period of five 
 years from the date the return was due. 
 
 426 
 
CORPORATIONS— Continued 
 
 ^ 759 — Payment of Tax at Source. 
 
 In all cases where the tax is withheld at the source on 
 income paid to non-resident aliens and on interest on the 
 bonds containing a tax-free clause, the returns shall be filed 
 on or before March 1st of each year and the tax on same 
 shall be paid on or before June 15th. 
 
 H 760 — False or Fraudulent Return. 
 
 In the case of a false or fraudulent return filed by a 
 corporation, the Commissioner, upon the discovery thereof 
 shall make a return at any time after the return is filed, 
 upon information obtained, and the tax may be collected 
 at any time after it becomes due. ^ 
 
 Except in the case of false or fraudulent returns with 
 intent to evade the tax, the amount of tax due under any 
 return shall be determined and assessed by the Commis- 
 sioner within five years after the return was made, and 
 no suit or proceeding for the collection of any tax shall 
 be begun after the expiration of five years after the date 
 when the return was due or was made. 
 
 Tf 761— Past Due Taxes Voluntarily Paid. 
 
 If the corporation against which additional tax liability 
 is discovered will formally accept the findings of the exam- 
 ining officer and agree to voluntarily pay the additional 
 tax to the collector of internal revenue and does so pay 
 the additional tax, amended returns or waivers will not 
 be required. — Art. 234, Reg. 33, Revised. 
 
 If 762— Refunds. 
 
 That if, upon examination of any return of income made 
 pursuant to this Act, the Act of August 5, 1909, entitled 
 "An Act to provide revenue, equalize duties, and encourage 
 the industries of the United States, and for other purposes," 
 the Act of October 3, 1913, entitled "An Act to reduce tariff 
 duties and to provide revenue for the Government, and for 
 other purposes," the Revenue Act of 1916, as amended, or 
 the Revenue Act of 1917, it appears that an amount of 
 income, war-profits or excess-profits tax has been paid in 
 excess of that properly due, then, notwithstanding the pro- 
 visions of Section 3228 of the Revised Statutes, the amount 
 
 427 
 
CORPORATIONS— Continued 
 
 of the excess shall be credited against any income, war- 
 profits or excess-profits taxes, or installments thereof, then 
 due from the taxpayer under any other return, and any 
 balance of such excess shall be immediately refunded to the 
 taxpayer. That no such credit or refund shall be allowed or 
 made after five years from the date when the return was 
 due, unless before the expiration of such five years a claim 
 therefor is filed by the taxpayer. 
 
 K 763— Uncertified Checks. 
 
 Under rules and regulations prescribed by the Secretary 
 of the Treasury, collectors of internal revenue may receive, 
 at par with an adjustment for accrued interest, certificates 
 of indebtedness issued by the United States, and uncer- 
 tified checks in payment of income, war-profits and excess- 
 profits taxes, during such time and under such regulations 
 as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, shall prescribe; but if a 
 check so received is not paid by the bank on which it is 
 drawn, the person by whom such check has been tendered 
 shall remain liable for the payment of the tax and for all 
 legal penalties and additions, the same as if such had not 
 been tendered. 
 
 11 764— Failure to Pay Tax When Due. 
 
 Upon failure to pay the tax when due and for 10 days 
 after notice and demand, a penalty of 5 per cent, of the 
 amount of the tax unpaid and interest at the rate of 1 per 
 cent, per month until paid shall be added to the amount 
 of such tax. 
 
 ^ 76B— 5 Per Cent. Penalty Waived Upon Filing Claim. 
 
 To any amount of tax which is subject to a bona fide 
 claim for abatement such sum of 5 per cent, shall not be 
 added and the interest from the time the amount was due 
 until the claim is decided shall be at the rate of one-half of 
 1 per cent per month. 
 
 ^ 766 — Returns to Be Public Records. 
 
 That returns upon which the tax has been determined 
 by the Commissioner shall constitute public records; but 
 
 423 
 
CORPORATIONS— Continued 
 
 they shall be open to inspection only upon order of the 
 President and under rules and regulations prescribed by 
 the Secretary and approved by the President. 
 
 ^ 767 — Information to States Which Impose Income Taxes. 
 
 The proper officers of any State imposing an income tax 
 may, upon the request of the Governor thereof, have access 
 to the returns of any corporation, or to an abstract thereof 
 showing the name and income of the corporation, at such 
 times and in such manner as the Secretary may prescribe : 
 Provided further. That all bona fide stockholders of record 
 owning 1 per centum or more of the outstanding stock of 
 any corporation, shall, upon making request of the Commis- 
 sioner, be allowed to examine the annual income returns of 
 such corporation and of its subsidiaries. 
 
 Any stockholder who pursuant to the provisions of this 
 section is allowed to examine the return of any corporation, 
 and who makes known in any manner whatever not provided 
 by law the amount of source of income, profits, losses, ex- 
 penditures, or any particular thereof, set forth or disclosed 
 in any such return, shall be guilty of a misdemeanor and 
 be punished by a fine not exceeding $1,000, or by imprison- 
 ment not exceeding one year, or both. 
 
 The Commissioner shall as soon as practicable in each 
 year cause to be prepared and made available to public 
 inspection in such manner as he may determine, lists con- 
 taining the names and the post-office addresses of all in- 
 dividuals making income tax returns. 
 
 ^ 768 — Regulations Governing the Inspection of Returns 
 by Corporations. 
 
 See Treasury Decision 2016. 
 
 ^ 769 — Publicity of Supplementary Statements — 
 
 The supplementary statement which is made a part of 
 the return form prescribed for the use of corporations in 
 making returns of annual net income is by express terms 
 made a part of the return, and to the same extent that the 
 return constitutes a public record and is open to inspection, 
 to that extent the supplementary statement is also a public 
 
 439 
 
CORPORATIONS— Continued 
 
 record and open to inspection "only upon the order of the 
 President under rules and regulations prescribed by the 
 Secretary of the Treasury and approved by the President." 
 
 If 770 — Certified Copies of Returns. 
 
 At the request of the Attorney General or a United States 
 district attorney, certified copies of returns may be made 
 by the Commissioner of Internal Revenue and delivered to 
 the United States district attorneys for their use as evi- 
 dence in the prosecution or defense of suits in which the 
 collection or legality of the income tax assessed on the basis 
 of such returns is involved, or, by special permission of the 
 Secretary of the Treasury, such certified copies of returns 
 may be furnished as evidence in any suit to which the 
 United States Government and the corporation, etc., mak- 
 ing the returns are parties, or as evidence before any United 
 States grand jury, and in which, in the opinion of the At- 
 torney General, such certified copies would constitute 
 material evidence. — Treasury Decision 2016 ; also. Art. 227, 
 Reg. 33, Revised. 
 
 ]| 771 — Disclosure of Return — Penalty. 
 
 The disclosure by a collector, deputy collector, agent, 
 clerk, or other officer or employe of the United States, to 
 any person not legally authorized to receive the same, of 
 any information whatever contained in or set forth by any 
 return of annual net income made pursuant to this Act, is, 
 by the Act, made a misdemeanor, and is punishable by a 
 fine not exceeding $1,000, or by imprisonment not exceeding 
 one year, or both, in the discretion of the court, and if the 
 offender is an officer or employe of the United States he 
 shall be dismissed and be incapable thereafter of holding 
 any office under the United States Government. — Art. 229, 
 Reg. 33, Revised. 
 
 U 772— Publication of Statistics. 
 
 That the Commissioner, with the approval of the Sec- 
 retary, shall prepare and publish annually statistics reason- 
 ably available with respect to the operation of the income, 
 war-profits and excess-profits tax laws, including classifi- 
 cations of taxpayers and of income, the amounts allowed 
 
 430 
 
CORPORATIONS— Continued 
 
 as deductions, exemptions, and credits, and any other facts 
 deemed pertinent and valuable. 
 
 ^ 773 — Citizens of United States Possessions. 
 
 That any individual who is a citizen of any possession 
 of the United States (but not otherwise a citizen of the 
 United States), and who is not a resident of the United 
 States, shall be subject to taxation under this title only as 
 to income derived from sources within the United States, 
 and in such case the tax shall be computed and paid in the 
 same manner and subject to the same conditions as in the 
 case of other persons who are taxable only as to income 
 derived from such sources. 
 
 ^ 774 — Bookkeeping. 
 
 No particular system of bookkeeping or accounting will 
 be required by the department. However, the business 
 transacted by corporations must be so recorded that each 
 and every item set forth in the return of annual net income 
 may be readily verified by an examination of the books of 
 account. 
 
 A corporation keeping accounts upon any basis other than 
 that of actual receipts and disbursements, unless such other 
 basis does not clearly reflect its income, may, subject to 
 regulations made by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, make 
 its return upon the basis upon which its accounts are kept, 
 in which case the tax shall be computed upon its income 
 as so returned. 
 
 % 775 — Accrued Interest Deductible from Gross Income. 
 
 The above provision of law authorizes corporations keep- 
 ing books of account on an accrued basis to deduct from 
 gross income in returns of annual net income the accrual 
 of interest for the return year within the limits prescribed 
 by the taxing acts when shown as a charge against accrued 
 income upon the books of account. — Treasury Decision 2625. 
 
 ^ 776 — Books of Account Best Guide to Income. 
 
 The books of a corporation are assumed to reflect the 
 facts as to its earnings, income, etc. Hence they will be 
 
 431 
 
CORPORATIONS— Continued 
 
 taken as the best guide in determining the net income upon 
 which the tax imposed by this Act is calculated. Except as 
 the same may be modified by the provisions of the law, 
 wherein certain deductions are limited, the net income dis- 
 closed by the books and verified by the annual balance sheet, 
 or the annual report to stockholders, should be the same as 
 that returned for taxation. 
 
 Tf 777 — Porto Rico and Philippine Islands. 
 
 That in Porto Rico and the Philippine Islands the income 
 tax shall be levied, assessed, collected, and paid in accord- 
 ance with the provisions of the Revenue Act of 1916 as 
 amended. 
 
 Returns shall be made and taxes shall be paid under Title 
 I. of such Act in Porto Rico or the Philippine Islands, as 
 the case may be, by (1) every individual who is a citizen 
 or resident of Porto Rico or the Philippine Islands or de- 
 rives income from sources therein, and (2) every corpora- 
 tion created or organized in Porto Rico or the Philippine 
 Islands or deriving income from sources therein. An indi- 
 vidual who is neither a citizen nor a resident of Porto Rico 
 or the Philippine Islands but derives income from sources 
 therein, shall be taxed in Porto Rico or the Philippine 
 Islands as a non-resident alien individual and a corporation 
 created or oi:ganized outside Porto or the Philippine Islands 
 and deriving income from sources therein shall be taxed in 
 Porto Porto Rico or the Philippine Islands. 
 
 For the purpose of the deductions and credits provided 
 in Section 234 and paragraph 6 of Section 216, a tax im- 
 posed in Porto Rico or the Philippine Islands upon the net 
 income of a corporation shall not be deemed to be a tax 
 under this title. 
 
 The Porto Rican or Philippine Legislature shall have 
 power by due enactment to amend, alter, modify, or repeal 
 the income tax laws in force in Porto Rico or the Philippine 
 Islands, respectively. 
 
 ^ 778 — Examination of Books. 
 
 For the purpose of verifying any return, made pursuant 
 to this Act, the Commissioner of Internal Revenue may, by 
 
 432 
 
CORPORATIONS— Continued 
 
 any duly authorized revenue agent or deputy collector, cause 
 the books of such corporation to be examined, and if such 
 examination discloses that the corporation is liable to tax 
 in addition to that previously assessed, or assessable, the 
 same shall be assessed and shall be payable immediately 
 upon notice and demand. For the purpose of such exam- 
 ination, the books of corporations shall be open to the ex- 
 amining officer, or shall be produced for this purpose upon 
 summons issued by any properly authorized officer. 
 
 if 779 — Additional Assessments. 
 
 In cases wherein additional assessments are made as a 
 reults of any examination or audit of the return, the tax- 
 payer shall immediately following the making the assess- 
 ment, be notified of the amount thereof, and such taxes shall 
 be paid within 10 days from the date of such notice. — Art. 
 230, Reg. 33, Revised. 
 
 433 
 
THE WAR-PROFITS AND EXCESS-PROFITS 
 
 TAX IMPOSED BY TITLE III. OF THE 
 
 REVENUE ACT OF 1918. 
 
 ^ 780— Definitions. 
 
 When used in these regulations the terms defined in para- 
 graphs 1 to 6, following, shall, unless otherwise indicated 
 by the context, be deemed to be used only with the scope 
 or meaning ascribed to them respectively in such articles. 
 
 Tf 781 —Taxable Year. 
 
 1. The term "taxable year" means the calendar year, or 
 the fiscal year ending during such calendar year, upon the 
 basis of which the net income is computed. The first taxable 
 year, to be called the taxable year 1918, shall be the calendar 
 year 1918 or any fiscal year ending during the calendar year 
 1918. 
 
 If 782— Fiscal Year. 
 
 2. The term "fiscal year" means an accounting period of 
 twelve months ending on the last day of any month other 
 than December. 
 
 If 783 — Personal Service Corporation. 
 
 3. The term "personal service corporation" means a cor- 
 poration whose income is to be ascribed primarily to the ac- 
 tivities of the principal owners or stockholders who are 
 themselves regularly engaged in the active conduct of the 
 affairs of the corporation and in which capital (whether in- 
 
 435 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 vested or borrowed) is not a material income-producing 
 factor, but does not include any foreign corporation, nor 
 any corporation 50 per centum or more of whose gross in- 
 come consists either (1) of gains, profits, or income derived 
 from trading as a principal, or (2) of gains, profits, commis- 
 sions, or other income, derived from a Government contract 
 or contracts made between April 6, 1917, and November 11, 
 1918, both dates inclusive. 
 
 If 784 — Paid or Accrued. 
 
 4. The term "paid," for the purposes of the deductions 
 and credits under this title, means "paid or accrued" or 
 "paid or incurred," and the terms "paid or incurred" and 
 "paid or accrued" shall be construed according to the method 
 of accounting upon the basis of which the net income is com- 
 puted under Section 212, which defines net income. 
 
 T[ 785— Dividends. 
 
 5. The term "dividend" means any distribution made by a 
 corporation, other than a personal service corporation, to 
 its shareholders or members, whether in cash or in other 
 property, or in stock of the corporation, out of its earnings 
 or profits accumulated since February 28, 1913, or any such 
 distribution made by a personal service corporation out of 
 its earnings or profits accumulated since February 28, 1913, 
 and prior to January 1, 1918. 
 
 ^ 786 — Prewar Period. 
 
 6. The term "prewar period" means the calendar years 
 1911, 1912 and 1913, or if a corporation was not in existence 
 during the whole of such period, then as many of such years 
 during the whole of which the corporation was in existence. 
 
 If 787 — Returns and Payments of Excess-Profits Tax. 
 
 Returns are to be made by corporations which are not 
 specifically exempt in the same manner and at the same 
 
 436 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 times as under the income tax provisions ; and payments are 
 to be made likewise in the same manner and at the same 
 times. 
 
 ^ 788 — Due Date of Return on Calendar Year Basis. 
 
 Returns for the calendar year 1918 are due on March 
 15, 1919, unless an extension is secured, and in such case 
 on the date of the expiration of the extension. 
 
 If 789 — Due Date of Returns on Fiscal Year Basis. 
 
 If filed on the basis of a fiscal year, the return and first 
 payment must be made on or before the fifteenth day of the 
 third month following the close of the fiscal year. 
 
 CORPORATIONS SUBJECT TO THE TAX. 
 
 If 790 — Corporations. 
 
 Every domestic corporation which has for the taxable 
 war-profits and excess-profits tax but is required to file a 
 year a net income of less than $3,000 is exempt from the 
 return. Corporations organized for religious, charitable, or 
 educational purposes the profits of which do not inure to any 
 stockholder or individual are also exempt. 
 
 11791- 
 
 Every foreign corporation which has for the taxable year 
 a net income from sources within the United States is, un- 
 less exempt under paragraph 790, required to make a return 
 and to pay the tax, if any. 
 
 It 792 — Exemptions. 
 
 The f ollovv^ing are exempt from the tax : 
 (a) Corporations exempt under the provisions of Section 
 231, Title II. of the Revenue Act of 1918, from the tax 
 
 437 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 imposed by such title. (The corporation income tax.) Law, 
 page 79, line 20. 
 
 (b) Any corporation having a net income of less than 
 $3,000. 
 
 (c) Income derived from the mining of gold (the remain- 
 ing portion of net income shall be subject to the tax) . Law, 
 page 92, line 11. 
 
 RATES AND COMPUTATION OF TAX. 
 
 H 793 — Classification of Net Income. 
 
 For the purposes of the excess-profits tax, net income 
 which is subject to the tax is that which is derived from a 
 trade or business having invested capital. 
 
 11 794— Rate of Tax. 
 
 The tax upon net income shall, except as otherwise pro- 
 vided, be computed at the following rates : 
 
 30 per cent, of the amount of the net income in excess of 
 the excess-profits credit (determined under Section 312, 
 If 827) and not in excess of 20 per cent, of the invested 
 capital ; 
 
 65 per cent, of the amount of the net income in excess of 
 20 per cent, of the invested capital. 
 
 II 795- 
 
 The sum, if any, by which 80 per cent, of the amount of 
 the net income in excess of the war-profits credit (deter- 
 mined under Section 311, H 828) exceeds the amount of the 
 tax computed under the first and second brackets. 
 
 438 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 11796- 
 
 METHOD OF CALCULATING THE WAR EXCESS 
 
 PROFITS TAX ON CORPORATIONS UNDER TITLE 
 
 IIL OF THE REVENUE BILL OF 1918. 
 
 EXAMPLE I. 
 
 11797 — Corporation Having an Invested Capital of 
 
 $1,000,000 and a Net Income for the Calendar 
 Year 1918 of $500,000. 
 
 FIRST BRACKET— 
 
 Invested capital $1,000,000 Net income $500,000 
 
 8% Excess-profits credit 83,000 
 
 8% of invested capital__ $80,000 Amount taxable $417,000 
 
 Plus specific exemption- 3,000 
 
 Excess-profits credit $83,000 
 
 Invested capital $1,000,000 
 
 20% 
 
 20% of invested capital $200,000 
 
 Excess-profits credit 83,000 
 
 Amount of net income in excess of excess-profits credit and not 
 
 in excess of 20% of invested capital, taxable at 30% $117,000 
 
 30% 
 
 Amoimt of tax under First Bracket $35,100 
 
 11798- 
 
 SECOND BRACKET— 
 
 Net income $500,000 
 
 20% of invested capital 200,000 
 
 Amount of net income in excess of 20% of invested capital, tax- 
 able at 65% $300,000 
 
 65% 
 
 Amount of tax under Second Bracket $195,000 
 
 Plus tax under First Bracket 35,100 
 
 Total tax under First and Second Brackets $230,100 
 
 439 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 II 799— 
 
 THIRD BRACKET— 
 
 Assuming the corporation had an average capital oi $500,000 for the years 
 1011-1912-1913 (the pre-war period) and an average net income during 
 that period of $100,000, the tax under the third bracket would be as 
 follows : 
 
 War Profits Credit consists 
 
 of Specific Exemption $3,000 
 
 Aver, net income for pre- 
 war period 100,000 
 
 Plus 10% of the difference 
 in the capital (Cap. was 
 $500,000) (now is $1,000,- 
 000) 50,000 
 
 Capital at beginning of 
 
 year $1,000,000 
 
 Pre-war capital 500,000 
 
 Increase $500,000 
 
 Total War Profits Credit $153,000 
 
 10% Increase to be ad- 
 ded 
 
 $50,000 
 
 Net income $500,000 
 
 War-profits credit 153,000 
 
 Net income in excess of war-profits credit. 
 
 $347,000 
 80% 
 
 80% of net income in excess of war-profits credit $277,600 
 
 Total tax under First and Second Brackets 230,100 
 
 Amount by which 80% of the net income in excess of the 
 war-profits credit exceeds the tax as computed under the 
 First and Second Brackets. (This amount to be added to 
 the tax.) $47,500 
 
 Plus tax under First and Second Brackets 230,100 
 
 Total tax under First, Second and Third Brackets $277,600 
 
 11800— 
 
 Section 302 limits the amount of tax which shall be imposed under the 
 first, second and third brackets. The tax must in no case exceed the 
 sum of the following amounts: 
 
 $20,000 $500,000 $5,100 
 
 3,000 20,000 384,000 
 
 $17,000 
 30% 
 
 $5,100 
 
 $480,000 
 80% 
 
 $384,000 
 440 
 
 $389,100 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 IT 801- 
 
 As the total of this limiting amount is greater than the amount of tax 
 already computed under the first, second and third brackets, no advantage 
 is gained in this case by Section 302, the amount of tax remaining at 
 $277,600. 
 
 In addition to the War Excess Profits Tax the Corporation Income Tax 
 is as follows: 
 
 As the net income is $500,000 
 
 War Excess Profits Tax (Credit) 277,600 
 
 Amount subject to Corporation Income Tax $222,400 
 
 Less specific exemption 2,000 
 
 220,400 
 Rate of Income Tax 12% 
 
 Amount of income tax $26,448 
 
 Plus War Excess Profits Tax 277,600 
 
 Total taxes $304,048 
 
 11802— 
 
 The above tax of $304,048 is 60 per Cent of the net in- 
 come of $500,000. 
 
 ^803— When Excess-Profits Credit Exceeds 20 Per Cent, 
 of Invested Capital. 
 
 In any case in which the full amount of the excess-profits 
 credit determined as provided in Sections 311 and 312 is 
 greater than 20 per cent of the invested capital the part not 
 so allowed shall be deducted from the amount in the second 
 bracket. 
 
 ILLUSTRATION: 
 
 IT 804— 
 
 Capital, $20,000. . Net Income $30,000. 
 
 Excess profits credit 8 per cent, of capital plus 
 
 $3,000= $4,600 
 
 Amount taxable under first bracket. 
 
 Difference between credit and 20% of capital. 
 
 20 per cent, of capital= 4,000 
 Amount of credit^ 4,600 
 
 As the excess profits credit is greater than the amount 
 taxable in the first bracket there is nothing to tax in the 
 first bracket. 
 
 441 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 H 805 — 
 
 The balance of the credit is then deducted from the 
 amount subject to tax under the second bracket. 
 Amount taxable under second bracket. 
 
 Difference between total net income and 20 
 per cent, of capital. 
 
 Net income $30,000 
 
 20 per cent, of capital 4,000 
 
 Difference $26,000 
 
 Subtract balance of excess profits credit not used 
 
 in first bracket I 600 
 
 Amount taxable in second bracket $25,400 
 
 ^ 806 — Limitation of Tax. 
 
 The tax imposed by the first, second and third brackets 
 as set forth in Section 301 shall in no case be more than 30 
 per cent, of the amount of the net income in excess of 
 $3,000, and not in excess of $20,000, plus 80 per cent, of 
 the amount of the net income in excess of $20,000. 
 
 EXAMPLE. 
 
 Limitation of the tax on a net income of $100,000, 
 
 Net Income. 
 $20,000 $100,000 $5,100 
 
 3,000 20,000 64,000 
 
 17,000 80,000 $69,100 
 
 30% , 80% 
 
 $5,100 $64,000 
 
 ILLUSTRATION: 
 
 11807- 
 
 Corporation with invested capital of $50,000 and a net 
 income of $25,000, started in business in 1910 with an 
 average capital of $25,000 for the pre-war period (1911- 
 1912-1913) and an average net income for that period of 
 $10,000. 
 
 442 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 COMPUTATION OF TAX. 
 
 FIRST BRACKET. 
 
 30 per centum of the amount of the net income in excess 
 of the excess-profits credit (determined under section 312) 
 and not in excess of 20 per centum of the invested capital. 
 
 (Sec. 312. That the excess-profits credit shall consist of 
 a specific exemption of $3,000, plus an amount equal to 8 
 per centum of the invested capital for the taxable year. A 
 foreign corporation shall not be entitled to the specific ex- 
 emption of $3,000.) 
 
 Invested Capital $50,000 Net Income $25,000 
 
 8% Excess Profits Credit— 7,000 
 
 8% of Invested Capital $4,000 Amount taxable $18,000 
 
 Specific exemption 3,000 
 
 Excess Profits Credit $7,000 
 
 Invested capital $50,000 
 
 20% 
 
 20% of invested capital $10,000 
 
 Excess-profits credit 7,000 
 
 Amount of net income in excess of excess-profits credit and 
 not in excess of 20% of the invested capital taxable at 30% $3,000 
 
 30% 
 
 Amount of tax under First Bracket $900 
 
 If SOS- 
 SECOND BRACKET. 
 
 65 per centum of the amount of the net income in excess 
 of 20 per centum of the invested capital. 
 
 Net Income $25,000 
 
 20% of Invested Capital 10,000 
 
 Amount of net income in excess of 20% of invested capital, tax- 
 able at 65% $15,000 
 
 65% 
 
 Tax under Second Bracket $9,750 
 
 Plus tax under First Bracket 900 
 
 Tax under First and Second Brackets $10,650 
 
 ^ 809(a)— 
 
 THIRD BRACKET. 
 
 The sum, if any, by which 80 per centum of the amount 
 of the net income in excess of the war-profits credit (deter- 
 
 443 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 mined under Section 311) exceeds the amount of the tax 
 computed under the first and second brackets. 
 
 TI810— 
 
 (Sec. 311. That the war-profits credit shall consist of the 
 sum of 
 
 (1) A specific exemption of $3,000, and 
 
 (2) An amount equal to the average net income of the 
 corporation for the pre-war period, plus or minus, as the 
 case may be, 10 per centum of the difference between the 
 average invested capital for the taxable year. If the tax 
 is computed for a period of less than twelve months such 
 amount shall be reduced to the same proportion thereof as 
 the number of months in the period is of twelve months. 
 
 11811- 
 
 (b) If the corporation had no net income for the pre- 
 war period, or if the amount computed under paragraph 
 (2) of subdivision (a) is less than 10 per centum of its 
 invested capital for the taxable year, then the war-profits 
 credit shall be the sum of 
 
 (1) A specific exemption of $3,000, and 
 
 (2) An amount equal to 10 per centum of the invested 
 capital for the taxable year. 
 
 If 812— 
 
 (c) If the corporation was not in existence during the 
 whole of at least one calendar year during the pre-war 
 period, then the war-profits credit shall be the sum of 
 
 (1) A specific exemption of $3,000, and 
 
 (2) An amount equal to the same percentage of the in- 
 vested capital of the taxpayer for the taxable year as the 
 average percentage of net income to invested capital, for 
 the pre-war period of corporations engaged in a trade or 
 business of the same general class as that conducted by the 
 taxpayer; but such amount shall in no case be less than 10 
 per centum of the invested capital of the taxpayer for the 
 taxable year. Such average percentage shall be determined 
 by the Commissioner on the basis of data contained in re- 
 turns made under Title II. of the Revenue Act of 1917 and 
 
 444 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 the average known as the median shall be used. If such 
 average percentage has not been determined and published 
 at least 30 days prior to the time when the return of the 
 taxpayer is due, then for purposes of such return 10 per 
 centum shall be used in lieu thereof ; but such average per- 
 centage when determined shall be used for the purposes of 
 Section 250 in determining the correct amount of the tax. 
 
 11813- 
 
 (d) The war-profits credit shall be determined in the 
 manner provided in subdivision (b) instead of in the manner 
 provided in subdivision (c) in the case of any corporation 
 which was not in existence during the whole of at least one 
 calendar year during the pre-war period, if (1) a majority 
 of its stock at any time during the taxable year is owned or 
 controlled, directly or indirectly, by a corporation which 
 was in existence during the whole of at least one calendar 
 year during the pre-war period, or if (2) 50 per centum or 
 more of its gross income (as computed under Section 233 
 for income tax purposes) consists of gains, profits, com- 
 missions, or other income, derived from a Government con- 
 tract or contracts made between April 6, 1917, and Novem- 
 ber 11, 1918, both dates inclusive. 
 
 tf814- 
 
 (e) A foreign corporation shall not be entitled to a specific 
 exemption of $3,000. 
 
 War Profits Credit as determined under section 311 con- 
 sists of: 
 
 Specific Exemption $3,000 
 
 Average net income for pre-war period 10,000 
 
 Plus 10% of the difference in capital (was $25,000 pre-war 
 
 period— taxable year, $50,000) 2,500 
 
 $15,500 
 
 Net Income $25,000 
 
 War Profits Credit 15,500 
 
 Net Income in Excess of War Profits Credit $9,500 
 
 80% 
 
 80% of net income in excess of War Profits Credit $7,600 
 
 Total tax under First and Second Brackets 10,650 
 
 445 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 As the tax computed under the first and second brackets 
 exceeds the tax computed under the third bracket, there is 
 no addition to the tax to be made under the third bracket. 
 
 1181 Bi- 
 section 302 hmits the amount of tax which shall be im- 
 posed under the first, second and third brackets. The tax 
 must in no case exceed the sum of the following amounts: 
 30 per cent of the amount of the net income in excess of 
 $3,000, and not in excess of $20,000, plus 80 per cent of the 
 net income in excess of $20,000. 
 
 $20,000 $25,000 $5,100 
 
 3,000 20,000 4,000 
 
 $17,000 $5,000 $9,100 
 
 30% 80% 
 
 $5,100 $4,000 
 
 As the excess-profits tax now stands it is $10,650 as com- 
 puted under the first and second brackets, but as the limiting 
 amount as shown by the computation under Section 302 is 
 $9,100, the actual amount of the excess-profits tax due is 
 the latter amount of $9,100. 
 
 In addition to the excess-profits tax the corporation is 
 liable for a corporation income tax upon the net income, 
 less the amount of the excess-profits tax and a specific ex- 
 emption of $2,000. The corporation income tax would be as 
 follows : 
 
 Net income $25,000 
 
 Less excess-profits tax 9,100 
 
 $15,900 
 Less specific exemption 2,000 
 
 Amount subiect to corporation income tax $13,900 
 
 12% 
 
 Amount of corporation income tax $1,668 
 
 Plus amount of excess-profits tax 9,100 
 
 Total tax payable $10,768 
 
 This total tax of $10,768 upon a net income of $25,000 is 
 43 per cent. 
 
 446 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 If 81 7 — Where Tax Cannot be Satisfactorily Determined. 
 
 Where the tax is determined under Section 328 the same 
 shall be deemed to be an amount which bears the same ratio 
 to the net income of the taxpayer (in excess of the specific 
 exemption of $3,000) for the taxable year, as the average 
 tax of representative corporations engaged in a like or simi- 
 lar trade or business bears to their average net income in 
 excess of the specific exemption of $3,000) for such year. 
 
 11818- 
 
 In the case of a foreign corporation the tax shall be com- 
 puted without deducting the specific exemption of $3,000, 
 either for the taxpayer or the representative corporation. 
 
 1f8ia— 
 
 In computing this tax the Commissioner shall compare 
 the taxpayer only with representative corporations whose 
 invested capital can be satisfactorily determined under 
 Section 326, and which are, as nearly as may be, similarly 
 circumstanced with respect to gross income, net income, 
 profits per unit of business transacted and capital employed, 
 the amount and rate of war-profits or excess-profits, and 
 ail other relevant facts and circumstances. 
 
 11820— 
 
 (b) For the purposes of subdivision (a) the ratios be- 
 tween the average tax and the average net income of rep- 
 resentative corporations shall be determined by the Com- 
 missioner in accordance with regulations prescribed by him 
 with the approval of the Secretary. 
 
 11821- 
 
 In cases in which the tax is to be computed under this 
 section, if the tax as computed without the benefit of this 
 section is less than 50 per centum of the net income of the 
 taxpayer, the installments shall in the first instance be 
 computed upon the basis of such tax ; but if the tax so com- 
 puted is 50 per centum or more of the net income, the 
 installments shall in the first instance be computed upon the 
 
 447 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 basis of a tax equal to 50 per centum of the net income. 
 In any case, the actual ratio when ascertained shall be used 
 in determining the correct amount of the tax. If the correct 
 amount of the tax when determined exceeds 50 per centum 
 of the net income, any excess of the correct installments 
 over the amounts actually paid shall on notice and demand 
 be paid together with interest at the rate of i^ of 1 per 
 centum per month on such excess from the time the install- 
 ment was due. 
 
 If 822— Computation of Tax for Fiscal Year, Part of Which 
 Falls Within Calendar Year 1917. 
 
 If a corporation (other than a personal service corpora- 
 tion) makes a return for a fiscal year beginning in 1917 and 
 ending in 1918, the tax for the first taxable year shall be 
 the sum of the same proportion of a tax for the entire period 
 computed under the Revenue Act of 1917 which the portion 
 of such period falling within the calendar year 1917 is of 
 the entire period, and the same proportion of a tax for the 
 entire period computed under the Revenue Act of 1918 which 
 the portion of such period falling within the calendar year 
 1918 is of the entire period. 
 
 ^ 823 — Computation of Tax for Period of Less Than 12 
 Months. 
 
 If the tax is computed for a period of less than 12 months, 
 the war-profits credit will be reduced to the same proportion 
 thereof as the number of months in such period bears to 12 
 months. 
 
 11 824— Void— [Ed.] 
 
 11825- 
 
 Any amount heretofore or hereafter paid on account of 
 the tax imposed for such fiscal year by Title II. of the Rev- 
 enue Act of 1917 shall be credited toward the payment of 
 the tax imposed for such fiscal year by this title, and if the 
 amount so paid exceeds the amount of the tax imposed by 
 this title, the excess shall be credited or refunded to the 
 corporation in accordance with the provisions of Section 252. 
 
 448 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 In other words, the amount paid for the period between 
 January 1, 1918, and the end of the fiscal year ending in 
 1918, shall be a credit against the amount of the tax due 
 as ascertained under the Revenue Act of 1918. 
 
 COMPUTATION OF THE DEDUCTION. 
 
 ^ 826 — Trade or Business Having Invested Capital. 
 
 The war-profits credit and excess-profits credit used in 
 computing the rates of tax under Section 301 shall, except 
 in cases coming within the conditions specified in If 817 
 and 818, be as follows: 
 
 ^ 827— Excess-Profits Credit. 
 
 The excess-profits credit shall consist of a specific exemp- 
 tion of $3,000 plus an amount equal to 8 per cent, of the in- 
 vested capital for the taxable year. 
 
 Example : 
 
 Invested capital $1,000,000 
 
 8% 
 
 $80,000 
 Exemption 3,000 
 
 Excess-profits credit $83,000 
 
 TI 828— War-Profits Credit. 
 
 The war-profits credit shall consist of a specific exemption 
 of $3,000 and an amount equal to the average net income of 
 the corporation for the prewar period, plus or minus, as the 
 case may be, 10% of the difference between the average 
 
 449 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 invested capital for the prewar period and the invested 
 capital for the taxable year. 
 
 ILLUSTRATION: 
 
 Net income 1911 $25,000 
 
 1912 20,000 
 
 1913 30,000 
 
 3) $75,000 
 
 Average prewar net income $25,000 
 
 Invested Capital: 
 
 1911 $60,000 
 
 1912 80.000 
 
 1913 100,000 
 
 3) $240,000 
 
 Average prewar capital $80,000 
 
 Invested capital for taxable year $200,000 
 
 Average prewar capital 80,000 
 
 Difference (increase) $120,000 
 
 10% of difference — $12,000 
 
 War-profits credit: 
 
 Specific exemption $3,000 
 
 Average prewar net income 25,000 
 
 10% of increase in invested capital 12,000 
 
 Total war profits credit $40,000 
 
 U 830 — No Net Income for Prewar Period. 
 
 If the corporation had no net income for the prewar 
 period, for if the amount computed under Section 310(c) 
 is less than 10 per centum of its invested capital for the 
 taxable year, then the war-profits credit shall be the sum of : 
 
 (1) A specific exemption of $3,000 ; and 
 
 (2) An amount equal to 10 per centum of the invested 
 capital for the taxable year. 
 
 U 831 — Corporation Not In Existence During Prewar 
 Period. 
 
 If the corporation was not in existence during the whole 
 of at least one calendar year during the prewar period, then 
 the war-profits credit shall be the sum of: 
 
 (1) A specific exemption of $3,000 ; and 
 
 450 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 (2) An amount equal to the same percentage of the in- 
 vested capital of the taxpayer for the taxable year as the 
 average percentage of net income to invested capital, for the 
 prewar period, of corporations engaged in a trade or busi- 
 ness of the same general class as that conducted by the tax- 
 payer ; but such amount shall in no case be less than 10 per 
 centum of the invested capital of the taxpayer for the tax- 
 able year. Such average percentage shall be determined by 
 the Commissioner on the basis of data contained in returns 
 made under Title II of the Revenue Act of 1917, and the 
 average known as the median shall be used. If such aver- 
 age percentage has not been determined and published at 
 least 30 days prior to the time when the return of the tax- 
 payer is due, then for purposes of such return 10 per centum 
 shall be used in lieu thereof; but such average percentage 
 when determined shall be used for the purposes of Section 
 250 in determining the correct amount of the tax. 
 
 The war-profits credit as defined in Tf 828 shall be deter- 
 mined in the manner provided in Section 3 1 (b) instead of 
 in the manner provided in Section 310(c), in the case of 
 any corporation which was not in existence during the 
 whole of at least one calendar year during the prewar 
 period, or if a majority of its stock at any time during 
 the taxable year is owned or controlled, directly or 
 indirectly, by a corporation which was in existence 
 during the whole of at least one calendar year during 
 the prewar period, or if 50 per cent, or more of its gross 
 income (as computed under Section 233 for income tax pur- 
 poses) which defines Gross Income, consists of gains, 
 profits, commissions, or other income, derived from a Gov- 
 ernment contract or contracts made between April 6, 1917, 
 and November 11, 1918, both dates inclusive. 
 
 ^ 832 — Foreign Corporations. 
 
 That in the case of a foreign corporation the specific ex- 
 emption of $3,000 shall not be allowed as excess-profits or 
 war-profits credits. 
 
 451 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 ^f 833 — Cases in Which the Commissioner Shall Determine 
 the Tax. 
 
 In the following cases the tax shall be determined as pro- 
 vided in Section 328. See H 854, also Law p. 96, line 50. 
 
 (b) In the case of a foreign corporation. 
 
 (c) Where a mixed aggregate of tangible property and 
 intangible property has been paid in for stock and bonds and 
 the Commissioner is unable satisfactorily to determine the 
 respective values of the several classes of property at the 
 time of payment, or to distinguish the classes of property 
 paid in for stock and for bonds, respectively. 
 
 11 834— 
 
 (d) Where upon application by the corporation, the Com- 
 missioner finds and so declares of record that the tax if de- 
 termined without benefit of this Section would, owing to ab- 
 normal conditions affecting the capital or income of the cor- 
 poration, work upon the corporation an exceptional hard- 
 ship evidenced by gross disproportion between the tax com- 
 puted without benefit of this Section and the tax computed 
 by reference to the representative corporations specified in 
 Section 328 shall not apply to any case in which the tax 
 (computed without benefit of this Section) is high merely 
 because the corporation earned within the taxable year a 
 high rate of profits upon a normal invested capital nor in 
 which 50 per centum or more of the gross income of the cor- 
 poration for the taxable year (computed under Section 233 
 of Title II) which defines Gross Income, consists of gains, 
 profits, commissions, or other income, derived on a cost- 
 plus basis from a Government contract or contracts made 
 between April 6, 1917, and November 11, 1918, both dates 
 inclusive. 
 
 NET INCOME FOR EXCESS-PROFITS TAX. 
 
 ^ 835 — Dividends Received From a Foreign Corporation 
 Which is Subject to Federal Income Tax. 
 
 In the case of income derived by a corporation from divi- 
 dends upon the stock of a foreign corporation, part of whose 
 net income is subject to the income tax, there shall be de- 
 
 453 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 ducted only that proportion of the dividends received upon 
 such stock which the net income of such foreign corpora- 
 tion from sources within the United States is of its entire 
 net income. 
 
 H 836— 
 
 The net income for the calendar years 1911 and 1912 shall 
 be computed upon the same basis and in the same manner as 
 provided in Section 38 of the Act entitled "An Act to pro- 
 vide revenue, equahze duties, and encourage the industries 
 of the United States, and for other purposes," approved 
 August 5, 1909, except that taxes imposed by such Section 
 and paid by the corporation within the year shall be in- 
 cluded ; 
 
 11837- 
 
 For the calendar year 1913 upon the same basis and in 
 the same manner as provided in Section II of the Act en- 
 titled "An Act to reduce tariff duties and to provide reve- 
 nue for the Government, and for other purposes," approved 
 October 3, 1913, except that taxes imposed by Section 38 of 
 such Act of August 5, 1909, and paid by the corporation 
 within the year shall be included, and except that the 
 amounts received by it as dividends upon the stock or from 
 the net earnings of other corporations subject to the tax 
 imposed by Section II of such Act of October 3, 1913, shall 
 be deducted; and 
 
 If 838— 
 
 For the taxable year upon the same basis and in the same 
 manner as provided for income tax purposes in Title II of 
 this Act. 
 
 II 839— 
 
 The average net income for the pre-war period shall be 
 determined by dividing the number of years within that 
 period during the whole of which the corporation was in 
 existence into the sum of the net income for such years, 
 even though there may have been no net income for one or 
 more of such years. 
 
 453 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 INVESTED CAPITAL. 
 
 1[ 840 — Invested Capital Defined. 
 
 Allowance for depletion, depreciation, and obsolescence 
 in computation of invested capital. — The term "invested 
 capital" as used in the Act means the invested capital of 
 the present owner. The basis, or starting point, in the com- 
 putation of invested capital is found in the amount of cash 
 and other property paid in, the original values of such other 
 property being determined in accordance with the rules and 
 regulations. But the computation does not stop with such 
 original entries or amounts ; it must take properly into ac- 
 count the surplus and undivided profits. In the computa- 
 tion of surplus and undivided profits, however, full recog- 
 nition must first be given to expenses incurred and losses 
 sustained from the original organization of the business 
 concern down to the taxable year, including among such 
 expenses and losses a reasonable allowance for exhaustion, 
 wear and tear, or obsolescence of property originally ac- 
 quired for cash or for stock or shares or in any other man- 
 ner. If value appreciation of a kind not subject to income 
 tax has been taken up in the accounts, a deduction must be 
 made in respect of such appreciation so taken up. In the 
 computation of the invested capital for any year full effect 
 must also be given to any liquidation of the original capital. 
 
 ^841 — Invested Capital Averaged. 
 
 How to ascertain average invested capital for the year, 
 averaged monthly. — The invested capital for any pre-war or 
 taxable year (or where the tax is computed upon the basis 
 of a period less than one year) , for such period, is the aver- 
 age invested capital for the year or period averaged monthly, 
 according to the following rules : 
 
 Add the capital for each of the several months during 
 which no change occurs, and the average capital for each 
 month in which a change occurs and divide the total by the 
 number of months in the year or period. 
 
 To ascertain the capital for any month in which a change 
 occurs multiply the capital as of the first day of the month 
 by the number of days it remains constant and the capital 
 
 454 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 after each change by the number of days (including the day 
 on which the change occurs) during which it remains con- 
 stant, add the products, and divide the sum by the number 
 of days in the month. 
 
 If 842 — Items Not Allowed to be Included in Invested 
 Capital. 
 
 The law specifies certain items which may not be included 
 in invested capital, namely : 
 
 11843— 
 
 Stocks, bonds (other than obligations of the United 
 States) , or other assets, the income from which is not sub- 
 ject to the excess-profits tax ; or borrowed capital. 
 
 Tf 844 — Borrowed Capital. 
 
 The term "borrowed capital" as used in the Act includes 
 not only cash or other borrowed property which can be 
 identified as such, but current Habilities and temporary in- 
 debtedness of all kinds, and any permanent indebtedness 
 upon which the taxpayer is entitled to an interest deduc- 
 tion in computing net income. A corporation which under 
 the income tax law is allowed to deduct only a part of the 
 entire interest paid upon its indebtedness, may include in 
 its invested capital such a proportion of its permanent in- 
 debtedness as the amount of interest upon such indebtedness 
 which the corporation is not allowed to deduct is of the 
 total amount of interest paid upon such indebtedness during 
 the taxable year. 
 
 ^ 845 — Interest on Indebtedness of a Corporation That is 
 Not Allowable as a Deduction. 
 
 As an illustration of the above paragraph, assume a cor- 
 poration borrows $50,000 to purchase municipal bonds, the 
 income from which is not subject to tax; the interest on 
 this indebtedness say at 5% or $2,500 is not allowable as a 
 deduction, therefore the corporation is in effect paying a 
 tax on $2,500 of the interest received from the municipal 
 bonds which would otherwise be exempt. In this case a 
 corresponding part of the capital invested in such assets 
 may be included in invested capital. 
 
 455 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 If 846 — When Income from Tax-Free Securities Consists 
 Partly of Trading Profits and Partly of Interest, 
 Dividends, Etc. 
 
 Whenever income consists partly of gains or profits sub- 
 ject to the excess profits tax arising from trading in stocks, 
 bonds, etc., the dividends or interest on which are not sub- 
 ject to such tax, and partly of such dividends or interest, 
 there shall be included in the invested capital an amount 
 which bears the same ratio to the total amount invested 
 in such stocks or bonds as the amount of such gains or 
 profits bears to the total amount of such income. 
 
 ^ 847 — Treatment of Stock of Foreign Corporations When 
 Held by Domestic Corporations. 
 
 In the case of domestic corporations holding stock in a 
 foreign corporation part of whose net income is subject to 
 the income tax, there shall be included in invested capital 
 such proportion of the value of the stock in such foreign 
 corporation as the net income of such foreign corporation 
 from sources outside the United States is of its entire net 
 income. 
 
 H 848 — Construction of Terms "Tangible Property" and 
 "Intangible Property." 
 
 The term "intangible property" will be construed to mean 
 property of a character similar to good will, trade-marks, 
 patents, copy-rights, secret processes, formulae, trade 
 brands, franchises, etc. With respect to property not 
 clearly of such a character, rulings will be issued as oc- 
 casion may demand to indicate whether it shall be regarded 
 as tangible or intangible. 
 
 The following classes of property, when paid in for stock 
 or shares in a corporation or partnership, will be regarded 
 as tangible property so paid in: 
 
 Stocks. 
 
 Bonds. 
 
 Bills and accounts receivable. 
 
 Notes and other evidences of indebtedness. 
 
 Leaseholds. 
 
 456 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 U 849 — Invested Capital of Foreign Corporations. 
 
 When used with reference to a foreign corporation the 
 term "invested capital" means that proportion of the entire 
 invested capital v^hich the net income from sources within 
 the United States is of the entire net income. 
 
 ^ 850 — Corporation Reorganized After January 1, 1911. 
 
 That in the case of the reorganization, consolidation, or 
 change of ownership after January 1, 1911, of a trade or 
 business now carried on by a corporation, the corporation 
 shall for the purposes of this title be deemed to have been 
 in existence prior to that date, and the net income and in- 
 vested capital of such predecessor trade or business for all 
 or any part of the pre-war period prior to the organization 
 of the corporation now carrying on such trade or business 
 shall be deemed to have been the net income and invested 
 capital of such corporation. If such predecessor trade or 
 business was carried on by a partnership or individual the 
 net income for the pre-war period shall, under regulations 
 prescribed by the Commissioner with the approval of the 
 Secretary, be ascertained and returned as nearly as may be 
 upon the same basis and in the same manner as provided for 
 corporations in Title II, including a reasonable deduction for 
 salary or compensation to each partner or the individual for 
 personal services actually rendered. 
 
 If 851 —Reorganization After March 3, 1917. 
 
 In the case of the reorganization, consolidation, or change 
 of ownership of a trade or business, or change of ownership 
 of property, after March 3, 1917, if an interest or control 
 in such trade or business or property of 50 per centum or 
 more remains in the same persons, or any of them, then no 
 asset transferred or received from the previous owner shall, 
 for the purpose of determining invested capital, be allowed 
 a greater value than would have been allowed under this 
 title in computing the invested capital of such previous 
 owner if such asset had not been so transferred or received : 
 Provided, That if such previous owner was not a corpora- 
 tion, then the value of any asset so transferred or received 
 
 457 
 
WAR-PEOFITS AND EXCESS-PROFITS TAX. 
 
 shall be taken at its cost of acquisition (at the date when 
 acquired by such previous owner) , with proper allowance for 
 depreciation, impairment, betterment or development, but 
 no addition to the original cost shall be made for any charge 
 or expenditure deducted as expense or otherwise on or after 
 March 1, 1913, in computing the net income of such previous 
 owner for the purposes of taxation. 
 
 If 852 — Corporations Organized Prior to July I, 1919. 
 
 In the case of the organization as a corporation before 
 July 1, 1919, of any trade or business in which capital is a 
 material income-producing factor and which was previously 
 owned by a partnership or individual, the net income of 
 such trade or business from January 1, 1918, to the date 
 of such reorganization may at the option of the individual 
 or partnership be taxed as the net income of a corporation 
 is taxed under Titles II and III ; in which event the net in- 
 come and invested capital of such trade or business shall 
 be computed as if such corporation had been in existence 
 on and after January 1, 1918, and the undistributed profits 
 or earnings of such trade or business shall not be subject 
 to the surtax imposed in Section 211, but amounts dis- 
 tributed on or after January 1, 1918, from the earnings of 
 such trade or business shall be taxed to the recipients as 
 dividends, and all the provisions of Titles II and III relating 
 to corporations shall, so far as practicable, apply to such 
 trade or business: Provided, That this paragraph shall 
 not apply to any trade or business the net income of which 
 for the taxable year 1918 was less than 20 per centum of 
 its invested capital for such year: Provided, further. That 
 any taxpayer who takes advantage of this paragraph shall 
 pay the tax imposed by Section 1000 of this Act and by the 
 first subdivision of Section 407 of the Revenue Act of 1916, 
 as if such taxpayer has been a corporation on and after Jan- 
 uary 1, 1918, with a capital stock having no par value. 
 
 ^ 853 — Computation of Invested Capital, Pre-War Period. 
 
 If any asset of the trade or business in existence both 
 during the taxable year and any pre-war year is included 
 in the invested capital for the taxable year but is not in- 
 
 458 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 eluded in the invested capital for such pre-war year, or is 
 valued on a different basis in computing the invested capital 
 for the taxable year and such pre-war year, respectively, 
 then under rules and regulations to be prescribed by the 
 Commissioner with the approval of the Secretary such re- 
 adjustments shall be made as are necessary to place the 
 computation of the invested capital for such pre-war year 
 on the basis employed in determining the invested capital 
 for the taxable year. 
 
 |[ 854 — Exceptional Cases in Which the Invested Capital 
 Cannot be Satisfactorily Determined. 
 
 In such cases the taxpayer may submit to the Commis- 
 sioner of Internal Revenue evidence in support of a claim, 
 and the tax shall be the amount which bears the same ratio 
 to the net income of the taxpayer (in excess of the specific 
 exemption of $3,000) for the taxable year as the average 
 tax of representative corporations engaged in a like or simi- 
 lar trade or business bears to their average net income (in 
 excess of the specific exemption of $3,000) for such year. 
 In the case of a foreign corporation the tax shall be com- 
 puted without deducting the specific exemption of $3,000 
 either for the taxpayer or the representative corporations. 
 
 In computing the tax under this section the Commissioner 
 shall compare the taxpayer only with representative cor- 
 porations whose invested capital can be satisfactorily de- 
 termined under Section 326 and which are, as nearly as 
 may be, similarly circumstanced with respect to gross in- 
 come, net income, profits per unit of business transacted 
 and capital employed, the amount and rate of war-profits 
 or excess-profits, and all other relevant .facts and circum- 
 stances. 
 
 11 855— 
 
 Such exceptional cases may consist, among others, of the 
 following : 
 
 11856— 
 
 Where, through defective accounting or the lack of ade- 
 quate data, it is impossible accurately to compute invested 
 capital. 
 
 459 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 11857- 
 
 Where upon application by a foreign taxpayer the Com- 
 missioner finds that the expense of securing the data neces- 
 sary for the computation of the invested capital would be 
 unreasonable in view of the amount of tax involved, or that 
 it is impracticable to determine either the "entire invested 
 capital" or the "entire net income." 
 
 U858— 
 
 Where a mixed aggregate of tangible property and in- 
 tangible property has been paid in for stock or for stock 
 and bonds and the Commissioner is unable to satisfactorily 
 determine the respective values of the several classes of 
 property at the time of payment, or to distinguish the 
 classes of property paid in for stock and for bonds, respec- 
 tively. 
 
 If 859— 
 
 Long-established business concerns which by reason of 
 ultra-conservative accounting or the form and manner of 
 their organization would be placed at a serious disadvantage 
 in competing with representative concerns in a like or simi- 
 lar trade or business. 
 
 11 860— 
 
 Where the invested capital is seriously disproportionate 
 to the taxable income as compared with representative cor- 
 porations engaged in a similar trade or business. Such 
 cases may arise through : 
 
 11861- 
 
 The realization in one year of the earnings of capital un- 
 productively invested through a period of years or of the 
 fruits of activities antedating the taxable year; or, 
 
 II 862— 
 
 Inability to recognize or properly allow for amortization, 
 obsolescence, or exceptional depreciation due to the present 
 war, or to the necessity in connection with the present war 
 of providing plant which will not be wanted for the pur- 
 poses of the trade or business after the termination of the 
 war. 
 
 460 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 PRINCIPLES OF MODERN ACCOUNTANCY ADAPTED 
 
 TO THE ADJUSTMENTS OF INVESTED CAPITAL. 
 II 863— 
 
 The question of "Invested CapitaF* is a complicated one, 
 and in order that the taxpayer may benefit to the full extent 
 of the law it is quite essential that he have more than a 
 passing knowledge of accounting as well as being fully ac- 
 quainted with the law and Treasury regulations relating 
 thereto. If the corporation making the return is not fully 
 acquainted with all phases of the law governing "Invested 
 Capital," and especially sufficiently versed in accounting 
 principles to recognize certain features which may be taken 
 advantage of, a return is either made out in which the com- 
 pany is not deducting all the exemption it is entitled to, 
 thereby paying too high a tax, or the return is made out 
 incorrectly and upon examination by the Treasury Depart- 
 ment an amended return is required to be filed. 
 
 Many corporations making tax returns are not qualified 
 to take full advantage of "Invested Capital" allowed them 
 from a reading of the law and Regulations of the Treasury 
 Department because of the misinterpretation of their appli- 
 cation by the taxpayer. For the benefit of this great num- 
 ber of taxpayers as well as those who do understand thor- 
 oughly the application of the law, it was thought the clearest 
 and most concise way of presenting this subject would be 
 by way of a practical illustration presenting a series of 
 balance sheets and pointing out the various facts in these 
 balance sheets in their relationship to "Invested Capital." 
 
 It is not intended to bring out in this illustration every 
 point in corporation accounting, as there are conditions 
 which arise in individual corporations which of necessity 
 cannot be dealt with in a statement, which should present 
 conditions common to all. There are differences of opinion 
 upon this subject and corporations who are in doubt about 
 any feature pertaining to this subject should consult some 
 one who has made a thorough study of the matter. 
 
 1(864— 
 
 The illustration presents four balance sheets as noted 
 below, and will show the various facts relating to "Invested 
 
 461 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 Capital," as disclosed in the balance sheets of the A Com- 
 pany as at January 1, 1918, and December 31, 1918. The 
 first two balance sheets show the condition of Company A 
 and Company B prior to the purchase of the B company 
 by the A company. 
 
 uses- 
 No. 1 — Balance sheet of the A Company, a company en- 
 gaged in the business of mining ore. This statement pre- 
 sents the condition of the A Company as at December 31, 
 1917. 
 
 1[ see- 
 No. 2 — Balance sheet of the B Company, a company en- 
 gaged in the business of reducing iron ore to pig iron. This 
 statement presents the condition of the B Company as at 
 December 31, 1917. 
 
 1fse7- 
 
 No. 3 — Balance sheet of the A Company directly after 
 the purchase by the A Company of the B Company. This 
 statement presents the condition of the A Company as at 
 January 1, 1918, the beginning of the taxable year. 
 
 Tfses— 
 
 No. 4 — Balance sheet of the A Company as at December 
 31, 1918, the end of the taxable year. 
 
 NOTE. — In arriving at the "Invested Capital" in the follo^ring balance 
 sheets it will be noted that reference is made to various schedules appear- 
 ing on Form 1103 (the form in use for the year 1917), dealing with the 
 adjustment of Invested Capital. The subject matter referred to through- 
 out this article is in accordance with the new Revenue Act of 1918, and 
 upon the issuance of the new forms for war-profits and excess-profits tax 
 for the year 1918 by the Department, these form will be filled out to con- 
 form with the adjustments relating to "Invested Capital" as defined in the 
 following paragraphs. 
 
 462 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 Tf 869— 
 
 (No.l) 
 
 THE A COMPANY 
 Balance Sheet As At December 31, 1917. 
 ASSETS. 
 Capital Assets — 
 
 Real Estate, Leases, Claims, Shafts, Build- 
 ings, Sidings, etc $10,000,000.00 
 
 Less Reserve for Depreciation & Depletion 1,000,000.00 
 
 $9,000,000.00 
 
 Furniture and Fixtures 25,000.00 
 
 Less Reserve for Depreciation 5,000.00 
 
 20,000.00 
 
 9,020,000.00 
 
 11 870— 
 
 Current Assets — 
 Cash $1,750,000.00 
 
 Accounts Receivable $1,000,000.00 
 
 Less Reserve for Bad Debts 100,000.00 
 
 900,000.00 
 
 Notes Receivable 1,500,000.00 
 
 Accrued Int. on Notes Rec'able 40,000.00 
 
 U. S. Liberty Bonds SVgS 100,000.00 
 
 U. S. Liberty Bonds 4s 100,000.00 
 
 200,000.00 
 
 Inventories: 
 
 Iron Ore 2,000,000.00 
 
 Materials and Supplies 100,000.00 
 
 2,100,000.00 
 
 6,490,000.00 
 
 11871- 
 
 Good Will . 2,500,000.00 
 
 Deferred Charges — 
 
 Prepaid Insurance, Taxes, etc 100,000.00 
 
 Discount on Bonds 180,000.00 
 
 Organization Expense ($20,000.00 charged off 150,000.00 
 
 430,000.00 
 
 $18,440,000.00 
 463 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 11 872- 
 
 LIABILITIES. 
 Capital Stock — 
 
 Authorized $50,000,000.00 
 
 Issued $10,000,000.00 
 
 Add Surplus 1,720,000.00 
 
 $11,720,000.00 
 
 Funded Debt- 
 First Lien 6% Gold Bonds (dated Jan. 1, 1917) 2,000,000.00 
 
 Current Liabilities — 
 
 Notes Payable 1,600,000.00 
 
 Accounts Payable 2,000,000.00 
 
 Dividend Payable Jan. 10, 1918 400,000.00 
 
 Accrued Interest on Bonds 60,000.00 
 
 Accrued Interest on Notes Payable 60,000.00 
 
 Reserve for Federal Taxes 300,000.00 
 
 4,420,000.00 
 
 Deferred Credits (Pending settlement of claims) 300,000.00 
 
 $18,440,000.00 
 
 11873 - ~~ 
 
 (No. 2) 
 
 THE B COMPANY 
 Balance Sheet As At December 31, 1917. 
 ASSETS. 
 Capital Assets — 
 Real Estate, Leases, Claims, Shafts, Build- 
 ings, Sidings, etc $15,000,000.00 
 
 Less Reserve for Depreciation & Depletion 1,500,000.00 
 
 $13,500,000.00 
 
 Furniture and Fixtures 25,000.00 
 
 Less Reserve for Depreciation 5,000.00 
 
 20,000.00 
 
 $13,520,000.00 
 
 11874- 
 
 Current Assets — 
 Cash 2,000,000.00 
 
 Accounts Receivable 1,000,000.00 
 
 Less Reserve for Bad Debts 100,000.00 
 
 900,000.00 
 
 Notes Receivable 500,000.00 
 
 Accrued Int. on Notes Rec'ble 10,000.00 
 
 Inventories: 
 
 Pig Iron 1,500,000.00 
 
 Materials and Supplies 200,000.00 
 
 1,700,000.00 
 
 6,110,000.00 
 
 Deferred Charges- 
 Prepaid Insurance, Taxes, etc 150,000.00 
 
 Discount on Bonds 270,000.00 
 
 Org'ization Expenses ($30,000.00 charged off) 150,000.00 
 
 ~ 670,000.00 
 
 $19,200,000.00 
 464 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 11875-. 
 
 LIABILITIES. 
 Capital Stock — 
 
 Authorized and Issued $10,000,000.00 
 
 Add Siirplus 1,000,000.00 
 
 $11,000,000.00 
 
 Funded Debt- 
 First Lien 6% Gold Bonds (dated Jan. 1, 1917) 3,000,000.00 
 
 Current Liabilities — 
 
 Notes Payable 1,500,000.00 
 
 Accounts Payable 3,100,000.00 
 
 Accrued Interest on Bonds 90,000.00 
 
 Accrued Interest on Notes Payable 10,000.00 
 
 Reserve foT Federal Taxes 300,000.00 
 
 Total Current Liabilities 5,000,000.00 
 
 Reserve for Improvements and Contingencies 200,000.00 
 
 $19,200,000.00 
 
 11876- 
 
 (No. 3) 
 
 THE A COMPANY 
 Balance Sheet As At January 1, 1918. 
 ASSETS. 
 Capital Assets — /f 
 Real Estate, Leases, Claims, Shafts, Build- 
 ings, Sidings, etc $61,500,000.00 
 
 Less Reserve for Depreciation & Depletion 2,500,000.00 
 
 $59,000,000.00 
 
 Furniture and Fixtures 50,000.00 
 
 Less Reserve for Depreciation 10,000.00 
 
 40,000.00 
 
 Total Capital Assets 59,040,000.00 
 
 Current Assets — 
 
 Cash 3,850,000.00 
 
 Accounts Receivable 2,000,000.00 
 
 Less Reserve for Bad Debts 200,000.00 
 
 1,800,000.00 
 
 U. S. Liberty B'ds 31/38 (First) 1,000,000.00 
 
 U. S. Liberty B'ds 4s (Second) 100,000.00 
 
 1,100,000.00 
 
 Notes Receivable 1,000,000.00 
 
 Accrued Interest Receivable — 50,000.00 
 
 Inventories : 
 
 Iron Ore and Pig Iron 3,500,000.00 
 
 Materials and Supplies 300,000.00 
 
 3,800,000.00 
 
 Total Currents Assets.- 11,600,000.00 
 
 Good Will 2,500,000.00 
 
 Deferred Charges — 
 
 Prepaid Insurance, Taxes, etc 250,000.00 
 
 Discount on Bonds 4,450,000.00 
 
 Organization Expense 300,000.00 
 
 5,000,000.00 
 
 $78,140,000.00 
 465 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 11877- 
 
 LIABILITIES. 
 Capital Stock — 
 
 Authorized 500,000 shares $50,000,000.00 
 
 Issued 200,000 " $20,000,000.00 
 
 Add: Earned Surplus 1,720,000.00 
 
 Capital Surplus 1,500,000.00 
 
 3,220,000.00 
 
 $23,220,000.00 
 
 Funded Debt — 
 
 Ten-Year 6% Convertible Gold Bonds dated 
 
 Jan. 1, 1918 40,000,000.00 
 
 1st Lien 6% Gold Bonds A Company dated 
 
 Jan. 1, 1918 2,000,000.00 
 
 1st Lien 6% Gold Bonds B Company dated 
 
 Jan. 1, 1918 3,000,000.00 
 
 45,000,000.00 
 
 Current Liabilities — 
 
 Accounts Payable 5,100.000.00 
 
 Notes Payable 3,100,000.00 
 
 Dividend Payable (Payable Jan. 10) 400,000.00 
 
 Accrued Interest on Bonds 150,000.00 
 
 Accrued Interest on Notes Payable 70,000.00 
 
 Reserve for Federal Taxes 600,000.00 
 
 9,420,000.00 
 
 Deferred Credits — 
 
 Earnings in Litigation 300,000.00 
 
 Reserve for Improvements and Contingencies 200,000.00 
 
 500,000.00 
 
 $78,140,000.00 
 
 TI87S- 
 
 NOTE: On January 1, 1918, the A Company purchased the assets and 
 assumed the liabilities of the B Company: i. e., it purchased the equity of 
 the B Company by issue of capital stock. From the accounting viewpoint 
 when stock is issued in purchase of another company, the surplus of the 
 vendor is eliminated when such assets and liabilities are entered upon 
 the books of the vendee. If the value of the stock issued represents the 
 sum of the capital stock and surplus as shown by the books of the vendor 
 then the assets and liabilities are entered at the same figures on the books 
 of the vendee; if a lesser amount is issued certain of the assets are 
 reduced; if a greater amount, either "Good Will" or "Capital Assets" is 
 increased. In this instance, in order that the reader may readily follow 
 through the statements from one balance sheet to the other, the stock of 
 the A Company is issued at a premium ($115.00 per share) in order that 
 the surplus of the B Company may be entered on the books of the 
 A Company. This is called "Capital Surplus" or "Paid in Surplus." This 
 is done so as to present to the reader "Earned Surplus" as shown by the 
 A Company as at December 31, 1917, and "Paid in Surplus" as at January 
 1, 1918. This brings in, under Schedule A on page 2 of form 1103 "Capital 
 Stock" as at the beginning of the year and the earned surplus, and also 
 the capital surplus. If stock is sold for cash at a premium it is very clear 
 tnat such premium is paid in surplus, if, however, property other than 
 cash is received it is encumbent upon the taxpayer to show that it 
 actually represents value. 
 
 (It will be noted that Capital Assets increased by $36,000,000.00, being 
 purchase of properties by issue of 10-year 6% Conv. Gold Bonds at 90.) 
 
 466 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 (No. 4) 
 
 THE A COMPANY 
 
 Balance Sheet As At December 31, 1918. 
 
 ASSETS. 
 Capital Assets — 
 Real Estate, Leases, Claims, Shafts, Build- 
 ings, Sidings, etc $70,500,000.00 _ 
 
 Less Reserve for Depreciation & Depletion 8,600,000.00 
 
 $61,900,000.00 
 
 Furniture and Fixtures 50,000.00 
 
 Less Reserve for Depreciation 20,000.00 
 
 30,000.00 
 
 Total Capital Assets 61,930,000.00 
 
 Investments — 
 
 The Smith Jones Corporation Common Stock, 
 2,000 shares 200,000.00 
 
 The Smith Jones Corporat'n Preferred Stock, 
 
 8,000 shares 800,000.00 
 
 Total Investments 1,000,000.00 
 
 Sinking Fund Trustee — 
 Cash and Securities . 4,500,000.00 
 
 Current Assets — 
 
 Cash 4,040,000.00 
 
 Accounts Receivable 5,000,000.00 
 
 Less Reserve for Bad Debts 400,000.00 
 
 4,600,000.00 
 
 U. S. Lib. Loan Bonds 31/28 (1st) 1,000,000.00 
 
 U. S. Lib. Loan Bonds 4s (2nd) 100,000.00 
 
 L. S. Lib. Loan Bonds 414 s (4th) 500,000.00 
 
 1,600,000.00 
 
 Notes Receivable 3,000,000.00 
 
 Accrued Interest Receivable— 160,000.00 
 
 Inventories : 
 
 Iron Ore and Pig Iron 6,000,000.00 
 
 Materials and Supplies 400,000.00 
 
 6,400,000.00 
 
 Total Current Assets— 19,800,000.00 
 
 Good Will, Patents, etc 2,500,000.00 
 
 Deferred Charges — 
 
 Prepaid Insurance, Taxes and Sundiy 
 
 Expenses chargeable to future operations 750,000.00 
 
 Discount on Bonds 4,005,000.00 
 
 Organization Expenses 250,000.00 
 
 Total Deferred Charges 5,005,000.00 
 
 $94,735,000.00 
 
 467 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 11880-- 
 
 LIABILITIES. 
 Capital Stock — 
 
 Autkorized 500,000 shares $50,000,000.00 
 
 Issued 320,000 " $32,000,000.00 
 
 Add: Surplus Jan. 1, 1918— 1,720,000.00 
 Income for year 5,015,000.00 
 
 6,735,000.00 
 Less Dividend 3,200,000.00 
 
 3,535,000.00 
 
 Add Capital Surplus 1,500,000.00 
 
 5,035,000.00 
 
 $37,035,000.00 
 
 Funded Debt— 
 
 Ten-Year 6% Conrertible Gold Bonds dated 
 Jan. 1, 1918 40,000,000.00 
 
 1st Lien 6% Gold Bonds A Company dated 
 Jan. 1, 1917 2,000,000.00 
 
 1st Lien 6% Gold Bonds B Company dated 
 Jan. 1, 1917 3,000,000.00 
 
 45,000,000.00 
 
 Current Liabilities — 
 
 Accounts Payable 2,200,000.00 
 
 Notes Payable 1,500,000.00 
 
 Dividend Payable (Payable Jan. 31, 1919)— 555,000.00 
 
 Accrued Interest on Bonds 1,350,000.00 
 
 Accrued Interest on Notes Payable 95,000.00 
 
 Reserve for Federal Taxes 2,000,000.00 
 
 Total Current Liabilities 7,700,000.00 
 
 Reserve for Sinking Fund 4,500,000.00 
 
 Deferred Credits — 
 
 Earnings in Litigation 200,000.00 
 
 Reserve for Improvements and Contingencies 300,000.00 
 
 Total Deferred Credits 500,000.00 
 
 $94,735,000.00 
 
 11881- 
 
 The Treasury Department blank (Form 1103) which 
 deals with Corporation War Profits and Excess Profits Tax 
 is used for illustration and in the determination of this tax 
 certain exemptions or deductions are allowed from net in- 
 come in order to arrive at the amount of taxable income and 
 to properly determine these deductions, it becomes neces- 
 sary to know the amount of capital employed in the business 
 during the taxable year. 
 
 Proceeding now with determining the amount of invested 
 capital during the year 1918 of the A Company : 
 
 468 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 SCHEDULE A. 
 ^ 882 — Capital Stock and Surplus. 
 
 In taking up the various features that enter into the 
 capital employed during the taxable year, naturally, the 
 first consideration is given to the Capital Stock and Surplus 
 as at the beginning of the taxable year (January 1, 1918) . 
 In this instance the Capital Stock amounts to $20,000,000.00, 
 the Earned Surplus $1,720,000.00 and Paid-in Surplus 
 $1,500,000.00, and is entered on page 2 (form 1103). The 
 total of Schedule A is transferred to page 1, schedule 1, 
 line 1. 
 
 Tf 883 — Adjustments During the Year. 
 
 There are conditions which arise in practically every cor- 
 poration whereby certain changes are made, which affect 
 invested capital during the year; in fact, the capital as 
 shown by the books of the corporation at the beginning of 
 the year may be subject to adjustment (i. e., the amount not 
 allowed as invested capital in accordance with the regula- 
 tions of the Treasury Department). These adjustments 
 may be either by Way of Additions, schedule B, page 2, 
 form 1103, or by Way of Deductions, schedule C, page 3, 
 form 1103. If changes are made during the year such 
 changes are entered under schedule D, page 3, form 1103. 
 
 If 884 — Reserves Subject to Careful Scrutiny. 
 
 In the balance sheets of practically every corporation 
 there will appear a number of items as Reserves. In some 
 instances these Reserves are allowable deductions against 
 income, such as Reserve for Depreciation and Reserve for 
 Depletion; but the amounts set up in these Reserves are 
 subject to very careful scrutiny by the Income Tax Depart- 
 ment. If it is found that during the last few years heavy 
 depreciation rates had been set up, but such rates had not 
 been used several years ago, the present amount charged 
 against income would probably be subject to adjustment 
 when deducting from income. At this time we are con- 
 cerned merely with the relationship of these depreciation 
 charges to invested capital. If it is found that in prior 
 years there had been no charge against income for deprecia- 
 
 469 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 tion, or only nominal charges, the Treasury Department 
 would probably determine that the amount of assets repre- 
 senting machinery, plants, etc., were over-stated and would 
 compel an adjustment to capital assets to conform with 
 proper depreciation rates covering the assets in question. 
 Such an adjustment should be entered under Schedule C, 
 line 7, Depreciation and Depletion. In the above balance 
 sheets proper Depreciation and Depletion has been set up 
 but attention is directed to it while under the subject of 
 Reserves. 
 
 ^ 885 — Reserves for Bad Debts, Contingencies and Taxes. 
 
 There will also be found several Reserves which are not 
 proper deductions against income ; such as Reserve for Bad 
 Debts, Reserve for Contingencies, Reserve for Federal 
 Taxes. These Reserves represent deductions from surplus, 
 but as they are not allowed as deductions against income in 
 determining taxable income; for the purpose of "Invested 
 Capital," the amount reserved should be considered as part 
 of surplus and ordinarily be added to "Earned Surplus," 
 Schedule A, hne 6. In this illustration, however, in order 
 to show under Schedule A the surplus accounts as appearing 
 in the balance sheet, the Reserve adjustments are shown as 
 additions under Schedule B. 
 
 SCHEDULE B. 
 
 |[ 886 — Addition to Invested Capital of Reserve for Taxes, 
 Averaged. 
 
 Reserve for Federal taxes, January 1, 1918, was $600,- 
 000.00, and it is assumed that payment was made on June 
 15, 1918, the latest possible date for payment of those 
 taxes. 
 
 Federal Income and Excess Profits Taxes are not charges 
 against, income or surplus in the sense of being a cost of 
 doing business; they constitute a sharing of the corpora- 
 tion's income with the government, and while it is the gen- 
 eral practice to provide for such taxes by setting up the 
 obligation against the period in which the income accrues, 
 nevertheless, the sum so provided constitutes a setting aside 
 of surplus which is employed in the business until such 
 
 470 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 time as actually disbursed. Therefore the amount should 
 be added to surplus as of January 1, 1918, and when dis- 
 bursed considered as a reduction of capital and the amount 
 averaged for the balance of the year and entered as a deduc- 
 tion in red ink under Schedule D. In this instance, as stated 
 above. Surplus in the amounts shown in balance sheet is 
 entered in Schedule A, and this Reserve is shown in 
 Schedule B as an addition ; the $600,000.00 being employed 
 in the business from January 1, 1918, to the date of pay- 
 ment, June 15, 1918, a period of 51/2 months, which gives 
 an average for the year of $275,000.00. 
 
 If 887 — Reserve for Improvements and Contingencies. 
 
 Reserve for Improvements and Contingencies at January 
 1, 1918, was $200,000.00, and at December 31, 1918, $300,- 
 000.00. This would indicate that out of earnings of 1918 an 
 additional amount was set up dependent upon the amount 
 charged to this Reserve during the year. Assuming that 
 no charges were made against this Reserve, it would then 
 show an additional amount of $100,000 reserved from the 
 profits of 1918, but as this additional amount was taken 
 from the earnings of the taxable year it cannot be taken into 
 consideration for the taxable year. The amount therefore 
 employed during the year is the amount as shown January 
 1, 1918, viz., $200,000.00, and should be entered in Schedule 
 B as an addition. 
 
 T[ 888— Reserve for Bad Debts. 
 
 On January 1, 1918, the amount in this Reserve was 
 $200,000.00, which amount was charged against income in 
 1917; the Treasury Department rules with reference to 
 Bad Debts that they constitute a deduction against income 
 when ascertained to be a loss and actually charged off on 
 the books as a loss; therefore when the amount shown in 
 Reserve for Bad Debts was charged against income on the 
 books of the corporation it decreased the surplus by that 
 amount, but as the Treasury Department does not allow the 
 deduction against income until actually written off it rep- 
 resents part of the surplus until the bad debt is charged 
 against the Reser^^^e. Assuming that on October 1, 1918, 
 
 471 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 a bad debt was charged against this Reserve of $100,000.00 
 there would be an employment of capital in the business of 
 $200,000.00 for nine months and $100,000.00 for three 
 months, which averaged over the year would give an addi- 
 tional employment of capital of $175,000.00. 
 
 If 889 — Organization Expenses. 
 
 Referring to balance sheets of the A Company and the B 
 Company as at December 31, 1917, it will be observed that 
 notation is made that this account decreased by the sum of 
 $20,000.00 A Company and $30,000.00 B Company, a total 
 sum of $50,000.00. 
 
 Organization Expense is not an allowable deduction wheii 
 computing taxable income, and while many corporations 
 having in mind conservative business principles charge this 
 against income, the Treasury Department has expressly 
 ruled against it as an allowable charge against income and 
 requires that it be capitalized, therefore as the $50,000.00 
 was charged against income and reduced the surplus by 
 $50,000.00 it should now be added back as Invested Capital. 
 It should be borne in mind, however, that in this illustration 
 the A Company purchased the B Company, and the Treas- 
 ury Department might not permit going back into the 
 affairs of the B Company to make an adjustment of this 
 nature, claiming because of the purchase by the A Company 
 of the B Company the amount of Capital is measured by the 
 Capital issued and Paid-in Surplus. But considering that 
 the stockholders of the B Company are in part stockholders 
 of the A Company so that in point of fact the same relation- 
 ship is still in being, it is concluded that it would be per- 
 fectly proper to likewise consider the Organization Expenses 
 charged off in the B Company as an addition to Capital. 
 (This should be considered as the converse to Sec. 331.) 
 It is impossible to absolutely interpret the law covering 
 every point; the object is to bring up these points for dis- 
 cussion so that the reader will take up any question of this 
 character which he thinks will affect Invested Capital. 
 
 472 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 SCHEDULE C. 
 If 890^Value of Donated Stock. 
 
 There are some conditions affecting Invested Capital that 
 do not appear in a balance sheet, and it becomes necessary 
 at times to investigate entries on the books of the corpora- 
 tion other than those directly shown on the balance sheet. 
 Such an entry would be donated stock and its subsequent 
 sale. Suppose that in the affairs of the A Company certain 
 stockholders returned to the company shares of stock, the 
 par value of which was $1,000,000.00, and these shares of 
 stock were subsequently sold for $750,000.00. Under this 
 circumstance the Treasury Department takes the attitude 
 that stock returned to the corporation as a gift was not 
 issued originally for real value, but an inflated value was 
 placed upon the assets acquired, and the actual capital re- 
 ceived by the corporation was the amount from the sale of 
 the donated stock, in this instance $750,000.00. It is there- 
 fore necessary to enter as a deduction under Schedule C, line 
 4, the excess amount of par value over amount received, 
 viz., $250,000.00. 
 
 H 891— Inflated Value of Good Will or Patents. 
 
 It will be noted that in the balance sheet of the A Com- 
 pany as at December 31, 1917, "Good Will" is entered at 
 $2,500,000.00. In investigating the make-up of this amount 
 it is found that the Directors on July 1, 1917, determined 
 that a certain patent which they possessed for the purpose 
 of mining ore was extremely valuable and added $500,000.00 
 to the actual cost, crediting the amount to Surplus. In the 
 first instance the credit to Surplus is mis-stated, the amount 
 should have been credited to Capital Surplus. The Treasury 
 Department will not allow this increased valuation of 
 $500,000.00 as Invested Capital, and it should be entered in 
 Schedule C, line 2. 
 
 II 892 — Overvaluation of Stock. 
 
 It will be noted in the foot-note in connection with balance 
 sheet as of January 1, 1918, that stock was issued at $115.00 
 per share, a total value of $11,500,000.00, however, the 
 
 473 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 equity of the B Company as measured by its Capital Stock 
 and Surplus was $11,000,000.00, so that the value of the B 
 Company as taken over on the books of the A Company was 
 $500,000.00 in excess of the book value. 
 
 It is obvious that if the value of the stock of the A Com- 
 pany was $115.00 per share, and if the directors of the A 
 Company valued the equity of the B Company at $11,500,- 
 000.00, it was perfectly in order for them to issue 100,000 
 shares of stock, thereby, in fact, paying $11,500,000.00 for 
 the equity of the B Company, however, the law (Sec. 331) 
 states that in any amalgamation, consolidation or change of 
 ownership, if an interest in such trade or business of 50% 
 or more remains in the same persons then no asset trans- 
 ferred shall be allowed at a greater value than allowed to 
 the previous person, therefore under C-5 it will be neces- 
 sary to write back this over-valuation of $500,000.00. 
 
 SCHEDULE D. 
 
 T[ 893— Capital Stock. 
 
 Under date of January 1, 1918, the Capital Stock issued 
 amounted to $20,000,000.00, and on December 31, 1918, 
 amount issued had increased to $32,000,000.00, an addi- 
 tional issue during the taxable year of $12,000,000.00. As- 
 suming that this additional amount of capital was issued on 
 July 1, 1918, the average of this additional capital em- 
 ployed during the year would be $6,000,000.00, and should 
 be entered as an addition to Invested Capital. 
 
 ^ 894— Dividends. 
 
 Dividends paid out of earnings or profits during the first 
 60 days of the taxable year shall be deemed to have been 
 paid from earnings or profits of the preceding years, not out 
 of current earnings. — Law, page 53, line 54. 
 
 Dividends paid at any time after the first 60 days shaU 
 be deemed to have been paid out of current earnings from 
 the first of the taxable year up to the date of payment. — 
 Law, Page 53, Line 57. 
 
 It will be noted on balance sheet as of January 1, 1918, 
 under Current Liabilities there is "Dividend Payable'* of 
 $400,000.00 payable January 31, 1918. This covers dividend 
 
 474 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 of the A Company declared in 1917, and was charged against 
 surplus of that company ; however, it is capital employed in 
 the business until such time as actually disbursed, there- 
 fore this $400,000.00 is employed in the business for the 
 month of January or 1-12 of the year, an average during 
 the year of $33,333.33. In some corporations this would 
 be a very large amount. 
 II 895— Void— [Ed.] 
 ^f 896 — Deduction of Dividends From Invested Capital. 
 
 Let us further assume that on March 10, 1918, there was 
 a declaration of dividends of 21/2% or $500,000.00 and hav- 
 ing in mind the law which states that dividends paid at any 
 time after the first sixty days of the taxable year are con- 
 sidered as made from earnings of the taxable year to the 
 date of distribution, and assuming that net income from 
 January 1, 1918, to March 10, 1918, was $100,000.00 the 
 balance of the dividend must then apply against surplus 
 accumulated prior to this year, thereby reducing the sur- 
 plus as of January 1, 1918. Therefore, surplus account 
 would be reduced by $450,000.00, and it would affect 
 the capital employed during the year for 9 and 21-31 
 months, or an average amount of $362,916.66. This rep- 
 resents a reduction in capital employed and should be en- 
 tered in red ink. 
 
 Tf 897 — ^Reserve for Sinking Fund Merely a Segregation of 
 Surplus. 
 
 It will be observed that in the balance sheet of December 
 31, 1918, there is a reserve for sinking fund amounting to 
 $4,500,000.00. This is not a deduction from income, but 
 merely a segregation of the surplus account for the purpose 
 of eventually retiring bonds in accordance with the mort- 
 gage agreement. It is a setting aside of surplus into a sepa- 
 rate account so that the directors cannot use such amount 
 for the payment of dividends. It, however, is set up out of 
 income of the year 1918, and does not affect invested capital 
 for the year 1918; it should, however, be taken into con- 
 sideration in the following year, 1919, and subsequent years, 
 so long as the reserve for sinking fund appears on the books 
 of the corporation. The sequence to the reserve for sinking 
 
 475 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 fund is the account on the opposite side called "Sinking 
 Fund Cash Account and Securities." In this account there 
 will be set aside cash which will be on deposit drawing in- 
 terest, or this cash is invested in securities which will bring 
 in a return, an income. Should this cash be invested in 
 either stocks or bonds, the income of which is not subject to 
 War Excess Profits Tax, then under those circumstances the 
 amount from the date of investment would be considered as 
 a deduction from invested capital. 
 
 NOTE. — On pages 2 and 3 of the old Form 1103 the matter of Deprecia- 
 tion and Depletion was taken up and if it was found that sufficient depre- 
 ciation had not been deducted during the life of the different properties 
 there had to be an adjustment made in the amount entered under Schedule 
 C, line 7. In this instance in the year 1917 there was a Reserve for Depre- 
 ciation set up on Furniture and Fixtures at the rate of 20%. Such a rate 
 might be considered too high, in which event there must of course be an ad- 
 justment made in the depreciation charged against income and the excess 
 amount charged off should be added back as additional capital and entered 
 under Schedule B. 
 
 |[ 898 — Corporations Which Shall Not Have the Benefit of 
 Comparison With Similar Corporations. 
 
 In the case of corporations where the tax is large merely 
 because the corporation earned a high rate of profits upon 
 a normal invested capital, or where 50 per centum or more 
 of the gross income consists of gains, profits, commissions, 
 or other income, derived on a cost-plus basis from Govern- 
 ment contracts made between the date of declaration of war 
 (April 6, 1917), and the signing of the armistice (Novem- 
 ber 11, 1918), both dates inclusive, shall not be accorded 
 the privilege of comparison with corporations engaged in a 
 similar business even though the tax be disproportionately- 
 high. 
 
 U 89a— Invested Capital. 
 
 In computing invested capital, every corporation subject 
 to the excess-profits tax shall add together its paid-in capital 
 and its paid-in or earned surplus and undivided profits 
 (under whatever name the same may be called) as shown 
 by its books at the beginning of the taxable year. The 
 total thus obtained shall be adjusted for any asset or item 
 which it covers that is not carried on the books at the valua- 
 tion prescribed by law. When necessary, adjustment (addi- 
 
 476 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 tion or subtraction) shall be made in respect of the fol- 
 lowing: 
 
 ^900 — Adjustments of Invested Capital. 
 
 Stock or shares issued in the purchase of intangible prop- 
 erty prior to March 3, 1917, which cannot be included in 
 an amount exceeding (a) 25 per cent of the par value of 
 the total stock or shares outstanding on that date, (b) the 
 actual value of such intangible property at the date ac- 
 quired, or the par value of the stock or shares issued in pay- 
 ment therefor, whichever is the lowest. 
 
 ^ 901 — Limitation on Value of Intangible Assets. 
 
 The addition to invested capital due to fixing the value 
 of intangible assets must in no case exceed in the aggregate 
 25 per cent, of the total stock or shares of the corporation 
 outstanding at the beginning of the taxable year. 
 
 In cases where the Commissioner of Internal Revenue is 
 unable to determine the invested capital because of stock or 
 shares having been issued for a mixed aggregate of tangible 
 and intangible property the tax shall be the amount which 
 bears the same ratio to the net income of the taxpayer (in 
 excess of the specific exemption of $3,000) for the taxable 
 year, as the average tax of representative corporations en- 
 gaged in a like or similar trade or business, bears to their 
 average net income (in excess of the specific exemption of 
 $3,000) for such year. In the case of a foreign corporation 
 the tax shall be computed without deducting the specific 
 exemption of $3,000 either for the taxpayer or the repre- 
 sentative corporations. 
 
 In computing the tax under this Section the Commissioner 
 shall compare the taxpayer only with representative cor- 
 porations whose invested capital can be satisfactorily deter- 
 mined and which are, as nearly as may be, similarly circum- 
 stanced with respect to gross income, net income, profits per 
 unit of business transacted and capital employed,the amount 
 and rate of war-profits or excess-profits, and all other rel- 
 evant facts and circumstances. 
 
 Patents and copyrights paid in for stock or shares prior 
 
 477 
 
WAR-PROFITS AND EXCESS-PROFITS TAX, 
 
 to March 3, 1917, must be valued at the amount which is 
 lowest under the following methods : 
 
 (1) The actual cash value of the patents or copyrights 
 at the date of acquisition ; 
 
 (2) The par value of the stock issued therefor; 
 
 (3) Must not exceed in any case in the aggregate 25 per 
 centum of the par value of the stock of the corporation out- 
 standing at the beginning of the taxable year. 
 
 Tf 902 — Stock or Shares Issued for Tangible Property Other 
 Than Cash. 
 
 The cash value of tangible property, other than cash, paid 
 in for stock or shares must not exceed the par value of the 
 stock or shares specifically issued therefor, unless the actual 
 cash value of such tangible property at the time paid in is 
 shown to the satisfaction of the Commissioner to have been 
 clearly and substantially in excess of such par value, in 
 which case such excess shall be treated as paid-in surplus. 
 
 When any stock is returned to the corporation as a gift or 
 for a consideration substantially less than its par value, the 
 stock so returned shall not be treated as a part of the stock 
 issued or exchanged for such property. The proceeds de- 
 rived in cash or its equivalent from the resale of the stock 
 so returned shall, however, be included in the invested 
 capital if retained and employed in the business. 
 
 TI 903 — Reconstruction of Surplus and Undivided Profits 
 Accounts. 
 
 Where through failure to provide for depletion, deprecia- 
 tion, obsolescence, or other expenses or losses, or where for 
 any other cause or reason the books of account of the tax- 
 payer do not show the true paid-in or earned surplus and un- 
 divided profits, in the computation of invested capital such 
 adjustments shall be made as are necessary to arrive at a 
 statement of the correct amount. 
 
 Where a taxpayer claims additions to the capital account, 
 the books of account will be presumed to show the true facts 
 and the burden of proof will rest upon the taxpayer. Such 
 
 478 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 additions will be accepted only to the extent and under the 
 conditions stated below: 
 
 11904— 
 
 Amounts which have been expended in the past for the 
 acquisition of plant, equipment, tools, patterns, furniture, 
 fixtures, or Hke tangible property, having a useful Hfe ex- 
 tending substantially beyond the year in which the expendi- 
 ture was made, and which have been charged as current ex- 
 pense, may (less proper reduction for depreciation or obsol- 
 escence) be added to the surplus account in computing in- 
 vested capital when such assets are still owned and in active 
 use by the taxpayer during the taxable year. Special tools, 
 patterns, and similar assets shall not be assigned any value 
 if their cost has been recovered through having been in- 
 cluded in the price of goods. If their cost has not been so 
 recovered and they are held for only occasional use, they 
 shall not be assigned a value in excess of the fair value based 
 upon the earnings actually arising from their current use. 
 Assets of this kind not in current use shall not be valued 
 at more than their nominal or scrap value. 
 
 U 905 — Valuation of Intangible Property. 
 
 If good will, trade-marks, trade brands, franchises of a 
 corporation or other intangible property has been purchased 
 with stock or shares issued prior to March 3, 1917, the 
 amount that may be included in invested capital must not 
 exceed (a) 25 per cent, of the par value of the total stock or 
 shares outstanding on that date, nor (b) the actual value of 
 the assets at the date acquired, nor (c) the par value of the 
 stock issued in payment for the assets, whichever is lowest. 
 
 If 906 — Application of 25 Per Cent Limitation Upon 
 Intangible Property. 
 
 The 25 per cent, limitation upon intangible property pur- 
 chased prior to March 3, 1917, for or with stock or shares 
 of the corporation, applies not to each item or class of in- 
 tangible property separately, but to the aggregate amount 
 of all such property so purchased. Such intangible prop- 
 erty may be included in the invested capital only up to an 
 
 479 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 amount not exceeding 25 per cent of the total stock or 
 shares of the corporation on March 3, 1917, even though 
 the aggregate amount of such intangible property be 
 greater in value than such 25 per cent, of the par value of 
 the total stock or shares. 
 
 ^807- 
 
 Intangible property bona fide purchased prior to March 
 3, 1917, with stock having no par value may be included 
 in invested capital at a value not exceeding the actual cash 
 value of such intangible property at the time of the pur- 
 chase and in an amount not exceeding 25 per cent of the 
 total shares of stock outstanding on March 3, 1917, meas- 
 ured by their value as at the date or dates of issue. 
 
 1 908— 
 
 In the case of any intangible assets acquired prior or sub- 
 sequent to March 3, 1917, the aggregate amount which 
 may be included in invested capital shall not exceed 25 per 
 centum of the par value of the stock or shares outstanding 
 at the beginning of the taxable year. 
 
 ^ 909 — Surplus or Undivided Profits Earned During Any 
 Year Excluded in Computing Invested Capital 
 for Such Year. 
 
 Profits earned during any taxable year or pre-war year 
 shall not be included in the computation of the invested 
 capital for such year, even though set up as "surplus" upon 
 the books or distributed in the form of stock dividends. 
 
 ^ 91 — Scope of Phrase "Surplus and Undivided Profits." 
 
 Section 326, Article (3) authorizes the inclusion in in- 
 vested capital of earned surplus and undivided profits used 
 or employed in the business. Inasmuch as all the income 
 of a corporation shall be deemed to be received from its 
 trade or business, all the surplus and undivided profits of a 
 corporation (exclusive of undivided profits earned during 
 the year), from whatever source derived, will, unless in- 
 vested in stocks, bonds (other than obligations of the United 
 States) , or other assets, the income from which is not sub- 
 
 iSC, 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 ject to the excess-profits tax, be deemed to be used or em- 
 ployed in the business and may be included in the invested 
 capital. 
 
 ^911— When Excess Value of Tangible Property May Be 
 Included in Surplus. 
 
 Where it can be shown by evidence satisfactory to the 
 Commissioner of Internal Revenue that tangible property 
 has been conveyed to a corporation by gift or at a value, ac- 
 curately ascertainable or definitely known as at the date of 
 conveyance, clearly and substantially in excess of the cash 
 or the par value of the stock or shares paid therefor, then 
 the amount of the excess shall be deemed to be paid in 
 surplus. The adopted value shall not cover mineral deposits 
 or other properties discovered or developed after the date of 
 conveyance, but shall be confined to the value accurately 
 ascertainable or definitely known at that time. 
 
 Evidence tending to support a claim for a paid-in surplus 
 under these circumstances must be as of the date of convey- 
 ance, and may consist, among other things, of (1) an ap- 
 praisal of the property by disinterested authorities, (2) the 
 assessed value in the case of real estate, and (3) the market 
 price in excess of the par value of the stock or shares. 
 
 If 912— Balance Sheet Must Conform to Reflect Capital 
 Adjustments. 
 
 Whenever any corrections are made in respect of the 
 capital stock and surplus, corresponding corrections must 
 be made in the respective asset items in the balance sheet 
 of the taxpayer. 
 
 After making any adjustments required the adjusted to- 
 tal of the capital and surplus account will represent the in- 
 vested capital at the beginning of the taxable year, except 
 that in any case where the admissible assets (and these 
 include all assets except stocks, bonds — other than obli- 
 gations of the United States — ^the income of which is not 
 subject to excess-profits tax) are less than the amount of 
 such adjusted total, then the invested capital must be fur- 
 ther reduced to an amount equal to the sum. of the admis- 
 sible assets. 
 
 481 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 If 91 3 — Average Adjustments. 
 
 If there has been any change made during the taxable 
 year in the amount of the invested capital, the monthly av- 
 erage shall be taken, but in no case may the invested capi- 
 tal include any surplus or undivided profits earned during 
 the taxable year. 
 
 ILLUSTRATION OF AVERAGE ADJUSTMENTS. 
 
 11914— 
 
 Thus, if the invested capital was $60,000 on January 1, 
 1918, and was increased on July 15, 1918, by the addition 
 of admissable assets to $100,000, the average capital would 
 be computed as follows : 
 
 Six months, at $60,000 $360,000.00 
 
 July— 14 days, at $60,000 $840,000 
 
 17 days, at $100,000 1,700,000 
 
 Total $2,540,000 
 
 Average for month of July — total divided by 31 81,935.48 
 
 Five months, at $100,000 500,000.00 
 
 Total for year $941,935.48 
 
 Average for year — total divided by 12 $78,494.62 
 
 MISCELLANEOUS PROVISIONS. 
 TI 91 S^Fiscal Year Computations. 
 
 If a corporation (other than a personal service corpora- 
 tion) makes return for a fiscal year beginning in 1917 and 
 ending in 1918, the tax for the first taxable year under this 
 title shall be the sum of: 
 
 (1) The same proportion of a tax for the entire period 
 computed under Title II of the Revenue Act of 1917 which 
 the portion of such period falHng within the calendar year 
 
 1917 is of the entire period, and (2) the same proportion 
 of a tax for the entire period computed under this title at 
 the rates specified in subdivision (a) of Section 301 which 
 the portion of such period falling within the calendar year 
 
 1 9 1 8 is of the entire period. 
 
 482 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 H 91 e— Amount Paid Under 1917 Act a Credit. 
 
 Any amount heretofore or hereafter paid on account of 
 the tax imposed for such fiscal year by Title II of the Rev- 
 enue Act of 1917 shall be credited toward the payment of 
 the tax imposed for such fiscal year by this title, and if the 
 amount so paid exceeds the amount of the tax imposed by 
 this title, the excess shall be credited or refunded to the 
 corporation in accordance with the provisions of Section 
 252. 
 
 If 91 7 — Proportionate Amount of Tax Payable. 
 
 (b) If a corporation makes return for a fiscal year be- 
 ginning in 1918 and ending in 1919, the tax for such fiscal 
 year under this title shall be the sum of: (1) the same pro- 
 portion of a tax for the entire period computed under sub- 
 division (a) of Section 301 which the portion of such period 
 falling within the calendar year 1918 is of the entire 
 period, and (2) the same proportion of a tax for the entire 
 period computed under subdivision (b) or (c) of Section 
 301 which the portion of such period falling within the 
 calendar year 1919 is of the entire period. 
 
 (c) If a partnership or a personal service corporation 
 makes return for a fiscal year beginning in 1917 and ending 
 in 1918, it shall pay the same proportion of a tax for the 
 entire period computed under Title II of the Revenue Act of 
 1917 which the portion of such period falHng within the 
 calendar year 1917 is of the entire period. 
 
 Tf 91 9 — Partnership and Personal Service Refunds. 
 
 Any tax paid by a partnership or personal service cor- 
 poration for any period beginning on or after January 1, 
 1918, shall be immediately refunded to the partnership or 
 corporation as a tax erroneously or illegally collected. 
 
 11 920— 
 
 Every corporation, not exempt under Section 304, shall 
 make a return for the purposes of this title. Such returns 
 shall be made, and the taxes imposed by this title shall be 
 paid, at the same times and places, in the same manner, and 
 
 483 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 subject to the same conditions, as is provided in the case of 
 returns and payment of income tax by corporations for the 
 purposes of Title II, and all the provisions of that title not 
 inapplicable, including penalties, are hereby made applicable 
 to the taxes imposed by this title. 
 
 If 921 — Limit of Tax on Profits from Sale of Mines. 
 
 In the case of a bona fide sale of mines, oil or gas wells, 
 or any interest therein, where the principal value of the 
 property has been demonstrated by prospecting or explora- 
 tion and discovery work done by the taxpayer, the portion of 
 the tax imposed by this title attributable to such sale shall 
 not exceed 20 per centum of the selling price of such prop- 
 erty or interest. 
 
 If 922— Rates of Tax for the Year 1919. 
 
 For the year 1919 and subsequent years the excess-profits 
 
 tax rates are as follows : 
 
 First bracket — 20 per cent of the net income in excess of 
 
 the excess profits credit and not in excess of 20 per cent 
 
 of the invested capital. 
 
 Second bracket — 40 per cent of the net income in excess 
 
 of 20 per cent of the invested capital. 
 
 The total tax shall not exceed the sum of the following : 
 20 per cent of the net income in excess of $3,000 ; and 
 40 per cent of the net income in excess of $20,000. 
 
 Tf 923 — Limitation on Value of Tangible Property Paid in 
 for Stock or Shares. 
 
 In the case of tangible property paid in for stock or shares 
 the amount to be included in invested capital for the purpose 
 of the tax is the actual cash value of the tangible property at 
 the time of payment; but in no case can this value exceed 
 the par value of the stock or shares specifically issued there- 
 for. 
 
 484 
 
WAR-PROFITS AND EXCESS-PROFITS TAX. 
 
 Treasury Decision 2791. 
 
 For the Purpose of Determining Invested Capital Under the 
 Act of October 3, 1917, Income and Excess Profits Taxes 
 Deemed to Have Been Paid Out of Earnings of the Year 
 For Which Levied. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned : 
 
 For the purpose of determining invested capital under 
 Title II of the Act of October 3, 1917, income and excess 
 profits taxes shall be deemed to have been paid out of the net 
 income for the taxable year for which such taxes are levied. 
 Amounts payable on account of income and excess profits 
 taxes for any year may be included in computing surplus and 
 undivided profits for the succeeding years only for the pro- 
 portionate part of the year represented by the period of 
 time between the close of the taxable year and the date or 
 dates upon which such taxes become due and payable. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: February 17, 1919. 
 CARTER GLASS, 
 
 Secretary of the Treasury. 
 
 485 
 
Pages 486 to 1000 
 
 In order to hasten delivery of the Manual, this 
 book was printed in two sections, the second section, 
 containing data that was then complete and avail- 
 able, being printed in advance. 
 
 As it was impossible to calculate at that time how 
 many pages the War Revenue Bill and Digest would 
 occupy, the page numbers of the section containing 
 the Security Prices were started at 1001. Thus folios 
 486 to 1000 are void. 
 
Section IL 
 
 CONTENTS. 
 
 High and Low Prices of Stocks and Bonds 
 
 as of March 1, 1913. 
 Treasury Decisions, Court Decisions, etc. 
 Complete List of Collection Districts. 
 Stock Dividends Paid in 1918. 
 
 1001 
 
High and Low Prices of Stocks 
 and Bonds as of March 1, 1913 
 
 The Revenue Act of 1918 provides, in part, as fol- 
 lows: 
 
 "That for the purpose of ascertaining the gain 
 derived or loss sustained from the sale or other 
 disposition of property, real, personal or mixed, 
 the basis shall be : 
 
 "In the case of property acquired before 
 March 1st, 1913, the fair market price or value 
 of such property as of that date." 
 
 Although the regulations provide that the depart- 
 ment cannot formulate a method that will determine 
 this value in all cases, and that the value is a ques- 
 tion of fact to be established by any evidence which 
 will reasonably and adequately make it appear, the 
 fair market price or value of securities as of March 
 1, 1913, is held, in the case of variation between 
 "opening and closing price" for the day, to mean the 
 average price for the day. 
 
 1003 
 
Quoted Values of Securities 
 as of March I, 1913 
 
 STOCKS 
 
 High 
 
 Abbeville Cotton Mills (South Carolina) 
 
 Acacia (Colorado Springs) 
 
 Acme Consolidated 
 
 Acme Steamship *70 
 
 Acme White Lead & Color Works, pfd 
 
 common 
 
 Acushnet Mill (New Brunswick) 
 
 Adams Express 
 
 Adams Gold Fid. Mining (Nev.) 
 
 Adams Mining 
 
 Adiron. Electric Power, com 
 
 preferred 
 
 Adrian Fence Co 
 
 Adventure Consolidated Mining 
 
 Aeolian -Weber, com. 
 
 preferred 
 
 Aetna Accident Insurance (Hartford) 
 
 Aetna Casualty & Surety 
 
 Aetna Fire Insurance (Hartford) 
 
 Aetna Life Insurance (Hartford) 
 
 Aetna National 
 
 Aetna National Bank (Hartford) 
 
 Aetna National Bank (New York) 
 
 Ahmeek Mining 
 
 Aiken Manufacturing (South Carolina) 
 
 Alabama Great Southern, com. 
 
 preferred 
 
 Ala. N. 0. Tex. & Pac. Jc, pfd. A (par £10) 
 
 B (par £10) 
 
 Alabama Traction, Light & Power, com 
 
 Alamo (Colorado Springs) 
 
 Alamo National Bank (San Antonio) 
 
 Alaska Copper 5% 
 
 Alaska Gold Mines 13% 
 
 Alaska Packers' Association 
 
 Alaska Steamship 
 
 Albany Insurance 
 
 Albany S. D. & Stor. 
 
 Albany Southern R. R., com 
 
 preferred 
 
 Albany & Susquehana, gtd. 
 
 Albany Trust (Boston) 
 
 Albany (New York) Trust Co. 
 
 Albaugh-Dover Co. 
 
 Alberta Pacific Grain, pfd. 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1005 
 
 jOW 
 
 Bid 
 
 Asked 
 
 __ 
 
 __ 
 
 75 
 
 __ 
 
 3c 
 
 3%e 
 
 — 
 
 Ic 
 
 2c 
 
 II 
 
 •24% 
 
 II 
 
 
 
 *27i/4 
 
 _^ 
 
 __ 
 
 145 
 
 _„ 
 
 __ 
 
 135 
 
 145 
 
 __ 
 
 
 
 Ic 
 
 __ 
 
 30c 
 
 __ 
 
 __ 
 
 30c 
 
 „„ 
 
 __ 
 
 57% 
 
 60 
 
 
 
 
 *19 
 
 
 
 31/, 
 
 4 
 
 
 
 25 
 
 35 
 
 
 
 85 
 
 95 
 
 
 
 $275 
 
 $285 
 
 
 
 275 
 
 285 
 
 
 
 349 
 
 353 
 
 
 
 605 
 
 515 
 
 __ 
 
 $27 
 
 $29 
 
 
 
 320 
 
 
 
 
 
 195 
 
 200 
 
 
 
 290 
 
 300 
 
 __ 
 
 38 
 
 42 
 
 
 
 $441/2 
 
 $461/, 
 
 
 
 $56% 
 
 $581/, 
 
 
 
 $8 
 
 $81/, 
 
 
 
 $% 
 
 $% 
 
 
 
 $40 
 
 $45 
 
 
 
 .005c 
 
 __ 
 
 
 
 190 
 
 
 
 5% 
 
 
 
 __ 
 
 13% 
 
 
 
 
 
 __ 
 
 90 
 
 __ 
 
 
 
 __ 
 
 *58 
 
 
 
 $100 
 
 $101 
 
 
 
 125 
 
 
 
 
 
 7 
 
 10 
 
 
 
 23 
 
 28 
 
 
 
 *275 
 
 285 
 
 
 
 $90 
 
 $96 
 
 
 
 190 
 
 195 
 
 
 
 
 
 *7i/. 
 
 __ 
 
 
 
 *100 
 
High Low Bid Asked 
 
 Alden Mills, com. __ __ 26 
 
 ^preferred „ 93 
 
 Aldine Fruit Co __ __ __ *110 
 
 Aldine Trust (Philadelphia) *125 *125 
 
 Algomah Mining ll^ V/^ 
 
 Alice Gold & Silver Mining *$3.10 *$3.10 
 
 Allegheny & Western, gtd. __ __ *130 •138 
 
 Allegheny Traction __ __ __ $50 
 
 Allegheny (Pa.) Trust *$140 *$140 
 
 Allemannia Insurance (Pittsburgh) $110 
 
 Allentown National Bank (Allentown) __ __ 158 1591/2 
 
 Allentown Portland Cement, com. *3V^ 
 
 Allentown (Pa.) Trust Co. __ __ $53 $55 
 
 Alliance Bank (Rochester) __ 245 255 
 
 Alliance Insurance (Philadelphia) __ __ $15% $16 
 
 Alliance Realty __ __ $115 $117 
 
 AUis-Clialmers, com 14 
 
 Cent. Tr. Ctfa., Com., of dep. 3rd Paid— „ __ 3 4l^ 
 
 Pfd. Cent. Tr. Ctfs. of dep. 3rd Paid __ __ __ 9 
 
 All Night & Day Bank (L. A.) __ __ 245 260 
 
 Allouez Mining __ __ 36 38 
 
 Alpha Mining (Nevada) le 
 
 Alta Silver Mining (Nevada) 3c 
 
 Altoona (Pa.) Trust Co. __ __ 200 210 
 
 Amalgamated Copper 69% 68l^ 
 
 Amalgamated Nevada Mines Ic 2c 
 
 Amalgamated Oil __ __ 86% 86% 
 
 America, Bank of (New York) __ __ *605 615 
 
 American Academy of Music *210y2 *210y2 
 
 American Agricultural Chemical, com. 51^/2 SlVg 
 
 preferred __ 90 99 
 
 American Arch Co. . *95 
 
 American Assurance, com. __ *13 
 
 American Axe & Tool __ __ *24 *30 
 
 American Bakery, pfd. __ __ 971/2 
 
 common 52 
 
 American Bank (Philadelphia) *$60 *$60 
 
 American Bank Note, com. __ __ $50 $51 
 
 preferred __ __ $53 $54 
 
 American Bank & Trust (San Antonio) 110 
 
 American Beet Sugar Co., com. 34% 35% 
 
 preferred __ __ 84 86 
 
 American Book _.. __ 170 175 
 
 American Brake Shoe & Foundry, com. 90% 95 
 
 preferred __ __ 131% 1361/3 
 
 American Brass 138 142 
 
 American Can, pfd. 124% I241/2 
 
 common 35% 35% 
 
 American Car & Foundry, pfd. 116 116 
 
 common 49% 49% 
 
 American Caramel, com. __ __ 4 10 
 
 preferred __ 30 50 
 
 American Cement $2 $2% 
 
 American Central Insurance (St. Louis) — __ __ 148 
 
 American Chain, pfd __ — *100 
 
 American Chicle, com. 205 210 
 
 preferred »_ __ 100 103 
 
 American Cigar, com. — 140 147 
 
 preferred 85 95 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1006 
 
High Low 
 
 American Cities, com. 
 
 preferred 
 
 American Coal Co. of Allegheny Co. 
 
 American Coal Products, com. 
 
 preferred 1 
 
 American Color, pfd. 
 
 American Colortype, 1st pfd. 
 
 ■ second preferred 
 
 common 
 
 American Cotton Oil, com 
 
 preferred 
 
 American Credit Indem 
 
 American Crude Oil 
 
 American District Telegraph (New Jersey) 
 
 American District Telegraph (New York)_> 
 
 American Dredging Co. 
 
 American Druggists Syndicate 
 
 American Exchange National Bank (Dallas) 
 American Exchange National Bank (Duluth) 
 American Exchange National Bank (N. Y.) 
 
 American Express 
 
 American Felt Co., pfd. '101 'lOl 
 
 American Fire Insurance (Philadelphia) $60 
 
 American Five & Ten-Cent Store, pfd. __ __ *85 
 
 American Fork & Hoe, com. 111 
 
 preferred 
 
 American Fruit Prod., com. 
 
 preferred 
 
 American Gas Co. of New Jersey *103 
 
 American Gas & Electric, com. 
 
 preferred I - 
 
 American Glue, com. 
 
 preferred 
 
 American Gold Mining 
 
 American Graphophone, com 
 
 ■ preferred 
 
 American Hardware 
 
 American Hide & Leather, com. : 414 414 
 
 preferred 
 
 American Hominy, pfd. 
 
 common 
 
 American Hosiery 
 
 American Ice Securities 241/4 2414 
 
 American Insurance (Newark) 
 
 American-La France Fire Eng., com. 
 
 preferred 
 
 American Laundry Machine, com 
 
 American Light & Traction, com 
 
 preferred 
 
 American Linen Mills (Fall River) 
 
 American Linseed, com. 
 
 preferred 
 
 American Lithographic, pfd 
 
 common 
 
 American Locomotive, com 35% 35% 
 
 preferred 
 
 American Lumber 
 
 American Machine & Foundry 
 
 *Quotation nearest March 1, 1913. No quotatioD on that date. 
 
 1007 
 
 Bid 
 
 Asked 
 
 471/2 
 753/4 
 $171/2 
 87 
 
 49 
 
 77 
 
 $25 
 
 92 
 
 100 
 
 1091/2 
 *90 
 
 ~ 
 
 $1021/2 
 *90 
 
 
 
 *31 
 
 47 
 
 49 
 
 96 
 
 100 
 
 120 
 
 
 
 
 30c 
 
 *50 
 
 *53 
 
 16 
 
 18 
 
 350 
 
 *1953/4 
 *13% 
 
 325 
 
 
 
 234 
 
 260 
 
 1571/2 
 
 162 
 
 
 
 ♦128 
 
 
 
 4 
 
 ~ 
 
 25 
 
 $84 
 
 $86 
 
 $44 
 
 $451/2 
 
 102 
 
 IO6I/2 
 
 139 
 
 144 
 
 8c 
 
 15c 
 
 
 
 53 
 
 
 
 80 
 
 136 
 
 138 
 
 251/2 
 
 27 
 
 84 
 
 85 
 
 55 
 
 56 
 
 $195 ; 
 
 $215 
 
 $26 
 
 :: 
 
 4 
 
 7 
 
 40 
 
 45 
 
 
 
 ♦31 
 
 400 
 
 410 
 
 108 
 
 110 
 
 
 
 80 
 
 9% 
 
 11 
 
 27 
 
 30 
 
 *95 
 
 __ 
 
 *58 
 
 ♦64 
 
 1041/2 
 
 1051/2 
 
 ♦621/2 
 
 
 ♦451/4 
 
 ♦471/4 
 
High Low 
 
 American Mail Steamship 
 
 American Malt Corporation, com. 
 
 ^preferred 
 
 American Manufacturing 
 
 American Marconi (new). 
 
 American Meter 
 
 American Multigraph, com. 
 
 preferred 101 
 
 American National Bank (Atlanta) 
 
 American National Bank (Beaumont) 
 
 American National Bank (Forth Worth) 
 
 American National Bank (Louisville) 
 
 American National Bank (Macon) 
 
 American National Bank (McAllister) 
 
 American National Bank (Nashville) 
 
 American National Bank (Newark) 
 American National Bank (Oklahoma City) — 
 
 American National Bank (Richmond) 
 
 American National Bank (St. Paul) 
 
 American National Bank (San Francisco) 
 
 American National Bank (Shreveport) 
 
 American National Bank (Washington) 
 
 American National Bank (Wilmington, N. C.) 
 
 American News Co. 
 
 American Oil Fields 
 
 American Oriental Co., pfd. 
 
 common 
 
 American Petroleum, com. 
 
 preferred 
 
 American Piano, pfd. 
 
 American Pipe & Construction 90 
 
 American Pneumatic Service, com. 
 
 -1st preferred 
 
 2nd preferred 
 
 American Power & Light, com. 
 
 preferred 
 
 American Press Association 
 
 American Public Utilities, pfd. 
 
 common 
 
 American Radiator, com. 
 
 preferred 
 
 American Railways, com. 
 
 American Rolling Mill, com. 
 
 preferre^d 
 
 American Savings Bank (Los Angeles) 
 
 American Screw __ ■ __ 
 
 American Seating Co., pfd. 
 
 American Security & Trust ( Washington )__ 
 
 American Seeding Machine, com. 
 
 preferred 
 
 American Sewer Pipe *10% 
 
 American Shipbuilding, com. 
 
 preferred 
 
 American Smelting & Refining, com 69% 69 
 
 preferred 103% 103% 
 
 American Smelters Securities, pfd., Ser. B 
 
 American Snuff, com. 
 
 preferred 
 
 American Speaking Telephone Co. 
 
 'Quotation nearest March 1, 1913. No quotation on tliat date. 
 
 1008 
 
 Bid 
 
 Asked 
 
 
 
 *10 
 
 11 
 
 12 
 
 531/3 
 
 56 
 
 *130 
 
 *132 
 
 51/2 
 
 5% 
 
 
 
 *110 
 
 17 
 
 191/2 
 
 215 
 
 222 
 
 300 
 
 
 
 
 
 225 
 
 
 
 1281/2 
 
 198 
 
 200 
 
 
 
 150 
 
 183 
 
 187 
 
 130 
 
 
 
 130 
 
 
 
 220 
 
 
 
 125 
 
 
 
 133 
 
 
 
 200 
 
 210 
 
 170 
 
 175 
 
 122 
 
 123 
 
 *29 
 
 __ 
 
 
 
 *16 
 
 
 
 *60 
 
 
 
 *5 
 
 51 
 
 65 
 
 71 
 
 76 
 
 *70 
 
 *75 
 
 Svh 
 
 $41/4 
 
 $493/4 
 
 $51 
 
 $21 
 
 $22 
 
 731/2 
 
 75 
 
 83 
 
 86 
 
 48 
 
 52 
 
 751/2 
 
 
 
 621/2 
 
 641/2 
 
 500 
 
 
 
 133 
 
 136 
 
 $40 
 
 $401/2 
 
 173 
 
 200 
 
 1151/2 
 
 125 
 
 175 
 
 
 
 
 
 154 
 
 *20 
 
 *30 
 
 310 
 
 __ 
 
 
 
 84 
 
 97 
 
 100 
 
 52 
 
 54 
 
 100 
 
 101 
 
 85 
 
 86 
 
 175 
 
 190 
 
 103 
 
 105 
 
 -_ *250 
 
High Low Bid Asked 
 
 American Spinning Co. — 155 
 
 American State Bank (Chicago) — __ 210 215 
 
 American Steam Gauge & Valve Mfg., pfd. — — — — *105 
 
 American Steel Foundries, new stock __ __ 331/3 35 
 
 American Sugar Refining, com , — 113 115 
 
 preferred __ __ 113 116 
 
 American Sumatra Tobacco, pfd. — *73 
 
 common' *16% 
 
 American Surety __ — $100 $102l^ 
 
 American Telegraph & Cable Co — — *58% *66 
 
 American Telegraph Typewriter *40 *47 
 
 American Telephone & Telegraph 132% 132% 
 
 American Textile (Pawtucket) 125 
 
 American Thread __ $3y2 $5 
 
 American Tobacco, common 240 260 
 
 preferred — _- 103^2 104 
 
 American Trust Co. (Boston) 350 
 
 American Trust (Charlotte) __ 170 
 
 American Trust (Morristown) 120 
 
 American Trust & Sav. Bank (Birmingham) __ __ 195 200 
 
 American Type Founders, com. 46 49 
 
 preferred __ 100 103 
 
 American Utilities — 10 shares preferred and 5 shares common sold for 
 $1,000, March 1, 1913. 
 
 American Vanadium Co. *500 
 
 American Water Works & Electric, com *55 *60 
 
 preferred 97 97^2 
 
 American W. Wks. & Guar. (Pittsburgh), pfd. __ __ __ *97y3 
 
 common *57V^ *60 
 
 American Window Glass, pfd. 42 
 
 American Wire Fabrics, pfd. *90 
 
 American Woolen, pfd. 77% 771/2 
 
 common 17 17i/a 
 
 American Wririger, com. 106 
 
 preferred 116 
 
 American Writing Paper, pfd. 28*4 28 
 
 common 2 2^4 
 
 American Zinc, Lead & Smelting __ 29% 29% 
 
 Ames-Holden-McCready, pfd. __ __ 781/2 *79 
 
 Amherst Gas 145 145 
 
 Amoskeag Manufacturing, com. __ __ __ 71 
 
 preferred __ __ 9814 99 
 
 Anaconda Copper $361/4 $35% 
 
 Anacostia & Potomac River 5s, 1948 *98i/3 __ 
 
 guarantee 5s, 1948 *101 
 
 Anderson Cotton Mills (South Carolina) 35 45 
 
 Andes Silver Mining (Nevada) 4c 
 
 Andreae Silk (Virginia) __ __ *100 
 
 Andrew Jergens, pfd. 105 
 
 Androscoggin Mills (Maine) *160 
 
 Anglo-American Oil $18 $18l^ 
 
 Anglo & L. P. National Bank (San Francisco) __ __ 152 I531/2 
 
 Anglo California Trust Co. (San Francisco) __ __ __ 125i^ 126l^ 
 
 Ann Arbor, com. 15 30 
 
 preferred 50 80 
 
 Annapolis (Maryland) Gas & Elec. Lt., com. __ __ *50 
 
 Anthracite Trust (Scranton) *73 *76 
 
 Appalachian Power, com. __ 22 23 
 
 preferred __ 71% 73 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1009 
 
High Low Bid Asked 
 
 Appleton Co. (Massachusetts) 'ITS 
 
 Apsley Rubber, pfd. __ __ __ *iii 
 
 Ardmore National Bank __ *120 
 
 Aristos Co., pfd. __ •12 
 
 Arizona Commercial Mining __ 3% 3% 
 
 Arizona Power, com. __ II1/2 13 
 
 preferred j. __ 45 50 
 
 Arkansas, Oklahoma & Western Ry., com $8 
 
 Arkansas Vy. Ry. Light & Power, pfd _. __ __ 971/3 
 
 Arkwright Mills (Fall River) __ __ __ 70 
 
 Arkwright Mills (South Carolina) __ __ 95 100 
 
 Arlington Fire Insurance __ __ 16 21 
 
 Arlington Insurance (Washington) __ $16 $21 
 
 Arlington Mills (Massachusetts) 108 112 
 
 Arlington Trust (Lawrence) __ __ 125 
 
 Armet Moving Pictures *20 
 
 Arms Palace Horse Car Co. __ __ *5 
 
 Armsby Co. of New York, pfd. __ __ __ 100 
 
 Arnold Mining __ i 
 
 Arsenal Bank (Pittsburgh) 138 
 
 Art Metal Cons., com. __ __ __ *170 
 
 Arundel Sand & Gravel, pfd __ __ __ *85 
 
 Aseptic Products, pfd. __ __ __ *lll^ 
 
 common __ *15 
 
 Assets Realization Co _^ 105 115 
 
 Associated Gas & Electric, pfd __ *100 
 
 Associated Merchants, 1st pfd. *100 *101 
 
 preferred __ ,_ *100 •lOQi/g 
 
 Associated Oil __ 41 441/2 
 
 Astor Trust (New York) __ __ 350 375 
 
 Atchison, Topeka & Santa Fe, com. 102 101% 
 
 preferred 100% 100% 
 
 Athenaeum of Philadelphia __ *13 
 
 Atlanta & Charlotte Air Line __ 165 170 
 
 Atlanta & Gulf Cotton Mills (Georgia) __ __ __ 110 
 
 Atlanta & West Point __ __ 150 155 
 
 Atlanta Mining 17%c 17c 
 
 Atlanta National Bank __ __ 290 305 
 
 Atlanta (Georgia) Trust __ __ 105 109 
 
 Atlantic City Co., pfd. __ __ *80 *85 
 
 common *10 *15 
 
 Atlantic City Gas, pfd. __ __ __ *84% 
 
 Atlantic City Electric _« __ __ *100 
 
 Atlantic Coast Line 125 125 
 
 Atlantic Coast Line Co. of Connecticut __ __ 247% 255 
 
 Atlantic Cotton Mills ♦40% __ 
 
 Atlantic Dock Co. __ __ __ *98 
 
 Atlantic Fruit & Steamship __ __ *1% *2% 
 
 Atlantic, Gulf & West In., com __ 5% 6% 
 
 preferred __ __ 10% 12 
 
 Atlantic National Bank (Providence) $60 
 
 Atlantic Power & Light — 10 shares preferred and 4 shares common sold 
 for $1,000, March 1, 1913. 
 
 Atlantic Refining ♦635 ^635 
 
 Atlantic Trust & Banking (Wilmington) __ __ 340 345 
 
 Atlas National Bank (Cincinnati) 320 325 
 
 Atlas Portland Cement, com. $60 
 
 Atlas Powder __ .. ♦gi ^92% 
 
 'Quotation nearest March 1. 1913. No quotation on that date. 
 
 1010 
 
High Low Bid Asked 
 
 Atlas Wonder Mining (Nevada) — — 12c 13c 
 
 Attleborough Steam & Elec — „ — t280 
 
 Augusta-Aiken Ry. & Elec, com. __ __ 23 35 
 
 preferred — • — 75 85 
 
 Augusta & Savannah — — 103 107 
 
 Augusta Factory (Georgia) — — 30 35 
 
 Augusta Knitting Co., pfd. — — — *100 
 
 Augusta (Georgia) Savings Bank __ — 150 
 
 Augusta Southern Railroad — — — *5 
 
 Aurora, Elgin & Chicago, com — — 41 45 
 
 preferred — __ 86 891/2 
 
 Austin (Texas) National Bank — — 250 
 
 Austin State Bank (Chicago) — __ — 215 
 
 Auto Safety Razor, pfd. — __ __ *100 
 
 Auto Transportation — — *22 
 
 Automatic Electric — — — *65 
 
 Automatic Lighting — — 5% — 
 
 Autosales Gum & Candy — — 27 32 
 
 Avery Co., pfd — — *96 ♦971/3 
 
 common — — — *103i/3 
 
 Babcock & Wilcox __ — 103 105 
 
 Back Bay Realty Association — __ *105 
 
 Badger State Bank (Milwaukee) — — 103 105 
 
 Bagdad Copper — — — *3i/2 
 
 Balch PubUshing, pfd. — — — *3i/2 
 
 Baldwin Locomotive, com. 49% 49l^ 
 
 preferred — — 104 106 
 
 Baltimore & Ohio, com. lOlVs 100% 
 
 preferred — — 83 84 
 
 Baltimore Brick, com. — — 2 2l^ 
 
 preferred — — 23 25 
 
 Baltimore Electric, pfd 45 45 
 
 Baltimore Trust Co. — — "158% __ 
 
 Bangor Railway & Electric, com. > — __ 88 40 
 
 preferred — — 115 120 
 
 Bank for Savings (Seattle) — — — 100 
 
 Bank of America (New York) „ — 605 615 
 
 Bank of British North America (Montreal)— __ __ 155 
 
 Bank of Buffalo — — 310 325 
 
 Bank of California (San Francisco) — 200 
 
 Bank of Charleston (South Carolina) __ — 235 240 
 
 Bank of Commerce (Cleveland) *217 
 
 Bank of Commerce (Little Rock) — __ $87l^ _- 
 
 Bank of Commerce (Philadelphia) *140i/2*140i/2 
 
 Bank of Commerce & Trust (Memphis) __ __ 290 300 
 
 Bank of Commerce & Trust (Richmond) „ __ 197 200 
 
 Bank of Coney Island (Brooklyn) __ __ 135 155 
 
 Bank of Flatbush (Brooklyn) __ ._ 150 165 
 
 Bank of Hamilton (Ontario) 1 — — — 208 
 
 Bank of Manhattan County (New York) __ __ $175 $180 
 
 Bank of the Metropolis (New York) *340 *340 
 
 Bank of Montreal — — — 242 
 
 Bank of New Brunswick (St. John) — __ 275 
 
 Bank of Norfolk — — 130 140 
 
 Bank of North America (Philadelphia) *295 *295 
 
 Bank of Nova Scotia (Halifax) „ __ 26O14 261 
 
 Bank of Ohio Valley (Wheeling) __ __ $82 $85 
 
 Bank of Orleans (New Orleans) __ — 225 
 
 •Quotation nearest March 1, 1913. No quotation on thai date. f'Value" as of March 1, 1913. 
 
 1011 
 
High Low 
 
 Bank of Ottawa (Ontario) 
 
 Bank of Pittsburgh 
 
 Bank of Saginaw 
 
 Bank of Topeka (Kansas) 
 
 Bank of Toronto (Ontario) 
 
 Bank of Washington Heights (New York) 
 
 Bankers' Trust (Houston) 
 
 Bankers Trust (New York) 
 
 Bankers' Trust (St. Louis) 
 
 Bankers' Trust (Tacoma) 
 
 Banking Trust (Kansas City, Kan.) 
 
 Banner (Colorado Springs) 
 
 Banque d'Hochelaga (Montreal) 
 
 Banque Nationale (Quebec) 
 
 Barnard Manufacturing (Fall River) 
 
 Barnett National Bank of Jackson 
 
 Barney & Smith Car, com 
 
 preferred 
 
 Barre (Vermont) Bank & Trust 
 
 Barrett Company, com. 
 
 preferred 
 
 (Formerly American Coal Products Co.) 
 
 Barristers Hall Trust (Boston) 
 
 Batavia Rubber, pfd. 
 
 Bates Manufacturing Co. (Maine) *272y3 — 
 
 Batopilas Mining 
 
 Battery Park National Bank (New York) — 
 
 Baxter National Bank (Rutland) 
 
 Bay City (Michigan) Bank 
 
 Bay State Gas 
 
 Bay State National Bank (Lawrence) 
 
 Bay State Street Ry., 1st pfd. 
 
 Beacon Mfg. (New Brunswick), com 
 
 < preferred 
 
 Beacon Trust (Boston) 
 
 Bear Creek Oil & Mining 
 
 Beatrice Creamery, com. 
 
 preferred 
 
 Beaver Consolidated 
 
 Bedford Safety Razor 
 
 Bedford Trust (Boston) 
 
 Beech Creek Railroad, gtd. 4% 
 
 Beekman Estate, Inc., com. 
 
 Begole Syndicate 
 
 Belcher Mining Co. (Nevada) 20c 20c 
 
 Bellows Falls Power, pfd. 
 
 Bell Telephone of Canada 
 
 Bell Telephone of Pennsylvania •1221/8 __ 
 
 Belmont Milling (Nevada) 
 
 Belmont Trust (Philadelphia) *$30 *$30 
 
 Belton Mills (South Carolina) 
 
 Bergen & Lafayette Trust (Jersey City) 
 
 Bergner & Engel Brewing, pfd. *95 *95 
 
 Berkeley Hotel Trust (Boston) 
 
 Berks County Trust (Reading) 
 
 Berkshire Cotton Mfg. (Massachusetts) 
 
 Berlin (Paper) Mills (Maine) *102 
 
 Bessie Gold Dredging, com. lOVg lOVg 
 
 preferred — — 11 llH 
 
 *Quotatlon nearest Marcb 1, 1913. No quotation on that date. 
 
 1012 
 
 Bid 
 
 Asked 
 
 
 
 210% 
 
 
 
 $125 
 
 300 
 
 320 
 
 
 
 250 
 
 __ 
 
 208 
 
 275 
 
 
 
 140 
 
 141 
 
 485 
 
 495 
 
 
 
 285 
 
 
 
 125 
 
 115 
 
 120 
 
 2y8c 
 
 28/8C 
 
 159 
 
 160 
 
 140 
 
 142 
 
 
 
 75 
 
 325 
 
 
 
 
 
 12 
 
 70 
 
 82 
 
 120 
 
 
 
 87 
 
 92 
 
 100 
 
 1091/8 
 
 
 $90 
 
 — 
 
 *100 
 
 iiVa 
 
 ill/a 
 
 130 
 
 140 
 
 110 
 
 __ 
 
 
 
 200 
 
 20c 
 
 21c 
 
 175 
 
 
 
 
 
 •120 
 
 102% 
 
 
 
 1121/2 
 
 
 
 225 
 
 
 
 72i/2( 
 
 ; 80c 
 
 145 
 
 151 
 
 931/^ 
 
 , 95 
 
 40c 
 
 42c 
 
 
 
 •100 
 
 $55 
 
 $70 
 
 *$45Vo 
 
 $48 
 
 
 
 $100 
 
 iVa 
 
 ; 1% 
 
 
 ♦96 
 
 149% 
 
 , 150 
 
 $7 
 
 $7 
 
 100 
 
 105 
 
 290 
 
 — 
 
 $75 
 
 $85 
 
 $19* 
 
 $20 
 
 235 
 
 250 
 
High Low Bid Asked 
 
 Best & Belcher Mining (Nevada) __ _- 3c 4c 
 
 Bethlehem Steel, com. SeVs SSy^ 
 
 preferred 66 65% 
 
 Beverly Gas & Elee __ _- __ t300 
 
 Beverly National Bank (Boston) :. __ __ 152 
 
 Bibb Manufacturing (Georgia) __ __ 90 95 
 
 Big Vein Coal Co. of West Virginia __ __ *25c 
 
 Bigelow Carpet *170l^ __ 
 
 Bigelow -Hartford Carpet, com. 122 124 
 
 preferred — __ 118 122 
 
 Bigelow Kennard & Co., 1st pfd. *105 *105 
 
 Billings & Spencer $48 
 
 Bingham Mines 4 4^ 
 
 Biograph Co. __ __ *95 
 
 Birmingham, Ensley & Bessemer R. R., pfd.__ __ __ *48% 
 
 common I _« __ *16 "20 
 
 Birmingham Insurance (Pittsburgh) $100 
 
 Birmingham Railway, Light & Power, com. 100 125 
 
 ' preferred __ __ 98 102 
 
 Birmingham Trust & Savings Bank 240 250 
 
 Bishop, Babcock & Becker, com *5 
 
 preferred *70 
 
 Black Jack (Colorado Springs) __ 2c 2y8e 
 
 Black Mountain Corporation 5c 
 
 Blackstone Can. National Bank (Providence) __ $35 
 
 Blackstone Val. Gas & Electric, pfd. __ __ *110 
 
 Blanke (C. F.) Tea & Coffee _- __ „ "SI 
 
 Blaugas Co. of America $20 
 
 Bleecker Street & Fulton Ferry __ __ 18 23 
 
 Bliss (E. W.), com. __ __ $40 $45 
 
 preferred __ __ $61 $65 
 
 Blue Bell (Colorado Springs) __ .0095c 
 
 Blue Bell Mining (Nevada) 2c 
 
 Blue Bull Mine (Nevada) __ 4c 5c 
 
 Blue Creek Coal & Sand >. _« __ *75 
 
 Bluff City Insurance (Memphis) 93 100 
 
 Board of Trade Building Tr. (Boston) ._ »_ $101 $106 
 
 Boatmen's Bank (St. Louis) »_ __ 224y, 
 
 Bob Lee (Colorado Springs) .007c 
 
 Bohemia Mining 2 2*A 
 
 Bon Air Coal & Iron, pfd __ __ y^ ly. 
 
 Bonanza Development Co. 40c 45c 
 
 Bond & Mortgage Guarantee 288 293 
 
 Bond Lumber (Mississippi) 60 
 
 Bonnie Claire Mining (Nevada) 2c 
 
 Booth Fisheries, com. — — 64 65 
 
 . 1st pfd. 85 85 
 
 Booth Mills (Massachusetts) *98y8 — 
 
 Booth Mining (Nevada) 5c 
 
 Borden (Richard) Manufacturing „. 139 
 
 Borden's Condensed Milk Company __ __ 116 119 
 
 preferred __ _- 108 110 
 
 Border Cotton Mills (Fall River) __ >_ ._ 110 
 
 Borne-Scrymser *310 
 
 Boston & Albany __ __ __ 211 
 
 Boston Athenaeum Co *330 *330 
 
 Boston Belting 154 
 
 Boston & Chelsea Street R. R _ *75 
 
 Boston Cold Storage preferred __ __ *95 
 
 *QuotatIon nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1013 
 
High 
 
 Boston & Corbin Copper & Silver Mines 
 
 Boston & Lowell 
 
 Boston & Maine, common 
 
 preferred 
 
 Boston & Providence 
 
 Boston & Worcester Electric, -common 
 
 preferred 
 
 Boston & Worcester Street Railway, preferred 
 
 Boston Condensed Milk, first preferred 
 
 Boston Duck (Massachusetts) 
 
 Boston Elevated, common 
 
 Boston Ely Mining 
 
 Boston Gr. Rent Tr 
 
 Boston Insurance 
 
 Boston Land 
 
 Boston Library Society 
 
 Boston Manufacturing (Massachusetts) 
 
 Boston Real Estate Trust 
 
 Boston, Revere Beach & Lynn 
 
 Boston Safe Deposit & Trust 
 
 Boston Securities, preferred *31 
 
 common 
 
 Boston Storage Warehouse . 
 
 Boston Suburban Electric, common 
 
 preferred 
 
 Boston Tonopah Mining (Nevada) 
 
 Bourne Mills (Fall River) 110 
 
 Bowery Bank (New York) 
 
 Boylston National Bank (Boston) 
 
 Braden Copper 8% 
 
 Brandon Mills (South Carolina) 
 
 Brazilian Traction, Light & Power 
 
 Bremen Bank (St. Louis) 
 
 Bridgeport Trust Co 
 
 Brier Hill Steel, preferred 108 
 
 Brighton Germ. Banking (Cincinnati) 
 
 Brill (J. G.) Co. preferred 
 
 Brine (R. S.) Transportation 
 
 Bristol Brass 
 
 Bristol County National Bank (Taunton) 
 
 Bristol Water 
 
 British American Tobacco $23% 
 
 British Columbia Copper 3% 
 
 British Columbia Packers, common 
 
 ^preferred "A" 
 
 British North America (Bank of) 
 
 Broad & Market National Bank (Newark) 
 
 Broad Brook Co 
 
 Broad Street Bank (Richmond) 
 
 Broad Street National Bank (Trenton) 195 
 
 Broadway & Seventh Avenue 
 
 Broadway Bank (St. Louis) 
 
 Broadway National Bank (Nashville) 
 
 Broadway Savings & Trust (Cleveland) 
 
 Broadway Savings Trust (St. Louis) 
 
 Broadway Trust (Camden) 
 
 Broadway Trust (New York) 
 
 ^Quotation nearest March 1, 1913. No quotation on that data. 
 
 1014 
 
 Low 
 
 Bid 
 
 Asked 
 
 __ 
 
 6 
 
 7 
 
 __ 
 
 
 
 203 
 
 __ 
 
 89 
 
 91 
 
 
 
 131 
 
 
 
 __ 
 
 __ 
 
 290 
 
 __ 
 
 $6 
 
 $7 
 
 __ 
 
 $43 
 
 $45 
 
 
 
 
 
 •120 
 
 __ 
 
 
 
 •98 
 
 
 
 1300 
 
 
 
 
 
 108 
 
 108% 
 
 __ 
 
 65c 
 
 70c 
 
 __ 
 
 $100 
 
 $103 
 
 
 
 480 
 
 500 
 
 »_ 
 
 $5Vfl 
 
 I $61/2 
 
 __ 
 
 __ 
 
 •15 
 
 
 
 110 
 
 
 
 
 
 __ $1160 
 
 __ 
 
 
 
 150 
 
 
 
 370 
 
 
 
 •31 
 
 
 
 
 
 __ 
 
 *4 
 
 •10 
 
 __ 
 
 $112 
 
 __ 
 
 
 
 $71/2 
 
 1 
 
 __ 
 
 $65 
 
 $68 
 
 — 
 
 Ic 
 
 2c 
 
 ~~ 
 
 425 
 
 "■" 
 
 
 
 120 
 
 125 
 
 8% 
 
 __ 
 
 __ 
 
 
 
 
 85 
 
 __ 
 
 96ys 
 
 1 96% 
 
 
 
 650 
 
 
 ~ 
 
 157 
 
 — 
 
 '_'_ 
 
 320 
 
 325 
 
 
 
 *100 
 
 •102 
 
 
 
 *60 
 
 •75 
 
 
 
 $391/4 
 
 $40% 
 
 
 
 103 
 
 
 
 
 
 
 
 •135 
 
 $233/8 
 
 
 
 
 
 3^8 
 
 
 
 
 
 
 148 
 
 154 
 
 __ 
 
 
 
 154 
 
 __ 
 
 155 
 
 
 
 
 
 155 
 
 __ 
 
 
 
 $18 
 
 __ 
 
 
 
 $60 
 
 
 
 195 
 
 
 
 __ 
 
 
 
 170 
 
 182 
 
 
 
 135 
 
 — 
 
 __ 
 
 150 
 
 155 
 
 __ 
 
 •235 
 
 __ 
 
 __ 
 
 155 
 
 
 
 
 
 194 
 
 __ 
 
 __ 
 
 165 
 
 175 
 
High Low Bid Asked 
 
 Brockton Gas Light ^___^__^ __ __ __ fi70 
 
 Bromfield Building Trust (Boston) __ __ __ $95 
 
 Bronx National Bank (New York) __ __ *200 
 
 Bronze Metal, preferred __ __ __ *85 
 
 common ^ *60 *65 
 
 Brooklyn Academy of Music __ *22i4 
 
 Brooklyn City R. R >_ __ $16 $16l^ 
 
 Brooklyn Factory & Power, preferred *100 
 
 Brooklyn Rapid Transit 89l^ 89 
 
 Brooklyn (New York) Trust Co __ __ 495 605 
 
 Brooklyn Union Gas __ __ 130 ISS^i 
 
 Brooklyn Warehouse & Storage *67V^ 
 
 Brown Hoisting Machinery, preferred "93 
 
 Brown Shoe, common __ 50 54 
 
 preferred __ 92 94 
 
 Brunswick-Balke-ColL, preferred __ IO914 110l^ 
 
 Brunswick Cons. Gold Min. (California) __ __ 80c 90c 
 
 Brunswick Terminal & Railway Sec 8% 8% 
 
 Bryant Park Bank (New York) __ __ 150 
 
 Bronx Borough Bank (New York) __ «_ 300 
 
 Bronx National Bank (New York) _- — 180 195 
 
 Bryant Paper, common __ *16% 
 
 Buckeye Pipe Line __ __ $82 $83 
 
 Buck's Stove & Range, preferred __ 101 
 
 Bucyrus Co, preferred __ __ *76 *83% 
 
 Buffalo & Susquehanna R. R., preferred __ _> *1 
 
 Buffalo Citj^ Gas, preferred 15 
 
 common . — — 5 6 
 
 Buffalo General Electric __ __ __ 1031^ 
 
 Buffalo Loan, Tr. & Safe Dep. Co _- __ 125 128 
 
 Buffalo Mines _. — 2l^ 21/3 
 
 Buffalo, Rochester & Pittsburgh, common 105 115 
 
 preferred — __ 123 150 
 
 Bullion Mining (Nevada) — — — 2c 
 
 Bunker Hill Mining (California) __ — $1.80 
 
 Burke Electric Co *20 
 
 Burl., Cedar Rapids & Nor _. __ __ *127ya 
 
 Burlington (Iowa) Savings Bank — — 125 
 
 Burroughs Adding Machine 347 357^ 
 
 Burt (F. N.) Co., common. __ »» __ 100 
 
 preferred — 104 
 
 Burton Dry Goods, preferred *100 *100 
 
 Bush Terminal, com __ — *54 *60 
 
 Business Real Estate Trust (Boston) __ __ __ $97 
 
 Butch. & Drov. National Bank (New York)— __ __ *$32ya*$35 
 
 Butler (James), pfd — — *65 
 
 Butler (Jim) Tonopah Mining (Nevada) >_ __ 73c 75c 
 
 Butler Mill (New Bedford) — — — 130 
 
 Butte & London Copper Dev — — 25c 30c 
 
 Butte & New York I14 1^4 
 
 Butte & Superior Copper — — 31^4 31% 
 
 Butte-Ballaklava Copper — — 2% 2% 
 
 Butte Central Copper — — 8:^ Si/g 
 
 Butte Coalition Mines (old stock) — — *15 
 
 Butterick Co. — — 28 31 
 
 By-Products Coke Corporation — — — *130 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1015 
 
High Low Bid Asked 
 
 Cabarrus Cotton Mills (North Carolina) — — 130 140 
 
 Cabot Manufacturing (Maine) *120 
 
 Cactus Copper — — 6c 7c 
 
 Calaveras Copper — — 2H SVa 
 
 Caledonia Mining (Nevada) 85c 85c 
 
 California Electric Generating, pfd __ — 75 80 
 
 California Fruit Canners Association — — HSVa — 
 
 California-Idaho Co., Series A — — — *50 
 
 California Insurance (San Francisco) __ — $73 
 
 California Midway Oil — — 10%c Ic 
 
 California Petroleum, com 50% 491/3 
 
 preferred — — 80 82 
 
 California Portland Cement — — 110 
 
 California Railway & Power, prior pfd __ __ 871/2 QSVa 
 
 California Sav. & Com. Bank (Los Angeles)— __ __ 190 
 
 California Street Railway __ — I241/2 __ 
 
 California Wine Association, com — __ 46l^ __ 
 
 preferred — — 83% 8514 
 
 Calumet & Arizona Mining — — 62 6214 
 
 Calumet & Chicago Canal & Dock __ — 53 57 
 
 Calumet & Hecla Mining _.. — 455 460 
 
 Calumet-Corbin — — 5c 10c 
 
 Calumet National Bank — — 140 150 
 
 Calvert Bank (Baltimore) — — $70 
 
 Camaguey Co., Ltd , __ __ — *65 
 
 Cambria Iron — $44 $45 
 
 Cambria Steel — — $51 $511/2 
 
 Cambridge Electric Light __ __ __ 1305 
 
 Cambridge Electric Securities t305 
 
 Cambridge Gas Light ., 285 285 
 
 Camden & Burlin^on County Railroad __ __ $321/2 $36i4 
 
 Camden & Suburban __ __ $19 $20 
 
 Camden (New Jersey) National Bank 191 
 
 Camden (New Jersey) Safe Deposit & Trust- *100 *100 
 
 Canada Bread, com __ __ 29 31 
 
 Canada Brick & Fire Proofing, pfd "100 *100 
 
 Canada Cement, com __ _- 27% 28 
 
 preferred __ __ 91 91% 
 
 Canada Foundries & Forgings, pfd *100 
 
 Canada Interlake Line, com 69 
 
 preferred >_ 87% — 
 
 Canada Landed & National Investment *170 
 
 Canada Life Assurance *170 
 
 Canada Machinery __ __ 591/2 61 
 
 Canada North-West Land *99 
 
 Canada Permanent I961/2 
 
 Canada Southern 60 63 
 
 Canadian Bank of Commerce (Toronto) __ __ $110 
 
 Canadian Car & Foundry, com __ __ 77 80 
 
 preferred 116 115 
 
 Canadian Cereal & Flour Mills *45 *45 
 
 Canadian Consolidated Rubber, com __ __ 85 90 
 
 preferred _^ 98% 99 
 
 Canadian Converters 46 47 
 
 Canadian Cottons, com __ __ 42% 43 
 
 preferred __ __ 78 78% 
 
 Canadian General Electric, com __ __ 110 
 
 Canadian Locomotive, com 67 
 
 preferred __ __ __ 95 
 
 •Quotation nearest March 1, 1913. No quotation on tiiat date. f'Value" as of March 1, 1913. 
 
 1016 
 
High Low Bid Asked 
 
 Canadian Marconi — ~ SVg 41/2 
 
 Canadian Pacific, com — 2311/2 231l^ 
 
 . preferred — — 97 99 
 
 Canadian Salt __— *120 
 
 Canadian Venezuelan Ore, Ltd _ *36 *36 
 
 Canal-Louisiana Bank & Trust (New Orleans) __ __ 105 
 
 Canal National Bank (Portland, Me.) — __ 108 110 
 
 Caney River Gas *$32 *$32 
 
 Canton Co. — — 136 
 
 Canton National Bank (Baltimore) __ — 105 110 
 
 Capital National Bank (St. Paul) __ „ 137 
 
 Capital National Bank (Washington) 224 
 
 Capital Traction — __ 122% 1231/, 
 
 Capital Trust (St. Paul) __ — 145 
 
 Carbolite Co. __ __ *3i/a __ 
 
 Cardenas American Sugar, pfd — lOOVa 101% 
 
 Caribou Oil __ — __ $1 
 
 Carolina Power & Light, pfd __ __ *93 *100 
 
 ■ common __ 26 28 
 
 Carolina Savings Bank (Charleston) __ __ 225 250 
 
 Carriage Factories, Ltd., pfd __ __ $100 
 
 Casco National Bank (Portland, Me.) __ __ 105 106 
 
 Case, Lockwood & Brainard 155 
 
 Case (J. L) Thresh. Mach. pfd. stk. tr. ctfs __ _- 100% 102l^ 
 
 Casein Co. of America, com 8 
 
 preferred 40 
 
 Cash Boy Consolidated Mining (Nevada) __ __ 8c 10c 
 
 Cass Avenue Bank (St. Louis) 200 
 
 Casualty Co. of America __ 110 120 
 
 Catawissa Railroad 1st pfd __ __ $55 $55i/, 
 
 2d preferred __ __ $531/2 $54i/, 
 
 Cayuga & Susquehanna ($30 par) __ 200 215 
 
 Celluloid Co. __ __ 135 138 
 
 Centennial Copper Mining __ __ 14% 16 
 
 Centennial National Bank (Philadelphia) *275 *275 
 
 Center Creek Mining __ __ $1.50 
 
 Central Aguirre Sugar, com *62 
 
 Central Arkansas Railway & Light, pfd *100 *100 
 
 Central Bank (Rochester) __ __ 240 250 
 
 Central Bank & Trust (Atlanta) >_ __ 140 143 
 
 Central Building Trust (Boston) __ __ __ $90 
 
 Central Canada Loan & Savings *190 
 
 Central Coal & Coke, com __ __ 92 93 
 
 preferred __ __ sii/a 8314 
 
 Central Crosstown Street Railway __ __ __ 10 
 
 Central-Eureka Mining (California) 15c 14c 
 
 Central Fire Works, com __ __ 2 3 
 
 preferred __ __ 25 30 
 
 Central Georgia Power __ __ *34 
 
 Central Leather, com 28% 2814 
 
 preferred 96l^ 9&y^ " _I 
 
 Central Maine Power, pfd __ __ *94 
 
 common __ __ *25 
 
 Central Manufacturing Dis. Bank, (Chicago). __ __ 140 150 
 
 Central Massachusetts Light & Power, pfd *105 *105 
 
 Central Mass. Power, pfd __ __ __ fiio 
 
 Central Mexico Light & Power, pfd _I II 64 68 
 
 Central National Bank (Buffalo) __ __ 200 
 
 Central National Bank (Cleveland) __ __ 163 II 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1017 
 
High Low Bid Asked 
 
 Central National Bank (Columbus, 0.) __ — — 103 
 
 Central National Bank (Frederick) -_ __ $35 
 
 Central National Bank (Los Angeles) -_ — 219 226 
 
 Central National Bank (Oakland) __ __ 160 
 
 Central National Bank (Philadelphia) *440 ^440 
 
 Central National Bk. of Richmond (Virginia) _- — 144 147 
 
 Central National Bank (St. Louis) __ — 118 120 
 
 Central National Bank (Topeka) >_ __ — 151 
 
 Central National Bank (Wilmington, Del.) — __ __ 115 125 
 
 Central National Bank (York) — __ 99 102 
 
 Central Oil 1.10 
 
 Central of New Jersey — — 345 350 
 
 Central Park, North & East River __ .._ 13 
 
 Central Savings Bank, Detroit __ __ 213 220 
 
 Central & South American Telegraph __ __ 105 112 
 
 Central State Bank & Trust (Memphis) __ __ 215 220 
 
 Central States Electric, pfd — __ *89 
 
 Central Syndicate Building Co -_ __ — *100 
 
 Central Trust (Altoona) __ — 200 210 
 
 Central Trust (Camden) _- __ __ lOSi/g 
 
 Central Trust (Harrisburg) __ >_ $65 $70 
 
 Central Trust (Indianapolis) __ __ 110 120 
 
 Central Trust (Macon) . __ __ 90 95 
 
 Central Trust (New York) __ — 1015 1030 
 
 Central Trust (San Antonio) __ 125 
 
 Central Trust Co. of Illinois (Chicago) __ __ 234 237 
 
 Central Trust & Safe Deposit (Cincinnati)™ __ __ 290 310 
 
 Central Trust & Savings (Philadelphia) *$65 *$65 
 
 Centre Wheeling Savings Bank (Wheeling) __ 215 
 
 Century Bank (New York) __ __ 220 230 
 
 Chace Mills (Fall River) __ __ __ 115 
 
 Challenge Mining (Nevada) __ __ 3c 5c 
 
 Chalmers Motor Co., pfd *102y2 $1021/3 
 
 common __ _« *132 
 
 Champion Coated Paper, com. 180 
 
 preferred __ __ 110 II21/2 
 
 Chapin National Bank (Springfield, Mass.) __ 115 120 
 
 Chapin-Sacks __ __ 160 220 
 
 Chapman National Bank (Portland, Me.) __ __ 108 110 
 
 Charleston (South Carolina) Savings Inst'n__ __ 425 450 
 
 Charlestown Gas & Elec __ __ __ tl30 
 
 Charlotte (North Carolina) National Bank __ 155 
 
 Charter Oak National Bank (Hartford) 155 
 
 Chase National Bank (New York) __ __ *690 715 
 
 Chatham Bank (Savannah) __ __ 138 
 
 Chatham & Phoenix National Bk. (New York) __ __ $44 $451^ 
 
 Chelsea Exchange Bank (New York) __ __ 150 153 
 
 Chelten Trust (Philadelphia) *$75 *$75 
 
 Chemical National Bank (New York) __ *440 448 
 
 Chemung Canal Trust (Elmira) __ __ 180 190 
 
 Cherokee Copper 1 
 
 Chesapeake & Ohio 73% 73% 
 
 Chesebrough Manufacturing __ __ $332^4 $337Vi 
 
 Chicago & Alton, com __ 10 20 
 
 preferred __ __ 251/2 40 
 
 Chicago Auditoriimi __ __ 15 16 
 
 Chicago Brewing & Malting, com __ __ 1 1% 
 
 preferred __ __ 6 Sy^ 
 
 Chicago, Burlington & Quincy _> __ ♦209 217 
 
 •Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1018 
 
Bid 
 
 A8k( 
 
 275 
 
 
 
 150 
 
 170 
 
 45 
 
 49 
 
 100 
 
 103 
 
 30 
 
 35 
 
 93 
 
 94 
 
 ♦62 
 
 *68 
 
 167 
 
 168 
 
 1041/3 
 
 
 
 •58 
 
 *59 
 
 High Low 
 
 Chicago City Bank & Trust (Chicago) 
 
 Chicago City Railway 
 
 Chicago & Eastern Illinois, com 
 
 preferred 
 
 Chicago Elevated Railways, com < 
 
 preferred 
 
 Chicago Great Western, com 15 15 
 
 Chicago, Indianapolis & Louisville, pfd 
 
 Chicago Jctn. Ry.& Un. Stk. Yds. (stp'd stk.) 
 
 preferred 
 
 Chicago Lumber & Coal 
 
 Central Mexico & Southern Pacific, com 109 lOSVg 
 
 ^pref erred :. ISSi/g ISSVa 
 
 Chicago-New York Air Line — — — *3V3 
 
 Chicago & North Western, com 136% 136^4 
 
 ■ preferred 
 
 Chicago Pneumatic Tool 
 
 Chicago Railways Certificates "1" 931/3 921/3 
 
 ■ "3" 233/4 233^ 
 
 "3" 
 
 «4» 
 
 Chicago Railways Equipment 
 
 Chicago R. E. Trustees 
 
 Chicago, Rock Island & Paciffic Ry. 
 
 Chicago, St. Paul, Minneapolis & Omaha, com. 
 
 preferred 
 
 Chicago Savings Bank & Trust (Chicago) 
 
 Chicago Securities Co., pfd. *100 *100 
 
 Chicago Suburban Gas & Electric, pfd 
 
 Chicago, Terre Haute & S. E 
 
 Chicago Title & Trust 
 
 Chicago Union Traction, stpd. 
 
 Chicago Utilities, com 
 
 preferred 
 
 Chicago, Wilra. & Vermilion Cont 
 
 Chicopee Manufacturing (Massachusetts) *110 
 
 Chicopee National Bank (Springfield, Mass.) 
 
 Chief Consolidated Mining 
 
 Chihuahua & Sinaloa Development 
 
 Childs Co., pfd. 
 
 common 
 
 Chino Copper $38% $37i/2 
 
 Chippewa Bank (St. Louis) 
 
 Chollar Mining (Nevada) 
 
 Christopher & 10th Streets Railroad 
 
 Cigar Machine Corporation of America 
 
 Cincinnati & Hamilton Traction, com. 
 
 ■ preferred 
 
 Cin. & Sub. Bell Telephone 
 
 Cincinnati, Dayton & Toledo Tr., com 
 
 Cincinnati Gas & Electric 
 
 Cincinnati Gas Trans. 
 
 Cinn. N. O. & Tex. Pac, com 
 
 preferred 
 
 Cinn., Newp. & Cov. Lt. & Tr., com. 
 
 preferred 
 
 Cincinnati Northern 
 
 Cincinnati, Sandusky & Cleveland, pfd. 
 
 Cincinnati Street Railway 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1019 
 
 180 
 
 190 
 
 491/3 
 
 50 
 
 '6% 
 
 "71/* 
 
 3% 
 
 4 
 
 
 851/3 
 
 < 
 
 5975 
 
 *100 
 
 110 
 
 125 
 
 130 
 
 140 
 
 155 
 
 147 
 
 151 
 
 "— 
 
 *97i/. 
 
 15 
 
 25 
 
 204 
 
 205 
 
 
 
 *6i/3 
 
 21/0 
 
 3% 
 
 *6 
 
 *12 
 
 *30 
 
 *42i/3 
 
 185 
 
 190 
 
 1% 
 
 1% 
 
 
 *1 
 
 *110i/3 
 
 *113 
 
 *150 ' 
 
 *162 
 
 215 
 
 " 
 
 
 
 Ic 
 
 125 
 
 135 
 
 *iy4 
 
 *ll/3 
 
 
 751/4 
 
 
 105 
 
 $1071/3 
 
 $110 
 
 23 
 
 25 
 
 
 
 85 
 
 
 
 115 
 
 
 
 255 
 
 
 
 1071/3 
 
 88I/4 
 
 93 
 
 763/4 
 
 821/3 
 
 35 
 
 50 
 
 *$67i/3 
 
 $721/3 
 
 H 
 
 *$56i/3 
 
High Low Bid Asked 
 
 Cincinnati Tobacco Warehouse __ __ __ 60 
 
 Cincinnati Union Stock Yards __ __ __ lOO 
 
 Cities Service, pfd. __ __ 88 90 
 
 common __ __ 140 145 
 
 Citizens' Bank (Buffalo) __ __ 225 
 
 Citizens* Bank (Norfolk) __ __ 275 
 
 Citizens' Bank & Trust (Memphis) _» __ 140 150 
 
 Citizens' Bk. & Tr. Co. of La. (New Orleans) __ _» 120 123 
 
 Citizens' Central National Bank (New York) __ __ *197 203 
 
 Citizens' Deposit & Trust (Allentown) __ __ $50 $51 
 
 Citizens' Firt Insurance of Baltimore __ __ __ *85 
 
 Citizens' National Bank (Baltimore) __ __ 42 42ya 
 
 Citizens' National Bank (Cincinnati) __ 203 210 
 
 Citizens' National Bank (Covington) __ __ 160 
 
 Citizens' National Bank ( Fredericksburg) ___ __ __ 450 
 
 Citizens' National Bank (Los Angeles) __ __ 260 265 
 
 Citizens' National Bank (Louisville) __ 250 255 
 
 Citizens' National Bank (Macon) __ __ 120 123 
 
 Citizens' National Bank (Raleigh) __ __ 160 
 
 Citizens' National Bank (Waterbury) __ __ 140 150 
 
 Citizens' Passenger Railway (Philadelphia)— __ __ $138' $143 
 
 Citizens' Savings Bank (Washington) __ __ $19^^ — 
 
 Citizens' Savings & Trust (Cleveland) *265 
 
 Citizens' Telephone, pfd. 30^4 
 
 Citizens' Traction (Pittsburgh) __ __ $50 $55 
 
 Citizens' Trust (Brooklyn) __ __ 150 155 
 
 Citizens' Trust (Paterson) __ __ 220 
 
 Citizens' Trust Co. (Savannah) __ 140 
 
 Citizens' Trust (Utica) __ __ 225 230 
 
 Citizens' Trust & Savings (Columbus, Ohio) __ __ 100 110 
 
 City & Suburban Homes *99 
 
 City Assoc. (Boston) __ __ $540 $580 
 
 City Bank of Hartford __ __ 125 
 
 City Bank of New Haven __ __ 135 
 
 City Bank (York) __ __ $95 $100 
 
 City Bany & Trust (Hartford) __ __ 125 
 
 City Bank & Trust (New Orleans) __ __ 114 
 
 City Dairy, com. __ __ 50 — 
 
 preferred 100 
 
 City Hall Bank (Cincinnati) __ __ 300 
 
 City Ice Delivery __ __ *75 *102 
 
 City Investing, com. 43 48 
 
 preferred — — 100 101 
 
 City Insurance (Pittsburgh) *$75 *$75 
 
 City Manufacturing (New Bedford) __ 115 120 
 
 City National Bank (Bridpeport) __ __ 215 
 
 City National Bank (Columbus, Ohio) __ __ 130 135 
 
 City National Bank (Dallas) __ __ 350 360 
 
 City National Bank (Dayton) __ __ 3OO 310 
 
 City National Bank (Duluth) __ __ 130 
 
 City National Bank (Galveston) __ __ 200 210 
 
 City National Bank (Holyoke) __ __ 113 114 
 
 City National Bank (McAlester) __ __ __ 160 
 
 City National Bank (Omaha) __ __ 105 112 
 
 City National Bank (San Antonio) >_ __ 225 
 
 City of New York Insurance __ __ 165 185 
 
 City Passenger Railway (Reading) __ __ $138 $143 
 
 City Railway (Dayton, 0.), com. __ __ __ 17O 
 
 preferred __ _> 145 150 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1030 
 
Bid 
 
 Asked 
 
 
 
 $850 
 
 125 
 
 __ 
 
 185 
 
 
 3%c 
 
 lie 
 
 *80 
 
 *85 
 
 *85 
 
 *88 
 
 *88 
 
 *91 
 
 165 
 
 
 
 107 
 
 
 
 *$8iy2 
 *$47y2 
 
 *83 
 $49y2 
 
 8 
 *30 
 
 — 
 
 *5y3 
 
 *30 
 
 53 
 
 57 
 
 90 
 
 95 
 
 
 
 400 
 
 Higli Low 
 City R. E. Tr. (Chicago) 
 
 City Safe Deposit (Albany) 
 
 City Trust (Newark) 
 
 C. K. & N. (Colorado Springs) 
 
 Claflin (H. B.) Co., com 
 
 1st preferred 
 
 2nd preferred 
 
 Claremont Bank (Jersey City) 
 
 Clark Avenue Savings Bank (Cleveland) 
 
 Claverly Trust (Cam.) — __ __ $410 
 
 Clement National Bank (Rutland) __ __ 250 
 
 Clements Hotel Co., com. __ — __ $100 
 
 Cleveland -Akron Bag *148 
 
 Cleveland & Buffalo Transit *140 
 
 Cleveland & Pittsburgh, gtd. 
 
 special guaranteed betterment 
 
 Cleveland & Sandusky Brew., com. 
 
 preferred 
 
 Cleveland & South Western Traction, com. 
 
 preferred 
 
 Cleveland, Cincinnati, Chicago & St. L., com. 
 
 ■ preferred 
 
 Cleveland Cliffs Iron 
 
 Cleveland Electric Illuminating __ __ *134% 
 
 Cleveland National Bank *106y8 __ 
 
 Cleveland, Painesville & Eastern 5 20 
 
 Cleveland Railway 103% __ 
 
 Cleveland, Southwest & Columbus Ry., com 
 
 preferred 
 
 Cleveland Stone *110 
 
 Cleveland Trust Co. 
 
 Cleveland Union Stock Yards 
 
 Cleveland Worsted Mills 
 
 Cliff Mining 
 
 Clifton Manufacturing (South Carolina) 
 
 Clinchfield Coal Corporation 
 
 Clinton Cotton Mills (South Carolina) 
 
 Clinton Trust (Newark) 
 
 Cluett Peabody, com. 
 
 • preferred 
 
 Coal & Iron National Bank (New York) 
 
 Coal Land Securities 
 
 Coal Valley Land Co. 
 
 Coalinga Central Oil 
 
 Coalinga National Oil 
 
 Cobalt Silver Queen 
 
 C. 0. D. Consolidated 7c 7c 
 
 Collins Co. (Connecticut) 
 
 Colonial Bank (New York) 
 
 Colonial Beach Co. *25 
 
 Colonial Oil 
 
 Colonial Trust (Baltimore) 
 
 Colonial Trust (Philadelphia) *$100 *$100 
 
 Colonial Trust (Pittsburgh) *$179 *$179 
 
 Colonial Trust (Reading) 
 
 Colonial Trust (Waterbury) 
 
 Colonial Trust & Savings Bank (Chicago) — 
 
 Colonial Savings & Loan (Can.), pfd *80ya „ 
 
 Colwell Lead, pfd. __ — *70 *87 
 
 •Quotation nearest March 1, 1913. No quotation on tiiat date. 
 
 1031 
 
 
 
 sy^ 
 
 ~ 
 
 30 
 
 232y2 
 
 235 
 
 135 
 
 
 
 125 
 
 
 
 1% 
 
 4 
 
 95 
 
 
 
 
 
 *77 
 
 115 
 
 125 
 
 150 
 
 
 
 60 
 
 63 
 
 98 
 
 101 
 
 160 
 
 165 
 
 *47 
 
 
 
 *40 
 
 *46 
 
 20c 
 
 
 
 16c 
 
 25c 
 
 4c 
 
 6c 
 
 205 
 
 215 
 
 425 
 
 — 
 
 130 
 
 135 
 
 $28% 
 
 $29y3 
 
 $16 
 
 $17 
 
 160 
 
 
 
 223 
 
 228 
 
High Low Bid Asked 
 
 Colorado Yule Marble, 2d pfd. __ __ ♦121/2 _. 
 
 Colt's Patent Fire Arms Mfg. (par $100) __ __ 178 182 
 
 Colorado & Southern, com. 26 26 
 
 1st preferred __ __ 67 69 
 
 2nd preferred __ __ 60 b7 
 
 Colorado Fuel & Iron, com. 33% 33% 
 
 preferred 170 177 
 
 Colorado Gold Camp (Colorado Springs) — — .005 
 
 Colorado Metals Extraction Co. '3U 
 
 Colorado Power, com. 20 
 
 preferred 75 
 
 Columbia Avenue Trust (Philadelphia) *170 *170 
 
 Columbia Bank (New York) __ __ •330 340 
 
 Columbia Bank & Savings (Cincinnati) 450 500 
 
 Columbia Gas & Electric __ __ 13^4 15 
 
 Columbia-Knickerbocker Trust (New York) 540 650 
 
 Columbia Mountain Mining (Nevada) Ic 2e 
 
 Columbia National Bank (Buffalo) __ __ 300 350 
 
 Columbia National Bank (Washington) __ __ 250 268 
 
 Columbia National Life Insurance (Boston)— __ __ 120 125 
 
 Columbia Oil __ __ 79c 
 
 Columbia (S. C.) By., Gas. & Electric, com__ __ __ 50 
 
 ^preferred __ __ 85 95 
 
 Columbia Sugar __ __ 8 10 
 
 Columbia Title (Washington) __ __ SeVg __ 
 
 Columbia Trust (Boston) __ __ 120 
 
 Columbus Dental Mfg., pfd. __ __ 114l^ __ 
 
 Columbus Edison, pfd. __ __ 103 
 
 common 851/2 
 
 Columbus Forge & Iron, pfd. __ __ __ 100 
 
 Columbus Gas & Fuel, com. __ __ 37 
 
 • preferred 70 
 
 Columbus Light, Heat & Power, pfd. __ __ __ 9514 
 
 common __ __ 54% __ 
 
 Columbus, Newark & Zanesville 100% 
 
 Columbus Railway, pfd. __ __ __ 90*4 
 
 ■ common. __ 69% 70% 
 
 Columbus Railway & Light ($20 paid) __ __ 18 191/2 
 
 Columbus & Xenia Railway $101 
 
 Combination Fracticn (Nevada) 8c 8c 
 
 Commerce & Savings Bank (Washington) I21/2 17 
 
 Commerce & Trusts (Richmond) 197 
 
 Commerce (Bank of), Can. __ __ __ 219% 
 
 Commerce (National Bank of New York) __ _« 191 193V3 
 
 Commerce Insurance (Albany) $42^2 
 
 Commerce Trust Co. (Kansas City, Mo.) __ __ 227 2281/2 
 
 Commercial Bank (Bay City) __ __ 225 250 
 
 Commercial Bank (Harrisburg) $80 
 
 Commercial Bank (Jacksonville) 100 
 
 Commercial Bank (Savannah) __ __ 116 
 
 Commercial Bank of Wheeling __ __ ' __ 225 
 
 Com'l-Germania Tr. & Sav. Bk. (New Orl.)__ __ __ 235 
 
 Commercial National Bank (Boston) 165 170 
 
 Commercial National Bank (Charlotte) 159 160 
 
 Commercial National Bank (Columbus, Ohio) 240 260 
 
 Commercial Nat'l Bank (Kansas City, Kan.) __ __ 275 
 
 Commercial Nat'l Bank (Kansas City, Mo..) __ 240 
 
 Commercial National Bank (Los Angeles) 175 205 
 
 Commercial National Bank (Macon) __ 120 123 
 
 •Quotation nearest Marcfa 1, 1913. No quotation on that date. 
 
 1033 
 
High Low Bid Asked 
 
 Commercial National Bank (Minneapolis) __ — 110 126 
 
 Commercial National Bank (Musk.) __ __ 150 
 
 Commercial National Bank (New Orleans) 285 
 
 Commercial National Bank (Raleigh) 130 
 
 Commercial National Bank (Saginaw) __. __ 225 230 
 
 Commercial National Bank (Shreveport) 290 300 
 
 Commercial National Bank (Washington)— _-_ __ 200 205 
 
 Commercial Savings Bank (Charleston) __ 125 130 
 
 Commercial Savings Bank (Grand Rapids)— — — 200 201 
 
 Commercial Savings Bank & Trust (Toledo) __ — 100 
 
 Commercial Trust Co. of N. J. (Jersey City) __ __ 370 380 
 
 Commercial Trust (New York) — — 93 97 
 
 Commercial Trust (Philadelphia) *435 *435 
 
 Commercial Trust (Reading) __ __ 100 110 
 
 Commercial Trust & Sav. Bank (Memphis) 375 
 
 Commercial Union — __ $241/2 $271/3 
 
 Commonwealth Bank (Baltimore) __ $90 
 
 Commonwealth Bank (Richmond) 115 120 
 
 Commonwealth Edison — __ 140 141 
 
 Commonwealth Gas & Elec, pfd __ __ __ tl04 
 
 Commonwealth Insurance (New York) 325 
 
 Commonwealth National Bank (Dallas) __ — 185 190 
 
 Commonwealth National Bank (Kansas City) *245 
 
 Commonwealth Power, Ry. & Light, com __ „ 68 70 
 
 ■ prefen-ed __ __ 891/3 90i/a 
 
 Commonwealth Title Ins. & Tr. (Phila.) *238 *238 
 
 Commonwealth Trust (Boston) __ __ 205 210 
 
 Commonwealth Trust Co. (Buffalo) __ __ 200 205 
 
 Commonwealth Trust (Harrisburg) __ __ 350 400 
 
 Commonwealth Trust (Pittsburgh) __ — 172 176 
 
 Commonwealth Trust (St. Louis) — — 92 • 93 
 
 Comp.-Tab.-Rec. __ __ 431/3 451/3 
 
 Comstock Stock *10 *9 
 
 Comstock Tunnel *8c 
 
 Concord & Montreal, class 1 *135 
 
 class 2 *135 
 
 class 3 — — 135 
 
 class 4 *131 *130 
 
 Concord & Portsmouth 175 
 
 Conestoga National Bank (Lane.) __ __ 380 
 
 Coney Island & Brooklyn Railroad — __ 98 101 
 
 Confederation Life Assurance *300 
 
 Confidence Mining (Nevada) __ __ 31c 
 
 Congress Hotel, com. __ 97 101 
 
 preferred __ __ 62 67 
 
 Congress St. Assoc. (Boston) __ __ $100 $102 
 
 Congress St. Bldg Tr. (Boston) __ __ __ $65 
 
 Coniagas Mines 8.00 
 
 Conley Foil — __ 290 300 
 
 Conn. & Pass. Rivers, pfd. __ __ __ 126 
 
 Connecticut Fire Insurance (Hartford) __ __ 350 360 
 
 Connecticut Footwear, pfd. *10 
 
 common __ *6 
 
 Connecticut General Life Insur. (Hartford)— __ __ 500 
 
 Connecticut Insurance (Hartford) __ __ 350 360 
 
 Connecticut National Bank (Bridgeport) 205 
 
 Connecticut Power, pfd. __ __ __ *92i/3 
 
 Connecticut Railway & Lighting, com. — __ *72 *75 
 
 preferred — — *75 *80 
 
 •Quotation nearest March 1, 1913. No quotation on that date. t"Value" as of March 1, 1913. 
 
 1023 
 
High Low Bid Asked 
 
 Connecticut Rirer Banking (Hartford) — — $85 
 
 Connecticut River Power, com — — — *^^Vz 
 
 Connecticut River Railroad — — — 260 
 
 Connnecticut Trust & Safe Dep. (Hartford) __ __ 312 318 
 
 Conqueror Consolidated Mining (Nevada) __ — — 2c 
 
 Consolidated Arizona Smelting — — 30c 40c 
 
 Consolidated Car Heating — — 70 80 
 
 Consolidated Coal of Maryland — — 100 
 
 Consolidated Coal Co. of St. Louis — — — 20 
 
 Consolidated Fire Works, com. — — 2 
 
 preferred — — 25 30 
 
 Consolidated Gas (New York) 1321/8 1311/2 
 
 Consolidated Gas of Pittsburgh, pfd *$24 *$22y3 
 
 Consolidated Gas Elec. & Power of Bait., com. __ __ 1121/2 115% 
 
 preferred — — 115 119 
 
 Consolidated Ice (Pittsburgh), com. „ — $81/3 $91/, 
 
 preferred — — — $48 
 
 Consolidated Imperial Mining (Nevada) — — Ic 2c 
 
 Consolidated Lumber, pfd. — — — *100 
 
 Consolidated Mercury Gold Mining — — 2c 4c 
 
 Consolidated Realty — — — .IO81/3 
 
 Consolidated Rubber Tire, com. — — 19 21 
 
 preferred — — 75 80 
 
 Consolidated Telephone of Buffalo — — 9 10 
 
 Consolidated Traction Co. of New Jersey __ __ * 73 1/2 — 
 
 Consolidated Virginia Mining (Nevada) 18c 18c 
 
 Constitution Wharf Tr. (Boston) — — — $104 
 
 Consumers Gas (Toronto) — — — $92% 
 
 Consumers Power (Michigan), pfd — — 921/2 95 
 
 common — — 6.31% basis 
 
 Contact Copper — — 20c 25c 
 
 Continental Bank & Trust (Ft. Worth) __ — 125 145 
 
 Continental Bank & Trust (Shreveport) __ __ — $126 
 
 Continental Can, com. — — 50 54 
 
 preferred — — 91 941/9 
 
 Cont. & Com'l National Bank (Chicago) __ — 312 314 
 
 Continental Equit. Title & Tr. (Phila.) *$100i/a *$100% „ 
 
 Continental Insurance (New York) — — 940 960 
 
 Continental Mills (Maine) ^95 
 
 Continental National Bank (Indianapolis)— __ __ 120 
 
 Continental National Bank (Salt Lake City)- __ „ 145 146 
 
 Continental Oil — — *1800 *1900 
 
 Continental Passenger Railway •$1231/3 __ 
 
 Continental Trust (Baltimore) — — 215 218 
 
 Continental Trust (Macon) __ — 105 IW 
 
 Contoocook Mills (New Haven) — — — *104 
 
 Conveyancers' Title Insurance (Boston) — — 100 
 
 Copley Square Trust (Boston), com __ — -- $45 
 
 preferred ~ — -- $100 
 
 Copper Range Consolidated Co. — — 451/3 46 
 
 Corbin Copper — — 69c 70c 
 
 Corby (H.) Distillery, pfd. *98 *98 
 
 Corcoran Insurance (Washington) — -- $80 
 
 Corn Belt Bank (Kansas City, Mo.) — — 150 
 
 Corn Exchange Bank (New York) — — *320 *325 
 
 Corn Exchange National Bank (Chicago) __ — 417 420 
 
 Corn Exchange National Bank (Omaha) __ — 100 110 
 
 Corn Exchange National Bank (Philadelphia) ^300 *300 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1024 
 
High Low Bid Asked 
 
 Corn Products Ref., com. 12Vi 12 
 
 preferred 70 CTVa 
 
 Cornell Anthracite Mining — — *143ya*150 
 
 Cornell Mills (Fall River) — — — 175 
 
 Cortez Associated Mines — — 30c 40c 
 
 Coshocton Light & Heat, pfd. — — — 100 
 
 common — — 32 40 
 
 Cosmopolitan Bank & Savings (Cincinnati)— — — $70 
 
 County Fire Insurance (Philadelphia) $125 
 
 County Savings Bank (Scranton) __ — 4371/3 442ya 
 
 Courtenay Manufacturing (South Carolina)— — — — 95 
 
 Covington (Kentucky) Sav. Bk. & Tr — — 140 150 
 
 Cox Multi Mailer — — — *2>y^ 
 
 Cracker Jack Mining (Nevada) — — — Ic 
 
 Cramp (Wm.) & Sons Ship & Eng. Bldg. Co. — — 17 25 
 
 Creamery Piackage — — 95 97 
 
 Crescent City S. Y. & S. H — — $221/3 — 
 
 Crescent Pipe Line — — $61 $63 
 
 Crex Carpet — — 75 85 
 
 Cripple Creek Central, com. — — *35 *43 
 
 preferred *45 *50 
 
 Cripple Creek Consol. (Colorado Springs) — — IV^c 2c 
 
 Crocker-Wheeler, pfd. — — — *105ya 
 
 common — — — *80 
 
 Crowell Publishing, com. — — — *200 
 
 preferred — — *99y3 „ 
 
 Crown Point Gold & Silver Mining (Nevada) — — 20c 
 
 Crown Reserve Mining — — 3% 4% 
 
 Crows Nest Pass Coal *70 
 
 Crucible Steel, com. — — *153/4 *15% 
 
 preferred — — *92 *93 
 
 Cuba Railroad Co., pfd. — — 94 
 
 Cuban-American Sugar, com. — — — 40 
 
 preferred — — — 92 
 
 Cumberland Co. (Me.) Pow. & Lt., com — — 60 60 
 
 preferred — — 96 96% 
 
 Cumberland Corporation, pfd — — — *50 
 
 common — — — *13 
 
 Cumberland Pipe Line — — — *82y, 
 
 Cumberland Tel. & Tel. *127 
 
 Cumberland Val. Nat. Bank (Nashville)— — — 100 103 
 
 Curtice Bros., pfd. — — 115 
 
 common — — 161 
 
 Cuyahoga Telephone, com — — — $14^/^ 
 
 preferred $38% — 
 
 Dacust Realty — — '65 
 
 Dallas Electric, com. „ — 60 61 
 
 1st preferred — — 94 96 
 
 2nd preferred — — 74 76 
 
 Dallas Manufacturing (Alabama) — — 100 110 
 
 Dallas Trust & Savings Bank — — 175 180 
 
 Daly -West Mining — — Zy% 4 
 
 Dan Patch Electric Railway — — — *65 
 
 Dante (Colorado Springs) — — 2V4c 2%c 
 
 Darlington Manufacturing (South Carolina) — — — 45 
 
 Dartmouth Mfg. (New Bedford), com. — — — 240 
 
 preferred — — 103y3 — 
 
 Dauphin Deposit & Trust — — 280 
 
 *QuotatIon nearest March 1, 1913. No quotation on that date. 
 
 1025 
 
High 
 
 Davenport (Iowa) Savings Bank 
 
 Davis-Daly Copper 
 
 Davis Mills (Fall River) 
 
 Davol Mills (Fall River) 
 
 Dayton & Michigan, com. 
 
 preferred 
 
 Dayton & Western Tr., com. 
 
 preferred 
 
 Dayton Brewing, com. *8l^ 
 
 preferred 
 
 Dayton (Ohio) National Bank 
 
 Dayton Power & Light, com, 
 
 preferred 
 
 Dayton (Ohio) Savings & Trust 
 
 De Long Hook & Eye 91 
 
 De Luxe Oil 
 
 Dedham & Hyde Pk. Gas & Elec. Light 
 
 Deere & Co., pfd. 
 
 Delaware Railroad 
 
 Delaware & Bound Brook, gtd. 
 
 Delaware & Hudson ISOVg 
 
 Delaware Insurance (Philadelphia) *$7V3 
 
 Delaware, Lackawanna & Western- 
 
 Delaware, Lackawanna & Western Coal 
 
 Delaware Trust (Wilmington) 
 
 Delevan Condensed Milk *10 
 
 Delta Building Trust (Boston) 
 
 Demerara Electric, com 
 
 Denholm & McKay, pfd 
 
 Denver & Northwestern Railway 
 
 Denver & Rio Grande, com 
 
 preferred 
 
 Denver Gas & Electric 
 
 Denver Union Water, com 
 
 preferred 
 
 Deseret National Bank (Salt Lake City) 
 
 Deseret Savings Bank (Salt Lake City) 
 
 Des Moines & Fort Dodge, preferred 
 
 common 
 
 Detroit & Cleveland Navigation 
 
 Detroit & Mackinac, com. 
 
 preferred 
 
 Detroit Creamery Co 
 
 Detroit Edison 
 
 Detroit Fire & Marine Insurance Co 
 
 Detroit, Hillsdale & Southwestern, gtd 
 
 Detroit Iron & Steel, com 
 
 ^preferred 
 
 Detroit Savings Bank 
 
 Detroit, Toledo & Ironton, 1st pfd 
 
 2d preferred 
 
 Detroit Trust Co 
 
 Detroit United 
 
 Detroit United Bank, Ltd 
 
 Devonshire Building Trust (Boston) 
 
 Dexter Horton National Bank (Seattle) 
 
 Dexter-Union Mines (Nevada) 4c 
 
 Dexter White Caps (Nevada) 8c 
 
 Dial Cash Register 
 
 *QuotatlOD nearest March 1, 1913. No quotation on that date. 
 
 1026 
 
 Low 
 
 Bid Asked 
 
 
 
 305 315 
 
 
 
 UVs $1A 
 
 
 
 - 1021/3 
 
 
 
 - 921/3 
 
 
 
 $39 $42 
 
 
 
 $933/4 __ 
 
 
 
 — 100 
 
 ~ 
 
 100 107 
 
 II 
 
 II 30 
 
 
 
 160 165 
 
 
 
 25 261/2 
 
 — 
 
 *82 *85 
 
 ~ 
 
 210 
 
 II 
 
 60c -I 
 
 
 
 __ "$55 
 
 
 
 98 98% 
 
 
 
 $433/4 $461/4 
 
 .60V, 
 
 188 193 
 
 
 $1971/2 $2071/2 
 
 
 
 $155 $170 
 
 
 
 160 210 
 
 10 
 
 
 
 
 
 — $85 
 
 _„ 
 
 -_ *80 
 
 
 
 - •102 
 
 __ 
 
 108 113 
 
 
 
 191/2 21 
 
 
 
 34 361/3 
 
 
 
 20 22 
 
 
 
 31 34 
 
 
 
 31 34 
 
 
 
 325 327 
 
 
 
 1114 1115 
 
 
 
 *20 *25 
 
 
 
 *4 *7 
 
 
 
 1021/2 1031/2 
 
 
 
 105 
 
 
 
 100 
 
 
 
 23 24 
 
 
 
 1151/2 120 
 
 __ 
 
 $130 
 
 
 
 *92 '95 
 
 
 
 91/4 
 
 
 
 10 
 
 __ 
 
 300 
 
 — 
 
 10 
 
 4 
 327 334 
 
 " 
 
 
 
 76 85 
 
 
 
 2071/3 — 
 
 
 
 -_ $55 
 
 
 
 310 325 
 
 4c 
 
 
 
 8c 
 
 
 
High Low Bid Asked 
 
 Diamond B. B *3 *3 
 
 Diamond Match 104% 1045/3 
 
 Diamondfield Blk. Butte Reorg. Min. (Nevada) __ __ 2c 3c 
 
 Diamondfield Daisy Gold Mining (Nevada) 4c 4c 
 
 Dime Deposits Bank ( Wilkes -Barre) __ __ $103 $105 
 
 Dime Deposits & Discount Bank (R'd'g) __ __ $450 $460 
 
 Dime Savings Bank (Detroit) __ __ 234 
 
 Dime Savings Bank (Toledo) __ — $141 
 
 Diamond (L.) & Sons, pfd — — — *100 
 
 Distillers' Securities Corp — — 18 18l^ 
 
 District National Bank (Washington) __ __ 1471/2 150 
 
 District of Columbia Paper Manufacturing — __ 134 
 
 Dixon (Joseph) Crucible — — 300 325 
 
 Dr. Jack Pot — — 51/40 6l^c 
 
 Doe Run Lead ._ — $65 $70 
 
 Dollar Savings & Trust (Wheeling) __ __ 251 257 
 
 Dome Mines, Ltd __ __ *17y2 — 
 
 Domestic Bank & Tile, pfd __ __ __ *100 
 
 Dominion Bank (Canada) — — $112% $1121/2 
 
 Dominion Canners, com — 75% 80 
 
 preferred __ __ __ 102 
 
 Dominion Coal, pfd — — 110 112 
 
 Dominion Iron & Steel, pfd 102 
 
 Dominion Life Assurance __ — *200 
 
 Dominion Mahogany & Veneer, pfd *65 *65 
 
 Dominion Permanent Loan — — — *83 
 
 Dominion Savings & Investment *78 
 
 Dominion Steel, com 531^ 53% 
 
 Dominion Steel, pfd. — 103 
 
 Dominion Telegraph __ — $50 
 
 Dominion Textile, Ltd., com 85 85l^ 
 
 preferred 103 
 
 Dominion Trust Co., Ltd *115 *115 
 
 Donald Steamship __ __ *62 
 
 Dorchester Electric *8% *8% 
 
 Dorchester Trust (Boston) __ 110 
 
 Doten-Dunton Desk Co., pfd __ __ — *100 
 
 Douglas (W. L.) Shoe, pfd __ __ *91 
 
 Dow Chemical __ __ 6% 7 
 
 Draper Co. (Me.), com __ __ 235 245 
 
 Drexel State Bank (Chicago) __ 200 205 
 
 Driver-Harris Wire *100 
 
 Drovers' & Mechanics' Nat'l Bk. (Baltimore). __ __ 210 225 
 
 Drovers' & Mechanics' National Bank (York) __ __ 190 195 
 
 Drovers' Deposits National Bank (Chicago)— __ __ 242 247 
 
 Drovers' National Bank (Kansas City, Mo.)__ __ __ 165 
 
 Drovers' Trust & Savings Bank (Chicago)™ __ __ 250 
 
 duPont (E. I.) deNemours, com 185 
 
 preferred __ 90 95 
 
 duPont International Powder, pfd __ __ __ *70 
 
 duPont Powder, pfd _. __ *93i/2 *94i/3 
 
 common __ __ *130 *133 
 
 Duluth Edison Electric, com __ __ 72 76 
 
 preferred __ __ __ 25 
 
 Duluth, South Shore & Atlantic, com __ _« 5l^ 8 
 
 preferred __ __ 13 15 
 
 Duluth Superior Traction, com __ __ *70 *73 
 
 preferred __ __ *63 *70 
 
 Dunnellon Phosphate Co __ __ __ *50 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1027 
 
High Low Bid Asked 
 
 Dunton Desk, pfd — - — *102 
 
 Duquesne National Bank (Pittsburgh) •$240 *$240 
 
 Durfee Safe Deposit & Trust (Fall River) — — „ 200 
 
 Durkee (Charles D.) — - — *10 *12i/8 
 
 Dwelling House Association (Boston) — — — $750 
 
 Dwight Manufacturing (Massachusetts) *1175 
 
 Eagle & Blue Bell Mining __ __ 1 1^^ 
 
 Eagle & Phenix Mills (Georgia) — >- 75 80 
 
 Eagle Lock — — $50 $55 
 
 East Boston Land — — $121/2 $14 
 
 East Butte Copper Mining — — 121/3 12% 
 
 East Canada Fisheries, pfd *15 *15 
 
 East Canada P. & P *5 
 
 East End Bank (Cincinnati) — — 115 120 
 
 East End Bank (Erie) — _> $100 $102 
 
 East Reading Electric Railways — — $75 $80 
 
 East River National Bank (New York) — — — *$19 
 
 East St. Louis & Suburban, pfd — — — 72 
 
 common — — 36 
 
 East Side State Bank (Minneapolis) — — 130 
 
 East Side R. E. Tr. (Boston) — — $100 
 
 East Washington Savings Bank — — 15l^ 17 
 
 Eastern Light & Fuel *114 
 
 Eastern Pennsylvania Railroad $66l^ — 
 
 Eastern Pennsylvania Railways, com — — 5 
 
 Eastern Power & Light, pfd *95 *95 
 
 Eastern Steel, 1st pfd „ __ *65 
 
 Eastern Trust & Banking (Bangor) — 325 
 
 Eastern Underwear Manufacturers *10 *10 
 
 Easthampton Gas tl50 
 
 Eastman Kodak, pfd __ — 123 124 
 
 common — __ 695 705 
 
 Easton Consolidated Electric ($25 paid) __ __ $20 $22 
 
 Edison Electric Hlum., Boston (Ist inst. pd.)_ __ 175 
 
 • (fully paid) — __ 275 281 
 
 Edison Elec. HI. of Brockton __ __ „ t202 
 
 Edwards Manufacturing (Maine) *65 
 
 Eighth Avenue Railroad __ — 300 
 
 Eighth National Bank (Philadelphia) *401 *401 
 
 Eisenstadt Manufacturing, com 127 
 
 Eisner-Mendelson Co., pfd __ __ '6 *7 
 
 Electric Boat Co., com __ __ __ *10i/. 
 
 Electric Bond Deposit, pfd __ __ _. 8O14 
 
 Electric Bond & Share, pfd ._ __ 9914 101 
 
 Electric City Bank (Scranton) __ __ $74 $78 
 
 Electric Co. of America __ __ $1178 
 
 Electric Investment, com 50 
 
 ■ preferred __ _, 100 
 
 Elec. Lt. & Pow. Co. of Abington & Rockland __ __ „ tl95 
 
 Electric Storage Battery, com __ __ 51l^ 62 
 
 Electrical Development, pfd. *85 
 
 Electrical Security, pfd __ __ 82 
 
 Electrical Utility, com __ __ 34 38 
 
 preferred __ 80 82 
 
 Electro Lamp __ __ *85 
 
 Elgin National Watch __ __ 138 142 
 
 Elizabeth Gas Light __ __ 325 
 
 Elizabeth & Trenton Railway __ _> ♦71/2 — 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1028 
 
High Low Bid Asked 
 
 El Paso (Colorado Springs) — — 5.70 5.94 
 
 El Paso Consolidated Mining GVa 6 
 
 El Paso Electric, com — — 114 
 
 preferred — — 95 97 
 
 El Paso Gold — — 5.90c 5.99c 
 
 Elkton Consolidated — — 61c GlVsC 
 
 Elraira & Williamsport Railroad, com *$5iy8 ~ 
 
 preferred $70y2 __ 
 
 Ely Consolidated (6th assessment paid) 16c 16c 
 
 Ely Walker Dry Goods, com — — 84 85 
 
 1st preferred — — — 103 
 
 2d preferred — — — 81 
 
 Ely Witch Copper — — 5c 7c 
 
 Emerson-Brantingham, com. 56% 56% 
 
 - — preferred — — 93 97 
 
 Emerson Steam Pump *12 
 
 Empire & Bay State Telephone — — 60 72 
 
 Empire Cotton Oil, pfd — - — *96 
 
 Empire Dist. El., com — — 50 
 
 preferred — — 80 84 
 
 Empire Gas & Electric, com — — 60 
 
 ■ preferred — — 80 84 
 
 Empire Steel & Iron, com — — 10 13 
 
 • preferred . — — 43 45 
 
 Empire Title & Trust (Philadelphia) *$20y3 *$20y2 __ 
 
 Empire Trust (New York) — — 300 
 
 England National Bank (Little Rock) __ — 120 
 
 Englewood State Bank (Chicago) __ __ 172 176 
 
 English Marconi — __ 17 22 
 
 Enoree Manufacturing (South Carolina), com. — — — 55 
 
 preferred — — — 100 
 
 Ensley Land -_ __ $105 $120 
 
 Enterprise Bank (Charleston) __ __ 125 130 
 
 Enterprise Manufacturing (Georgia) — __ 63 67 
 
 Equitable Guar. & Trust (Wilmington, Del.)_ __ __ 235 245 
 
 Equitable Ilium. Gas Lt. (Philadelphia), pfd._ __ __ 108 110 
 
 Equitable Real Estate, Ltd __ __ 138 
 
 Equitable Trust (New York) __ __ 495 505 
 
 Erie, com 27% 27 
 
 Ist preferred 43y2 43y3 
 
 2d preferred __ __ 35y2 35% 
 
 Erie & Kalamazoo __ __ $100 $115 
 
 Erie & Pittsburg Ry. (gtd. Pa. R. R.) __ __ *$65 $70 
 
 Erie (Pennsylvania) Trust Co __ __ 160 
 
 Esmond Mills (Rhode Island), pfd »_ __ 100 103 
 
 Essex & Hudson Gas __ __ 132 136 
 
 Essex County National Bank (Newark) __ __ 150 155 
 
 Essex Street Trust (Boston) __ __ $90 $95 
 
 Euclid Oil __ __ __ 25c 
 
 Eureka Pipe Line __ __ *355 *365 
 
 European & North American Railway __ __ __ *125 
 
 Everett Mills (Massachusetts) *150 
 
 Excelsior Trust & Savings Fund *$60 *$60 
 
 Exchange Bank (New Orleans) __ __ 145 
 
 Exchange Bank (Savannah) >_ __ 140 
 
 Exchange Banking & Trust (Charleston) __ __ 155 160 
 
 Exchange National Bank (Little Bank) __ __ 180 
 
 Exchange National Bank (Seattle) __ __ 160 175 
 
 Exchange State Bank (Kansas City, Kan.) ___ __ »_ 165 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1039 
 
High Low Bid Aiked 
 
 Exchange Trust (Boston) — — 150 
 
 Exchequer Mining (Nevada) — — Ic 2c 
 
 Exeter Manufacturing, pfd — — — *47 
 
 common — — *22 
 
 Exposition Cotton Mills (Georgia) __ — — 150 
 
 Factors Insurance (Memphis) 96 100 
 
 Factory Building Trust (Boston) __ __ __ $92 
 
 Fairbanks (E. & T.) 268% __ 
 
 Fairmont Creamery, pfd ^_ __ __ *99 
 
 Fairmount Park & Haddington $60^4 ~ 
 
 Fairmount Park Trans $10 
 
 Fairmount Sav. Tr. (Philadelphia) *110 *110 
 
 Fairview Gold Boulder Mining (Nevada) 2c 4c 
 
 Fairview Savings Bank (Detroit) — — 157 165 
 
 Fajardo Sugar — __ — *64 
 
 Fall River Electric Light 198 198 
 
 Fall River Gas Works — __ 300 310 
 
 Fall River (Massachusetts) National Bank— __ — 128 132 
 
 Fanny Rawlings (Colorado Springs) '. — — __ 4c 
 
 Farmers & Mech. Nat'l Bank (Ft. Worth) __ __ — 228 
 
 Farmers & Mech. Nat'l Bank (Philadelphia) ♦140 '140 
 
 Farmers & Mech. Nat'l Bank (Fred'k) __ — $40 
 
 Farm. & Mech. Nat'l Bank (Washington)— __ __ 250 
 
 Farmers & Mech. Saving Bank (Davenport) — __ 250 260 
 
 Farmers & Merch. National Bank (Baltimore) — — $49 
 
 Farm. & Merch. Nat. Bank (Los Angeles)— — — 400 405 
 
 Farmers & Merch. Nat. Bank (Washington) „ — __ 250 
 
 Farmers & Merchants' Trust (St. Louis) — — 160 
 
 Farmers & Ship. Tob. W., com. „ — — 30 
 
 1st preferred — — — 100 
 
 2nd preferred — — — 80 
 
 Farmers Bank (Wilmington, Dela.) __ — $120 $135 
 
 Farmers Dep. Nat. Bk. (Pittsburgh) •$117 '$116 
 
 Farmers Loan & Trust Co. (New York) — — *$640 *$648 
 
 Farmers National Bank (Reading) — — $91 $95 
 
 Farmers National Bank (York) — — 175 180 
 
 Farmers Trust Co. (Minneapolis) — — 150 
 
 Farmers Trust (Lancaster) — — '260 *262 
 
 Farmington River Power — — $55 
 
 Farr Alpaca (Massachusetts) — — 350 355 
 
 Favary Tire — — — *15 
 
 Favorite (Colorado Springs) — — — .002c 
 
 Fay & Egan, pfd. — — 75 100 
 
 Fayette Co. Gas — — ^108 '110 
 
 Fayette National Bank (Lexington) — __ — 250 
 
 Federal Light & Traction, com. — — 30 31 
 
 -preferred __ — 80 81 
 
 Federal Mining & Smelting, com. — — 12y2 16 
 
 ^preferred — — 36% 41 
 
 Federal National Bank (Pittsburgh) *$178 *$178 
 
 Federal National Bank (Washington) >_ __ 137 139 
 
 Federal Sign System, pfd — „ $85 
 
 Federal Signal (Troy), pfd. — — — '25 
 
 common — — *8 *14 
 
 Federal St. & Pleasant Vy. Pass. Ry -. — $181/3 $20 
 
 Federal Sugar Refining, com „ — *48 *51 
 
 ^preferred — ~ '88 ♦92 
 
 Federal Trust (Boston) ~ — 138 140 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1030 
 
High Low Bid Asked 
 
 Federal Trust (Newark) __ __ 235 
 
 Federal Trust (Philadelphia) •125 •125 
 
 Federal Utilities, com. __ __ 40 
 
 preferred __ 70 77 
 
 Federator Mining & Milling . __ — *36 
 
 Fidelity Bank (New York) __ — 165 175 
 
 Fidelity & Col. Tr. (Louisville) — __ 267 268 
 
 Fidelity & Deposit (Maryland) __ __ $1751/2 $1751/2 
 
 Fidelity Dep. & Dis. Bk. (Scranton) __ __ $160 $170 
 
 Fidelity National Bank (Seattle) — — 150 175 
 
 Fidelity-Phenix Insurance (New York) __ __ 310 320 
 
 Fidelity Title & Trust (Pittsburgh) __ „ __ *140 
 
 Fidelity Trust (Baltimore) „ __ 250 260 
 
 Fidelity Trust (Buffalo) __ __ 250 300 
 
 Fidelity Trust (Hartford) _.. __ __ 200 
 
 Fidelity Trust (Indianapolis) __ __ 110 
 
 Fidelity Trust (Kansas City, Mo.) __ __ 300 >_ 
 
 Fidelity Trust (Newark) __ — __ 775 
 
 Fidelity Trust (New York) __ __ 218 
 
 Fidelity Trust (Philadelphia) *1176 '1176 
 
 Fidelity Trust (Portland, Me.) __ __ 215 220 
 
 Fidelity Trust (Rochester) __ __ 250 300 
 
 Fidelity Trust (Tacoma) ^ __ __ __ 200 
 
 Fifth National Bank (New York) „ __ 300 325 
 
 Fifth-Third National Bank (Cincinnati) __ __ 200 205 
 
 Fifty Assoc. (Boston) __ __ $4000 
 
 Fifth Avenue Bank (New York) __ __ *4,500 
 
 Finance Co. (Philadelphia), 1st pfd. *119 *119 
 
 2nd preferred *108 *108 
 
 Finance & Guaranty Co., pfd. — __ •lOO 
 
 Findley (Colorado Springs) 4%c 5c 
 
 Fire Association (Philadelphia) $350 
 
 Firemans Fund (San Francisco) __ 240 246 
 
 Firemen's Insurance (Newark) __ $245 
 
 Firemen's Insurance (Washington) __ __ $19 $22 
 
 Firestone Tire & Rubber, com. 295l^ 
 
 preferred __ 105l^ __ 
 
 First Bridgeport National Bank — __ 230 
 
 First Mortgage Guarantee (New York) __ __ 125 130 
 
 First Mtge. Guar. & Tr. (Philadelphia) *98 *98 
 
 First National Bank (Albany) __ __ 160 170 
 
 First National Bank (Altoona) __ __ 330 350 
 
 First National Bank (Baltimore) __ __ 144 146 
 
 First National Bank (Bangor) 152 
 
 First National Bank (Beaumont) __ __ 300 
 
 First National Bank (Birmingham) __ __ 260 270 
 
 First National Bank (Boston) __ __ 475 480 
 
 First National Bank (Brooklyn) __ __ 280 300 
 
 First National Bank (Burlington) __ __ __ 150 
 
 First National Bank (Camden) *170 *170 
 
 First National Bank (Charleston) __ __ 350 375 
 
 First National Bank (Charlotte) __ __ 185 
 
 First National Bank (Chicago) __ __ 444 446 
 
 First National Bank (Cincinnati) __ __ 208 210 
 
 First National Bank (Cleveland) 221l^ __ 
 
 First National Bank (Covington) __ __ 160 165 
 
 First State Bank (Dallas) __ __ 130 131 
 
 First National Bank (Davenport) __ __ 300 325 
 
 First National Bank (Detroit) __ __ 198 201 
 
 *QuotatIoQ nearest March 1, 1913. No quotation on that date. 
 
 1031 
 
High Low Bid Asked 
 
 First National Bank (Duluth) __ __ 450 
 
 First National Bank (Erie) __ __ 210 
 
 First National Bank (Fall River) __ __ 200 
 
 First National Bank (Ft. Worth) __ _. __ 200 
 
 First National Bank (GaWestonj __ __ 130 140 
 
 First National Bank (Guthrie) __ __ 145 
 
 First National Bank (Harrisburg) __ __ 575 600 
 
 First National Bank (Hartford) __ __ 174 
 
 First National Bank (Hoboken) __ __ 95 100 
 
 First National Bank (Houston) 175 
 
 First National Bank (Jersey City) __ __ 330 340 
 
 First National Bank (Kansas City, Mo.) * __ __ 625 
 
 First National Bank (Lancaster) 235 240 
 
 First National Bank (Lexington) __ __ 150 155 
 
 First National Bank (Los Angeles) 725 
 
 First National Bank (Louisville) __ __ 185 
 
 First National Bank of McAlester 160 
 
 First National Bank (Memphis) __ __ 2721/2 275 
 
 First National Bank (Milwaukee) __ __ 205 
 
 First National Bank (Minneapolis) __ __ 305 320 
 
 First National Bank (Morristown) 274 
 
 First National Bank (Muskegon) 165 
 
 First National Bank (New Bedford) __ __ 143 145 
 
 First National Bank (New Haven) 183 
 
 First National Bank (New York) __ __ *990 1005 
 
 First National Bank (Norwich) 85 
 
 First National Bank (Omaha) __ __ 275 300 • 
 
 First National Bank (Paterson) __ __ 275 295 
 
 First National Bank (Philadelphia) *230 *230 
 
 First National Bank of Pittsburgh __ __ 160 
 
 First National Bank (Portland, Me.) __ __ 120 122 
 
 First National Bank (Reading) __ __ 150 155 
 
 First National Bank (Richmond) __ __ 277 283 
 
 First National Bank (San Francisco) __ __ 227y^ — 
 
 First National Bank (Scranton) __ __ 347V2 355 
 
 First National Bank (Seattle) __ __ 225 ~ 240 
 
 First National Bank (Shreveport) __ __ 190 200 
 
 First National Bank (Terre Haute) __ __ 275 300 
 
 First National Bank (Toledo) __ __ 285 
 
 First National Bank (Trenton) 222 222 
 
 First National Bank (Utica) __ __ $88.80 
 
 First National Bank (Waco) __ __ 190 215 
 
 First National Bank (Wilkesbarre) __ __ 260 270 
 
 First National Bank (York) __ __ 104 105 
 
 First National Copper __ 2ys 2^ 
 
 First National Englewood Bank (Chicago)— __ __ 315 
 
 First Savings and Bank (Dayton) 150 
 
 First Savings Bank & Trust (Nashville) __ __ 125 130 
 
 First Ward National Bank (Boston) 180 180 
 
 Fisk Rubber, Ist pfd. __ __ __ *102ya 
 
 Fitchburg Gas & Electric Light "125 *125 
 
 Fitchburg (Massachusetts) National Bank 170 175 
 
 Fitchburg Railroad, pfd. __ __ __ 120 
 
 Fitchburg (Mass.) Safe Deposit & Trust __ — 145 150 
 
 Flannery Bolt — __ *280 
 
 Fleischmann, pfd. __ __ 120% — 
 
 Fletcher American Nat'l Bank (Indianapolis) __ __ 242 
 
 Fletcher Savings & Trust (Chicago) — __ 200 
 
 Flexible Steel Bolting __ __ — 'SO 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1032 
 
High Low Bid Asked 
 
 Flint Mills (Fall River) __ __ __ 97 
 
 Florence Gold Fid. Mining (Nevada) 65e 48c 
 
 Florida National Bank (Jackson) __ 200 
 
 Flower of West (Colorado Springs) __ __ 003c Ic 
 
 Foard (Jos. R.) Co. *100 *100 
 
 Fore River Shipbuilding, pfd. __ __ __ *23 
 
 common *3 
 
 Ft. Dearborn National Bank (Chicago) __ __ 254 262 
 
 Ft. Smith Light & Traction, pfd. __ __ 90 921/3 
 
 Ft. Wayne & Jackson Railroad, pfd. __ __ 122 130 
 
 Ft. Wayne & No. Ind. Trac, com __ __ 15 18 
 
 preferred 60 70 
 
 Ft. Wayne, Van Wert & Lima Trac, pfd. __ __ *62 *65 
 
 Ft. Worth National Bank __ __ 325 450 
 
 Ft. Worth (Texas) Power & Light, pfd __ __ __ *104 
 
 Ft. Worth State Bank __ __ __ 125 
 
 42nd St. & Grand St. Ferry R. R __ __ 260 285 
 
 Foss (H. D.) & Co., pfd. _» __ *6.51% basis 
 
 Foster Cobalt Mining __ __ 7c rac 
 
 Fourth & First National Bank (Washington) >_ __ 245 250 
 
 Fourth Atlantic National Bank (Boston) __ __ 192 195 
 
 Fourth National Bank (Atlanta) __ __ 268 275 
 
 Fourth National Bank (Cincinnati) 270 
 
 Fourth National Bank (Dayton) _« »» 160 164 
 
 Fourth National Bank (Grand Rapids) __ ._ 210 
 
 Fourth National Bank (Jackson) __ __ 135 
 
 Fourth National Bank (Macon) __ __ 165 167 
 
 Fourth National Bank (New York) _« __ __ 195 
 
 Fourth St. National Bank (Philadelphia) *315 *315 
 
 Frances -Mohawk Mining (Nevada) 2c 
 
 Frankford & Southwark Pass. __ __ $3671/2 -u- 
 
 Frankford Trust (Philadelphia) *$161 *$161 
 
 Franklin Bank (St. Louis) __ __ __ 305 
 
 Franklin Co. (Maine) *205 
 
 Franklin Fire Insurance (Philadelphia) *$46 
 
 Franklin Insurance (Washington) — $30 
 
 Franklin Mining __ __ ey^ 6^^ 
 
 Franklin National Bank (Philadelphia) *500i4 *500iA __ 
 
 Franklin Savings Bank (Fredericksburg) __ __ 110 
 
 Franklin Teleg. __ __ 40 50 
 
 Franklin Trust (Brooklyn) __ __ __ 250 
 
 Franklin Trust (Philadelphia) *$55 *$55 
 
 Franklin Trust & Savings Bank (Chicago) __ __ __ 160 165 
 
 Frederick Co. Nat'l Bank (Fredericksburg)— __ __ $211/2 __ 
 
 Frederick Town Savings Institution (Fred'k) >_ __ 170 
 
 Freeman Daughaday Co., pfd. *6l^% basis 
 
 Freemans, Limited — — — *112l^ 
 
 Freihofer Baking, pfd. __ __ — *100 
 
 French Opera Assoc, Ltd. __ __ 52% 95 
 
 Fries Manufacturing & Power __ — *25 
 
 Frisbie & Stansfield Knitting, pfd. __ -_ 99 101 
 
 Friscoville Realty *130 
 
 Frost-Johnson Lumber __ — *75 
 
 Fullerton Oil — __ 2 31/3 
 
 Fulton National Bank (Atlanta) . __ — 128 132 
 
 Fulton National Bank (Lancaster) __ — 235 240 
 
 Fulton Trust (New York) __ — 295 315 
 
 *Quotatlon nearest March I, 1913. No quotation on that date. 
 
 1033 
 
High Low Bid Asked 
 
 Gaffney Manufacturing (South Carolina) __ __ 55 65 
 
 Gair (Robert) Co., pfd. •100 •100 
 
 Galena-Signal Oil, pfd. — — 135 139 
 
 . common — — 293 297 
 
 Galveston-Houston Electric, com. — __ 98 
 
 preferred — — 94 
 
 Gardner Electric Light, pfd. — .. __ •1071/3 
 
 common — — — — ^157 
 
 Gardner Gas, Fuel & Light — — — flSO 
 
 Garfield National Bank (New York) -_ __ 265 275 
 
 Garfield Savings Bank (Cleveland) __ 195 
 
 Garford Co., pfd. '100 
 
 Gary & Interurban __ — ♦$14 •$171/3 
 
 Gas & Electric of Bergen Co. — — 88 90 
 
 Gas & Electric Securities, com. — __ ^140 "150 
 
 preferred — — — *94i/4 
 
 Gate City National Bank (Kansas City, Mo.) „ — 120 123 
 
 Gauley Land Coal, pfd. _- _> __ •SO 
 
 General Acoustic Co. — — — ^45 
 
 General Asphalt, com. — __ 38% 3914 
 
 ■ preferred — — 73 74 
 
 General Baking, com. — — 19 22 
 
 preferred - — — 69 72 
 
 General Chemical, com. — >_ 175 200 
 
 preferred — — 105 110 
 
 General Cigar — See United Cigar Mfrs. 
 
 General Development — — 90 110 
 
 General Electric I3914 139 
 
 General Film, pfd. __ — — ^95 
 
 General Fire Extinguishing Co. __ __ __ ^166 
 
 General Founders Co. — — — *12 
 
 General Gas & Electric, pfd. — — •84 •871/3 
 
 common — — •ISi/a ^25 
 
 General Manifold & Printing „ — •SVg __ 
 
 General Motors, com. vtg. Tr. Ctfs. __ — SQi/o 34 
 
 preferred — — 75 79 
 
 General Petroleum — __ 27% 28I/3 
 
 General Railway Signal, com. __ 60 62 
 
 preferred — — 90 96 
 
 Genesee Valley Trust (Rochester) „ „ 190 200 
 
 Georgetown Gaa — — $85 $135 
 
 Georgia Light, Power & Railways, pfd. __ — — *96 
 
 common — — *35 ^39 
 
 Georgia Railroad & Banking Co. — „ 256 260 
 
 Georgia Railway & Electric, 8% gtd. stk __ __ •llS ^121 
 
 preferred __ — 831/3 841/3 
 
 Georgia Railway & Power, com. __ __ 23 241/3 
 
 1st preferred — — 81 821/3 
 
 2nd preferred — — 39 41 
 
 Georgia Savings Bank & Trust (Atlanta) — __ 175 185 
 
 Georgia Southern & Florida, com. — — 30 36 
 
 1st preferred — — — 95 
 
 2nd preferred __ — SOi/, 81 
 
 German-Alliance Insurance (New York) — — 275 290 
 
 German -American Bank (Baltimore) __ — 108 112 
 
 German -American Bank (BuflFalo) — — 260 
 
 German-American Bank (Detroit) — — 180 
 
 German-American Bank (Kansas City, Mo.)__ — __ 600 
 
 German -American Bank (Milwaukee) — — 135 140 
 
 •Quotation nearest March 1, 1913. No quotation on that date. t"Value" as of March 1, 1913. 
 
 1034 
 
High Low Bid Asked 
 
 German-American Bank (Minneapolis) __ 200 
 
 German- American Bank (New York) *$105 
 
 German- American Bank (St. Louis) 197 
 
 German -American Bank (Seattle) 110 125 
 
 German -American Coffee *^V» 
 
 German-American Fire Insurance 270 
 
 German- American Insurance (Baltimore) _« __ $40 $50 
 
 German -American Insurance (New York) — 540 650 
 
 German -American Nat'l Bank (New Orleans) 179 
 
 German- American Savings Bank (Burlington) __ __ __ 300 
 
 German -American Savings Bank (Cleveland) 125 
 
 German-American Sav. Bank (Los Angeles) 385 395 
 
 German-American Sav. Bk. & Tr. (New Orl'ns) *211 
 
 German- American State Bank (Saginaw) 140 145 
 
 German-American Sugar *10 
 
 German-American Title & Tr. (Philadelphia) *$95i4 *$95i4 
 
 German-American Trust (Paterson) 370 
 
 German-American Tr. & Sav. Bk. (Los Ang.) _«- __ 385 397^^ 
 
 German Bank of Baltimore 110 115 
 
 German Bank (Louisville) __ 330 350 
 
 German Bank (Wheeling) __ _« 500 
 
 German Exchange Bank (New York) __ 400 
 
 German Insurance (Baltimore) $17y2 $19 
 
 German Insurance (Louisville) $50 
 
 German Insurance (Pittsburgh) __ $75 $85 
 
 German Insurance Bank (Louisville) $150 
 
 German National Bank (Cincinnati) 300 320 
 
 German National Bank (Little Rock) __ 120 
 
 German National Bank (Newport, Ky.) 175 
 
 German National Bank (Pittsburgh) *$200 *$200 
 
 German Savings Bank (Burlington) __ __ 405 410 
 
 German Savings Bank (Davenport) 285 300 
 
 German Savings Bank & Trust (Memphis)— __ __ 600 700 
 
 German Savings Institution (St. Louis) 470 480 
 
 German Sav. & Loan Soc. (San Francisco) $3160 
 
 German Securities Bank (Louisville) __ 1721/3 175 
 
 German Theatre Realty *^V4:% basis 
 
 Germania Bank (New York) '475 *475 
 
 Germania Bank (Savannah) 179^/2 
 
 Germania Half-Dlr. Sav. Bk. (^Vheeling) __ __ 206 
 
 Germania Insurance (New York) __ $155 $162l^ 
 
 Germania National Bank (Milwaukee) 145 
 
 Germania Savings Bank (Atlanta) 100 105 
 
 Germania Savings Bank (Charleston) __ 430 450 
 
 Germantown National Bank (Covington) 135 145 
 
 Germantown Passenger Railway __ __ *$105 *$113% 
 
 Germantown Trust (Philadelphia) *27iy2 *27iy2 
 
 Germany Mining & Development 50c 75c 
 
 Giant Consolidated Co. '. __ 119 126 
 
 Gillette Safety Razor, pfd. __ __ *102 
 
 Girard Avenue Title & Trust (Philadelphia) *$70 *$70 
 
 Girard Copper 99c $1 
 
 Girard Fire & Mar. Insurance (Philadelphia) *$275 
 
 Girard National Bank (Philad^phia) *415 *415 
 
 Girard Trust (Philadelphia) *$990 *$990 
 
 Giroux Copper Mining 3 2% 
 
 Globe Oil __ __ ly^c sy^c 
 
 Globe Savings Bank (Los Angeles) __ 150 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1035 
 
Bid 
 
 Asked 
 
 
 
 120 
 
 __ 
 
 110 
 
 
 
 105 
 
 145 
 
 __ 
 
 118 
 
 120 
 
 •108 
 
 ♦110 
 
 5c 
 
 
 
 .005c 
 
 IVaC 
 
 
 
 "10 
 
 10c 
 
 II1/2C 
 
 Va 
 
 . Va, 
 
 115 
 
 
 8c 
 
 10c 
 
 2.00 
 
 8.00 
 
 3c 
 
 5c 
 
 High Low 
 
 Globe Soap, Ist pfd. 
 
 2nd preferred 
 
 special preferred 
 
 Globe-Wernicke, com. 
 
 preferred 
 
 Goff (D.) Sons, pfd. 
 
 Gold Bar Min. of Goldfield (Nevada) 
 
 Gold Bond (Colorado Springs) 
 
 Gold Car Heating & Lighting 
 
 Gold Dollar (Colorado Springs) 
 
 Gold Hill Mining 
 
 Gold & Stock Telegraph Co. 
 
 Gold Wedge Mining (Nevada) 
 
 Golden Boulder Mining (Nevada) 3c 3c 
 
 Golden Cycle (Colorado Springs 
 
 Goldfield Bulldog Mining (Nevada) 
 
 Goldfield Consolidated Mines (Nevada) $2.85 $2.75 
 
 Goldfield Daisy *5ya *5y2 
 
 Goldfield Florence *48 *44 
 
 Goldfield Kewanas Mining (Nevada) 4c 5c 
 
 Goldfield Merger Mines (Nevada) 26c 27c 
 
 Goldfield Portland Mining (Nevada) 
 
 Goldschmidt Detinning, pfd. 
 
 Goodrich (B. F.), com. 41 41 
 
 preferred 
 
 Goodwins, Limited, com. 
 
 preferred 
 
 Goodyear Tire & Rubber, com. *365 
 
 preferred 
 
 Gorham Manufacturing, pfd. 
 
 Gosnold Mills Co. (New Bedford), pfd. 
 
 Gotham National Bank (New York) 
 
 Gottlieb -Bauer- Straus 
 
 Gould & Curry Mining (Nevada) 3c 3c 
 
 Granby Consolidated Min., Smelt. & Pr 
 
 Grand Avenue Bank (St. Louis) 
 
 Grand Rapids & Indiana 
 
 Grand Rapids National City Bank 
 
 Grand Rapids Railway, pfd. 
 
 Grand Rapids Savings Bank 
 
 Grand River Valley Railroad 
 
 Grandma Mining (Nevada) 
 
 Granite-Bi -Metallic (St. Louis) 
 
 Granite Mills (Fall River) 
 
 Granite Savings Bank & Trust (Barre) 
 
 Graniteville Manufacturing (South Carolina) 
 
 Grasselli Chemical, pfd. *104 *104 
 
 • common 
 
 Gray-Davis, pfd. ♦lOS *105 
 
 Gray & Dudley 
 
 Great Bend Annex Mining (Nevada) 
 
 Great Bend Extension Mining (Nevada) 
 
 Great Bend Mining (Nevada) 
 
 Great Falls Manufacturing (New Hampshire) ISSVa __ 
 
 Great Lakes Dredge & Dk. 
 
 Great Lakes Engineering 
 
 Great Lakes Towing, com. 
 
 preferred •92 
 
 Great Northern, pfd. 126% 1261/, 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1036 
 
 •88 
 
 *94 
 
 97 
 
 98y, 
 
 40 
 
 41 
 
 80 
 
 81 
 
 103 
 
 105 
 
 1181/2 
 
 
 
 89 
 
 91 
 
 170 
 
 
 
 3 
 
 4 
 
 60% 
 
 61 
 
 215 
 
 
 
 24 
 
 30 
 
 181 
 
 
 
 __ 
 
 811/4 
 
 216 
 
 
 115 
 
 125 
 
 Ic 
 
 2c 
 
 30c 
 
 35c 
 
 
 
 115 
 
 100 
 
 
 
 138 
 
 142 
 
 175 
 
 •178 
 
 105 
 
 107 
 
 
 
 Ic 
 
 
 
 Ic 
 
 127 
 
 •130 
 
 127 
 
 •130 
 
 
 
 •81 
 
 __ 
 
 15 
 
High Low Bid Asked 
 
 Great Northern Iron Ore Prop. __ 35 SSy^ 
 
 Great Northern Life Insur. (Wausau, Wis.)— __ __ — *165 
 
 Great Western Beet Sugar, pfd. __ _- __ *101 
 
 Great West. Perm. Loan __ — — ISOVi 
 
 Great Western Sugar, com. _- — SQVg 601/3 
 
 preferred __ „ 991/2 IOO1/3 
 
 Greater Gold Belt (Colorado Springs) __ __ .0015e Ic 
 
 Greater New York Development Co — — — *13 
 
 Greeley Square Hotel, pfd. — — — *90 
 
 Greeley Square Realty — — — *26 
 
 Green Bay & Western, com. — — *82 93 
 
 Green & Coates Streets Pass. JRy. „ __ *$115 
 
 Green Ridge Bank (Scranton) — „ *66 *70 
 
 Greene Cananea 8^^ 8 
 
 Greenfield Electric Light & Power __ __ __ tl55 
 
 Greenfield Tap & Doe, pfd. __ — *5.63% basis 
 
 Greenpoint National Bank (Brooklyn) __ __ __ 160 
 
 Greenwich Bank & Trust (Jersey City) — __ 275 300 
 
 Greenwich Bank (New York) __ — *250 260 
 
 Greenwood Cotton Mills (South Carolina) — _- __ 50 60 
 
 Grendel Mills (South Carolina) — __ 95 105 
 
 Greylock Mills — — — *122i/a 
 
 Griffin Wheel, pfd. 1021/3 IO21/3 
 
 Grinnell Manufacturing (New Bedford) — — I671/3 — 
 
 Guanajuato Development — — *10 *12 
 
 Guanajuato Power & Electric, com. — — 25 30 
 
 preferred — — 68 73 
 
 Guantanamo Sugar — — — *35 
 
 Guar. State Bank & Trust (Dallas) __ __ 130 135 
 
 Guarantee Title & Trust (Cleveland) *89% — 
 
 Guaranty Trust (New York) n __ — 582 585 
 
 Guar. Trust & Safe Deposit (Philadelphia) __*$156i/4 *$156iA — 
 
 Guarantee Tr. & Sav. Bank (Chicago) 133 
 
 Guar. Trust & Savings Bank (Jacksonville )__ __ 136 
 
 Guarantee Tr. & Bk. (Atlanta) „ __ 48 55 
 
 Guardian Savings & Trust (Cleveland) *300 
 
 Guardian Trust (New York) __ — 80 
 
 Guardian Trust (New York) __ __ $33 $34 
 
 Guggenheim Exploration $45% $45% 
 
 Gulf Lumber ._ ._ __ *128 
 
 Guthrie (Oklahoma) Savings Bank 120 
 
 Hackensack Water Co., com. __ __ *$29i/2 — 
 
 ■ preferred — __ __ *$29i/a 
 
 Hadley Falls National Bank (Holy oke) __ __ 140 150 
 
 Hale & Kilburn, com. __ „ 68 65 
 
 1st preferred — „ 971/3 99 
 
 2nd preferred — — 96 98 
 
 Hale & Norcross Mining __ _- 6c 8c 
 
 Halifax Electric Tramway Co. __ »_ 159 
 
 Halifax Tonopah Mining (Nevada) __ __ $1.05 
 
 Hall Signal „ ._ 1/4 ^4. 
 
 Halsted St. State Bank __ „ 134 138 
 
 Hamilton Bank (Canada) __ __ — 208 
 
 Hamilton Brown Shoe __ __ 187l^ — 
 
 Hamilton Manufacturing (Massachusetts) *90 
 
 Hamilton Prov. & Loan *132 
 
 Hamilton Trust (Brooklyn) __ __ 270 285 
 
 Hamilton Trust (Paterson) — 400 
 
 *Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1037 
 
High Low Bid Asked 
 
 Hamilton Trust (Philadelphia) *$43 *$43 
 
 Hamilton Woolen (Massachusetts) *90 
 
 Hancock Consolidated Mining _. __ 18 ISVg 
 
 Hanover Insurance (New York) __ __ $971/2 $1021/2 
 
 Hanover National Bank (New York) __ __ *700 *710 
 
 Harb.-Walker Ref., com. __ __ 47 50 
 
 preferred 1 __ __ 101 
 
 Hargadine, McK. Dry Goods, 1st pfd. __ __ __ 80 
 
 2nd preferred 40 
 
 common 10 
 
 Hargiaves Mills (Fall River) __ __ __ 65 
 
 Harmony Mills, pfd. *114y2 __ 
 
 Harriman National Bank (New York) __ __ 290 
 
 Harris Brothers, pfd. *100 *100 
 
 Harrisburg (Pennsylvania) National Bank__ __ __ $58 $60 
 
 Harrisburg, Ports., Mt. Joy & Lancaster *$92V2 __ 
 
 Harrisburg (Pennsylvania) Trust Co. __ __ 200 210 
 
 Harris Trust & Savings Bank (Chicago) __ __ 525 
 
 Hart (Colorado Springs) __ __ __ 2c 
 
 Hart & Crouse, pfd. __ __ *6.90% basis 
 
 Hart, SchafFner & Marx, pfd. __ __ 97 98 
 
 Hartford & Connecticut West. __ 43 
 
 Hartford Carpet, com. __ 122 125 
 
 preferred 118 121 
 
 Hartford City Gas Light, pfd. __ __ $50 $52 
 
 common $66 $70 
 
 Hartford Electric Light __ __ 262 264 
 
 Hartford Fire Insurance (Hartford) __ __ 760 767 
 
 Hartford Gas Securities, com. $68 $70 
 
 preferred __ __ $50 $52 
 
 Hartford Insurance __ __ 760 770 
 
 Hartford National Bank 185 190 
 
 Hartford Steam Boiler Insurance __ __ 300 
 
 Hartford Trust Co. __ __ 425 
 
 Hartley Silk (Pennsylvania) $102^/2 $1021/2 
 
 Harwood Electric, pfd. *100 *100 
 
 common *39 *42 
 
 Havana Electric liight & Power, com. 84% 
 
 Havana Electric Ry., Lt. & Pow., pfd __ __ *94 *99 
 
 Havana Tobacco, com. 4 6 
 
 preferred __ __ 8 15 
 
 Haverhill Electric __ __ __ t235 
 
 Hawaiian Commercial & Sugar __ __ $341/2 $3514 
 
 Hawaiian Sugar Co. , __ __ 34% __ 
 
 Hayden (Colorado Springs) .002c 
 
 Hayden- Clin ton Nat'l Bank (Columbus, Ohio) __ __ 225 250 
 
 Haymarket Trust (Boston) __ __ $70 $80 
 
 Hazark Manufacturing *45 '48 
 
 Hazel Pure Food Co., pfd __ __ ._ *3i/2 
 
 Heard National Bank (Jacksonville) 127 
 
 Hedley Gold Min __ _> 301/2 „ 
 
 Heine Safety Boiler __ *70 
 
 Ilelme Co. (G. W.), com 175 188 
 
 preferred __ __ 100 106i/s 
 
 Helvetia Copper 50c 75c 
 
 Hendee Manufacturing, pfd __ __ *150 *160 
 
 Hennepin Co. Savings Bank (Minneapolis) __ __ 265 
 
 Henrietta Mills (North Carolina) __ _- 160 175 
 
 Hercules Powder __ __ •91 *92Va 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. t"\'alue" as of March 1, 1913. 
 
 1038 
 
High Low Bid Asked 
 
 Hermitage National Bank (Nashville) 148 153 
 
 Hernando Insurance (Memphis) — — 97 100 
 
 Herr.-Hall-Marv. 10 20 
 
 Hestonville, M. & F., com — _- — $40 
 
 preferred : — — — $60 
 
 Hewson Pure Wool Tex., pfd. *7% basis 
 
 Heywood Bros. & Wakefield, com — — 120 
 
 Hibernia Bank & Trust (New Orleans) — — 360 363 
 
 Hibernia Insurance (New Orleans) — — 170 210 
 
 Hibernian Bank of Savings — — 172^^ — 
 
 Hibernian Savings Bank, Los Angeles — — 117 
 
 High Grade Oil, pfd *$104 "$104 
 
 High Street Bank (Providence) — — $94 
 
 Hill Manufacturing (Maine) *115 
 
 Hilliard Hotel Co., pfd '100 
 
 Hillside Bank (Brooklyn) __ — .,- 125 
 
 Hobart Trust (Passaic) — — 255 
 
 Hoboken (New Jersey) Trust — — 235 
 
 Hochelaga Bank (Canada) — — 150 155 
 
 Hocking Valley Products 4 5 
 
 Hocking Valley Railway — — — *150 
 
 Holland-St. Louis Sugar, pfd *10 
 
 common — 4^ 5l^ 
 
 Hollenbeck Press, pfd __ — __ *100 
 
 Hollinger Gold Mines — _- 16 17 
 
 Holmes (D. H.) Co., Ltd __ — 152ya 160 
 
 Holmesburg Trust (Philadelphia) *$55 *$55 
 
 Holyoke National Bank — __ 195 205 
 
 Holyoke Street Railway — __ 180 185 
 
 Holyoke Water Power __ -_ 400 
 
 Home (Colorado Springs) 2c 
 
 Home Bank of Canada _ . *115 
 
 Home Bank & Trust (Chicago) __ «_ 150 154 
 
 Home Insurance (New York) 740 755 
 
 Home Life Insurance of America *30 
 
 Home National Bank (Hoh^oke) 145 150 
 
 Home Saving Bank (Cincinnati) __ 100 110 
 
 Home Saving Bank (Detroit) 350 
 
 Home Savings Bank of Los Angeles 140 
 
 Home Saving Bank (Toledo) _. -_ 215 217^4 
 
 Home Savings Bank, Washington __ 325 
 
 Home Telephone, com __ ._ 10*4 10l^ 
 
 preferred — — 27% 28% 
 
 Home Trust (Brooklyn) __ __ 118 
 
 Homes Manufacturing (New Bedford), com.__ >_ — 100 
 
 preferred — — 107 108 
 
 Homestake Mining _- -_ 116 120 
 
 Homestead Bank (Brooklyn) __ — 85 100 
 
 Honokaa Sugar Co — 7% 
 
 Honolulu Oil Cons __ — 1.07ya — 
 
 Hood Rubber, pfd "116 
 
 Hooven Owens & Rent., pfd __ >_ -_ 100 
 
 Horner (R. J.) & Co., 1st pfd ^98 '98 
 
 Hoster Columbus Brewing, com 2 
 
 preferred 14% 
 
 Hotel Bellev. Tr. (Boston) _. __ $50 
 
 Hotel Somerset Tr. (Boston) __ __ __ $85 
 
 Hotel Tr., T'raine (Boston) __ __ $110 $118 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1039 
 
Bid 
 
 Asked 
 
 ^Vz 
 
 4% 
 
 $18 
 
 $19 
 
 $23 
 
 __ 
 
 70 
 
 
 
 92 
 
 
 
 __ 
 
 •105 
 
 99 
 
 101 
 
 285 
 
 325 
 
 — 
 
 19V2 
 
 80% 
 
 81 
 
 
 •50 
 
 
 
 •100 
 
 16 
 
 19 
 
 129 
 
 133 
 
 380 
 
 400 
 
 2% 
 
 3M, 
 
 7 
 
 10 
 
 *10 
 
 ^_ 
 
 600 
 
 
 
 135 
 
 145 
 
 4 
 
 7 
 
 14 
 
 
 
 $105 
 
 
 
 High Low 
 
 Houghton Copper 
 
 Houghton Co. Elec, com 
 
 ■ preferred 
 
 Houghton County Tr., com 
 
 preferred 
 
 Houghton & Button Building, pfd 
 
 Houston G. & F., pfd 
 
 Houston National Exchange Bank 
 
 Houston Oil, com 
 
 preferred 62% 62% 
 
 dividend obligation 
 
 Howard Investment, pfd 
 
 common 
 
 Hudson Companies, preferred 
 
 Hudson Co. Gas 
 
 Hudson Co. National Bank (Jersey City) 
 
 Hudson & Manhattan, com 
 
 ' preferred 
 
 Hudson Motor Car 
 
 Hudson Trust (Hoboken) 
 
 Hudson Trust (New York) 
 
 Huebner-Toledo Brewing, com 
 
 preferred . 
 
 Humboldt Insurance (Pittsburgh) 
 
 Humboldt Savings Bank (San Francisco) — — — 129 
 
 Huntingdon & Broad Top, com $11 
 
 ^preferred $301/2 $30 
 
 Huron & Erie *218y2 — 
 
 Hutchinson Sugar Plantation 
 
 Hyde Park State Bank (Chicago) 
 
 Hydraulic Pr. Br., com 
 
 • preferred 
 
 Hygienic Food 
 
 Idaho Light & Power, pfd 
 
 ■ common 
 
 Idaho Railway, Light & Power 
 
 Illinois Brick 70l^ 70*4 
 
 Illinois Central, com 123 123 
 
 4% stk. tr. ctfs. Ser. A 
 
 Illinois Central leased line 4% stock 
 
 Illinois Crude Oil 
 
 111. & Miss. Telegraph 
 
 Illinois Traction, com 
 
 preferred 
 
 Illinois Trust & Savings Bank (Chicago) 
 
 Imperial Bank (Canada) 
 
 Imperial Life Assurance *50 
 
 Importers & Traders Nat. Bank (New York) 
 
 Independence Trust (Philadelphia) ^$92 *$92 
 
 Independent Brewing, com 
 
 ■ preferred 
 
 Independent Harvester 
 
 Indian Head Mills •25% ^25% 
 
 Indian Refining, pfd 
 
 ■ common ^_ 
 
 Indiana Col. & Eastern Trac, pfd 
 
 Indiana Lighting 
 
 Indiana Mining 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1040 
 
 $16% 
 
 
 
 142 
 
 145 
 
 3 
 
 aVs 
 
 
 
 47% 
 
 — 
 
 •3% 
 
 
 •29 
 
 
 
 ♦4 
 
 — 
 
 •45 
 
 79 
 
 84 
 
 •90 
 
 •94 
 
 
 
 5c 
 
 $32% 
 
 $37 
 
 
 65 
 
 
 
 94 
 
 490 
 
 500 
 
 218 
 
 220 
 
 ^547 
 
 555 
 
 i48/» 
 
 $4% 
 
 
 $303/^ 
 
 — 
 
 •60 
 
 •25 
 
 •35 
 
 •5 
 
 •11 
 
 •50 
 
 
 
 40 
 
 43% 
 
 12% 
 
 13 
 
High Low Bid Asked 
 
 Indiana National Bank (Indianapolis) __ __ 30914 __ 
 
 Indiana Pipe Line __ __ $133 $136 
 
 Indiana Trust (Chicago) 202 
 
 Indiana Union Tr 6% 
 
 Indianapolis Abattoir, pfd. ■ : __ __ __ *100 
 
 Indianapolis Gas __ $40 $48 
 
 Indianapolis & Southeast. Tr., pfd. __ __ 821/3 90 
 
 Indianapolis Street Ry. __ __ 99l^ 991/3 
 
 Industrial Building *85 
 
 Industrial Trust (Providence) __ __ 246 251 
 
 Industrial Tr., Title & Savings (Philadelphia) *$175 *$175 
 
 Ingersoll-Rand, com. 105 
 
 preferred 92 
 
 Inland Steel __ __ 223 225 
 
 Inspiration Consolidated Copper $161/3 $161/3 
 
 Insur. Co. of North America (Philadelphia)— $22 $21% 
 
 Insurance Co. State of Pennsylvania *$250 
 
 Integrity Title, Ins., Tr. & Safe Dep. (Phila.) *$154 *$154 
 
 Interborough Metropolitan, com. 17 
 
 preferred 58l^ 
 
 Intercolonial Coal/ com. *85 
 
 preferred *64 
 
 Intercontinental Rubber 8 9 
 
 Interior Mining *5c *5c 
 
 International Ag. Corp., com. 40 
 
 preferred ^_ 79 86 
 
 International Bank of St. Louis '_ 375 
 
 International Banking 100 115 
 
 International Belanger Ring __ 50c 75c 
 
 International Button-Hole Sewing Machine $51/3 $6 
 
 International Coal & Coke *40 
 
 International Construction 10 20 
 
 International Educational Pub., com. $19% $20% 
 
 ■ preferred ! $38 $40 
 
 International Elevating __ *50i/3 __ 
 
 International Harvester, com. (old) 107 108% 
 
 preferred (old) __ __ II01/3 113 
 
 International Harvester of New Jersey IO61/3 111 
 
 International Harvester Corp. 107 111 
 
 International Lead *90 
 
 International Lumber & Development __ __ *lli/3 *13i/3 
 
 International Mercantile Mar., com. stk. ctfs. 4 4% 
 
 preferred : 17 18 
 
 International Motor Co., pfd. *19 
 
 common .._ *5 *8 
 
 International Nickel, com. 145 147 
 
 ^preferred IO51/3 107 
 
 International Ocean Tel. __ __ 90 105 
 
 International Paper, com. 12 12 
 
 preferred 45 47 
 
 International P-A-Y-E Tramcar, Limited "S^. 
 
 International Postal Supply __ __ *31 
 
 International Rubber, com. 8 10 
 
 preferred 90 100 
 
 International Salt 2 4 
 
 International Shoe, pfd. __ __ IO41/3 105 
 
 common __ 981/3 99 
 
 International Silver, pfd. __ 131 135 
 
 common __ 115 120 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1041 
 
High Low 
 
 International Smelting & Refining 
 
 International Smokeless Pow. & Chem., com. 
 
 preferred *$50 
 
 International Steam Pump, com 
 
 preferred 
 
 International Telegraph of Maine 
 
 International Text Book 
 
 International Traction (Buffalo), com. 
 
 preferred 
 
 International Trust (Boston) 
 
 Inter-State Ind. Telep. 
 
 Inter-State Nat'l Bank (Kansas City, Mo.) 
 
 Inter-State Railways, pfd. 
 
 Inter-State Tr. & Bkg. (New Orleans) 
 
 lola Portland Cement, com. 
 
 preferred 
 
 Iowa Central, com. 
 
 preferred 
 
 Iowa National Bank (Davenport) 
 
 Iowa State Savings Bank (Burlington) 
 
 Iron Cap Copper, pfd. 
 
 Iron Silver Mining Co. 
 
 Iron Steamboat Co. (New Jersey) 
 
 Ironbound Trust (Newark) 
 
 Irving National Bank (New York) 
 
 Isabella my^ •131/2 
 
 Island Creek Coal, com. 1 
 
 preferred 
 
 Island Copper Co. 
 
 Isle Royale Copper 
 
 Jack Pot (Colorado Springs) 
 
 Jackson, Lansing & Saginaw 
 
 Jacksonville Traction, com. 
 
 ^preferred 
 
 Jade Oil 
 
 Jefferson Bank (St. Louis) 
 
 Jefferson Co. Savings Bank (Birmingham) 
 
 Jefferson -Gravois Trust .(St. Louis) 
 
 Jefferson Realty Corporation, com. 
 
 1st preferred 
 
 2nd preferred 
 
 Jefferson Trust (Hoboken) 140 140 
 
 Jennie Sample (Colorado Springs) 
 
 Jerry Johnson (Colorado Springs) 
 
 Jersey Central Traction, com. 
 
 Jersey City Trust (Jersey City) 
 
 Jim Butler Ton. Mining (Nevada) 
 
 Johns (H. W.) -Mansville 
 
 Johns-Pratt 
 
 Johnson Tin Foil & Metal 
 
 Johnson Service Co. ; 
 
 Joliet & Chicago (gtd. C. & A.) 
 
 Journal Big. Tr. (Boston) 
 
 Julia Consolidated Mining 
 
 Jumbo Extension Mining (Nevada) 32c 32c 
 
 Justice Gold Mining (Nevada) 1« 
 
 Kal., Alegan & Gr. Rapids . 
 
 Kaministiquia Power 
 
 'Quotation nearest March 1, 1913. No quotation on that dat«. 
 
 1043 
 
 Bid 
 
 Asked 
 
 120 
 
 124 
 
 $20 
 
 $23 
 
 13 
 
 14 
 
 53 
 
 57 
 
 •331/2 
 
 _« 
 
 130 
 
 133 
 
 35 
 
 40 
 
 ♦82 
 
 •90 
 
 425 
 
 450 
 
 
 
 *5V2 
 
 500 
 
 525 
 
 $71/4 
 
 
 
 197 
 
 201 
 
 
 
 $9 
 
 
 
 $14 
 
 8 
 
 12 
 
 19 
 
 25 
 
 285 
 
 300 
 
 
 250 
 
 3% 
 
 ^V2 
 
 
 
 190 
 
 __ 
 
 *$1 
 
 215 
 
 
 
 197 
 
 201 
 
 52 
 
 63 
 
 
 
 861/2 
 
 
 
 •6I/2 
 
 24% 
 
 25 
 
 51/4C 
 
 6c 
 
 80 
 
 85 
 
 
 
 115 
 
 
 
 116 
 
 6c 
 
 8c 
 
 100 
 
 
 
 165 
 
 175 
 
 140 
 
 150 
 
 25 
 
 
 
 991/2 
 
 
 
 95 
 
 — 
 
 51/4C 
 
 '. 6c 
 
 5c 
 
 5%c 
 
 
 
 ♦70 
 
 250 
 
 
 
 73c 
 
 75c 
 
 •95 
 
 •110 
 
 290 
 
 __ 
 
 180 
 
 190 
 
 •93 
 
 
 
 155 
 
 165 
 
 
 
 $50 
 
 ~ 
 
 2c 
 
 ic 
 
 __ 
 
 125 
 
 138_. 
 
 124 
 
 134 
 
High Low Bid Asked 
 
 Kansas City Brew., com. *7l^ 
 
 preferred *39 
 
 Kansas City Casualty __ __ $12 $13 
 
 Kansas City, Ft. Scott & M., pfd. cert. __ 73 'ti 
 
 Kansas City Home Telephone __ __ __ 116 
 
 Kansas City Life Insurance 300 
 
 Kansas City, Mex. & Orient, com. __ 13 
 
 preferred __ __ 2 5 
 
 Kansas City Outer Belt & El. Ry., com. __ __ *1 *2 
 
 preferred *2 *5 
 
 Kansas City Ry. & Light, com. _^ __ 16 18 
 
 preferred __ __ 30 37 
 
 Kansas City, St. Louis & Chicago, pfd. __ __ 100 125 
 
 Kansas City Southern, pfd.. 6O14 601/3 
 
 common __ __ 241/3 25 
 
 K. C. Stock Yards of Maine, com. __ __ 791/3 8OI/3 
 
 preferred 7914 
 
 Kansas City Stock Yards of Missouri __ __ *81 
 
 Kansas Gas & Electric, pfd. __ __ 971/3 100 
 
 Kansas Natural Gas 10 13 
 
 Kansas Trust (Kansas City, Kan.) _« __ 155 170 
 
 Kaspar State Bank (Chicago) : __ __ 234 238 
 
 Kayser & Co. (Julius), com. 85 95. 
 
 1st preferred __ __ IO21/3 110 
 
 Kee Lox Manufacturing 204 206 
 
 Kelley Island Lime & Traction *140 
 
 Kellogg Toasted Corn Flakes, com __ __ *1234 *13i/2 
 
 Kenduskeag Trust (Bangor) __ __ 175 
 
 Kennard Carpet, com. __ __ __ 125 
 
 preferred __ __ 112 
 
 Kensico Cemetery Association __ __ __ *65 
 
 Kensington National Bank (Philadelphia)— *$110 *$110 
 
 Kensington Trust (Philadelphia) *$60 *$60 
 
 Kent State Bank (Grand Rapids) 266 
 
 Kentucky Consolidated Mining (Nevada) __ . Ic 2c 
 
 Kentucky Securities, pfd. 71 73 
 
 common 27 30 
 
 Kent Title Savings Bank & Tr. (Louisville) __ __ 110 
 
 Kentucky Wagon 52 65 
 
 Kenwood Trust & Savings Banks (Chicago) __ __ 170 
 
 Keokuk & Des Moines, com. __ __ 6 8 
 
 preferred 45 
 
 Kerr Lake Mining 3^ 3i/s 
 
 Keweenaw Copper 2l^ 2% 
 
 Keystone Bank (Scranton) __ __ $100 $105 
 
 Keystone Con. Min. & Mlg. Co. (Col. Springs) __' __ __ Ic 
 
 Keystone National Bank (Reading) __ __ 287 300 
 
 Keystone Telephone, com. __ __ $12 $121/3 
 
 preferred __ __ $421^ $43 
 
 Keystone Watch Case *95l^ 
 
 Eilauea Sugar Plan. __ __ 12 
 
 Kilburn Mill (New Bedford) __ __ __ 125 
 
 Killington National Bank (Rutland) __ __ 125 
 
 Kimball Big. Tr. (Boston) __ __ __ $75 
 
 Kimberly Consolidated Mines *17c "170 
 
 Kinemacolor Co. of America *10 *20 
 
 King (J. P.) Manufacturing, com. __ __ 80 85 
 
 King (John P.) Manufacturing, pfd. __ __ __ *106 
 
 King Crowther Corp. __ __ __ 'lO 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1043 
 
High Low Bid Asked 
 
 King Paper Co. __ __ __ *13V3 
 
 King Philip Mills (Fall River) __ __ __ 135 
 
 Kings County Electric Light & Power __ __ 121 123 
 
 Kings County Mortgage Co. *90 
 
 Kings County Trust (Brooklyn) __ __ 520 
 
 Kingston & Pembroke Ry. *li4 
 
 Kinloch Long Distance Tel. __ __ llSi/g 119 
 
 Kittie Lane (Colorado Springs) ll^c 2c 
 
 Klots Throwing Co., pfd. *102y2 *102y2 __ 
 
 I^app Co., pfd. __ __ *105 
 
 Knickerbocker Ice, pfd. *75 *80 
 
 Knoxville Gas, pfd. __ __ 100 
 
 Kokomo, Marion & West. Tr. __ __ 90 
 
 Kolb Bakery, pfd. >_ __ __ 98y8 
 
 Kresge Co. (S. S.), com. __ __ 71 76 
 
 preferred __ __ 100 101 
 
 Kroger Grocery & Baking, com. 205 
 
 1st preferred __ __ __ 123 
 
 2nd preferred 125 
 
 Kruger Copper & Silver __ 10c 14c 
 
 Kuskulana Copper — — 5l^ 5% 
 
 La Belle Iron Works, com. 48 50 
 
 preferred __ __ 124 126 
 
 La Rose Consolidated Mines 2% 3 
 
 La Salle Copper __ __ 3y8 4 
 
 La Salle Extension University — — — *10y2 
 
 La Salle St. Trust & Sav. Bank (Chicago) __ __ __ 100 102 
 
 Lackawanna Coal & Lumber __ __ — *2% 
 
 Lackawanna Railroad of New Jersey — — 93 96 
 
 Lackawanna Steamship *95 
 
 Lackawanna Steel 44 44 
 
 Lackawanna Trust & Safe Dep. (Scranton) __ __ $320 $325 
 
 Laclede Gas Light, com, 98 lOO^^ 
 
 preferred — __ 98 100 
 
 Laconia Car, pfd. __ __ *105 *115 
 
 common __ — *50 *60 
 
 Lafayette Bank (St. Louis) — — 1100 
 
 Lafayette Insurance (New Orleans) __ __ $215 $250 
 
 Lake Copper __ __ 16% 17 
 
 Lake Erie & Western, com. __ __ 9 11 
 
 ^preferred __ __ 23 30 
 
 Lake of Woods Milling, com. __ __ 133 139 
 
 preferred — — — 119% 
 
 Lake Shore Bank & Trust (Cleveland) *300 
 
 Lake Shore Electric Ry., com. *7 
 
 1st preferred *90 
 
 2nd preferred __ __ __ 25% 
 
 Lake Shore & Michigan Southern — — 460 525 
 
 Lake Superior Corporation __ __ 26y2 27 
 
 Lakeview Land Co. *100 
 
 Lake View State Bank (Chicago) __ — 104 106 
 
 Lakeview Trust & Savings Bank (Chicago)— __ — 190 200 
 
 Lakewood Co. of Maine — — *94 
 
 Lancaster Cotton Mills (So. Carolina), com. — — 125 130 
 
 preferred __ — 95 100 
 
 Lancaster Co. National Bank __ __ $131 $132 
 
 Lancaster Mills (Boston and Clint., Mass.) — — — — *85 
 
 Lancaster (Pennsylvania) Trust Co. __ — 600 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1044 
 
High Low Bid Asked 
 
 Land Title Trust (Philadelphia) .— *500 *500 
 
 Landed Banking & Loan *140 
 
 Landers, Frary & Clark — __ $93 
 
 Langley Manufacturing (South Carolina) — __ __ __ 75 
 
 Lansing Fuel & Gas __ __ *53 
 
 Lanston Monotype 85% 86Va 
 
 Laramie, Hahns Peak & Pac. — — 3c 4c 
 
 Laurel Lake Mills (Fall River) „ __ _- 145 
 
 Laurens Cotton Mills (South Carolina) __ __ 127 130 
 
 Laurentian Granite Co., Limited *40 *40 
 
 Laurentide Co. __ __ 214 216 
 
 Laurentide Paper 212 215 
 
 Lawrence Gas Co — — 210 
 
 Lawrence Manufacturing (Mass.) 168 
 
 Lawrence (Massachusetts) Trust — 100 
 
 La\vyers' Mortgage __ __ 215 219 
 
 Lawyers' Title, Ins. & Tr. (New York) __ __ 203 210 
 
 Lehigh & New York, pfd. __ __ 9 12 
 
 Lehigh Coal & Navigation __ __ $881/2 $89 
 
 Lehigh Coal Sales __ __ 195 205 
 
 Lehigh Portland Cement *68 
 
 Lehigh Valley, com. $78% $78^4 
 
 preferred *$60 
 
 Lehigh Valley Coal Sales __ __ $©5 $105 
 
 Lehigh Valley Transit, com. __ __ $19 $191/8 
 
 preferred __ __ $34% $351/2 
 
 Lehigh Valley Trust (Allentown) __ __ $230 $2371/2 
 
 Lehigh & Wilkesbarre Coal __ __ $155 
 
 Lexington City (Kentucky) National Bank__ __ __ 195 200 
 
 Lexington Mining Ic 
 
 Liberty Mills __ __ 50 60 
 
 Liberty National Bank (New York) __ __ 630 640 
 
 Liberty Trust (Boston) __ __ 165 
 
 Library Bureau, pfd. __ *95 *99 
 
 common *13 *20 
 
 Library Co. (Philadelphia) *17 
 
 Library Square Realty __ __ __ *1% 
 
 Life Insurance Club of New York *8 
 
 Liggett & Myers Tob., com. __ __ 219 225 
 
 preferred __ __ 113 115 
 
 Lightning Creek Gold Drain __ __ 2% 2% 
 
 Lincoln Gas 40 
 
 Lincoln Gas & Electric Light __ __ 29 33 
 
 Lincoln Manufacturing (Fall River) 98 
 
 Lincoln National Bank (New York) __ __ *360 
 
 Lincoln National Bank (Pittsburgh) __ __ 200 210 
 
 Lincoln National Bank (Rochester) 210 220 
 
 Lincoln National Bank (Washington) 152 
 
 Lincoln Safe Deposit (New York) __ __ __ *193 
 
 Lincoln Savings Bank (Louisville) 95 98 
 
 Lincoln Trust (Boston) 150 
 
 Lincoln Trust (Jersey City) __ __ 325 335 
 
 Lincoln Trust (New York) __ __ 125 135 
 
 Lindsay Light . __ __ 20 25 
 
 Lion Hill Consolidated Mines 78c 80c 
 
 Lisk Manufacturing, pfd. __ __ *90 
 
 common *21 
 
 Lit Brothers __ __ $171/2 $181/3 
 
 Litchfield Manufacturing (Waterloo, Iowa.) *100 *100 
 
 •Quotation nearest March 1, 1913. No quotation on that date.. 
 
 1045 
 
High Low Bid Asked 
 
 Little Miami __ 104 
 
 Little Puck (Colorado Springs) __ ,003e .007e 
 
 Little Rock Railway & Electric, com *120 
 
 ■ preferred •991/2 — 
 
 Little Sch. Nav. R. R. & Coal $56 
 
 Live Stock Exchange Nat'l Bank (Chicago) __ __ __ 268 275 
 
 Live Stock National Bank (South America) 145 160 
 
 Lockhart Mills (South Carolina), com __ __ 55 65 
 
 preferred — 90 100 
 
 Lockwood Co. (Maine) •103% >_ 
 
 Lockwood National Bank (San Antonio) 240 
 
 Locomotive Superheater Co __ _> *150 *300 
 
 Logan Co. Bank (Guthrie) __ __ 120 
 
 Logan Trust (Philadelphia) "135 •135 
 
 London & Canada Loan & Ag'y *122i4 __ 
 
 London Electric ^29 
 
 London Street ^150 
 
 Lone Star Consolidated Mining (Nevada) Ic 2c 
 
 Lone Star Life Insurance (Dallas) __ •llO 
 
 Long Island R. R __ __ $201/2 $211/2 
 
 Loose-Wiles, com 34 34 
 
 1st preferred __ __ 101% __ 
 
 2nd preferred . 91 
 
 Lorain Street Savings Bank (Cleveland) $182 
 
 Lord & Taylor, com __ _> 60 90 
 
 1st preferred 81 91 
 
 Lorillard Co. (P.), com. __ __ 185 191 
 
 preferred __ 112 115 
 
 Los Angeles Athletic Club __ _> 8% __ 
 
 Los Angeles Hibernian Savings Bank 117 
 
 Los Angeles Investment Co 4.05 
 
 Louisiana & Missouri River R. R., pfd ^140 
 
 Louisiana & Southern Indiana Traction ^250 
 
 Louisiana Sugar Exchange ^65 
 
 Louisiana & Missouri River, pfd — 130 145 
 
 Louisiana & Nashville ^ 133% 1331/8 
 
 Louisville Bridge Co __ __ 103 105 
 
 Louisville, Hend. & St. Louis, com 17 21 
 
 preferred 30 35 
 
 Louisville Home Telephone 100 103 
 
 Louisville National Banking Co 150 152 
 
 Louisville Public Warehouse 92% 
 
 Louisville Title -_ »_ 125 130 
 
 Louisville Tobacco Warehouse, com __ __ 89 
 
 preferred __ 130 135 
 
 Louisville Trac, com 96V^ 97^4 
 
 preferred __ 109 110 
 
 Louisville Trust Co 171 172 
 
 Lovejoy's Wh. Tr. (Boston) __ __ $101 $107 
 
 Lowell & Andover __ 210 220 
 
 Lowell Bank (St. Louis) __ __ 120 125 
 
 Lowell Bleachery (Massachusetts) ^128 
 
 Lowell Electric Light _« 200 205 
 
 Lowell Gas __ ^300 
 
 Lowry National Bank (Atlanta) __ __ 248 252 
 
 Lozier Motor Co ^18 
 
 Lucky Tiger Comb. Gold Mining __ __ __ •$3.85 
 
 Ludlow Manufacturing Associates ^239 '239 
 
 Luhrig Coal Washing & Manufacturing "14 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1046 
 
High Low Bid Asked 
 
 Lumbermans National Bank, (Houston) — — 175 
 
 Lumbermen's Insurance (Philadelphia) *$97l^ 
 
 Luzerne Co. National Bank (Wilkes-Barre)— __ — 130 133 
 
 Lykens Valley R. R. & Coal __ — $13 $17 
 
 Lyman Mills (Massachusetts) *117 
 
 Lynn Gas & Electric — __ — t470 
 
 MacAndrews & Forbes, pfd. *102yz *102ya __ 
 
 common — __ 193 200 
 
 MacDonald (A.) Co., Ltd '95 *95 
 
 MacNamara Mining & Milling (Nevada) 21c 20c 
 
 Machinists' National Bank (Taunton) — 150 
 
 Mackay Companies, com __ 81 85 
 
 —^—preferred 1- — 65 68 
 
 Macon (Georgia) National Bank 90 95 
 
 Macon (Georgia) Savings Bank — — 82 84 
 
 Mahoning Coal R. R., com _ __ _« ._ $462^/^ 
 
 preferred — ~ $50 $54 
 
 Maine Central -_ — 105 107ya 
 
 Maine & New Br. El., Pow., Ltd., 6% deb. stk ^104 
 
 Maison Blanche Co., com — — 87^^ 
 
 preferred — — 105 
 
 Majestic Mines — — 46c 47c 
 
 Maiden Electric — __ — t270 
 
 Maiden & Melrose Gas Light __ — — tl90 
 
 Mallory Steamship — — *21 
 
 Manayunk National Bank (Philadelphia) *263 *263 
 
 Manayunk Trust (Philadelphia) *$60y8*$60y8 
 
 Manchester Bank (St. Louis) — — 160 
 
 Manchester & Lawrence — 200 225 
 
 Manchester (Pennsylvania) Sav. Bk. & Tr.__ *$55 *$55 
 
 Manhattan Amal. Mining (Nevada) — — 3c 
 
 Manhattan Beach Co *2 
 
 Manhattan Big Four Mining (Nevada) 92c 89c 
 
 Manhattan Co. Bank (New York) — — $175 $180 
 
 Manhattan Cons. Mines Devel. Min. (Nev.) 6c 6c 
 
 Manhattan Crescent Mining (Nevada) 6c 6c 
 
 Manhattan Dexter Mining (Nevada) — — 4c 5c 
 
 Manhattan Ry., com >_ __ 130ya 13iy3 
 
 Manhattan Savings Bank & Trust (Memphis) 630 560 
 
 Manhattan Shirt, com 50 60 
 
 preferred — >_ 100 102ya 
 
 Manhattan Transit Uii ^iVs 
 
 Manhattan White Caps Mining (Nevada) — — 7c 9c 
 
 Manning, Maxwell & Moore, Inc — — *83 
 
 Manomet Mills — — *120 *125 
 
 Manufactured Rubber, com — — — $% 
 
 preferred — — $4 $6 
 
 Mfrs. & Trdrs. Nat. Bk. (Buffalo) 400 
 
 Manufacturers Light & Heat, Pittsburgh — $51% $51% 
 
 Manufacturers National Bank (Brooklyn) — __ $12iya$129 
 
 Manufacturers National Bank (Newark) — 270 
 
 Manufacturers National Bank (Philadelphia) •131l^*131l4 
 
 Manufacturers National Bank (Troy) _ — 450 
 
 Manufacturers National Bank (Waterbury) — 150 
 
 Manville Co., pfd — — 5y2% basis 
 
 Maple Leaf Mill, com — — 60^ 
 
 preferred — — 96y2 97 
 
 'Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1047 
 
High Low Bid Asked 
 
 Marconi Wireless Telegraph of America __ __ __ *5% 
 
 Marconi Wireless Telegraph of Canada *4y2 
 
 Marconi Wireless Telegraph, Ltd., pfd. _« __ *17 'lOVa 
 
 common __ __ *20y2 *22y3 
 
 Maricopa Northern __ eVgC 6%c 
 
 Maricopa Queen 15c 
 
 Maricopa 06 Oil __ __ 32c 48c 
 
 Marine Bank (Norfolk) __ __ 270 290 
 
 Marine National Bank (Buffalo) __ 325 350 
 
 Marine National Bank (Milwaukee) 230 
 
 Maritime Tel. & Tel. Co., pfd *5.66% basis 
 
 common *4%% basis 
 
 Market Bank (Buffalo) __ __ 140 
 
 Market Exchange Bank (Columbus, 0.) __ __ 200 210 
 
 Market & Fulton National Bank (New York) __ __ 250 255 
 
 Market National Bank (Cincinnati) 240 275 
 
 Market Savings Bank (Toledo) __ __ __ 108 
 
 Market Street National Bank (Philadelphia) *181l^*181l^ 
 
 Market Street Title & Trust (Philadelphia) *$33 *$33 
 
 Market Trust __ __ 130 140 
 
 Market Trust & Savings Bank (Chicago) __ __ 123 126 
 
 Marlboro Cotton Mills (South Carolina) __ __ 80 
 
 Marlborough Electric __ __ __ t230 
 
 : Vlarlborough Electric Securities t230 
 
 Marshall & Ilsley Bank (Milwaukee) __ __ 225 230 
 
 Mary McKinney (Colorado Springs) __ __ 64y2C 64730 
 
 Mary Nevin (Colorado Springs) __ __ __ Ic 
 
 Maryland & Pennsylvania __ __ 31 36 
 
 Maryland Casualty $105 $105 
 
 Maryland Coal Co. of Maryland __ __ __ *9 
 
 Maryland Coal Co. of Virginia *10 
 
 Maryland Coal Co. of West Virginia *9l^ 
 
 Maryland Motor Car Insurance __ __ __ *115 
 
 Maryland National Bank (Baltimore) __ __ $21 $23 
 
 Maryland Trust (Baltimore), pfd __ __ 119 
 
 common 117 119 
 
 Mascot Copper Co *2V4 
 
 Mascot Oil __ __ __ 65c 
 
 Mason Valley Mines 7% 7% 
 
 Massachusetts Bonding __ __ $145 $145 
 
 Massachusetts Breweries 45 50 
 
 Massachusetts Consolidated Mining 414 4% 
 
 Massachusetts Cotton Mills 118 
 
 Massachusetts Electric Companies, com __ __ 16y2 — 
 
 stpd. preferred __ __ __ jQi/^ 
 
 Massachusetts Fire & Marine Insurance __ __ $175 $225 
 
 Massachusetts Gas Companies, com. __ __ 89% 90 
 
 preferred __ __ 92y2 94 
 
 Massachusetts Lighting Companies __ __ $118 $121 
 
 Massachusetta-Pocasset Nat'l Bank (Boston) __ __ 160 165 
 
 Massachusetts Title Insurance __ 50 
 
 Massawippi Valley Railroad __ __ 115 
 
 Massoletti Mines __ __ 2 2% 
 
 Mathieson Alkali Works *40 
 
 Matoa (Colorado Springs) .005 
 
 Mattapan Deposit & Trust (Boston) __ __ 200 
 
 Maxwell Motor, 1st pfd __ __ __ *65 
 
 2d preferred __ __ __ ♦55 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1048 
 
High Low Bid Asked 
 
 May Department Stores, com — — 73 75 
 
 preferred — — 101 104 
 
 Mayflower Consolidated Mining (Nevada) — — Ic 2c 
 
 Mayo Mills (North Carolina) — — 125 135 
 
 Mays Oil '- — — 18c 20c 
 
 McCasky Register Co., pfd — — — ^lOO^j 
 
 common — — — ^lOOi/g 
 
 McCornick & Co. Bank (Salt Lake City) — — 350 355 
 
 McElwain (W. H.) 1st pfd — — 101 102 
 
 McKeen National Bank (Terre Haute) — — 175 180 
 
 McKinley-Darragh 2iW 2 
 
 Mechanics' American Nat'l Bank (St. Louis). — — 2771/2 280 
 
 Mechanics' Bank (Brooklyn) — — 108 115 
 
 Mechanics' Bank (New Hampshire) — — $90 
 
 Mechanics' & Farmers' Bank (Alabama) — — 345 355 
 
 Mechanics' Insurance (Philadelphia) *$50 
 
 Mechanics' & Metals Nat'l Bank (New York)- __ __ *250 255 
 
 Mechanics' Mills (Fall River) __ „ — 90 
 
 Mechanics' National Bank (Lowell) — — 153 
 
 Mechanics' National Bank (Providence) — — $60 
 
 Mechanics' National Bank (Trenton) __ — $150 
 
 Mechanics' National Bank (Worcester) — — 180 
 
 Mechanics' & Traders' Insur. (New Orleans) __ __ __ 160 
 
 Mechanics' & Traders' State Bank (Chicago). __ __ 132 138 
 
 Memphis Street Railway, com *64 
 
 preferred . __ 82 
 
 Mercantile Bank (Kansas City, Missouri) 125 127 
 
 Mercantile Bank (Memphis) __ >_ 225 230 
 
 Mercantile National Bank (Salem) 125 
 
 Mercantile National Bank (San Francisco) 220 
 
 Mercantile National Bank (Seattle) 105 125 
 
 Mercantile Trust (Jersey City) >_ 175 
 
 Mercantile Trust (Little Rock) __ __ $80 
 
 Mercantile Trust (Portland, Me.) __ __ 145 150 
 
 Mercantile Trust (St. Louis) __ __ 300 305 
 
 Mercantile Trust & Deposit (Baltimore) $158i4 $158l^ 
 
 Mercantile Trust & Savings Bank (Chicago)— __ __ 123 126 
 
 Mercantile Trust (Trenton) __ __ 153 
 
 Merchants' Bank (Augusta) __ __ 225 235 
 
 Merchants' Bank (Canada) __ __ 187 190 
 
 Merchants' Bank (Rochester) __ __ 235 250 
 
 Merchants' Bank (Salt Lake City) __ __ 169 170 
 
 Merchants' Bank & Trust (Los Angeles) __ __ 150 
 
 Merchants' & Cl'k Savings Bank (Toledo) ___ __ __ 300 
 
 Merchants' Export National Bk. (New York). __ __ *$77 *$80 
 
 Merchants' & Farmers' Nat'l Bk. (Charlotte) __ __ 192 
 
 Merchants'-Laclede National Bank (St. Louis) __ 3031/2 __ 
 
 Merchants' Loan & Trust (Chicago) __ __ 432 436 
 
 Merchants' & Manufacturers Bk. (Milwaukee) __ __ 113 115 
 
 Merchants' & Mechanics' Bank (Scranton)___ __ __ $1021/2 $1071/, 
 
 Mcrchants'-Mechanics' Nat'l Bk. (Baltimore). $33% $33% 
 
 Merchants' & Main Street Bank (Memphis). .. __ 123 130 
 
 Merch. & Mech. Tr. & Sav. Bk. (Birmingham) _. __ 134 140 
 
 Merchants' Mills (Fall River) __ __ 98 
 
 Merchants' & Miners Transportation _. ._ __ *67i/j 
 
 Merchants' National Bank (Allentown) _. __ 240 260 
 
 Merchants' National Bank (Bangor) ._ __ __ 300 
 
 Merchants' National Bank (Boston) _. __ 300 305 
 
 Merchants' National Bank (Burlington) _. __ __ 225 
 
 ♦Quotation nearest March 1, 1913, No quoUtion on that date. 
 
 1049 
 
High Low Bid Asked 
 
 Merchants' National Bank (Chicago) __ __ 209 
 
 Merchants' National Bank (Dayton) — 148 
 
 Merchants' National Bank (Harrisburg) __ __ 275 280 
 
 Merchants' National Bank (Jersey City) __ __ 150 175 
 
 Merchants' National Bank (Los Angeles). __ __ 850 
 
 Merchants' National Bank (Lowell) __ 198 
 
 Merchants' National Bank (Newark) 260 
 
 Merchants' National Bank (New Hampshire)- $67 
 
 Merchants' National Bank (New York) __ __ *$98 *$100 
 
 Merchants' National Bank (Norwich) __ 110 
 
 Merch. National Bank (Omaha) __ 190 200 
 
 Merch. National Bank (Providence) __ $87 
 
 Merch. National Bank (Raleigh) 150 
 
 Merch. National Bank (Richmond) __ __ 1000 
 
 Merch. National Bank (St. Paul) __ ._ 255 275 
 
 Merch. National Bank (Salem) $85 $85. 
 
 Merch. National Bank (Sav.) __ __ 115 
 
 Merch. National Bank (Topeka) _« 175 
 
 Merch. National Bank (Worcester) 190 
 
 Merch. Public Utilities, pfd __ __ __ *99 
 
 Merch. Real Estate Trust (Boston) __ __ __ $500 
 
 Merch. Savings & Trust (Pittsburgh) __ __ __ *$30 
 
 Merch. Trans. & Storage __ __ 105 120 
 
 Merch. Trust (Camden) __ __ 125 135 
 
 Merch. Trust (Lawrence) 155 
 
 Merch. Union Trust (Philadelphia) *110 *110 
 
 Merchants Warehouse Co *132 *132 
 
 Mergentlialer Linotype __ __ 217 218^4 
 
 Meriden Cutlery Co *21 
 
 Mermod, Jaccard & Co., pfd 90 
 
 Merrill Trust (Bangor) __ __ 175 
 
 Merrimac Chemical *$49ya*$49y2 
 
 Merrimack Manufacturing (Mass.), pfd *96 
 
 common 33*4 
 
 Metacomet National Bank (Fall River) __ __ 125 130 
 
 Metal Shingle & Siding Co., Ltd., pfd 'lOO '100 
 
 Metropolis, Bank of the (New York) __ __ *355 365 
 
 Metropolitan Bank (Canada) 200 
 
 Metropolitan Bank (Minneapolis) 135 
 
 Metropolitan Bank (New Orleans) 170 
 
 Metropolitan Bank (New York) >_ __ 190 197 
 
 Metropolitan Bank (Seattle) _« __ 250 300 
 
 Metropolitan Bank (Toronto) __ 200 
 
 Metropolitan Gas & Electric, pfd _« *91 
 
 Metropolitan National Bank (Washington)— 205 210 
 
 Met. State Bank (Detroit) __ .. 127 140 
 
 Metropolitan Trust (New York) _- __ 440 450 
 
 Mexican Crude Rubber Co ^ 14 
 
 Mexican Gold & Silver Min. (Nevada) 65c 64c 
 
 Mexican Iron & Steel *8 
 
 Mexican Light & Power, com 74% 75Vi 
 
 Mexican Metals __ 1% 1^^ 
 
 Mexican Min 65 63 
 
 Mexican North. Pow 20 21 
 
 Mexican Petroleum, com 70*4 69% 
 
 preferred ._ 93l^ 100 
 
 Mexican Plantation $165 $165 
 
 Mexican Telegraph ._ ._ "210 *230 
 
 *QuotatiOD nearest Marcb 1, 1913. No quotation on that date. 
 
 1050 
 
High 
 
 Low 
 
 Bid 
 
 Asked 
 
 
 __ 
 
 $31/2 
 
 $4 
 
 __ 
 
 __ 
 
 $61/4 
 
 __ 
 
 
 
 
 *1 
 
 __ 
 
 
 
 __ 
 
 ♦70 
 
 
 
 
 108 
 
 110 
 
 $221/2 
 
 -$221/2 
 
 __ 
 
 _„ 
 
 
 
 
 
 100 
 
 ^_ 
 
 
 
 
 142 
 
 146 
 
 __ 
 
 __ 
 
 _^ 
 
 ♦95 
 
 
 
 
 
 ._- 
 
 190 
 
 
 
 __ 
 
 __ 
 
 •101/2 
 
 
 
 
 
 __ 
 
 $93 
 
 
 
 
 98 
 
 100 
 
 __ 
 
 __ 
 
 UVz 
 
 $2 
 
 
 
 
 210 
 
 
 
 
 
 
 
 99 
 
 1003/4 
 
 
 
 
 
 __ 
 
 45 
 
 
 
 
 
 
 
 93 
 
 
 
 
 
 600 
 
 
 
 __ 
 
 __ 
 
 ♦75 
 
 ♦81 
 
 
 
 
 
 — 
 
 42c 
 
 
 
 215 
 
 219 
 
 __ 
 
 __ 
 
 *30 
 
 ♦37 
 
 Mexican Telephone & Telegraph, com 
 
 preferred 
 
 Mexican Timberfields Co 
 
 Mexican Trust Co. (Kansas City) 
 
 Mexico Tramway 
 
 Miami Copper 
 
 Miami Pape*-, 1st pfd 
 
 Michigan Avenue Trust (Chicago) 
 
 Michigan Buggy, pfd 
 
 Michigan Central 
 
 Michigan Fence Co 
 
 Michigan F. & M. Insurance 
 
 Michigan Light, pfd 
 
 Michigan Min 
 
 Michigan Savings Bank (Detroit) 
 
 Michigan State Telephone, pfd 
 
 Michigan Sugar, com 
 
 preferred 
 
 Michigan Trust (Grand Rapids) 
 
 Michigan United Ry 
 
 Michigan-Utah Mining 
 
 ;M^id-City Trust & Savings Bank (Chicago)—. 
 
 Middlesex Banking Co 
 
 Middlesex Co. (Massachusetts) 55 
 
 Midland Life Insurance Co — — ♦IS 
 
 Midway Mining (Nevada) 54V2C 53c 
 
 Midway Northern — 10c 
 
 Milford-Uxbridge Co 
 
 Miller (Daniel) Co 
 
 Miller (Edward) Co. (Connecticut) 
 
 Miller (Henry F.) & Sons Pianos, pfd 
 
 Miller Rubber ^192 
 
 Miller Safety Device Corp 
 
 Mills Manufacturing (South Carolina) 
 
 Milwaukee & Chicago Brew 
 
 Milwaukee Electric Ry. & Light, pfd 
 
 Minehill & Schuylkill Haven $5714 $57l^ 
 
 Mineral Hill Consolidated Mines (Nevada) 
 
 Miners' & Merch. Bank (Charleston) 
 
 Miners Bank of Wilkes-Barre 
 
 Mines Co. of America 
 
 Minneapolis Brew., com 
 
 preferred 
 
 Minneapolis & St. Louis, com I914 I914 
 
 preferred 
 
 M. S. P. & S. S. M., com 136l^ I3614 
 
 preferred 
 
 Leased Line Certificates 
 
 Minneapolis Threshing Mach ^102 ^102 
 
 Minnesota Sugar, com 
 
 preferred 
 
 Miss. Central 
 
 Miss. River Power, pfd 
 
 common 
 
 Mississippi Valley Bank & Trust (Memphis)- 
 
 Mississippi Valley Trust (St. Louis) 
 
 Missisquoi Marble Co ♦IS ♦IS 
 
 Missouri & Kansas Telephone ^65 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1051 
 
 
 
 ♦77 
 
 
 ♦140 
 
 ♦60 
 
 ♦63 
 
 — 
 
 ♦110 
 
 
 *1V2 
 
 95 
 
 100 
 
 $16 
 
 $20 
 
 ♦100 
 
 ♦102 
 
 ~" 
 
 Ic 
 
 140 
 
 150 
 
 $205 
 
 $210 
 
 2% 2% 
 
 — 
 
 180 
 
 100 
 
 — 
 
 ♦43 
 
 — 
 
 143 
 
 150 
 
 82 
 
 83% 
 
 42 
 
 49 
 
 74 
 
 77 
 
 40 
 
 43 
 
 74 
 
 77 
 
 45 
 
 48 
 
 120 
 
 130 
 
 300 
 
 305 
 
High Low Bid Asked 
 
 Missouri, Kansas & Texas, com 25% 25% 
 
 preferred — — 601/^ 60% 
 
 Missouri Pacific 37% 37% 
 
 Mizpah Extension Mining (Nevada) 
 
 Mobile & Birmingham, pfd. (gtd.) 
 
 Mobile & Ohio stock tr. ctfs 
 
 Mobile Elec, pfd 
 
 Modern Pen Co 
 
 Mohawk Mining 
 
 Mohawk Valley Co 
 
 Moline Plow, pfd 
 
 common 
 
 Molsons Bank (Canada) 
 
 Monadnock Mills (N. H.) 
 
 Monarch Cotton Mills (South Carolina) 
 
 Monarch Fence Co 
 
 Monarch Knitting, com 
 
 preferred 
 
 Monarch Pitts. Ext. Mining (Nevada) 17c 16c 
 
 Monaton Realty Investment 
 
 Monongahela River Coal & Coke, pfd 
 
 common 
 
 Monongahela Valley Traction, pfd 
 
 Montana Min *1.62y2*1.62i/2 
 
 Montana Power, com 
 
 preferred 
 
 Montauk Bank (Brooklyn) 
 
 Montgomery (J. R.) Co 
 
 Montgomery Ward, pfd 
 
 Montpelier-Barre Light & Power, pfd 
 
 Montreal, Bank of (Canada) 
 
 Montreal Cottons, com 
 
 preferred 
 
 Montreal Light, Heat & Power 
 
 Montreal Loan & Mortgage *190 
 
 Montreal Power 
 
 Montreal Telegraph 
 
 Montreal Tramways, com 
 
 Montreal Tramway & Power 
 
 Montreal Welland Land, Ltd., pfd *95 *95 
 
 Moon Anchor — — — Ic 
 
 Moore (Benjamin) & Co *160 "leO 
 
 Moore (L. E.) Stave Co., pfd — — — *110 
 
 Moore-Watson Co. (New York), pfd '100 *100 
 
 Morning Glory Min. (Nevada) 
 
 Morris County (New Jersey) Traction 
 
 Morris & Essex Extension R. R 
 
 Morris & Essex R. R., gtd 
 
 Morristown (New Jersev) Trust Co 
 
 Morse Twist Drill & Machine Co. (N. Bedfd.) 
 
 Mortgage Bond 
 
 Mortgage Guarantee (St. Louis) 
 
 Mortgage Trust (Philadelphia) *101iA *101i4 
 
 Motzorongo Plan 
 
 Mount Morris Bank (New York) 
 
 Mount Olivet Cemetery 
 
 Mountain City Trust (Altoona) 
 
 Mountain States Telephone & Telegraph 
 
 Mulford (H. K.) Co 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1053 
 
 51c 
 
 54c 
 
 *65 
 
 75 
 
 
 
 771/a 
 
 92% 
 
 95 
 
 *10 
 
 
 $48 
 
 $49 
 
 *ioiy2^ 
 
 •^108 
 
 1003/4 
 
 103 
 
 
 »140 
 
 
 
 201% 
 
 1000 
 
 
 
 105 
 
 115 
 
 
 
 *2% 
 
 
 
 86 
 
 — 
 
 93 
 
 "■ 
 
 •50 
 
 *50 
 
 •75 
 
 novsj 
 
 •20 
 
 ~ 
 
 •85 
 
 451/2 
 
 46 
 
 99 
 
 101 
 
 
 
 150 
 
 90 
 
 
 
 1071/4. 
 
 107% 
 
 *6% basis 
 
 
 
 242 
 
 59 
 
 6O1/4 
 
 1041/4 
 
 105 
 
 *224%^ 
 
 »225 
 
 224% 
 
 225 
 
 
 $57% 
 
 
 
 170 
 
 45% 
 
 45% 
 
 Ic 
 
 3c 
 
 3 
 
 4 
 
 
 
 •97% 
 
 »$82% 
 
 .*$86 
 
 
 400 
 
 300 
 
 __ 
 
 103 
 
 106 
 
 — 
 
 134 
 
 " 
 
 •5 
 
 ^300 
 
 __ 
 
 90 
 
 100 
 
 $43 
 
 $45 
 
 104 
 
 105 
 
 __ 
 
 •56 
 
High Low Bid Asked 
 
 Muncie, Hartford & Fort Wayne, pfd __ __ *60 
 
 Municipal Gas (Albany) ^ — — 265 280 
 
 Municipal Pub. Service, pfd *98 *98 
 
 Municipal E. E. Trust (Boston) — — $97 $103 
 
 Munsey Trust (Baltimore) ' — — 105 107 
 
 Murchison National Bk. (Wilmington, N. C.)- ~ — 160 161 
 
 Murray Co., com — — *150 *160 
 
 Muskogee Gas & Electric, pfd — — 95 971/2 
 
 Mustang Extension Mining (Nevada) — __ Ic 2c 
 
 Mustang Manhattan Mining (Nevada) — — 3c 
 
 Mutual Alliance Trust (New York) — __ 135 145 
 
 Mutual Bank (New York) — — 290 
 
 Mutual National Bank (Boston) — — 100 
 
 Mutual Savings Bank (San Francisco) __ __ — $80 
 
 Mutual Trust (Philadelphia) *$44 *$44 
 
 Mutual Trust (Port Chester) __ __ 140 150 
 
 Myles Salt Co., Ltd., com — — 125 
 
 preferred — — 125 
 
 Narragansett Electric Lighting __ __ $90 $92 
 
 Narragansett Machine, pfd __ — — *102l^ 
 
 Narragansett Mills — — $115 
 
 Nashawena Mills (New Bedford) — — 70 75 
 
 Nashua & Lowell — — 243 
 
 Nashua Manufacturing (New Hampshire) *625i4 — 
 
 Nashville, Chattanooga & St. Louis — — 150 170 
 
 Nashville & Decatur — — $46% $48 
 
 Nashville Gas __ — 100 105 
 
 Nashville Railway & Light, com 102^^ — 
 
 preferred __ — 95% 96ya 
 
 Nashville Title __ __ 95 102 
 
 Nashville Trust Co __ __ 150 160 
 
 Nashville Warehouse & Elevator __ __ 20 30 
 
 Nashville Woolen Mills __ __ 20 30 
 
 Nassau & Dutchess Insurance (New York) __ __ 130 140 
 
 Nassau National Bank (Brooklyn) 205 220 
 
 Nassau Trust (Brooklyn) __ __ 130 
 
 National Acme Manufacturing *110 
 
 National Bank of Baltimore 177 179 
 
 •National Bank of Barre 120 
 
 National Bank of California, Los Angeles _, __ 225 
 
 National Bank of Commerce (Baltimore) __ __ $311/3 $321/2 
 
 National Bank of Commerce (Boston) __ __ 235 230 
 
 National Bank of Commerce (Columbus, 0.)— __ __ 135 145 
 
 National Bank of Commerce (Dallas) __ __ 200 
 
 National Bank of Commerce, Detroit __ __ 211 218 
 
 National Bank of Commerce (Houston) __ __ $104 $106 
 
 National Bank of Commerce (Louisiana) __ __ 225 230 
 
 National Bank of Commerce (New York) __ __ 191 I931/3 
 
 National Bank of Commerce (Norfolk) __ __ 200 205 
 
 National Bank of Commerce (Providence) __ *67i/3 
 
 National Bank of Commerce (Rochester) __ __ 185 190 
 
 National Bank of Commerce (St. Louis) I491/2 I491/2 
 
 National Bank of Commerce (Seattle) __ __ 335 340 
 
 National Bank of Commerce (Tacoma) __ __ 350 
 
 National Bank of Commerce (Toledo) __ __ 140 144 
 
 National Bank of Cuba (Havana) __ __ 110 111 
 
 National Bank of Delaware (Wilmington) __ __ 215 225 
 
 National Bank of Germant'n (Philadelphia) _*$14 2 1/2 *$142i/3 
 
 •Quotation nearest March 1, 1913. No quotation on tliat date. 
 
 1053 
 
High Low Bid Asked 
 
 National Bank of Kentucky (Louisville) __ __ 200 2031/2 
 
 National Bank of New Jersey (New Bruns'k) — — 285 300 
 
 National Bank of No. Lib. (Philadelphia) •253 •252 
 
 National Bank of Petersburg (Virginia) __ __ __ 300 
 
 National Bank of Republic (Chicago) __ „ 230 234 
 
 National Bank of the Rep. (Kansas City, Mo.) — __ 160 175 
 
 National Bank of Republic (Salt Lake City). __ __ 195 200 
 
 National Bank of Savannah — — — 2321/3 
 
 National Bank of Washington, D. C __ — 244 256 
 
 National Bank of West Virginia (Wheeling) _ __ __ 158 160 
 
 National Ben. Franklin Insur. (Pittsburgh) __ $100 
 
 National Biscuit, com 115% 115% 
 
 preferred — — 116 121 
 
 National Candy, com — — 914 10 
 
 lat pfd - „ 106 1071/2 
 
 2d pfd — — 761/2 ._ 
 
 National Cap. Bank (Washington) __ __ 224 
 
 National Carbon, com — — 118 120 
 
 preferred *116 
 
 National Cash Register, pfd — __ *129 
 
 National City Bank (Baltimore) 110 
 
 National City Bank (Brooklyn) _. „ __ 275 295 
 
 National City Bank (Chicago) ._ __ 195 199 
 
 National City Bank (Cleveland) — >_ 235 255 
 
 National City Bank (Indianapolis) __ __ 151% I521/2 
 
 National City Bank (Memphis) __ __ 120 122 
 
 National City Bank (New York) — __ __ 450 
 
 National City Bank of Seattle _- __ 140 150 
 
 National City Bank (Troy) __ _. 172 175 
 
 National City Bank (Waco) __ — 95 105 
 
 National Commerce Bank 164 
 
 National Commercial Bank (Albany) __ 345 355 
 
 National Commercial Bank (Cleveland) ^160 
 
 National Cop. Bank (Salt Lake City) __ __ 139 140 
 
 National Enam. & Stpg., com 15% 15% 
 
 preferred __ __ 87 93 
 
 National Exchange Bank (Augusta) 135 140 
 
 National Exchange Bank (Baltimore) «_ __ 161 163 
 
 National Exchange Bank (Hartford) $83 
 
 National Exchange Bank (Milwaukee) __ __ 212 214 
 
 National Exchange Bank (Providence) __ __ 255 280 
 
 National Exchange Bank (Wheeling) __ __ 223 225 
 
 National Fire Insurance (Hartford) __ __ 375 385 
 
 National Fire- Proofing, com __ __ $6% $7 
 
 preferred __ __ $28% $281/0 
 
 National Fuel Gas __ __ __ 164% 
 
 National Gas, Electric Light & Power, com __ __ 30 
 
 preferred __ __ 80 
 
 National Glass Brick ^6 ^6 
 
 National Grocer, com _« __ 42 431/2 
 
 preferred __ __ 74 77 
 
 National Howard Bank (Baltimore) __ __ $141/2 $151/2 
 
 National Insurance (Hartford) __ __ 375 385 
 
 National Lead, com ^_ __ 50 52% 
 
 preferred __ __ 105 107 
 
 National Lettergraph, pfd __ __ __ *25 
 
 National Licorice, com. *38 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1054 
 
High Low Bid Asked 
 
 National Light, Heat & Power, com „ — 8 
 
 preferred — — 46 52 
 
 National Machine ~ — ?15 
 
 National Machine Recorder Co . — — — — *^Y2 
 
 National Marine Bank (Baltimore) '.— — — 43 44 
 
 National Metal Bank (Washington) — — 205 210 
 
 National Mining — — ~ 1 
 
 National Nassau Bank of New York — — — *215 
 
 National New Haven Bank — — 193 
 
 National Newark Banking — — 195 
 
 National Pacific Oil — — 4y8C __ 
 
 National Park Bank (New York) __ „ 367 373 
 
 National Produce Bank (Chicago) __ __ 159 163 
 
 National Produce Co. (Chicago) __ — *165 
 
 National Protection Co — — — *60 
 
 National Railways of Mexico, 1st pfd __ — 57 60 
 
 2d preferred — — 241/2 25 
 
 National Realty, Ltd — — 6 
 
 National Refining, com — — 121 
 
 preferred — — 126 
 
 National Reserve Bank (Kansas City, Mo.)-- — ~ 152y3 153^/^ 
 
 National Reserve Bank (New York) __ — 93 97 
 
 National Rock Bank of Roxbury (Boston) __ __ 190 
 
 National Savings & Trust (Washington) __ __ 265 275 
 
 National Screw & Tack, pfd *100l^ __ 
 
 National Security Bank (Boston) .___ __ __ 400 450 
 
 National Security Bank (Philadelphia) *350 *350 
 
 National Shawmut Bank (Boston) __ — 240 242 
 
 National Siik Dyeing, pfd __ ^94 
 
 National State Bank (Burlington) 250 
 
 National State Bank (Camden) *200 "200 
 
 National State Bank (Newark) 115 
 
 National State Bank of Troy __ __ 210 215 
 
 National State & City Bank (Richmond) __ — 218 
 
 National Sugar Refining, pfd __ __ 100 101*4 
 
 National Surety (New York) _- __ *198 *205 
 
 National Telephone Corp., pfd *27y2 *27y3 
 
 National Tradesmen's Bk. (New Hampshire). __ __ • 193 
 
 National Transit __ __ $49y2 $50y3 
 
 National Trust (Canada) *222 
 
 National Union Bk. of Maryland (Baltimore) __ __ 143 144 
 
 National Union Bank (Boston) 222 222 
 
 National Union Bank (Reading) __ __ $160 $165 
 
 National Union Insurance (Washington) $6 
 
 National Water Co., pfd ._ __ *67 
 
 common *7 
 
 Nationale, La Banque (Canada) 140 143 
 
 Natomas Co. of California IIV2 
 
 Naumkeag Steam Cotton (Massachusetts) *157 
 
 Naumkeag Trust (Salem) 250 
 
 Nebraska National Bank (Omaha) __ __ 115 130 
 
 Neuralgyline Co. 156 
 
 Nevada Consolidated Copper $17y2 $17l^ 
 
 Nevada Hills Mining (Nevada) $1.15 $1.15 
 
 Nevada Utah M. & S __ __ 2c 5c 
 
 Neversink Bank (Reading) __ __ $65 $70 
 
 New Arcadian Copper __ __ 2 2*^ 
 
 New Baltic Copper __ __ 85c $1 
 
 New Bedford & Onset Street Railway ^_ 70 
 
 •Quotation nearest March 1, 1913. No quotation on that datt. 
 
 1055 
 
High Low Bid Asked 
 
 New Bedford (Massachusetts) Deposit & Tr._ __ __ 250 260 
 
 New Bedford Gas & Electric Light — — SOSVg — 
 
 New Britain Machine — — $69 
 
 New Brunswick Trust — — 250 265 
 
 New Central Coal Co. of West Virginia „ __ *$10 *$15 
 
 New Departure Manufacturing, com __ __ $165 $175 
 
 preferred — — $105 $107 
 
 New England Co — — 153 154 
 
 New England Cotton Yarn, com __ __ — $70 
 
 preferred — — $86% $87 
 
 New England Engineering Co __ — — *91 
 
 New England Exploration Co __ — *2 
 
 New England Inv. & Sec, pfd._- — — *90 *92 
 
 New England Nat'l Bk. (Kansas City, Mo.) __ _. „ 450 475 
 
 New England Power, pfd *96 *96 
 
 • common — — — *38 
 
 New England Telephone & Telegraph __ __ 153 
 
 New England Trust (Boston) „ — 350 
 
 New First National Bank (Columbus, O.) — — 230 250 
 
 New Haven Gas Light __ — $411/3 $42ya 
 
 New Haven Iron & Steel *40c 
 
 New Haven Co. National Bank (New Haven) __ „ $20^4 — 
 
 New Haven Water __ — $87 $89 
 
 New Haven Sewing Machine — — — *98 
 
 New Idria Quicksilver Mining — — 6 
 
 New Jersey Guarantee & Trust (Jersey City) 620 
 
 New Jersey Zinc __ __ 620 550 
 
 New London & Northern Railroad *200 *200 
 
 New Netherland Bank (New York) __ __ 220 
 
 New Orleans Auction Ex 310 
 
 New Orleans Board of Trade __ __ 25 50 
 
 New Orleans Brewing, com 40 
 
 preferred 47 
 
 New Orleans Cold 'Storage & Warehouse 75 
 
 New Orleans Cotton Exchange __ — — 3000 
 
 New Orleans Land __ __ 26 27Vj 
 
 New Orleans Mobile & Chicago, pfd __ 15 25 
 
 • common 13 
 
 NcAV Orleans National Bank __ __ 175 
 
 New Orleans Railway & Light, com 31*/^ 
 
 preferred __ __ 72^/2 — 
 
 New Orleans Real Estate, Mtge. & Security 96 
 
 New Orleans Traction & Light, com 71% __ 
 
 preferred *101 
 
 New Pennsylvania Petroleum __ __ 42y2C — 
 
 New River Co., pfd __ __ __ *24 
 
 New York Air Brake 72 77 
 
 New York, Brooklyn & Manhattan Beach, pfd. __ __ *110 118 
 
 New York Central & Harlem River IO614 106*4 
 
 New York, Chicago & St. Louis, com __ __ 55 57 
 
 Ist preferred 97 
 
 • 2d preferred __ __ SOVi 90 
 
 New York County National Bank (New York) __ __ *850 875 
 
 New York Curtain Co __ __ __ *64 
 
 New York Dock, com __ __ __ 19 
 
 preferred 33 43 
 
 New York & East River Fer _, _, 8 15 
 
 "Quotation nearest March 1, 1913. No quotation on that date, 
 
 X056 
 
High Low Bid Asked 
 
 New York & Harlem, com. gtd — — *$175 *$180 
 
 New York Iron Roofing & Corrugating __ „ — *350 
 
 New York & Kentucky Co., pfd — — — 95 
 
 common — — 84 85 
 
 New York, National Bank of — — — *390 405 
 
 New York, Lackawanna & Western, gtd __ — ^^118 133 
 
 New York Life Insur. & Tr. Co. (New York). __ — *1040 1065 
 
 New York Mortgage & Security — — 198 205 
 
 New York Mutual Gas Light Co „ __ *168 
 
 New York, New Haven & Hartford ISe^s l^eVg 
 
 New York, Ontario & Western __ — 30 30ya 
 
 New York & Queens Elec. Lt. & Power, com.> __ __ 53 58 
 
 preferred „ — ■ 78 85 
 
 New York Railways __ — *20 *30 
 
 New York & Richmond Gas __ — 57 63 
 
 New York State National Bank (Albany) __ __ 300 
 
 New York State Railways, com — *88 
 
 preferred __ __ *90 *93 
 
 New York Tanning Extract, pfd __ __ — *95 
 
 common __ *'^'^V» — 
 
 New York Title Insurance __ — 105 115 
 
 New York Transit __ __ *335 *345 
 
 New York Transportation $5 $7 
 
 New York Trust (New York) __ __ 625 635 
 
 Newark Consolidated Gas __ __ 971/3 98% 
 
 Newark Fire Insurance __ __ $14 
 
 Newark Telephone, com. 121 
 
 Newark Trust Co. __ __ 170 
 
 Newberry Cotton Mills (South Carolina)— __ __ 130 140 
 
 Newburyport Gas Light __ __ __ *200 
 
 Newburyport Silver Co. *100 *100 
 
 Newmarket Manufacturing (New Hampshire) *95 
 
 Newport & Fall River St. Ry. __ __ __ *110 
 
 Newport (Kentucky) National Bank __ __ 175 
 
 Newton (G. B.) Coal, com. __ __ 231/3 24% 
 
 1st preferred __ __ 98 100 
 
 2nd preferred __ *68 *75 
 
 Niagara Falls Power __ __ 165 173 
 
 Niagara Insurance (New York) __ __ $1571/3 $165 
 
 Niagara St. Cath, & Tor. *108 
 
 Nicholson File __ __ 265 283 
 
 Nichols & Shepard Co. __ __ *57 
 
 Niles-Bemont-Pond, com. 84 88 
 
 preferred 90 99 
 
 Ninth Avenue Railroad __ __ 160 180 
 
 Ninth National Bank (Philadelphia) *267 *267 
 
 Nipissing Mines __ __ 8% 8% 
 
 Nonquitt Spinning Co. (New Bedford) 93l^ 
 
 Norfolk & Nashville Steamboat __ __ 200 209 
 
 Norfolk Railway & Light __ __ $25% $361/3 
 
 Norfolk Southern __ __ 421/3 471/3 
 
 Norfolk (Virginia) Bank, Savings & Trust 455 465 
 
 Norfolk (Virginia) National Bank __ __ 190 193 
 
 Norfolk & Western, com. IO51/3 1051/, 
 
 Norfolk & Western, adj. pfd. __ __ *89 92 
 
 North Alaska Salmon Co. __ __ __ 103 
 
 North American Co. 78% 78% 
 
 North American Trading & Transportation *18Va 
 
 North Atlantic Fisheries, Limited, pfd *100 *100 
 
 *QuotatldQ nearest March 1, 1913. No quotation on that date. 
 
 1057 
 
High Low Bid Asked 
 
 North Avenue State Bank (Chicago) __ 143 147 
 
 North Boston Ltg. Prop., pfd __ __ __ 128 
 
 North Boston Lighting Prop., com t33 
 
 North Butte Mining __ __ 2714 271/2 
 
 North Carolina Railroad __ __ 165 170 
 
 North Lake Mining __ __ 1% 2 
 
 North Memphis Savings Bank (Memphis) __ 450 500 
 
 North Pennsylvania Railroad *$94 
 
 North Philadelphia Trust *$106 *$106 
 
 North River Insurance (New York) __ __ $371/2 $40 
 
 North Scranton Bank (Scranton) __ __ $200 $205 
 
 North Side Bank (Brooklyn) __ __ 175 200 
 
 North Side Bank (Cincinnati) >. __ $170 $200 
 
 North Side St. Bank (Chicago) ^_ __ __ 115 120 
 
 North Star Mining (Nevada) 23c 22c 
 
 North Ward National Bank (Newark) __ __ 395 
 
 Northampton (Massachusets Street Railway __ 118 120 
 
 North Bank & Trust (Seattle) __ __ 140 150 
 
 Northern California Power, Cons. 371/2 39 
 
 Northern Canadian Mtg., Ltd. , __ __ — *115 
 
 Northern Central Railway . __ __ $121 $123 
 
 Northern Crown Bank (Winnipeg) 96 97 
 
 Northern Idaho & Montana Power, com — 2 4 
 
 preferred 30 40 
 
 Northern Indiana Gas & Electric, pfd. __ __ *82 *86 
 
 Northern Insurance (New York) — — 90 110 
 
 Northern Liberties Gas *41 *41 
 
 Northern Life Insurance __ — *127y2 
 
 Northern National Bank (Duluth) __ __ 130 
 
 Northern National Bank (Lancaster) 130 132 
 
 Northern National Bank (Philadelphia) *206 *206 
 
 Northern National Bank (Toledo) 154 
 
 Northern Ohio Light & Traction, com. — — 75 
 
 preferred __ — — 105 
 
 Northern Ohio Traction __ _> 73 77 
 
 Northern Ontario Light & Power, com. __ — 16 20 
 
 preferred — __ 59% 62 
 
 Northern Pacific 116 1151/2 
 
 Northern Pipe Line — __ *112 *115 
 
 Northern Railroad (New Harashire) __ __ 128 130 
 
 Northern Railroad of New Jersey — __ 81 90 
 
 Northern St. Louis Trust — — 125 
 
 preferred — 30 40 
 
 Northern Securities — __ 105 110 
 
 Northern Star *22 *21i/2 
 
 Northern States Power, com. — — 2314 241/2 
 
 preferred __ __ 84Vi 851/2 
 
 Northern Texas Electric, com. __ __ 105 111 
 
 preferred — — 97 
 
 Northern Trust Co. Bank (Chicago) __ — 332 338 
 
 Northern Trust (Philadelphia) *450 •450 
 
 Northern Trust & Savings (Lancaster) __ __ $125 $127 
 
 Northwest F. & M. Insurance (Minnesota)— __ — 199 207 
 
 Northwest National Bank (Minneapolis) __ — 285 300 
 
 North West St. Bank ._ — 198 202 
 
 N. W. States Port. Cem., com __ — 15 25 
 
 preferred — — 84 90 
 
 Northwestern Bank (Philadelphia) '390 *390 — ^ __ 
 
 •Quotation nearest March 1, 1913. No quotation on tliat date. t"Value" as of March 1, 1913. 
 
 1068 
 
High Low 
 
 Northwestern Power, com. 
 
 preferred 
 
 Northwestern Savings Bank (St. Louis) 
 
 North Western Teleg. — 
 
 North Western Trust (Philadelphia) *$185 *$185 
 
 Northwestern Trust & Sav. Bank (Chicago) 
 
 Norwich & Worcester, pfd. *195 *195 
 
 Nova Scotia, Bank of (Canada) 
 
 Nova Scotia Car Works, 1st pfd. *7.44% basis 
 
 Nova Scotia Clay Works, pfd. *7.52% basis 
 
 Nova Scotia Steel & Coal, com. — — 80 
 
 • preferred 123 120 
 
 Oakland (California) Bank of Savings __ __ 200 
 
 Oakland Park Land Co. *1 'l 
 
 Occidental Life Insurance 
 
 Occidental Mining (Nevada) 
 
 Ogden Mine Railroad 
 
 Ogilvie Flour Mills, com. 
 
 preferred . _•___ 
 
 Oglethorpe Savings & Trust (Savannah) 
 
 Ohio Copper % % 
 
 Ohio Fuel Oil 
 
 Ohio Fuel Supply 
 
 Ohio National Bank (Columbus, Ohio) 
 
 Ohio Oil . 
 
 Ohio Petroleum Co. 
 
 Ohio Savings Bank & Trust (Toledo) 
 
 Ohio Traction, com. 
 
 preferred 
 
 Oil Fields of Mexico 
 
 Ojibway Mining 
 
 0. K. (Colorado Springs) 
 
 Oklahoma Natural Gas 
 
 Oklahoma State Bank (Guthrie) 
 
 Old Boston National Bank (Boston) 
 
 Old Colony Copper 
 
 Old Colony Railroad 
 
 Old Colony Trust (Boston) 
 
 Old Colony Trust & Savings Bank (Chicago) 
 
 Old Detroit National Bank (Detroit) 
 
 Old Dominion Co. 
 
 Old Dominion Tr. Rcpts. 
 
 Old Dominion Steamship 
 
 Old Gold (Colorado Springs) 
 
 Old National Bank (Grand Rapids) 
 
 Old Second National Bank (Bay City) 
 
 Old South Bldg. Association 
 
 Old Town National Bank (Baltimore) 
 
 Olinda Land Co. » 
 
 Olive Branch (Colorado Springs) 
 
 Oliver Bldg. Trust (Boston) 
 
 Omaha & Council Bluffs St. Ry., com. 
 
 preferred 
 
 Omaha & Council Bluffs St. Ry. & Bdge., com. 
 
 Omaha Electric Light & Power, pfd 
 
 Omaha National Bank 
 
 Omaha Stock Yards 
 
 Oneco Copper Mining 
 
 Oneida National Bank (Utica) 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1059 
 
 Bid 
 
 Asked 
 
 
 
 8 
 
 
 
 45 
 
 295 
 
 300 
 
 ^$581/2 
 
 *$60 
 
 268 
 
 272 
 
 2601/4 
 
 261 
 
 125 
 
 140 
 
 70c 
 
 
 
 100 
 
 
 
 123 
 
 127 
 
 
 
 120 
 
 1671/3 
 
 — 
 
 *$16% 
 
 *$17 
 
 
 
 $451/8 
 
 275 
 
 285 
 
 $123 ! 
 
 $125 
 
 
 
 *25 
 
 
 
 140 
 
 39 
 
 45 
 
 70 
 
 85 
 
 IVa 
 
 1% 
 
 2 
 
 2y4 
 
 
 
 .0050 
 
 691/jj 
 
 70 
 
 125 
 
 
 
 125 
 
 127 
 
 sy^ 
 
 6 
 
 
 175 
 
 330 
 
 340 
 
 117 
 
 120 
 
 194 
 
 200 
 
 48 
 
 481/2 
 
 5 
 
 7 
 
 103 
 
 107 
 
 21/2C 
 
 3c 
 
 208 
 
 212 
 
 
 
 125 
 
 
 
 $65 
 
 $121/2 
 
 $14 
 
 
 
 391/2C 
 
 002 
 
 
 
 
 $101 
 
 68 
 
 __ 
 
 82 
 
 
 
 •631/2 
 
 
 
 
 
 ♦85 
 
 175 
 
 200 
 
 
 ♦96 
 
 1% 
 
 1% 
 
 225 
 
 235 
 
High Low 
 
 Oneida-Regal Textile, pfd. 
 
 Onomea Sugar Co. 
 
 Ontario Loan & Deb. *172 
 
 Ontario Power 
 
 Ontario & Quebec Railway 
 
 Ontario Silver Mining Co. 
 
 Ophir Silver Mining (Nevada) 
 
 Orangeburg Manufacturing, pfd. 
 
 Oro Electric Corporation, com. 
 
 preferred 
 
 Oro Mining (Nevada) 12c 12c 
 
 Oro Water, Light & Power Co 
 
 O'Rourke Eng. Constr. 
 
 Orr Cotton Mills (South Carolina) 
 
 Osage & Oklahoma Gas *61 'CI 
 
 Osborn Mills (Fall River) 
 
 Osborn Paper Co., pfd. *26 *26 
 
 Osceola Consolidated 
 
 Oswego & Syracuse . 
 
 Otis Elevator, com. 
 
 preferred 
 
 Otis-Fenson Elevator, Limited, pfd. *100 *100 
 
 Ottawa, Bank of (Canada) 
 
 Ottawa Light, Heat & Power 
 
 Ottumwa (Iowa) Railway & Light, pfd. 
 
 Overman Mining (Nevada) 
 
 Owens Bottle -Machine 
 
 Owisso Sugar Co. 
 
 Oxford Linen Mills, "A" stk. 
 
 "C" stk. 
 
 Oxweld Acetylene Co. 
 
 Ozark Power & Water Co 
 
 Paauhau Sugar Plan 
 
 Pabst Brewing, pfd. 
 
 Pacific & Atlantic Teleg. 
 
 Pacific Aux. Fire Al. (San Francisco) 
 
 Pacific Bank (New York) 
 
 Pacific-Burt Co., com. 
 
 preferred 
 
 Pacific Coast Borax, com. 
 
 preferred 
 
 Pacific Coast Casualty 
 
 Pacific Coast Co., com. 
 
 1st preferred 
 
 2nd preferred 
 
 Pacific Crude Oil 
 
 Pacific Gas Electric (Arizona), pfd. 
 
 Pacific Gas & Electric (California), com. 
 
 Pacific Gas & Electric (California), orig. pfd. 
 
 Pacific Insurance (New York) 
 
 Pacific Lighting, com. 
 
 preferred 
 
 Pacific Mail Steamship 
 
 Pacific Mills (Massachusetts) 1^2y4 
 
 Pacific Mutual Life Insurance 
 
 Pacific National Bank (Lawrence) 
 
 Pacific National Bank (Tacoma) 
 
 Pacific Power & Light, pfd. 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1060 
 
 Bid 
 
 Asked 
 
 
 
 n02i/a 
 
 32 
 
 
 83 
 
 841/2 
 
 142 
 
 145 
 
 2V2 
 
 3 
 
 18c 
 
 20c 
 
 
 
 75 
 
 143/4 
 
 1534 
 
 — 
 
 721/4 
 
 100 
 
 
 
 
 •85 
 
 90 
 
 100 
 
 — 
 
 1121/2 
 
 $86 
 
 $87 
 
 $1021/2 
 
 $110 
 
 82 
 
 83 
 
 98 
 
 100 
 
 207 
 
 y_ 
 
 1861/2 
 
 
 
 90 
 
 921/2 
 
 20c 
 
 
 
 
 *445 
 
 
 
 •73/4 
 
 
 
 *3 
 
 __ 
 
 *13/4 
 
 
 *83 
 
 *48 
 
 *53 
 
 16% 
 
 
 107 
 
 110 
 
 $161/2 
 
 $181/2 
 
 
 
 4ya 
 
 $178 * 
 
 $133 
 
 
 
 39 
 
 _ 
 
 90 
 
 80 
 
 
 
 1001/2 
 
 101 
 
 115 
 
 127 
 
 80 
 
 95 
 
 80 
 
 100 
 
 80 
 
 100 
 
 45c 
 
 50c 
 
 87 
 
 90 
 
 58% 
 
 593/4 
 
 89 
 
 SlVa 
 
 $433/4 
 
 
 108 
 
 115 
 
 743/4 
 
 __ 
 
 26 
 
 28 
 
 425 
 
 600 
 
 120 
 
 
 
 
 
 275 
 
 100 
 
 103 
 
High Low Bid Asked 
 
 Pacific Smelting & Mining ^ 7-33 
 
 Pacific Tel. & Tel. Co., com. _ 861/2 39 
 
 • preferred ^__ __ __ 92 100 
 
 Package Machinery, pfd. *100 
 
 Packard Motor, pfd. __ 104 
 
 Packers National Bank (So. Om.) __ __ 110 135 
 
 Pacclet Manufacturing (South Carolina) __ __ 98 103 
 
 Paddock Trust (Boston) __ _. $90 
 
 Paducah Tr. & Lt., com. __ __ 7 10 
 
 preferred — __ 30 
 
 Page Manufacturing (New Bedford) 96 
 
 Paint Creek Colleries, stk. rets. __ — *8 *9 
 
 Pairpoint Corp. (New Bedford) __ __ 175 325 
 
 Palmer Oil __ __ 15c 
 
 Pangborn (T. W.) Co. '11 *11 
 
 Park Bank (Los Angeles) __ __ 115 135 
 
 Park National Bank (New York) __ __ 360 
 
 Park National Bank (Holyoke) __ »_ 100 105 
 
 Parke, Davis & Co. __ __ 119 
 
 Parker Cotton Mills, com. __ 15 20 
 
 guaranteed __ 90 98 
 
 preferred __ __ 55 60 
 
 Parker Mills (Fall (River) __ ._ __ 75 
 
 Passaic (New Jersey) National Bank 310 
 
 Passaic Trust & Safe Deposit __ __ 225 
 
 Paterson & Pas. G. & El. __ __ 921/3 95 
 
 Paterson National Bank __ __ 310 
 
 Paterson Safe Deposit & Trust __ __ 360 400 
 
 Paterson Savings Institution (Paterson) 370 380 
 
 Paton Manufacturing 691/3 
 
 Pawtucket Gas, pfd. __ __ 89 94 
 
 Pay-As-You-Enter Car, pfd. _> __ *40 *46 
 
 Pearl St. Market Bank (Cincinnati) __ __ 105 115 
 
 Pearl St. Savings & Trust (Cleveland) >_ _> $275 
 
 Peck, Stow & Wilcox, com. __ -_ $331/3 $36 
 
 • preferred *100 
 
 Peerless Motor Car, pfd. *100 *100 
 
 Pelham Trust (Philadelphia) *$130 *$130 
 
 Pelzer Manufacturing Co. (South Carolina) 130 
 
 Pem'ton Bldg. Tr. (Boston) __ __ __ $60 
 
 Pemigewasset Valley Railroad *110 *110 
 
 Penguico Mines, pfd. __ __ *11 *15 
 
 Peninsular State Bank, Detroit __ 210 
 
 Penmans, Limited, com. 54 55i^ 
 
 ■ preferred — __ __ 84 
 
 Penn Metal Ceiling __ __ __ *300 
 
 Penn National Bank (Philadelphia) *$192i4 *$192i4 __ 
 
 Penn National Bank (Reading) __ __ 325 329 
 
 Penn Traffic — — $1% _. 
 
 Pennsylvania Academy of Fine Arts *19 *19 
 
 Penn. Co. for Ins. on Lives & Grtg. An *$645 *$645 
 
 Pennsylvania Fire Insurance (Philadelphia) $40614 
 
 Pennsylvania Lighting, com. __ __ 18 21 
 
 preferred — __ 75 80 
 
 Pennsylvania Midway Oil — __ 71/3C __ 
 
 Pennsylvania Railroad $60 $59% 
 
 Pennsylvania Salt Manufacturing __ __ $1051/3 $106 
 
 Pennsylvania Steel, com. — 5( 
 
 -preferred 93 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1061 
 
High Low Bid Asked 
 
 Pennsylvania Textile __ __ 24 26 
 
 Pennsylvania Trust (Reading) — __ 500 
 
 Penn. Whg. & Safe Dep. (Philadelphia) *$86i4 $8614 
 
 Pennsylvania Water & Power __ __ 65 66 
 
 Pennsylvania Wire Glass •46ys •46y8 
 
 Pensacola Electric Co., com. . __ 23 28 
 
 preferred __ __ 82 85 
 
 People's Bank (Buffalo) >_ __ 200 
 
 People's Bank (New York) ._ __ *$60 *$62i/2 
 
 People's Bank (Troy) __ _. 210 215 
 
 People's Bank (Wheeling) __ __ $33 $35 
 
 People's Bank (Wilkesbarre) __ __ 340 350 
 
 People's Bank & Savings (Cincinnati) __ 110 120 
 
 People's Bank & Trust (New Haven) __ __ 145 
 
 People's Bank & Trust (Passaic) __ — 290 300 
 
 People's Gas Light & Coke 111% III8/4 
 
 People's National Bank (Barre, Vt.) __ __ 105 
 
 People's National Bank (Brooklyn) 145 155 
 
 People's National Bank (Charleston) __ 145 150 
 
 People's National Bank (Kansas City, Kan.)- — -- 95 100 
 
 People's National Bank (Lancaster) 185 190 
 
 People's National Bank (New Brunswick)— __ __ 250 275 
 
 People's National Bank (Scranton) __ __ IGGi/o 1691/2 
 
 People's National Bank of Roxbury (Boston) __ __ 125 130 
 
 People's National Fire Insur. (Philadelphia) $181/3 __ 
 
 People's Nat. Gas & Power __ __ __ $31 
 
 People's Safe Deposit & Trust (Jersey City) __ __ 325 
 
 People's Savings Bank (Bay City) 150 
 
 People's Saving Bank (Cleveland) — __ $220 
 
 People's Savings Bank (Grand Rapida) __ 250 
 
 People's Savings Bank (Saginaw) __ __ 260 270 
 
 People's Savings Bank (Wilmington, N. C.)-_ — „ $18% $20 
 
 People's Savings Bank & Trust (Covington) __ __ 120 
 
 People's Saving Bank & Trust (Memphis) ___ __ __ 205 215 
 
 People's State Bank, Detroit __ _. 271 280 
 
 People's Stock Yards St. Bk. (Chicago) __ __ 240 250 
 
 People's Trust (Brooklyn) __ __ 295 305 
 
 People's Trust (Lancaster) $300 
 
 People's Trust (Philadelphia) ♦$45 •$45 
 
 People's Trust & Savings Bank (Chicago) __ __ 300 310 
 
 People's Water Co., com. 4 4% 
 
 People's Water Co., pfd. __ __ __ 60% 
 
 Peoria & Bureau Vy. __ __ 165 178 
 
 Peoria & Eastern __ __ 11 15 
 
 Pepperell Manufacturing (Maine) 304% 
 
 Pequonnock National Bank (Bridgeport) 165 
 
 Peregrina Mining & Milling, pfd. *12 *1Q 
 
 Pere Marquette, com. 3 6 
 
 1st preferred __ __ 14 18 
 
 2nd preferred __ __ 6 11 
 
 Perkins (Rhode Island) Horse Shoe, pfd __ __ *50 
 
 Petersburg (Virginia) Savings & Ins __ __ __ $100 
 
 Pettibone Mul., com. 26 35 
 
 1st preferred __ __ 92 96 
 
 2nd preferred __ . __ __ *83 
 
 Pfandler Co., pfd. __ __ __ •130 
 
 Pharmacist (Colorado Springs) __ __ li^e 2%c 
 
 Phelps-Dodge & Co __ ._ 200 
 
 Phenix National Bank (Providence) __ __ $105 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1063 
 
High Low Bid Asked 
 
 Phil Carey, pfd. __ ._ lOOVa 105 
 
 Philadelphia & Trenton Railroad 240y2 __ 
 
 Philadelphia Bourse, pfd. ,___ *$4 *$4 
 
 common *$1 *$! 
 
 Philadelphia City Passenger Railway *$156y3 
 
 Philadelphia Co., com. $44% $45% 
 
 6% preferred $39% $451/2 
 
 5% preferred $38 $441/2 
 
 Philadelphia Electric __ __ $22% $231/3 
 
 Philadelphia & Erie *$65 • __ 
 
 Philadelphia, Germantown & Norristown __ __ $142 $145 
 
 Philadelphia & Gray's Ferry Pass. Ry *$80i4 __ 
 
 Philadelphia Life Insurance $10l^ __ 
 
 Philadelphia Mortgage & Trust *15 *15 
 
 Philadelphia National Bank ♦478 *478 
 
 Philadelphia Rapid Transit, vot. tr. ctfs __ $25% $26 
 
 Philadelphia Traction $83% $83 
 
 Philadelphia Trust, Safe Deposit & Ins. Co.- *741i/4*741% 
 
 Phillipine Tel. & Tel. __ __ 2414 __ 
 
 Phillips Buttorff Manufacturing __ 140 145 
 
 Phoenix Third National Bank (Lexington) __ __ 163 163 
 
 Phoenix Fire Insurance (Hartford) __ 330 340 
 
 Phoenix Insurance (Memphis) 96 100 
 
 Phoenix Insurance (Memphis) __ 96 100 
 
 Phoenix National Bank (Hartford) __ __ 155 161 
 
 Physical Culture Restaurant __ __ *4 
 
 Piedmont Manufacturing (South Caroclina) 175 
 
 Pierce, Butler & Pierce Manufacturing, pfd.__ __ 101 104 
 
 Pierce Manufacturing (New Bedford) 340 
 
 Pinelawn Cemetery Co. *3l^ 
 
 Pioneer Trust (Kansas City, Mo.) 250 260 
 
 Pittsburgh, Bessemer & Lake Erie, com. __ __ $29 $32 
 
 preferred __ $62 $68 
 
 Pittsburg Brew., com. __ $10 $101/3 
 
 preferred $37% 
 
 Pittsburgh -Buffalo Co., pfd. __ __ 125 
 
 Pittsburgh, Cine, Chic. & St. Louis, com __ __ 96% 97 
 
 preferred 100 115 
 
 Pittsburgh Coal, com. 21% 21% 
 
 ' preferred 87% 88 
 
 Pittsburgh, Ft. Wayne & Chicago, gtd. _- __ ♦161 *163 
 
 special guaranteed ^148 *156 
 
 Pittsburgh Insurance $86 
 
 Pittsburgh & Lake Erie __ __ $195 $205 
 
 Pittsburgh, McKeesport & Youghiogheny, gtd. ♦$62l^ 
 
 Pittsburgh Oil & Gas __ __ $7% $8 
 
 Pittsburgh Plate Glass __ __ 101 102 
 
 Pitts. Silver Peak Gold Mining, (Colorado) __ 60c 60c 
 
 Pittsburgh Spring & Steel __ __ *100 *130 
 
 Pittsburgh Steel, pfd. __ __ 95 100 
 
 Pittsburgh Trust __ __ __ ^200 
 
 Pittsburgh, Youngstown & Ashtabula, pfd. ^162 ^167 
 
 Pittsfield Electric __ __ __ t200 
 
 Plant (Thomas G.) Co., pfd. __ __ __ ♦lOl 
 
 Planters* Loan & Savings Bank (Augusta) $40 $45 
 
 Planters' National Bank (Richmond) 800 
 
 Plimpton Manufacturing 120 124 
 
 Plymouth Cordage Co. __ __ __ ♦237l^ 
 
 Plymouth Rubber, pfd. ♦lOO •100 
 
 •Quotation nearest March 1, 1913. No quotation on that date. fValue" as of March 1, 1913. 
 
 1063 
 
High Low Bid Asked 
 
 Pneumatic Scale Corporation, Limited, pfd.__ *$10y2 *$10y2 
 
 common __ *5 
 
 Pocasset Manufacturing (Fall River) __ __ __ 108 
 
 Poe (F. W.) Manufacturing (South Carolina) __ __ 105 115 
 
 Pomeroy Ink Co. (New Jersey) *$1 *$1 
 
 Pond Creek Coal __ __ 23% 24 
 
 Ponemah Mills (Providence), com. __ __ 109 
 
 preferred __ __ 108 112 
 
 Pope Manufacturing, com. $22 $25 
 
 ■ preferred $68 
 
 Porcupine Gold Mines __ __ 15c 20c 
 
 Porcupine Twins Mining *8c *8c 
 
 Portland (Maine) Electric Co., pfd. *100 *100 
 
 Portland Gas & Coke, pfd. __ __ 101 103 
 
 Portland (Maine) Gas Light __ __ $95 $100 
 
 Portland Gold Mining __ __ 98c $1 
 
 Portland (Maine) National Bank __ __ 170 180 
 
 Portland Railroad __ __ __ *115 
 
 Portland Railway, Light & Power, 1st pfd._- __ __ 67 . 68y2 
 
 Porto Rican -American Tobacco __ -_ 240 250 
 
 Porto Rico Railways, com. __ __ __ *72 
 
 preferred *110 
 
 Postal Life Insurance Co. __ __ *8 
 
 Potomac Fire Insurance 30 
 
 Potomac Insurance (Washington) $30 
 
 Potomska Mills (New Bedford) __ __ __ 119 
 
 Potosi Mine (Nevada) 2c 2c 
 
 Prairie Oil & Gas _. _- *327 *330 
 
 Pratt & Cady __ __ __ $96 
 
 Pratt & Whitney, pfd. „ __ 101 103 
 
 Pratt Read Co. __ __ *90 *105 
 
 Pray Bldgs. Tr. (Boston) __ __ __ $30 
 
 Premier Oil __ __ 25c 31c 
 
 Pressed Steel Car, com. 27 26% 
 
 • preferred 971/2 97 
 
 Preston East Dome Mines __ __ 3c 5c 
 
 Price Brothers — 73 
 
 Price Cereal Prod., pfd. •lOO *100 
 
 Procter & Gamble, com __ __ 550 600 
 
 preferred 190 
 
 Produce Exchange Bank (Kansas City, Mo.) 160 
 
 Produce Exchange Bank (New York) __ „ 168 173 
 
 Producers Oil „ __ 130 
 
 Producers Transportation 90 
 
 Proprietors of Revere House (Boston) •I 75 *175 
 
 Providence Bank (Scranton) __ __ *105 *107V3 
 
 Providence Gas — __ $100 $104 
 
 Providence Ice Co., pfd. — *58 
 
 Providence (Rhode Island) National Bank 217 
 
 Providence National Bank (Waco) __ __ 215 
 
 Providence Telephone — — $5iy2 $53% 
 
 Providence, Warren & Bristol Railroad „ __ 145 
 
 Prov. Wash. Ins. (Providence) >_ __ $83 $90 
 
 Providence & Worcester __ __ 270 275 
 
 Provident Life & Trust (Philadelphia) *875 •875 
 
 Prov. Savings Bank & Trust (Cincinnati) _._ __ __ $23y2 $24 
 
 Prudential Life lisurance __ __ $262y2 __ 
 
 Public Service Co., Nor. 111., com. __ __ 80 81 
 
 ^preferred — — 98 99 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1064 
 
High Low Bid Asked 
 
 Public Service Corporation of New Jersey __ __ 116 119 
 
 Public Service Investment Co., pfd. *5.95% basis 
 
 Public Utilities, com. '. __ __ $50 
 
 ■ preferred __ __ $48 $52 
 
 Pueblo Smelting & Refining 2^ 2 
 
 Puget Sound Traction, Light & Power, com. 65 67 
 
 ■ — ^preferred __ __ 107 108 
 
 Pullman Co. USYz 1581/2 
 
 Pullman Trust & Savings Bank (Chicago) __ 180 
 
 Pure Oil __ __ $15*4 $151/3 
 
 Puritan Trust (Boston) __ __ 200 
 
 Pyle National Electric Headlight „ __ *105 
 
 Quaker City National Bank (Philadelphia) __ "120 *120 
 
 Quaker Oats, com __ __ 265 270 
 
 ■ ^preferred __ __ IO6I/2 IO71/2 
 
 Quarter Savings Bank (Wheeling) __ 150 
 
 Quebec Bank (Canada) 125 
 
 Quebec Railway, Light, Heat & Power __ __ 18l^ 18% 
 
 Queensboro Corporation, pfd. *100 
 
 common __ __ _> *95 
 
 Queensboro Development Co - '116 *116 
 
 Queensbury Mills (Massachusetts), com. 175 200 
 
 preferred __ __ 115 117l^ 
 
 Queens County Trust (Jamaica) __ __ 100 110 
 
 Quicksilver Mining, com. 3% 4 
 
 ■ ^preferred 4 7 
 
 Quincy Electric Light & Power __ __ __ t200 
 
 Quincy Mark. R. E. Tr. (Boston) __ ._ $100 $103 
 
 Quincy Mining __ _. 661/2 67% 
 
 Railway Steel-Spring, com 29 29 
 
 preferred __ __ 981/2 100 
 
 Railways Co. General _> __ $9 $91^ 
 
 Raleigh (North Carolina) Banking & Trust__ __ 125 
 
 Raven & B. Hill (Colorado Springs) __ __ 6c 71/2C 
 
 Raven Copper 16c 20c 
 
 Rawhide Coalition Mining (Nevada) Ic 
 
 Ray Consolidated Copper $18 $17% 
 
 Reading Co., com. $78% $78 
 
 1st preferred __ $45 $45l^ 
 
 2nd preferred __ __ $44l^ $45l^ 
 
 Reading National Bank 275 285 
 
 Reading Traction __ $25 $30 
 
 Reading Trust __ _- 205 210 
 
 Real Estate Assoc. (Boston) $85 
 
 Real Estate, Banking & Trust (Savannah) __ __ __ 137 138l^ 
 
 Real Estate Loan & Savings '100 
 
 Real Estate Title Insurance — 95 
 
 Real Estate Title Ins. & Trust (Philadelphia) *300 *300 
 
 Real Estate Tr. (Philadelphia), pfd. '61 *61 , __ 
 
 common *96i/8 *96% 
 
 Real Est. Trust (Pittsburgh) „ __ __ 155 
 
 Realty Assoc, of Brooklyn __ $110 $115 
 
 Realty Realization, pfd. — __ __ *90 
 
 Realty Syndicate — — 1331^ __ 
 
 Red Hills Mining (Nevada) __ Ic 2c 
 
 Red Top Extension Mining (Nevada) __ __ Ic 
 
 Reece Button-Hole — — $15 $15% 
 
 "Quotation nearest ^iJircji 1, 1913. No quotation on that date. t"Value" as of March 1, 1913. 
 
 1065 
 
High Low 
 
 Reece Folding Machine 
 
 Reed-Prentice Co., pfd. 
 
 Regina Lace (Rhode Island) 
 
 Reliance Insurance (Philadelphia) $83 
 
 Remington Typewriter, 1st pfd. 
 
 2nd preferred 
 
 common 
 
 Renfrew Manufacturing, pfd. 
 
 Rensselaer & Saratoga 
 
 Reo Motor Car Co. 1 
 
 Reo Motor Truck Co. 
 
 Republic (Colorado Springs) 
 
 Republic Iron & Steel, com. 
 
 ■ preferred 
 
 Republic Railway & Light, com. 
 
 preferred 
 
 Republic Trust (Philadelphia) *$66 *$66 
 
 Requa Savage 
 
 Rescue Eula Mining (Nevada) 13c 13c 
 
 Revere Sugar, pfd. 
 
 Reynolds (R. J.) Tobacco 
 
 Rhode Island Coal 
 
 Rhode Island El. Protect. 
 
 Rhode Island Hosp. Tr. (Providence) 
 
 Rhode Island Perk. Horse S., pfd. 
 
 Rhode Island Safe Deposit 
 
 Rice Ranch Oil 
 
 Richelieu & Ontario Navigation 
 
 Richmond Bank & Trust 
 
 Richmond, Fredericksburg & Pot. Div. Oblig. 
 
 common 
 
 6% guaranteed 
 
 7% guaranteed 
 
 Richmond, Fredericksburg & Potomac, and 
 Richmond & Petersburg Railroad and 
 
 Connection Co. ($70 par) 
 
 Richmond Lace Works 
 
 Ridge Avenue Bank (Philadelphia) *$60 *$60 
 
 Ridge Ave. Pass. R. R. *$245 
 
 Riggs National Bank (Washington) 
 
 Riker-Hegeman, com. 
 
 Rio Grande Southern 
 
 Rio Plate Mining 
 
 Rittenhouse Trust (Philadelphia) ♦$55 *$55 
 
 Ritter (W. M.) Lumber, pfd. 
 
 Riverside Home Tel. & TeL 
 
 Riverside Trust (Hartford) 
 
 Rivett Lathe & Grinder, pfd. 
 
 Roanoke (Virginia) Gas Light, pfd. 
 
 common 
 
 Roanoke Mills (North Carolina) 
 
 Rochester & Genesee Valley Railroad 
 
 Rochester Railway & Light, pfd. 
 
 Rochester Trust & Safe Deposit , 
 
 Rock Island Co., com. 22% 22% 
 
 preferred 38 38 
 
 Rockford Electric, pfd 
 
 Rockford Life Insurance Co. 
 
 Rockport Granite •31^4 •3I14 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1066 
 
 Bid 
 
 Asked 
 
 31/2 
 
 474 
 
 *6.80% 
 
 basis 
 
 ~ 
 
 1021/8 
 
 *99 
 
 •looy. 
 
 *99 
 
 *100i/a 
 
 *39i/2 
 
 *4oy8 
 
 
 
 ♦1071/, 
 
 ♦178 
 
 ♦183 
 
 201/3 
 
 21% 
 
 
 ♦i2y. 
 
 .005 
 
 .007 
 
 24 
 
 25y4 
 
 851/2 
 
 87 
 
 26 
 
 28 
 
 77 
 
 80 
 
 — 
 
 3c 
 
 " 
 
 ♦100 
 
 265 
 
 268 
 
 5c 
 
 10c 
 
 130 
 
 
 
 3350 
 
 
 
 
 
 55 
 
 110 
 
 
 
 1.10 
 
 
 113% 
 
 114 
 
 $271/2 
 
 
 320 
 
 330 
 
 320 
 
 330 
 
 320 
 
 330 
 
 320 
 
 330 
 
 115 
 
 120 
 
 — 
 
 ♦95 
 
 580 
 
 605 
 
 ♦75 
 
 
 
 5 
 
 10 
 
 ♦40 
 
 ♦80 
 
 ♦103 
 
 "■" 
 
 18 
 
 
 160 
 
 
 
 
 
 •100 
 
 
 ♦85 
 
 ♦15 
 
 ♦20 
 
 
 
 160 
 
 115 
 
 
 
 93 
 
 95 
 
 400 
 
 — 
 
 ~ 
 
 ♦96 
 
 
 
 ♦17 
 
High Low Bid Asked 
 
 Rogers (Wm. A.) Limited, com. 170 
 
 preferred __ __ __ 115 
 
 Rome & Clinton Railroad __ 130 145 
 
 Rome, Watertown & Ogdensburg '. *120 
 
 Rose Niehol (Colorado Springs) __ __ .006 
 
 Roseville Trust (Newark) __ __ 175 
 
 Ross Mining & Milling *5e *5c 
 
 Rotary Ring Spinning 1 li^ 
 
 Round Mountain Mining (Nevada) 45c 35c 
 
 Royal Baking Powder, com. __ __ 200 205 
 
 preferred 105 108 
 
 Royal Bank of Canada 222 
 
 Royal Weaving Co, __ __ *155 
 
 Rubber Goods Manufacturing Co., pfd. __ *100 *110 
 
 Rugby Fuel Co. __ __ __ ♦45 
 
 Rumely (M.), pfd. 92 92 
 
 common __ 71 72^3 
 
 Russell Motor Car, com. __ __ 90 
 
 preferred __ __ __ 971/2 
 
 Rutland County National Bank 133 
 
 Rutland Railroad, pfd. __ __ 49 
 
 Rutland (Vermont) Trust __ __ 200 
 
 Saco-Lowell Co., com. 200 
 
 ■ preferred __ 107 109 
 
 Safe Deposit & Trust of Baltimore __ 600 
 
 Safe Deposit & Trust (Pittsburgh) __ __ __ 290 
 
 Safety Car Heating & Lighting, com 114l^ II5I/3 
 
 Safety Fd. National Bank (Fitchburg) __ __ 165 170 
 
 Sagamore Mills (Fall River) __ __ __ 175 
 
 St. Anthony Falls Bank (Minneapolis) 150 
 
 St. Ives Mining (Nevada) __ __ 30c 
 
 St. James Importing Co. *3 
 
 St. John Railway *75i4 __ 
 
 St. Joseph & Gr. Island, com. __ __ *18 
 
 Ist preferred *50 
 
 2nd preferred __ __ *36 
 
 St. Joseph Lead __ __ 8% 8% 
 
 St. Joseph Ry., Light, Heat & Power __ __ __ 90 
 
 common __ 53% __ 
 
 St. Lawrence & Chicago Steam Navigation.. __ __ 108 110 
 
 St. Lawrence Flour Mills, Limited, pfd *100 *100 
 
 St. Lawrence Milling, pfd *100 *100 
 
 St. Louis Bridge, 1st pfd. __ __ 110 123 
 
 2nd preferred 50 55 
 
 St. Louis Car Co., pfd. __ __ __ *51 
 
 St. Louis Catering, pfd. __ __ __ 1914 
 
 St. Louis Cotton Compress __ __ 37 40 
 
 St. Louis Mining (Nevada) __ __ 2c 
 
 St. Louis, Rocky Mountain & Pacific, com. 20 35 
 
 preferred — 55 60 
 
 St. L. & S. F., 1st pfd. 59 56 
 
 2nd preferred 24% 24% 
 
 common __ __ 13 16 
 
 St. Louis Southwestern, com. __ __ 30 34% 
 
 preferred — __ __ 73l^ 75 
 
 St. Louis Union Trust __ __ __ 477 
 
 St. Mary's Mineral Land __ __ 38 
 
 St. Paul & Tacoma Lumber __ __ *115 *140 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1067 
 
High Low Bid Asked 
 
 St. Paul F. & M. Ins. — __ 420 
 
 St. Paul Title & Trust *$17l^ „ 
 
 Salem (Massachusetts) Electric . __ 68l^ 
 
 Salera (Massachusetts) Gas Light — — 250 
 
 Salem (Massachusetts) Safe Deposit & Trust — 150 
 
 Salmon Falls Mfg. (New Hampshire) '275 
 
 San Antonio Copper 5 
 
 San Diego Home Tel. & Tel. __ __ 5 
 
 San Joaquin Light & Power — — *15 
 
 San Francisco, Oakland Term. Rys., "A" pfd. __ __ __ 80 
 
 San Toy Mining *22c •22e 
 
 Sanborn Map 'GS 
 
 Sandstorm -Kendall Consol. Mines (Nevada) — 2e 
 
 Sandusky Portland Cement, com. *20 
 
 ^preferred *90 
 
 Sanitol Chemical __ __ __ *2% 
 
 Santa Cruz Portland Cement 45 
 
 Santa Fe Gold and Copper __ __ 1% 1% 
 
 Santa Monica B. H. T., pfd. „ __ 9 
 
 Santa Ysabel Mining __ __ 2c 3c 
 
 Saratoga & Schenectady Railroad 160 170 
 
 Sauer Dough __ __ $1.40 
 
 Savage Mining (Nevada) __ __ 3c 4c 
 
 Savannah Bank & Trust „ — 1721/2 __ 
 
 Savannah Electric, com. — — 8 
 
 preferred 25 
 
 Savannah Trust Co. >- __ 143V8 — 
 
 Savings Bank (Richmond) — — $94 
 
 Savings Trust (St. Louis) __ __ 105 110 
 
 Sav. Un. Bk. & Tr. (San Francisco) „ __ 245 
 
 Savoy Oil — __ M *5y8 
 
 Sawyer Massey Co., com. __ __ 481/2 
 
 ^preferred — — 90 
 
 Scandinavian- American Bank (St. Paul) — — 220 
 
 Scandinavian- American Bank (Seattle) — 250 255 
 
 Scandinavian- American Bank (Spokane) — 115 120 
 
 Scandinavian -American Bank (Tacoma) __ — 105 
 
 Scandinavian-Amer. Nat. Bank (Minneapolis) __ 148 
 
 Schuylkill Valley Bank (Reading) __ __ $150 $153 
 
 Scientific American Compiling Co., pfd *5 
 
 Scioto Valley Traction, 1st pfd. __ _« __ 100% 
 
 2nd preferred — 83 
 
 common __ __ 19*4 
 
 Scituate (Massachusetts) Water, pfd. 100 100 
 
 Scorpion Mining (Nevada) __ __ 5c 6c 
 
 Scotten -Dillon Co. „ ._ __ •130 
 
 Scovill Manufacturing Co. __ __ __ ♦153 
 
 Scranton Bolt & Nut „ __ *103 '106 
 
 Scranton Electric, pfd. "lOO '100 
 
 Scranton Savings Bank __ __ 800 825 
 
 Seaboard Air Line, pfd. 44 44 
 
 common __ __ 19 19V8 
 
 Seaboard National Bank (New York) 415 
 
 Seaboard National Bank (Norfolk) __ __ 125 130 
 
 Seaconnet Mills (Fall River) __ __ __ 63 
 
 Seager Engine Co — — __ *10 
 
 Sears, Roebuck, com. 198 198 
 
 preferred — — 123 124% 
 
 'Quotation nearest ATarch 1, 1913. No quotation on that d&te. 
 
 1068 
 
High Low Bid Asked 
 
 Seattle National Bank — — 310 315 
 
 Second & Third Streets Pass. Ry. $250 
 
 Second Avenue Railroad — — 13 
 
 Second National Bank (Allentown) — — 320 330 
 
 Second National Bank (Altoona) __ — 200 210 
 
 Second National Bank (Baltimore) — — 200 
 
 Second National Bank (Bangor) __ — — 325 
 
 Second National Bank (Boston) __ — 290 300 
 
 Second National Bank (Hoboken) — — 390 
 
 Second National Bank (Lexington) — — 155 
 
 Second National Bank (New Haven) __ — 194 
 
 Second National Bank (New York) — — 200 210 
 
 Second National Bank (Paterson) — — 225 
 
 Second National Bank (Philadelphia) *290 *290 
 
 Second National Bank (Pittsburgh) *$195 *$1943/4 
 
 Second National Bank (Reading) __ __ 285 293 
 
 Second National Bank (Saginaw) — — *375 400 
 
 Second National Bank (Toledo) — — — 276 
 
 Second National Bank (Utica) __ — 200 225 
 
 Second National Bank (Washington) __ — 162l^ 170 
 
 Second National Bank (Wilkesbarre) „ __ 340 350 
 
 Sec. Sav. Bk. & Safe Dep. (Cincinnati) — — 200 205 
 
 Security Bank (Chicago) — — 235 
 
 Security Bank (New York) — — *133 140 
 
 Secur. Bank & Trust (Memphis) — — 100 105 
 
 Security Bank & Trust (Toledo) — — 134 
 
 Security Co. (Hartford) __ — 195 
 
 Security Insurance (New Haven) __ __ $43 $50 
 
 Security National Bank (Kansas City, Mo.) __ __ 130 140 
 
 Security National Bank (Minneapolis) __ — 492 510 
 
 Security Savings Bank (Charleston) — — 250 255 
 
 Security Savings Bank (San Francisco) __ __ $330 $375 
 
 Security Savings & Trust (Erie) __ — 170 
 
 Security Storage — — 210 
 
 Security Title & Trust (York) — __ $50 $52 
 
 Security Trust (Camden) __ — 270 275 
 
 Security Trust (Detroit) — — 255 
 
 Security Trust (Harrisburg) — — $33 $37., 
 
 Security Trust (Hartford) __ — 195 
 
 Security Trust (Indianapolis) — — 128*^ — 
 
 Security Trust (Rochester) — __ 500 
 
 Security Trust (Troy) — — 200 205 
 
 Security Trust (Wheeling) __ __ 170 175 
 
 Seccurity Tr. & Safe Dep. (Wilmington, Del.) __ — 235 245 
 
 Security Trust & Sav. Bank (Los Angeles) __ __ 446 
 
 Seg-Belcher Mining (Nevada) — — 3c 6c 
 
 Semet-Solvay Process — -- *130 
 
 Seminole Fruit & Ld. *13 *13 
 
 Seminole Manufacturing, com. — — 15 25 
 
 1st preferred — — 90 100 
 
 2nd preferred — — 40 50 
 
 Sen-Sen Chiclet *115% ~ 
 
 Seneca Mining — — 27 40 
 
 Shannon Copper — — 11 lll^ 
 
 Sharon Railway — — $54 
 
 Sharp Manufacturing (New Bedford), pfd.__ __ __ 105 107 
 
 Shattuck-Arizona Copper — __ 25 
 
 Shawinigan Water & Power — __ 136 138 
 
 Shawnee State Bank (Topeka) — _- . — 175 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1069 
 
High Low Bid Asked 
 
 Sheffield Farm s-SIawson -Decker, pfd __ __ *98i/o __ 
 
 Sheldon Axle Co. __ ._ *100 *103 
 
 Sheridan Trust Savings Bank __ ._ 133 136 
 
 Sheriff St. Mkt. & Stge. __ __^ 60 70 
 
 Sherman National Bank (New York) __ __ 135 
 
 Sherwin-Williams, com. *240 
 
 6% preferred *110 
 
 • 7% preferred 123l^ __ 
 
 Shredded Wheat, com. __ __ __ 82 
 
 ■ preferred 92% 
 
 Sibley Manufacturing (Georgia) __ 52 57 
 
 Siegel Stores Corporation, com. 25 
 
 preferred __ __ 88 90 
 
 Sierra Nevada Mining (Nevada) lie lOe 
 
 Sierra -Pacific Electric, com. __ *16 
 
 -preferred __ . __ __ *85i4 
 
 Silk City Safe Deposit & Trust (Paterson).. __ __ 220 
 
 Silver Hill Mining (Nevada) __ 4c 4c 
 
 Silver King Consolidated Mining — — % 1 
 
 Silver Peak Mining '570 *57c 
 
 Silver Pick Consolidated Mines (Nevada) 6c 6c 
 
 Silversmiths Co. 96 
 
 Simpson Dry Dock — *35 
 
 Singer Manufacturing 295 300 
 
 Single Service Pkg. Corp., pfd — *25 
 
 Sioux City Stock Yards, com __ __ 20 25 
 
 preferred — __ 871/2 90 
 
 Sixth Avenue Railroad __ __ *115 *124 
 
 Sixth National Bank (Philadelphia) *200 *200 
 
 Skenandoa Cotton (Utica) __ __ 133 138 
 
 Slosa- Sheffield Steel & Iron, com. __ __ 35 43 
 
 preferred — — 9I1/2 98 
 
 Smart Bag, com. — — 120 
 
 Smith (John E.) Manufacturing, pfd. __ _- __ '100 
 
 Smyth Manufacturing __ __ 230 240 
 
 Snell & Simpson Biscuit, pfd. __ __ __ *97l^ 
 
 Solar Refining — „ *640 *660 
 
 Somerset, Union & Middlesex Lt. 70 73 
 
 Soule Mills (New Bedford) „ __ __ 99 
 
 South Bend Life Assurance *11 
 
 South Carolina Light, Power & Rys., pfd "100 
 
 South Carolina Loan & Trust (Charleston)— __ 155 160 
 
 South Chattanooga Co. *100 *100 
 
 South Chicago Savings Bank (Chicago) __ 200 
 
 South End National Bank (Boston) __ __ 112 
 
 South Eureka Mining (Nevada) __ __ $2.50 
 
 South Jersey Gas & Elec. & Trac __ __ __ "130 
 
 South Lake Mining , __ __ 7 7% 
 
 South Live Oak __ __ 13 
 
 South National Bank (Wilmington, N. C.)— __ — 155 160 
 
 South Penn Oil — — *945 ^960 
 
 South Porto Rico Sugar, com. __ __ *64i4 *69y2 
 
 preferred — — ♦IO414 •1081/3 
 
 South Shore Realty *60 *60 
 
 South Side Bank (St. Louis) * __ ' __ 375 
 
 South Side Bank (Scranton) __ __ $160 $170 
 
 South Side Bank (Wheeling) __ ._ $152 $175 
 
 South Side State Bank (Chicago) __ __ 130 135 
 
 South Side St. Bank (Minneapolis) __ __ 250 
 
 *Quotation nearest March 1, 1913. No quotation on tbat date. 
 
 1070 
 
High Low Bid Asked 
 
 South St. Trust (Boston) __ >. $100 
 
 South Term. Tr. (Boston) _« __ $70 $85 
 
 So. Tex. Com'l Nat. Bk. (Houston) __ ._ 310 325 
 
 South Utah Mines % % 
 
 South West & B. Oil 16c 16c 
 
 South West Penn Pipe Lines __ __ __ *173 
 
 South West Trust & Savings Bank __ __ 125 133 
 
 Southern & Atlantic Tel. __ __ $21^4 $23% 
 
 Southern Calif. Ed., com. __ __ STVg 90 
 
 preferred __ __ 931/2 95 
 
 Southern Ice, pfd — — *81 
 
 Southern Loan & Savings Bank (Charlotte) 160 
 
 Southern National Bank (Louisville) 132 135 
 
 Southern New England Telephone __ __ 138 140 
 
 Southern Pacific 99% 99% 
 
 Southern Pipe Line __ __ *255 *262 
 
 Southern Railway, com. 26 25% 
 
 ' preferred SOi/g SOYs 
 
 Southern Railway, M. & O. stk. tr. ctfs __ 77^4 
 
 Southern Trust (Little Rock) __ __ *27y2 — 
 
 Southw'k National Bank (Philadelphia) *145i4 •145l^ — 
 
 Southwestern Com'l & Sav. Bank (St. Louis) 219 
 
 S. W. Nat'l Bank of Com. (Kansas City, Mo.) — __ ISSVs 1891/2 
 
 Southwestern Miami Dev. 3 4 
 
 Southwestern National Bank (Philadelphia) *118 *118 
 
 Southwestern Power & Light, pfd. 97 100 
 
 Southwestern Railroad of Georgia 104 107 
 
 Southwestern Utilities, pfd. __ __ *31 
 
 -common *30 
 
 Spanish River Pulp, com. 67% 68 
 
 preferred 94 
 
 Spartan Mills (South Carolina) __ __ 110 120 
 
 Spearhead Gold Mines (Nevada) 3c 3c 
 
 Spencer Heater, pfd. *90 *97Vi 
 
 common *30 *50 
 
 Spitzer-Roe Tr. & Bk. (Toledo) __ __ 125 
 
 Spokane & East. Tr. (Spokane) __ __ 235 250 
 
 Spokane International Railway *53 
 
 Spokane Title __ __ __ "75 
 
 Spring House & Hillt'n Turnpike *41 *41 
 
 Spring Valley Water __ __ 62% 63% 
 
 Springfield Avenue Trust (Newark) 120 
 
 Springfield Gas Light __ __ __ t280 
 
 Springfield (Ohio) Light, Heat & Power __ __ __ 571/3 
 
 Springfield (Massachusetts) National Bank 210 215 
 
 Springfield (Massachusetts) Safe Dep. & Tr. __ __ 225 232 
 
 Stafford Mills (Fall River) __ __ __ 921/, 
 
 Standard Bank (Toronto) __ __ __ $1121/2 
 
 Standard Coupler, com. __ 35 40 
 
 preferred — 105 111 
 
 Standard Fabric Co. __ __ __ *105 
 
 Standard Fire Insurance (Hartford) $84 $90 
 
 Standard Gas & Electric, com. __ __ $16 $17% 
 
 preferred __ __ $46i^ $48 
 
 Standard Heating & Ventilating, pfd. __ __ *100 *115 
 
 common — — — •llO 
 
 Standard Loan Co. of Tor. __ *84 
 
 Standard Milling, com. 35 39 
 
 preferred — — 63% 66 
 
 •Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1071 
 
Bid 
 
 Asked 
 
 •21/4 __ 
 
 1185 
 
 1220 
 
 700 
 
 800 
 
 *186 
 
 *188 
 
 *330 
 
 *335 
 
 *565 
 
 *580 
 
 ♦405 
 
 *420 
 
 *310 
 
 *340 
 
 *650 
 
 *660 
 
 *270 
 
 *280 
 
 High Low 
 
 Standard Motor Construction Co. 
 
 Standard Oil (old) 
 
 Standard Oil (subsidiaries) 
 
 Standard Oil of California 
 
 Standard Oil of Indiana 
 
 Standard Oil of Kansas 
 
 Standard Oil of Kentucky 
 
 Standard Oil of Nebraska 
 
 Standard Oil of New Jersey 374 371 
 
 Standard Oil of New York 
 
 Standard Oil of Ohio 
 
 Standard Oil Cloth, com. *61 
 
 preferred *89i4 __ 
 
 Standard Paint Co. __ __ __ *105 
 
 Standard Roller Bearing, pfd. *12y8 *12y8 
 
 Standard Screw, com. 
 
 preferred A 
 
 Standard Steel Car Co. 
 
 Standard Tr. & Sav. Bk. (Chicago) 
 
 Standard Underground Cable 
 
 Standard Wall Paper 
 
 Stanfield's, Limited, pfd. 1 *6.66% basia 
 
 Stanley Rule & Level , 
 
 Stanley Works 
 
 Stark Tusc. Brew., com. 
 
 preferred *20 
 
 Starrett (L. S.) Co., com. 
 
 State Bank of Chicago 
 
 State Bank (Hartford) 
 
 State Bank of Italy (Chicago) 
 
 State Bank of Kansas City 
 
 State Bank (New York) 
 
 State Bank of Maryland (Baltimore) 
 
 State Bank of Seattle 
 
 State Bank & Trust (Cleveland) *107 
 
 State Bank & Trust (Hartford) 
 
 State Bank & Trust (San Antonio) 
 
 State Company of Can. *7%% basis 
 
 State Exchange Bank (Oklahoma City) 
 
 State Line & Sullivan Railroad 
 
 State National Bank (Little Rock) 
 
 State National Bank (Oklahoma City) 
 
 State National Bank (St. Louis) 
 
 State Savings Bank (Charleston) 
 
 State Savings Bank (Memphis) 
 
 State Sav. Bank & Trust (Columbus, Ohio) 
 
 State St. Assoc. (Boston) 
 
 State St. Ex. (Boston) 
 
 State St. Trust (Boston) 
 
 State Trust (Nashville) 
 
 Steam Boiler Ins. (Hartford) 
 
 Steel Co. of Canada, com 
 
 preferred 
 
 Sterling Bank of Canada 
 
 Sterling Cork & Seal 
 
 Sterling Oil & Dev. 
 
 Sterling Typewriter, pfd. 
 
 Stem Bros., pfd. 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1072 
 
 
 
 75 
 
 91 
 
 95 
 
 •300 
 
 •400 
 
 172 
 
 174 
 
 •275 
 
 •280 
 
 •90 
 
 ~ 
 
 390 
 
 398 
 
 $55 
 
 $56i/a 
 
 ~ 
 
 eVa 
 
 
 •200 
 
 395 
 
 398 
 
 195 
 
 __ 
 
 140 
 
 145 
 
 
 
 •160ya 
 
 200 
 
 250 
 
 $32 
 
 $36 
 
 130 
 
 140 
 
 195 
 
 ~~ 
 
 200 
 
 — 
 
 115 
 
 11 
 
 •121/, 
 
 > — 
 
 100 
 
 110 
 
 150 
 
 
 
 210 
 
 
 
 135 
 
 150 
 
 265 
 
 275 
 
 135 
 
 140 
 
 
 
 $75 
 
 $75 
 
 __ 
 
 275 
 
 __ 
 
 90 
 
 100 
 
 $300 
 
 __ 
 
 25 
 
 
 
 861/3 
 
 881/4 
 
 •96 
 
 •103 
 
 
 
 •15 
 
 1.05 
 
 
 
 
 
 •97ya 
 
 74 
 
 78 
 
High Low Bid Asked 
 
 Stetson (J. B.), com. 420 
 
 preferred -. *180 
 
 Stevens Manufacturing (Fall River) __ __ __ I26I/2 
 
 Stewart Mining 11/2 ll^ 
 
 Stewart -Warner Speedometer, pfd. __ __ __ *99 
 
 Stock Yards Bank (Louisville) __ __ 140 
 
 Stock Yards Bank & Trust (Cincinnati) __ __ 145 175 
 
 Stockyards National Bank (Fort Worth) __ __ 130 150 
 
 Stock Yards National Bank (St. Paul) __ __ 150 
 
 Stock Yards National Bank (So. Om.) __ __ 200 250 
 
 Stock Yards Savings Bank (Chicago) __ __ 300 
 
 Stockmen's Trust, Savings Bank (Chicago) 150 155 
 
 Stonega Coke & Coal, com. __ __ *14 *17 
 
 Stray Dog Mining (Nevada) __ __ 3c 
 
 Streets W. Stable Car, com. 8 8 __ __ 
 
 ^preferred 45 50 
 
 Stromberg-Carlson Manufacturing, com 9l^ 12 
 
 preferred 50 
 
 Studebaker Corporation, com. 29 32 
 
 preferred __ • __ 88 93 
 
 Stuyvesant Insurance (New York) __ __ 140 155 
 
 Submarine Signal 5 7l^ 
 
 Suburban Realty 10l^ 
 
 Suffolk R. E. Tr. (Boston) __ __ __ $750 
 
 Sulzberger & Sons, pfd. . __ 97 100 
 
 Summer St. Tr. (Boston) __ __ __ $92 
 
 Sun & Hastings Loan Co. __ __ __ $85 
 
 Sun Drug __ __ 0.95 
 
 Sun Insurance (New Orleans) % 2^2 
 
 Superior & Boston Copper __ __ 3% A% 
 
 Superior Copper Mining __ __ 28 28^4 
 
 Superior Savings & Trust (Cleveland) __ __ 295 
 
 Superior Water, Light & Power, com 50 
 
 preferred 87 
 
 Swan & Finch Co. __ __ __ *210 
 
 Swift & Co. 106% 106% 
 
 Swinehart Tire & Rubber __ __ *93 
 
 Symington (T. H.) Co., pfd. __ __ *60 • *72 
 
 common *10 
 
 Tabasco Plantation Co. __ _•_ *30 
 
 Taber Mill (New Bedford) __ __ __ 1071/3 
 
 Tacoma Gas, com. 20 
 
 preferred 68 
 
 Tacony Trust (Philadelphia) *225 *225 
 
 Tamarack Mining __ 30 32 
 
 Tampa-Cuba Sugar __ __ *15i^ *18 
 
 Tampa Electric __ __ 150 155 
 
 Taunton Gas Light __ __ _„ fl^S 
 
 Taunton (Massachusetts) National Bank 107 
 
 Taylor & Fenn __ __ 165 
 
 Tear-Off Bottle Seal Co. __ __ __ '36 
 
 Tecopa Consolidated Mining (Nevada) — 10c 15c 
 
 Tecumseh Mills (Fall River) __ __ 115 120 
 
 Tenderfoot Hill (Colorado Springs) __ __ .0035c Ic 
 
 Tenn Copper $37% $37 
 
 Tenn. Ry., Light & Power, com. __ __ 21 22 
 
 preferred — 751/3 761^ 
 
 Tenth & Twenty-third St. Ferries __ __ 25 35 
 
 •Quotation nearest March 1, 1913. No quotation on that date. f'Value" as of March 1, 1913. 
 
 1073 
 
High Low Bid Asked 
 
 Tenth National Bank (Philadelphia) *117l^ *117i4 
 
 Term. Hotel Tr. (Boston), pfd. __ __ __ $95 
 
 Terre Haute & East. Indiana R. R., pfd __ __ __ *60 
 
 common *13V2 
 
 Terre Haute National Bank __ __ 150 160 
 
 Terre Haute Traction & Light, pfd. __ __ IO314 lOTVs 
 
 Terry, Trench & Proctor Tun. Mch. __ — __ *4y3 
 
 Teutonia Insurance (New Orleans) 122 
 
 Teutonia Insurance (Pittsburgh) $103 
 
 Teutonia Loan & Building *97 
 
 Teutonia National Bank (Dayton) __ 140 
 
 Texas & Pacific I81/2 ISy^ 
 
 Texas & Pacific Coal __ _- 95 100 
 
 Texas Bank & Tr. (Beaumont) __ __ 125 
 
 Texas Bank & Trust (Galveston) __ __ 215 225 
 
 Texas Co. 115 115 
 
 Texas Pacific Land Tr. Cert. __ _. $91 $105 
 
 Texas Power & Light, pfd. __ __ 97 100 
 
 Texas State Bank (Ft. Worth) __ __ 125 
 
 Texas Traction, com. __ __ __ 15 
 
 preferred __ __ 75 
 
 Textile National Bank (Philadelphia) *125y8 *125% — 
 
 Thames National Bank (Norwich) __ — __ 170 
 
 Thanksgiving Mining (Nevada) — — __ Ic 
 
 Third Avenue Ry. 36 36 
 
 Third National Bank (Atlanta) „ __ 240 255 
 
 Third National Bank (Buffalo) __ __ 150 160 
 
 Third National Bank (Dayton) __ „ __ 200 
 
 Third National Bank (Jersey City) „ „ 290 300 
 
 Third National Bank (Philadelphia) •250^*25014 __ 
 
 Third National Bank (St. Louis) __ __ __ 258 
 
 Third National Bank (Scranton) __ __ 900 910 
 
 Third National Bank (Springfield) ._ __ 225 233 
 
 Thirteenth & Fifteenth Sts. Pass. Ry. *$249y2 — 
 
 Thomas Iron, pfd. — — *24 ^31 
 
 Thompson Starrett, com. — __ *161 '167 
 
 preferred — — — *112ya 
 
 Thomdike Co. (Massachusetts) (par $1,000) __ __ 1500 
 
 Tippecanoe Securities, pfd. — — *10V2 *11 
 
 Title Guarantee & Trust (New York) __ __ 480 490 
 
 Title Guaranty Trust (St. Louis) „ __ 72 72% 
 
 Tobacco Products, com. — 120 140 
 
 preferred — — 90 93 
 
 Toledo Home Tel. __ — 100 100% 
 
 Toledo, Peoria & Western __ __ 15^4 __ 
 
 Toledo Ry. & Light — — — 12y3 
 
 Tol. St. L. & W., pfd. 27y8 27 
 
 common — — 10 12 
 
 Toledo (Ohio) Savings Bank & Trust — — 255 300 
 
 Tonopah Belmont Dev. — — 7y8 7*4 
 
 Tonopah Extension Mining (Nevada) $1.75 $1.75 
 
 Tonopah Gypsy Queen Mining (Nevada) __ __ 3c 4c 
 
 Tonopah Merger Mining (Nevada) 85c 81c 
 
 Tonopah Mining of Nevada -$6 $6 
 
 Tonopah 76 Consolidated Mining (Nevada)— __ — __ 7c 
 
 Tooke Brothers, pfd. — — 90 
 
 Toronto, Bank of (Canada) — — — 208 
 
 Toronto General Trusts ^200 
 
 Toronto Mortgage *140 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1074 
 
High Low Bid Asked 
 
 Toronto Paper __ 78 
 
 Toronto Railway __ __ 138 1381/3 
 
 Toronto Savings *185 
 
 Toronto Structural Steel, pfd. *97y2 *97y2 
 
 Torrington Co., com. __ __ $27l^ $28 
 
 preferred __ $27 $28 
 
 Traders' National Bank (Birmingham) __ __ 160 170 
 
 Traders' National Bank (Ft. Worth) __ __ 300 325 
 
 Traders' National Bank (Kansas City, Mo.) 160 
 
 Traders' National Bank (Rochester) __ 165 180 
 
 Traders' National Bank (Scranton) __ 220 225 
 
 Traders' National Bank (Spokane) __ __ 190 250 
 
 Traders' Oil __ __ 691/2 72 
 
 Tradesmen's National Bank (Philadelphia)— *250 *250 
 
 Tramp Consolidated Mining (Nevada) __ __ __ Ic 
 
 Tramps Merger *81 *81 
 
 Tramps Mining *li^ *li^ 
 
 Traute & Hine __ __ $55 $60 
 
 Travelers' Insurance (Hartford) __ __ 640 650 
 
 Travelers' Life Insurance (Hartford) 630 640 
 
 Tremont Bldg. Tr. (Boston) __ __ $102 $107 
 
 Tremont & Suffolk Mills (Massachusetts)— *110% __ 
 
 Trenton Banking Co. *$112 *$112 
 
 Trenton Potteries, com. 4 7 
 
 preferred 50 65 
 
 Trenton Trust & Safe Deposit 278 278 
 
 Trethewey Silver Cobalt __ 40c 43c 
 
 Ti-Bullion Smelting & Develop. ^ 1/2 
 
 Trim'tn Tr. (Boston) __ __ $90 
 
 Trinidad Electric, pfd. *75 *75 
 
 common *$3.60 *$3.60 
 
 Trinity Copper __ __ 4% 41/3 
 
 Ti-State Tel. & Tel., com. __ __ $10 
 
 preferred __ __ $91/2 $10 
 
 Trow Directory 'le^A *16l^ 
 
 Troy & Greenbush __ __ $80 $85 
 
 Troy (New York) Gas — __ 210 225 
 
 Troy Trust Co. __ __ 170 175 
 
 Trust & Guarantee Co. of Toronto __ __ __ *95 
 
 Trust Co. of Georgia (Atlanta) 247 251 
 
 Trust Co. of New Jersey (Hoboken) __ __ 380 410 
 
 Trust Co. of St. L. Co. __ __ __ $198 
 
 Tucapan Mills (South Carolina) __ __ 300 350 
 
 Tuckett's Tobacco, com. 57 59 
 
 Tularosa Mining __ — 1/2 % 
 
 Tuolumne Copper Mining 21J 2% 
 
 Turners Falls Power & Electric __ __ __ tl65 
 
 Twenty-third Street Railway — __ 240 265 
 
 Twenty-third Ward Bank (New York) __ __ 175 
 
 Twin City Rapid Transit, com __ __ 105 108 
 
 preferred — — 138l^ 145 
 
 Uncas National Bank (Norwich) __ __ 100 
 
 Underwood Computing Machine — — — *40 
 
 Underwood Typewriter, com __ __ 93 97 
 
 preferred — — __ 111 113 
 
 Union & New Har. Trust (New Hampshire) — 155 
 
 Union & Planters' Bank & Trust (Memphis). __ __ 170 172 
 
 Union -American Cigar, com *30 
 
 •Quotation nearest March 1, 1913, No quotation on that date. fValue" -as of March 1, 1913. 
 
 1075 
 
High Low Bid Asked 
 
 Union Bag & Paper, pfd 341/2 341/2 
 
 • common 5% Syg — -- 
 
 Union Bank (Altoona) . 
 
 Union Bank of Canada 
 
 Union Bank of Chicago 
 
 Union Bank (Richmond) 
 
 Union-Buffalo Mills (South Carolina) 1st pfd. 
 
 Union Carbide 
 
 Union Consolidated Mining (Nevada) 10c 9c 
 
 Union Construction Co 
 
 Union Copper Land & Mining 
 
 Union Cotton Manufacturing (Fall River) 
 
 Union Dairy (St. Louis) 
 
 Union Exchange National Bank (New York). 
 
 Union Ferry (New York and Brooklyn) 
 
 Union Gas & Electric (Cincinnati), com 
 
 preferred 
 
 Union Life Insurance Co 
 
 Union Manufacturing, New Britain 
 
 Union Mines 
 
 Union National Bank (Charlotte) 
 
 Union National Bank (Cleveland) *165 
 
 Union National Bank (Houston) 
 
 Union National Bank (Louisville) 
 
 Union National Bank (Newark) 
 
 Union National Bank (Philadelphia) *213 *213 
 
 Union National Bank (Scranton) 
 
 Union National Bank (Troy) 
 
 Union National Bank (Wilmington, Dela.) 
 
 Union Natural Gas 
 
 Union Oil 
 
 Union Pacific, com 153% I521/2 
 
 preferred 84% 84% 
 
 Union Passenger Railway (Philadelphia) *$193 
 
 Union Provident Co 
 
 Union Railway, Gas & Electric, com 
 
 preferred 
 
 Union Safe Deposit & Trust (Portland, Me.)_ 
 
 Union Sand & Mat 
 
 Union Savings Bank (Augusta) 
 
 Union Savings Bank (Toledo) 
 
 Union Savings Bank (Washington) 
 
 Union Savings Bank & Trust (Cincinnati) 
 
 Union Savings Bank & Trust (Memphis) 
 
 Union Savings & Loan (Cleveland) *114 
 
 Union Savings & Trust (Seattle) 
 
 Union State Bank (Minneapolis) 
 
 Union Station Bank (St. Louis) 
 
 Union Steam Pump 
 
 Union Stock Yards Bank (Buffalo) 
 
 Union Stock Yards (South Omaha) 
 
 Union Sugar Co. 
 
 Union Switch & Signal, com. 
 
 preferred 
 
 Union Tank Line 
 
 Union Traction (Philadelphia) 
 
 Union Trust (Albany) 
 
 Union, Trust (Baltimore) 
 
 Union Trust (Canada) 'ISO 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1076 
 
 160 
 
 175 
 
 150 
 
 152 
 
 170 
 
 175 
 
 $360 
 
 
 
 
 
 40 
 
 185 
 
 187 
 
 •8 
 
 •18 
 
 iy4 
 
 IVa 
 
 
 210 
 
 __ 
 
 145 
 
 160 
 
 170 
 
 15 
 
 19 
 
 
 
 5 
 
 
 
 65 
 
 
 
 •51/2 
 
 $52 
 
 
 Vs 
 
 y4 
 
 162 
 
 
 198 
 
 201 
 
 245 
 
 265 
 
 375 
 
 ~ 
 
 135 
 
 140 
 
 60 
 
 621/2 
 
 $83 
 
 $90 
 
 129 
 
 130 
 
 92 
 
 921/8 
 
 loiys 
 
 1041/8 
 
 61 
 
 64 
 
 87 
 
 901/2 
 
 180 
 
 200 
 
 __ 
 
 77 
 
 $80 
 
 
 
 220 
 
 245 
 
 246 
 
 
 
 410 
 
 500 
 
 320 
 
 350 
 
 135 
 
 —-■ 
 
 115 
 
 __ 
 
 140 
 
 
 
 •50 
 
 
 
 128 
 
 130 
 
 951/2 
 
 1 96y. 
 
 271/2 
 
 , 30 
 
 $1261/2 
 
 $127ya 
 
 $129 
 
 
 *67 
 
 •69 
 
 $49% 
 
 , $501/8 
 
 350 
 
 
 
 $63 
 
 $66 
 
High Low Bid Askea 
 
 Union Trust (Chicago) __ __ 320 
 
 Union Trust (Detroit) , __ __ 185 190 
 
 Union Trust (Harrisburg) 135 
 
 Union Trust (Indianapolis) 313 
 
 Union Trust (Jersey City) __ __ 105 115 
 
 Union Trust (Lancaster) $148 $150 
 
 Union Trust (Little Rock) __ __ 180 
 
 Uion Trust (Nashville) __ __ 95 100 
 
 Union Trust Co. (New York) __ __ $1290 1300 
 
 Union Trust (Providence) >. __ 175 1801/2 
 
 Union Trust (Rochester) __ 190 215 
 
 Union Trust (Springfield, Mass.) __ __ 230 240 
 
 Union Trust (Washington) __ __ 136y8 136^^ 
 
 Union Trust & Savings Bank (Spokane) 120 135 
 
 Union Typewriter, com. __ __ 33l^ 
 
 1st preferred 102 105 
 
 2nd preferred 97 99 
 
 Union Wadding Co. (Rhode Island) ._ __ __ *118 
 
 United Bank & Savings (Cleveland) *285 
 
 United Box Board __ __ li/s 1% 
 
 United Cigar Manufacturers, com. 49 53l^ 
 
 preferred __ __ 981^ 103 
 
 United Cigar Stores, com. 101% 101% 
 
 preferred 114 116 
 
 United Copper, com. % % 
 
 United Dry Goods, com. __ 961/3 98 
 
 preferred __ __ 99% 10^^ 
 
 United Electric Light of Springfield __ __ __ t285 
 
 United Electric, New Jersey 90 95 
 
 United Electric Securities, pfd. __ 112 
 
 United Equities Corp. of Virginia, pfd *97 *97 
 
 United 5 «& 10 Cent Stores __ __ *42 *43 
 
 United Firemen's Insurance (Philadelphia)— $15 
 
 United Fruit __ __ 1701/2 171 
 
 United Gas & Electric, pfd. __ __ 85 90 
 
 United Gas Improvement __ __ $88% $88% 
 
 United Gold Mines (Colorado Springs) 5c 5%c 
 
 United Illuminating (New Haven) __ __ '195 205 
 
 United Light & Railways, com. 80 83 
 
 1st preferred __ 80 81 
 
 2nd preferred 74 77 
 
 United Mercantile Co., pfd. __ *7 
 
 United National Bank (Providence) 210 
 
 United National Bank (Troy) __ __ 295 300 
 
 United N. J. R. R. & Canal __ __ 235 238 
 
 United Oil __ __ 35 36 
 
 United Petroleum __ __ 103% 104% 
 
 United Public Utilities (Delaware) __ 25 
 
 United Railways & Electric (Baltimore), com. $23% $231/2 
 
 United Railways Investment, com. __ __ 26% 27% 
 
 ^preferred 49 52 
 
 United Railways of St. Louis, com. __ 13% 13% 
 
 preferred __ __ 39% 40% 
 
 United Sec, Loan, Ins. & Tr. (Philadelphia) *140 *140 
 
 United Shoe Machinery, com. __ __ $49% $50 
 
 preferred __ __ $27% $28 
 
 United States & Mexican Trust __ *80 
 
 United States Bank (Hartford) __ __ 475 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. fValue" as of March 1, 1913. 
 
 1077 
 
High Low 
 
 United States Bob. & Shut., com. 
 
 preferred 
 
 United States Cashier Co. 
 
 United States Casualty 
 
 U. S. C. I. P. & F., com. 131/2 131/3 
 
 preferred 
 
 United States Envelope, com. 
 
 preferred 
 
 United States Express 
 
 United States Fidelity & Guar. (M.) 
 
 United States Finishing, com. 
 
 preferred 
 
 United States Gypsum, pfd. 
 
 United States Hotel (Boston) *nO 'ITO 
 
 United States Industrial Alcohol, com. 
 
 preferred 
 
 United States Insurance (New York) 
 
 United States Light & Heat, com. 
 
 preferred 
 
 U. S. L. D. T. & S. Co., pfd. 
 
 United States Metal Products, pfd. 
 
 common 
 
 United States Motor, com. 
 
 preferred 
 
 New 
 
 1st preferred 
 
 2nd preferred 
 
 United States Mortgage & Trust (New York) 
 United States National Bank (Los Angeles) 
 
 United States National Bank (Omaha) 
 
 United States Operating Co. 
 
 United States Playing Card 
 
 United States Printing of Ohio 
 
 United States Radiator, com. 
 
 preferred 
 
 United States Realty & Improvement 
 
 United States Reduction & Refining, com. 
 
 preferred 
 
 United States Rubber, com. 62% 62 
 
 1st preferred IO614 106l^ 
 
 2nd preferred 
 
 United States Safe Dep. (New York) 
 
 U. S. Safe Dep. & Sav. Bank (New Orleans) 
 
 United States Smelt., Ref. & Min., com 
 
 preferred 
 
 United States Steel, com. 6I1/8 6014 
 
 preferred 1071/5 IO71/2 
 
 United States Telephone (Cleveland), com *32 
 
 preferred *79i/^ __ 
 
 United States Title Guar. & Ind. 
 
 United States Trust (Louisville) 
 
 United States Trust Co. (New York) 
 
 United States Trust (Terre Haute) 
 
 United States Trust (Washington) 
 
 United States Worsted, pfd. 
 
 United Traction (Pittsburgh), pfd. 
 
 United Traction & Electric, com. 
 
 preferred 1 
 
 'Quotation nearest March 1, 1913. No quotation on that data. 
 
 1078 
 
 Bid 
 
 Asked 
 
 25 
 
 
 
 100 
 
 105 
 
 
 
 *100 
 
 190 
 
 200 
 
 54 
 
 62 
 
 115 
 
 125 
 
 102 
 
 106 
 
 50 
 
 55 
 
 195 
 
 200 
 
 *15 
 
 *20 
 
 ♦40 
 
 __ 
 
 ~ 
 
 •79 
 
 
 35 
 
 95 
 
 100 
 
 $16 
 
 
 
 8 
 
 10 
 
 55 
 
 65 
 
 10 
 
 15 
 
 
 
 •100 
 
 
 •40 
 
 ^ 
 
 % 
 
 % 
 
 IVs 
 
 
 10 
 
 
 
 71 
 
 
 
 35 
 
 460 
 
 470 
 
 150 
 
 
 
 300 
 
 350 
 
 
 
 *n% 
 
 148 
 
 160 
 
 761/4 
 
 82 
 
 
 *9% 
 
 •40 
 
 50 
 
 69 
 
 70 
 
 1 
 
 1% 
 
 3 
 
 6 
 
 71 
 
 81 
 
 190 
 
 
 
 235 
 
 
 
 $39% 
 
 $39% 
 
 $48 
 
 $48% 
 
 
 
 87y2 
 
 138 
 
 140 
 
 1100 
 
 1115 
 
 90 
 
 100 
 
 137 
 
 140 
 
 
 
 •1001/2 
 
 
 
 $35 
 
 100 
 
 1031/, 
 
 77i 
 
 } baiifl 
 
High Low Bid Asked 
 
 United Utilities, com. 37 4u 
 
 preferred __ __ 100 lOSVa 
 
 United Wine & Trading , __ __ *40 
 
 United Wire & Supply, pfd. __ __ __ lOSy^ 
 
 United Xpidite Finishing *3i4 
 
 United Zinc, com. __ 8c 20c 
 
 preferred 1% 2Vi 
 
 Universal Trading & Supply "4 
 
 University Assoc. (Cambridge) $100 
 
 Upham Bros & Co., pfd. *102i/2 *102y8 
 
 Upson Nut, pfd. 108 
 
 Utah-Apex Mining 1% 2 
 
 Utah Consolidated Copper 9^/4 9^ 
 
 Utah Copper $548/3 $52% 
 
 Utah Gas & Coke, com. __ 102l^ 
 
 Utah Metal Mining 94c $1 
 
 Utah Mining (Nevada) 5c 6c 
 
 Utah Savings & Trust (Salt Lake City) __ __ 102 103 
 
 Utah Securities __ 23 23ya 
 
 Utah St. National Bank (Salt Lake City) __ __ 295 301 
 
 Utica & Black River, gtd. __ __ *1Q9 
 
 Utica & Willowvale Bleachery __ __ 200 
 
 Utica, Chen. & Susq. Vy. __ __ 141 146 
 
 Utica City National Bank __ $25.85 $26Vi 
 
 Utica, Clinton & Binghamton __ 65 75 
 
 Utica Knitting, pfd. __ 100 103 
 
 Utica Steam & Mohawk Valley Cott. M __ __ 165 167 
 
 Utica Trust & Deposit Co __ __ 400 
 
 Utilities Improvement, com. __ __ 69 75 
 
 preferred __ __ 75l^ 76% 
 
 Vacuum Oil Co. __ __ *175 *180 
 
 Valley Railroad (New York) __ __ 115 125 
 
 Valley Steamship *85 
 
 Van Camp Hardware & Iron, pfd •lOO 
 
 Vanadium Sales Co. of America '325 
 
 Vandalia Coal, com. 5 
 
 preferred 7 15 
 
 Vandalia Railroad 85^4 
 
 Vandeveriter Trust (St. Louis) . 100 110 
 
 Vermont & Massachusetts Railway 150 
 
 Vernal Mining (Nevada) ^ 12c 13c 
 
 Veronal "U *14 
 
 Victor Talking Machine, com. *310 
 
 Victoria Copper Mining __ __ 1^ ly^ 
 
 Virginia Building & Loan __ 110 
 
 Virginia-Car. Chemical, com. 32% 32% 
 
 preferred 108% 108% 
 
 Virginia Fire & Mar. Insurance (Richmond) __ __ $81 $83 
 
 Virginia Iron, Coal & Coke — __ 51 54 
 
 Virginia National Bank (Norfolk) __ 140 150 
 
 Virginia National Bank (Petersburg) __ 135 
 
 Virginia Railway and Power, com. 51% 50% 
 
 preferred — 89 
 
 Virginia State Insurance, com. __ __ $10 Va $lll^ 
 
 preferred — __ $16 $17 
 
 Virginia Trust Co. (Richmond) _ __ __ 158 160y, 
 
 Virginian Railway — 15 20 
 
 Vulcan Detinning, com. — __ 16% 20 
 
 preferred — — 35 
 
 ♦Quotation nearest March 1, 1913. No quotation on that dat«. 
 
 1079 
 
High Low Bid Asked 
 
 Vulcan Tube Cleaning *47ya *47i/8 
 
 Vulcanite Portland Cement __ __ "TS 
 
 Wabash, com. 4 314 
 
 preferred 11 IQV2 
 
 Wagner Electric Co. __ __ __ *134 
 
 Walker Bros. (Salt Lake City) __ __ 225 230 
 
 Walpole Rubber, pfd. •100 'lOO 
 
 Waltham Watch, com. __ __ 25 28 
 
 preferred __ -_ 100 104 
 
 Wampanoag Mills (Fall River) — 90 
 
 Wamsutta Mills (New Bedford) __ __ 119 123 
 
 Ward Baking Co., pfd. .- -_ *93 *95 
 
 Ward (Montgomery), pfd. __ _> __ lOiy^ 107% 
 
 Ware River Railroad _- -_ 174 176 
 
 Warner (Charles) Manufacturing, pfd. __ __ *100 
 
 common — — — $25 
 
 Warren Mfg. (South Carolina), com. 70 80 
 
 preferred — __ 100 
 
 Warren Railroad (New Jersey) __ __ $811/2 $83Va 
 
 Warwick Iron & Steel __ — $101/2 $10% 
 
 Washburn Wire, com. — — __ *115 
 
 preferred — — *QVs% basis 
 
 Washington, Baltimore & Annapolis El., com. $14 
 
 preferred $35 
 
 Washington (D. C.) Gas Light ._ __ $851/3 $851/2 
 
 Washington Heights Bank (New York) 275 
 
 Washington Hotel Realty, 1st pfd. __ __ *29 ♦32 
 
 Washington Loan & Trust __ „ 238 250 
 
 Washington Market __ __ $17% __ 
 
 Washington Mills (Virginia), pfd. __ __ 106 110 
 
 Washington National Bank __ — 244 256 
 
 Washington Oil ~ — $31 $35 
 
 Washington Park National Bank (Chicago) __ __ 200 
 
 Washington Railway & Electric, com. __ __ 84% 85 
 
 preferred — — 87% 88% 
 
 Washington Trust (New York) „ __ 375 395 
 
 Washington Trust (Pittsburgh) __ __ 160 
 
 Washington Trust (Spokane) — __ 120 130 
 
 Washington -Virginia Railway, com. '51 
 
 preferred *80 
 
 Washington Water Power __ __ 130 133 
 
 Waterbury National Bank __ __ $80 $85 
 
 Waterbury Trust Co. — „ 100 
 
 Waters-Pierce Oil — — *1400 *1550 
 
 Wayne Co. Savings Bank (Detroit) __ __ 335 351 
 
 Wayne Jet. Tr. (Philadelphia) "110 "110 
 
 Webb Mfg. (Nashville, Tenn.) __ __ 70 90 
 
 Webster & Atlas National Bank (Boston) ___ __ __ 185 190 
 
 Webster & Southbridge Gas & Electric __ __ __ tl45 
 
 Webster Citizens Ice — — __ '100 
 
 Weetamoe Mills (Fall River) — _- __ 90 
 
 Wellington Mines — — — *6i/2 
 
 Wellman-Seav.-Morg., com. 31 
 
 preferred *10Q 
 
 Wells-Fargo Express — — 105 112 
 
 Wells-Fargo Nev. Nat. Bank (San Francisco) __ __ 170 
 
 Welsbach Co., com. — — — 40 
 
 West Coast Oil, pfd. — — 70 
 
 •Quotation nearest March 1, 1913. No quotation on that date. fValue" as of March 1, 1913. 
 
 lOSO 
 
High Low 
 
 West End Bank (Richmond) 
 
 West End Bank & Trust (Cincinnati) 
 
 West End Consolidated Mining (Nevada) $1.35 $1,321/2 
 
 West End Land Co. — — *12 
 
 West End Mining *135 *130 
 
 West End Sav. Bank & Trust (Pittsburgh) __ *$153 *$153 
 
 West End Street Railway, com. 
 
 preferred 
 
 West End Trust (Philadelphia) *$118 *$118 
 
 West Englewood-Ashl'd St. Bk. (Chicago) 
 
 West Point Manufacturing 
 
 West India Electric *7 
 
 West Jersey & Seashore, com. $52 $51 
 
 West Jersey Trust (Camden) 185 185 
 
 West Penn Railways, pfd. 
 
 West Penn Traction, pfd. 
 
 common *80 *80 
 
 West Penn Tr. & Water Power, pfd. 
 
 common 
 
 West Philadelphia Passenger Railway *$205 
 
 West Philadelphia Title & Trust *$133 *$133 
 
 West St. Louis Trust 
 
 West Side Bank (Milwaukee) 
 
 West Side Bank (New York) 
 
 West Side Bank (Scranton) 
 
 West Side Dime Sav. Bank, (Columbus, Ohio) 
 
 West Side Trust (Newark) 
 
 West Side Trust & Savings Bank (Chicago) 
 
 West Virginia Traction & Electric, pfd 
 
 West Point Manufacturing 
 
 Westchester & Bronx T. & M., guar 
 
 Westchester Insurance (New York)^ 
 
 Westchester Trust (Yonkers) 
 
 Western Canada Flour Mills *12 
 
 Western Cities Gas & Electric, pfd *90 *90 
 
 Western Exchange Bank (Kansas City, Mo.) 
 
 Western German Bank (Cincinnati) 
 
 Western Insurance (Pittsburgh) $60 $50*4 
 
 Western Maryland Railway, com. 
 
 -preferred 
 
 Western National Bank (Baltimore) 
 
 Western National Bank (Ft. Worth) 
 
 Western National Bank (Oklahoma City) — . 
 
 Western National Bank (York) 
 
 Western Ohio Railway, com. *23 
 
 1st preferred 107 
 
 2nd preferred 
 
 Western Pacific 
 
 Western Power, com. 
 
 preferred 
 
 Western R. E. Tr. 
 
 Western Silo Co., pfd. 
 
 Western States Gas & Electric, com. 
 
 • preferred 
 
 Western States Portland Cement, com. 
 
 preferred — 
 
 Western Stone — 
 
 Western Union Oil 
 
 Western Union Teleg. 69 69 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1081 
 
 Bid 
 
 Asked 
 
 43 
 
 45 
 
 142 
 
 146 
 
 $771/2 
 
 78 
 
 $95 
 
 97 
 
 148 
 
 150 
 
 *104 
 
 ~ 
 
 •79 
 
 *80 
 
 *80 
 
 *85i/2 
 
 79 
 
 80 
 
 32 
 
 331/2 
 
 120 
 
 125 
 
 250 
 
 300 
 
 
 
 535 
 
 $180 
 
 $185 
 
 
 
 120 
 
 270 
 
 __ 
 
 275 
 
 
 
 
 
 100 
 
 *104 
 
 __ 
 
 165 
 
 
 $571/2 
 
 $621/2 
 
 150 
 
 160 
 
 400 
 
 — 
 
 375 
 
 400 
 
 401/3 
 
 44 
 
 60 
 
 641/2 
 
 $3914 
 
 $40 
 
 135 
 
 150 
 
 165 
 
 __ 
 
 — 
 
 100 
 
 70 
 
 75 
 
 7 
 
 8I/2 
 
 20 
 
 22 
 
 48 
 
 50 
 
 $135 
 
 __ 
 
 H 
 
 •100 
 
 48 
 
 55 
 
 90 
 
 95 
 
 
 
 10 
 
 
 
 50 
 
 11% 
 
 13 
 
 81 
 
 100 
 
High Low Bid Asked 
 
 Westinghouse Air Brake __ __ $138 $143 
 
 Westinghouse Auto Air & St. Coupler __ __ __ 3 
 
 Westinghouse Electric & Manufacturing, com. $34V2 $35 
 
 lat preferred __ _. $571/2 $59y8 
 
 Westinghouse Machine *$25 *$27 
 
 Westminster Bank (Providence) __ __ $63 
 
 Westmoreland Coal $79 
 
 Westport Avenue Bank (Kansas City, Mo.) 250 
 
 Wettlaufer Silver Mines 14c 13c 
 
 Weyman-Bruton, com. _> 270 300 
 
 • preferred 105 125 
 
 Weymouth Light & Power t210 
 
 Weymouth Water Power tllO 
 
 Wheeling & Lake Erie, com. CVg ^Va 
 
 1st preferred 19 24 
 
 2nd preferred lOi/g lOVa 
 
 Wheeling Mould & F. __ __ $57 $59 
 
 Wheeling Steel & Iron __ __ 147 148 
 
 White Co., pfd. __ __ IO71/2 — 
 
 Wliite (J. G.) & Co., pfd. __ __ *78 •83 
 
 common *67 
 
 White Star Line __ — __ 501/2 
 
 White Star Oil — __ __ 19 
 
 Whitman Mills (New Bedford) __ — __ 155 
 
 Whitney Central Nat'l Bank (New Orleans) '315 
 
 Whitney Manufacturing (South Carolina) 110 120 
 
 Wichita Union Stock Yards __ __ __ *76 
 
 Wilkesbarre Dep. & Savings Bank __ __ $204 $210 
 
 Williamsburg City Insurance (Brooklyn) __ 225 250 
 
 Williamson Trust (Memphis) __ __ 100 105 
 
 Willys-Overland Co., com. 64 64 
 
 preferred __ __ 93 98 
 
 Wilmington Gas Co., pfd. __ __ *80 *85 
 
 common — — — *^^V2 
 
 Wilmington (North Carolina) Sar. & Trust __ __ $175 
 
 Wilmington Trust Co. __ __ $120 $130 
 
 Wilson & Co. — See Sulzberger & Sons. 
 
 Winchester Repeating Arms — 1,100 
 
 Winnipeg Electric — 214 
 
 Winnipeg Paint & Glass, Limited __ „ *7i4% basis 
 
 Winona Copper __ 21/, 3 
 
 Winters National Bank (Dayton) __ __ 165 175 
 
 Winthrop Bldg. Tr. (Boston) __ __ __ $65 
 
 Winthrop National Bank (Boston) __ __ 325 
 
 Wireless Liquidating Co. __ __ __ *1% 
 
 Wisconsin Central Railway 48 51 
 
 Wisconsin National Bank (Milwaukee) __ — 205 
 
 Wisconsin Sugar, pfd. *100 "100 
 
 Wisconsin Trust (Milwaukee) __ — 160 
 
 Woburn Gas Light ._ __ — t200 
 
 Wollaston Land — _- % ll^ 
 
 Wolverine Copper Mining ^ __ __ 67 67i/a 
 
 Wolverine Oil — — 50c 
 
 Wolverine Portland Cement Co „ - „ 2i/, 3 
 
 Woman's Hotel — __ 70 75 
 
 Woodland Savings & Trust (Cleveland) •2101/3 „ 
 
 Woodlawn Cemetery __ __ '130 
 
 Woodlawn Trust & Savings Bank (Chicago) „ __ 200 203 
 
 'Quotation nearest March 1, 1913. No quotation on that date. t"Value" as of March 1, 1913. 
 
 1082 
 
High Low Bid Asked 
 
 Woodside Cotton Mills, com. — — 35 40 
 
 preferred guaranteed — — 95 100 
 
 preferred — _ — — — 93 
 
 Woolworth (F. W.), com 96ya 96 
 
 preferred — — 113 113 
 
 Worcester Electric Light — — — t300 
 
 Worcester Gas Light — — — 1'310 
 
 Worcester, Nashua & Rochester — — 149 
 
 Worcester (Massachusetts) National Bank— — — 225 
 
 Worcester Suburban Electric — — — tl65 
 
 Worcester (Massachusetts) Trust — — 225 
 
 Work (Colorado Springs) — — — .01c 
 
 Worthington (H. R.), pfd. — _. IO41/2 106 
 
 Worthington Pump Co., limited pfd — — *90ya — 
 
 Wright Wire Co., pfd. 'llO "110 
 
 Wrightsville & Tennille, com. — __ $24 $26 
 
 Wurlitzer (R.), pfd. — __ 1031/3 „ 
 
 Wyandot Copper — — % 1 
 
 Wyoming National Bank (Wilkesbarre) __ __ $325 $335 
 
 Wyoming Valley Tr. (Wilkesbarre) __ — $155 $160 
 
 Yale & Towne Manufacturing __ *45 
 
 Yale National Bank (New Haven) 140 
 
 Yellow Jacket Gold & Silver Min'g (Nevada) __ __ 21c 
 
 Yellow Taxicab, com __ 10 15 
 
 preferred 40 50 
 
 Yellow Tiger Consolidated Mining (Nevada) 2c 3c 
 
 York County National Bank (York) __ __ $541^ $55 
 
 York Manufacturing (Maine) *135 
 
 York National Bank __ __ $44 $45 
 
 York Railways, com. __ __ 12 12% 
 
 preferred __ __ 35% 36^4 
 
 York (Pennsylvania) Trust Co. __ $60 $65 
 
 Yorkville Bank (New York) __ __ 690 610 
 
 Young (J. S.) Co. __ __ 170 180 
 
 Youngstown & Ohio River, com. __ __ TVa 
 
 preferred *60l^ 
 
 Youngstown Sheet & Tube, com. *260 
 
 preferred *113 
 
 Yukon Gold Mines — __ 3 3^8 
 
 Zions Saving Bank & Trust (Salt Lake City) __ __ 420 425 
 
 *Quotation nearest March 1, 1913. No quotation on that date. fValue" as of March 1, 1913. 
 
 1083 
 
BONDS 
 
 High Low 
 
 Aberdeen Light & Power 1st 6s, 1931 
 
 Acker, Merrall & Condit Deb. 6s, 1923 
 
 Acquackanock Water 5s, 1958 
 
 Adams Express Coll. 48, 1947 
 
 Adams Express Deb. 4s, 1948 
 
 Adirondack Electric Power 1st 5s, 1962 
 
 Adirondack Railway 1st 41/28, 1942 
 
 Advertising Bldg. (Chicago) 1st 51/28, 1914-22- 
 
 Agricultural Credit Coll. 5s, 1913 
 
 5s, 1914 
 
 5s, 1915 
 
 Akron & Barberton Belt 4s, 1942-. 
 
 Akron, Bedford & Cleveland 5s, 1915 
 
 2d Con. 5s, 1921 
 
 Alabama Central 1st 6s, 1918 
 
 Alabama Cons. Coal & Iron 5s, 1933 
 
 Alabama Great Southern 1st 5s, 1927 
 
 ^general 5s, 1927 
 
 equipment 4ygS, 1916 
 
 Alabama Midland Railway 1st 5s, 1928 
 
 Alabama, N. Orl., T. & Pac. Jc. Deb. A 58, 1940 
 
 B 5s, 1940 
 
 C 5s, 1940 
 
 Alabama & New Orleans Transp. 1st 6s, 1932_ 
 
 Alabama Steel & Shipbuilding 6s, 1930 
 
 Alabama, Tennessee & Northern 5s, 1956 
 
 Alabama & Vicksburg Con. 5s, 1921 
 
 Alaculsey Lumber Ist 6s, 1912-21 
 
 Alamagordo & Sacramento Mtn. Ry., 5s, 1928 
 
 Alameda Art. Water 5s 
 
 Albany Railway Cons. 5s, 1930 
 
 ^general 5s, 1947 
 
 Albany Southern 1st 5s, 1939 
 
 Albany & Susquehanna 31/2S, 1946 
 
 Albaugh Dover Co. 6s 
 
 Albia Interurban Ry. 6s, 1914-30 
 
 Alden Mills 68, 1932 
 
 Alexandria Co. Lighting 1st 5s, 1931 
 
 Algonia Central Terminal 1st 5s 
 
 Algoma Steel Ist Ref. 5s, 1962 
 
 Allegheny, Bell. & Perrysville Ist 5s, 1935 
 
 Allegheny Valley, Gen. 4s, 1942 
 
 Allegheny & Western 1st 4s, 1998 
 
 AUentown Gas 5s, 1924 
 
 Allentown & Kutztown Traction 5s, 1932 *77ya *77y2 
 
 AUentown & Reading Trac. Cons. 5s, 1937 
 
 Allentown Terminal 4s, 1919 
 
 Alliance Gas & Electric Ist 5s, 1929 I_ " 
 
 Alliance Gas & Power 1st & Ref. 5s, 1932 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1084 
 
 Bid 
 
 Asked 
 
 
 
 •1011/2 
 
 •80 
 
 
 
 
 •81 
 
 79y 
 
 I 8II/2 
 
 80 
 
 81 
 
 96 
 
 98ya 
 
 101 
 
 
 
 
 •100 
 
 
 
 •99 4/5 
 
 • 
 
 98.72 
 
 
 
 ♦97.43 
 
 90 
 
 
 
 100 
 
 103 
 
 95 
 
 __ 
 
 105 
 
 __ 
 
 •731/5 
 
 , __ 
 
 102 
 
 __ 
 
 102 
 
 104 
 
 5% 
 
 4% 
 
 •105 
 
 •107 
 
 104 
 
 106 
 
 101 
 
 103 
 
 92 
 
 94 
 
 . 
 
 ♦100 
 
 104 
 
 108 
 
 90 
 
 97 
 
 96 
 
 100 
 
 
 
 •100 
 
 __ 
 
 ♦80 
 
 
 
 98 
 
 1031/2 
 
 105 
 
 1031/2 
 
 105 
 
 94 
 
 98 
 
 
 
 881/8 
 
 
 
 ♦77 
 
 •100 
 
 
 
 103 
 
 105 
 
 
 
 •901/2 
 
 __ 
 
 •95 
 
 
 
 ♦93 
 
 — 
 
 •991/4 
 
 991/4 
 
 993/4 
 
 95% 
 
 
 — 
 
 •1031/2 
 
 
 •72y2 
 
 97y2 
 
 100 
 
 100 
 
 1001/2 
 
 
 
 97 
 
High Low Bid Asked 
 
 Allis-Chalmers 1st 5s, 1936 — 65% 
 
 Cent. Tr. Ctfs. of Dep — — 55 eiVg 
 
 Stamped — — ~ SOVa 
 
 Alton, Granite & St. Louis 1st 5s, 1944 — — 89 90 
 
 Alton Railway, Gas & Electric 5s, 1939 — — *96 
 
 Alton Railway & Illuminating 1st 5s, 1915 — — — *100 
 
 Altoona & Logan Val. Elec. Con. 41/2, 1933 — — 89 90 
 
 Altoona Gas 1st 5s, 1933 — — 98 100 
 
 Amalgamated Copper 5% Notes, 1913 — — — *100 
 
 Amalgamated Corp. 5% Notes, 1913 — — 99% lOOi/g 
 
 Amarillo Gas 1st 6s, 1915 — — — *100 
 
 American Agr. Chem. Co. 1st Con. 5s, 1928 IOO1/2 lOOVg 
 
 American Bank Note 5% Notes, 1916 — — — *99i4 
 
 American Brake Shoe and Foundry 58, 1952— — — *102i4 — 
 
 American Can Deb. 5 s, 1928 — — — *97i4 
 
 American Cement Serial 6s — — — *100 
 
 American Cities 5s, 63, 1919 — — 921/2 931/2 
 
 American Cotton Oil Deb. 41/2S, 1915 .— — — 96I/2 97 
 
 Debenture 5s, 1931 — — 931/2 93% 
 
 American District Telegraph 5s, 1926 — — *93 
 
 American Dock & Imp. Co. 1st 5s, 1921 — — 1031A IO51/2 
 
 American Gas Conv. 6s, 1914 — — 100 101 
 
 ^Non-Convertible 5s, 1920 — — 95% 961/3 
 
 American Gas & Electric Col. 5s, 2007 — — 86 861/2 
 
 American Graphophone 6s, 1930 — *88 
 
 American Hide & Leather 6s, 1919 — — IOI1/2 102 
 
 American Hominy 5s, 1927 — — -> *100 
 
 American Ice R. E. & Gen. 6s, 1942 — __ 98I/3 991/2 
 
 American Ice Sec. Deb. 63, 1925 741/2 741/3 
 
 American La France Fire Eng. 1st 6s, 1924 — — — 85 
 
 American Lithographic 1st 5s, 1921 — *90 
 
 American Locomotive 5% Notes, 1914 __ — 1001/4 
 
 American Locomotive 6% Notes, 1915-17 — — 5.35-15% basis 
 
 American Malting 6s, 1914 __ __ 101 102 
 
 American Petroleum 6s, 1920 >_ __ 871/3 95 
 
 American Pipe & Construction 5s, 1927 — — *99 *100% 
 
 Secur. 6s, 1922 ._ __ *99 
 
 American Pipe & Foundry 6s, 1928 __ __ 100 IO21/2 
 
 American Pipe Manufacturing "A" 5s, 1927— __ — *99 
 
 American Pneumatic Service Coll. 5s, 1928 — *90 
 
 American Power & Light 6% Notes, 1921 __ __ 991/2 99% 
 
 American Pub. Serv. 1st 6s, 1943 __ __ — 100 
 
 American Pub. Util. Coll. 58, 1942 — „ — 921/2 
 
 American Railways Conv. 5s, 1931 93 96 
 
 Collateral Trust 5s, 1917 __ — 96 
 
 American Railways (Johnstown) 5s, 1930 — — — *95 
 
 ('Scranton) 5s, 1935 __ — *93 *95 
 
 American Real Estate 6s __ __ *95 
 
 American Refrigerator Trans. Equip. 5s, 1921_ *100 
 
 5s, 1922 __ __ __ *100 
 
 American Road Mach. 6s, 1938 __ __ __ *100 
 
 American Rolling Mill 6% Notes, 1914-15 — — — "lOO 
 
 American Sales Book Ist 6s, 1927 — — — *100 
 
 American School Furniture 6s, 1939 __ __ — *85 
 
 American Sewer Pipe 1st 6s, 1920 — — 87 90 
 
 American Smelters Securities 6s, 1926 __ „ 104l^ 105 
 
 American Spirits Manufacturing 1st 6s, 1915_ — — __ 99i/^ 
 
 American S. S. of West Virginia 1st 5s, 1920— — __ *100% — 
 
 ^Quotation nearest March 1, 1913. No quotation on tbat date. 
 
 1085 
 
High Low Bid Asked 
 
 American Steel Foundries 6s, 1935 __ __ 991/2 101 
 
 Debenture 4s, 1933 — — 711/4 731/2 
 
 American Tel. & Tel. Coll. 4s, 1929 — — 871/2 871/3 
 
 Convertible 4s, 1936 — — IO21/2 103% 
 
 Convertible 41/2S, 1933 _. — 103 103 
 
 American Thread 1st 4s, 1919 — — 93 94 
 
 American Timber 6s — — — *95 
 
 American Tobacco 6s, 1944 — __ 120 I2I1/2 
 
 American Tobacco 4s, 1951 97 97 
 
 American Trust Bldg. (Chic.) Ref. 5s, 1914-41 __ __ __ *100 
 
 American Type Founderi, Deb. 6s, 1939 __ __ 991/2 101 
 
 American Writing Paper 1st 5s, 1919 __ __ 891/3 891/2 
 
 Americus Gas & Electric 5s, 1942 25 25 
 
 Ames Plow Ist 53, 1932 — — __ *101 
 
 Anacostia & Potomac 5s, 1949 — — 98 
 
 Anacostia & Potomac (Guaranteed) 5s, 1949— __ __ 103 IO414 
 
 Annapolis Gas & Electric 1st 6s, 1921 __ __ •105 
 
 Annapoli* Gas & Electric Cons. 53, 1953 __ __ __ *95 
 
 Ann Arbor Railway. — 
 
 5% Notes, 1913 — __ — *98 
 
 Equipment 5s, 1919 __ — *100 
 
 "B" 5s, 1913-21 -_ — — 'lOO 
 
 Ist 4s, 1995 __ — 75 76 
 
 Annuity Realty (St. L.) S. F. Part. Ctfs., 1952 — __ __ *97i/2 
 
 Annville & Palmyra Gas & Fuel 1st 5s, 1930 __ __ __ *95 
 
 Appalachian Power 5% Notes, 1914 *99 
 
 Appalachian Power 6% Notes, 1914 __ *6i/2% basis 
 
 Appalachian Power 1st 5s, 1941 __ __ 77 78 
 
 Ardmore Street Railway 5s, 1958 __ __ 96 98 
 
 Arizona Power 1st 6s, 1933 __ __ 80 86 
 
 Arkansas Natural Gas 6s, 1922 __ __ __ *96 
 
 Arkansas, Oklahoma & Western 1st 63, 1947— — — 93 100 
 
 Arkansas Water 6s, 1914 __ __ *99% __ 
 
 Armour & Co. Ist 41/38, 1939 __ ._ 90% 91 
 
 Aroostook Construction 5% Notes, 1917 — — — *96% 
 
 Aroostook Northern 1st 58, 1941 __ __ __ 'lOli/g 
 
 Aroostook Valley Electric 41/2S, 1929 >_ — '97 *100 
 
 Arundel Sand & Gravel 6s, 1923 __ __ — 98i^ 
 
 Ashdown Hardware 5s, 1928 __ __ __ *90.20 
 
 Asheville Power & Light 1st 5s, 1943 __ — 93 96 
 
 Asheville & Spartansburg 1st 4s, 1995 „ __ 80 85 
 
 Ashland Light, Power & St. Ry. 1st 5s, 1939_ — — 95 99 
 
 Ashland Water 6s, 1929 __ „ — *100i/2 
 
 Associated Gas & Electric 5s, 1939 — — "95 
 
 Associated Oil 5s, 1922 __ __ __ 102 
 
 Associated 'Simmons Hardware Coll. 5s, 1917- — — 514% basis 
 
 Astoria (N. Y.) Veneer Mills & D. 1st 6s, 1941 — — 100 105 
 
 Atchison & Eastern Bridge 5s, 1928 __ — 82 85 
 
 Atchison Railway, Light & Power 1st 5s, 1935 __ — 90 961/2 
 Atchison, Topeka & Santa Fe Railway. — 
 
 California & Arizona "B" 41/oS, 1962 — __ 100 IOO1/2 
 
 S. F. Pres. & Ph. 5s, 1942 __ _. *106% ._ 
 
 (East Oklahoma Division) 1st 4s, 1928— _^ — — 95% 
 
 5s, 1917 _. __ 101% 102 
 
 Deb. 4s, "L," 1914 __ __ 991/2 — 
 
 Convertible 4s, 1955 ._ __ 10114 102 
 
 Convertible 4s, 1960 10014 lOOVg 
 
 Trans. Sh. Line 1st 4s, 1958 „ — __ 90i4 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1086 
 
High Low Bid Asked 
 
 General 4s, 1995 (Coupon) — — 96% 97 
 
 General 4s, 1995 (Regular) — — 96 971/2 
 
 Adj. 4s, 1995 (Coupon) — — — 88 
 
 Adj. 4s, 1995 (Regular) — — — 871/3 
 
 Adj. 4s, 1995 (Stpd.) — ~ 87 88 
 
 Adj. 4s, 1995 (Reg. & Stpd.) — — — 871/3 
 
 A^thens Rv. & Electric 1st 5s, 1950 — — 85 90 
 
 Athens Terminal 5s, 1937 — — *91 
 
 Athol & Orange Street Railway 1st 5s, 1915— — — — 100 
 
 Atlanta, Birmingham & Atlantic Railway. — 
 
 1st 5s, 1936 — — 25 
 
 Equip. 5« due to 1917 — — — 100 
 
 5% Rec. Ctfs., 1913 — — — *100 
 
 Atlanta Cons. St. Ry. 5«, 1939 — — 1041^ 104% 
 
 Atlanta Gas Lt. 1st 5», 1947 — — 102 
 
 Atl., Knoxville & Nor. Ist Ss, 1946 __ — 107 
 
 Atl., Knoxville & Nor. Cons. 48, 2002 — — — 93 
 
 Atlanta Northern Ry. 1st 5s, 1954 __ — 99 IO21/3 
 
 Atlanta Steel Serial 6s, 1911-30 — — — *100 
 
 Atlanta, Tennessee & Ohio 1st 6s, 1913 __ __ 100 
 
 Mlanta Water & Elec. Power 1st 5s, 1943 — __ *89 
 
 Atlantic Ave. Con. 53, 1931 — — 102 104 
 
 Atlantic Avenue Imp. 5s, 1934 __ __ *100% __ 
 
 Atlantic & Birmingham 1st 4s, 1933 — __ 84 
 
 Atlantic & Birmingham l«t 58, 1934 __ __ 99 101 
 
 Atlantic City Elec. Ist & Ref. 5s, 1938 __ — 97 99 
 
 Atlantic City Gas 1st 58, 1960 __ __ 86I/3 871/3 
 
 A^tlantic City R. R. 53, 1919 __ __ IO21/3 IO31/3 
 
 Atlantic City R. R. 1st Cons. 4s, 1951 __ __ 93 94 
 
 Atlantic Coast Elec. 1st 5s, 1945 __ __ 96 
 
 Atlantic Coast of Conn. Irr. 5s 103 
 
 Atlantic Coast of Conn. Irr. 4s, 1925 __ 901/3 
 
 Atlantic Coast Line of S. C. Gen'l 4s, 1948 __ __ 941/3 95 
 
 Atlantic Coast Line R. R. — 
 
 Conv. Deb. 43, 1939 __ _. 97 971/3 
 
 Unif. 4s, 1959 __ __ 88I/3 891/3 
 
 Equip. 4s, 1917 __ __ __ *98% 
 
 Equip. 41/2S, 1921 __ __ __ *99i/3 
 
 1st 4s, 1952 __ __ 93 94 
 
 Coll. 4s, 1952 90% 90% 
 
 Ala. Mid. 5s, 1928 __ __ 105l^ __ 
 
 Charl. & Sar. 7s, 1936 __ __ 128 
 
 L. & N. Col. 4s, 1952 __ __ 901/3 90% 
 
 Sav., Fla. & W. 6s, 1934 ._ __ 118% I2314 
 
 Sav., Fla. & W. 5s, 1934 __ __ IO61/2 II21/3 
 
 Atlantic & Danville 1st 4s, 1948 __ __ 88l^ — 
 
 Atlantic & Danville 2d 4s, 1948 __ __ 83 
 
 Atlantic, Gulf & W. I. S. S. Lines 5s, 1959 __ __ 60 62 
 
 Atlantic & Yadkin 1st 4s, 1949 __ __ 83% __ 
 
 Atlas Portland Cement 1st 6s, 1925 __ >_ 101 IO31/2 
 
 Atlas Powder Inc. 6s, 1923 __ __ *97i/3 *99% 
 
 Auburn & 'Syracuse 1st 5s, 1942 __ 98 100 
 
 Auburn Gas 1st 5s, 1927 __ __ *94 
 
 Auburn Gas Cons. 5s, 1930 __ *98 
 
 Augusta- Aiken Ry. & E. Corp. 5s, 1935 __ __ 90 94 
 
 Augusta Factory 1st 6s, 1915 __ __ 99 100 
 
 Augusta Ry. & Electric 5s, 1940 __ __ 101 103 
 
 Augusta Southern 5s, 1924 __ __ 90 95 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1087 
 
Bid 
 
 Asked 
 
 112 
 
 117 
 
 931/4 
 
 " 
 
 100 
 
 105% 
 
 
 
 *100 
 
 __ 
 
 95 
 
 80 
 
 84 
 
 
 
 *63 
 
 
 
 •993/4 
 
 
 
 *96 
 
 ~ 
 
 •943/4 
 
 100 
 
 loovg 
 
 
 
 •100 
 
 103% 
 
 104 
 
 74 
 
 76ya 
 
 100 
 
 
 100V2 
 
 
 
 106 
 
 97 
 
 104 
 
 __ 
 
 High Low 
 
 Augusta Terminal Ist 6s, 1947 
 
 Aurora, Elgin & Chicago 1st 58, 1941 *100% __ 
 
 Aurora, Elgin & Chicago 1st 5s, 1946 
 
 Austin & Northwestern 1st 5s, 1941 
 
 Austin Gas Light Ref. 6s, 1931 
 
 Austin St. Ry. 1st 53, 1936 
 
 Automatic Elec. Ist 6s, 1938 
 
 Autosales Gum & Chocolate 68, 1931 
 
 Ayer Mills 41/oS, 1913-15 
 
 Ayer Mills 41/2% Notes, 1916 
 
 Ayer Mills 41/3% Notes, 1917 
 
 Baden & St. Louis 1st 5s, 1913 
 
 Bagdad Land & Lumber 1st 6s, 1915 
 
 Baldwin Loco. Wks. 5s, 1940 
 
 Baltimore & Ann. Short L. 5s, 1946 
 
 Bait. Catonsv. & Ellicott Mills Pass. 5s, 1916 
 Baltimore, Chesapeake & Atlantic 1st 5s, 1934 
 
 Baltimore Co. Water & Electric 5s, 1946 
 
 Baltimore & Cumberland Valley 1st 6s, 1929_ 
 Baltimore & Cumberland Valley Ex. 6s, 1931_ 
 
 Baltimore Electric 1st 5s, 1947 99l^ 9914 
 
 Baltimore & Harrisburg 5s, 1936 __ __ __ 105 
 
 Baltimore & Harrisburg 1st 5s, 1938 __ 100 
 
 Baltimore & Ohio R. R.— 
 
 41/2 Notes, June, 1913 
 
 Equip. 41/2, 1933 
 
 (Pitts. June.) 1st 6s, 1933 
 
 (Southwestern) 31/38, 1925 
 
 Conv. 41/2S, 1933 95^^ 951/2 
 
 Prior Lien 31/2S, 1935 (Coup.) 
 
 Prior Lien 31/2 s, 1935 (Reg.) 
 
 Pitts., L. E. & W. Va. 4s, 1941 
 
 Monon. River 5s, 1919 
 
 Gen'l 4s, 1948 96 96 
 
 Gen'l 4s, 1948 (Reg.) 
 
 Pitts. Jc. & Mid. 31/3S, 1935 
 
 Baltimore, Sparrows lPt& Ches. 1st 41/3S, 1953 
 
 Baltimore Trac. 5s, 1939 
 
 Baltimore Trac. (No. Bait. Div.) 1st 5s, 1943. 
 Bangor & Aroostook R. R. — 
 
 1st 5s, 1943 
 
 Cons. 4s, 1951 
 
 Piscat. Division 5s, 1943 
 
 St. John's River Ext. 53, 1939 
 
 Van Bur. Ex. 5s, 1943 
 
 Wachburn Ex. 5s, 1939 
 
 Car Tr. "C" 5s, 1906-16 
 
 Bangor Power A & B Bonds, 1931 
 
 Bangor Ry. & Elec. 1st Cons. 5s, 1935 
 
 Barber Asphalt Paving Deb. 6s, 1916 
 
 Barney & Smith 5s, 1936 
 
 Barrett Mfg. 6s, 1939 
 
 Battle Creek & Sturgis 1st 38, 1989 
 
 Bay City & Battle Creek 1st 3s, 1989 
 
 Bay City Gas 1st 5s, 1930 
 
 Bay Counties Power Co. 5s, 1930 
 
 Bay of Quinte Ry. 1st 5s, 1927 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1088 
 
 99% 
 
 100 
 
 45/8% 
 
 4%% 
 
 
 88 
 
 891/4 
 
 901/4 
 
 90% 
 
 91 
 
 881/3 
 
 
 
 881/4 
 
 893/4 
 
 ^1031/3 
 
 
 .. 
 
 97% 
 
 
 
 88 
 
 95 
 
 95% 
 
 
 105 
 
 107 
 
 108 
 
 105 
 
 108 
 
 78 
 
 80 
 
 99 
 
 101 
 
 93 
 
 97 
 
 100 
 
 104 
 
 93 
 
 95 
 
 « 
 
 100 
 
 931/4 
 
 99 
 
 98% 
 
 101 
 
 •97% 
 
 
 
 
 90 
 
 •90 
 
 
 
 
 
 72 
 
 67 
 
 
 
 •90 
 
 
 
 101 
 
 10134 
 
 — 
 
 96% 
 
High Low 
 
 Bay State St. Ry. 5% Notes, 1913-32 
 
 Beaver River Power 1st 6s, 1914-28 
 
 Beaver Valley Trac. Gen. 5s, 1953 — ^— 
 
 Beaver Valley Water 1st 53, 1932 
 
 Beech Creek Coal & Coke 58, 1944 
 
 Beech Creek Ext'n 1st 31/28, 1951 
 
 Beech Creek R. R. Extd. 4s, 1936 
 
 Beech Creek R. R. 2d 5s, 1936 
 
 Bel. Air Elec. 1st 6s, 1940 
 
 Beld-Paul-Cortic. Silk, Deb. 5s, 1936 
 
 Belleville & Carondelet 1st 6s, 1923 
 
 Belleville Gas & Electric 1st 5s, 1922 
 
 Bellingham Bay & Brit. Col. 1st 5s, 1932 
 
 Bells Gap Cons. 6s, 1913 
 
 Bell Tel. of Can. Deb. 5s, 1925 
 
 Beloit Water, Gas & Elec. 5s, 1937 
 
 Belt R. R. & Stk. Yards 1st 43, 1939 
 
 Belt Ry. of Chattanooga 1st 5s, 1945 
 
 Belt Ry. of Chattanooga 2d 43, 1945 
 
 Belvidere Delaware R. R. Cons. 31/33, 1943 
 
 Belvidere Delaware R. R. Cons. 4s, 1927 
 
 Bennington & Rutl. 41/2S, 1927 
 
 Benton Harbor, St. Jos. Gas & Fuel 5s, 1926— 
 
 Bergen Turnpike Ist 53, 1951 
 
 Bergner & Engel Brew. 63, 1921 
 
 Berkshire St. Ry. 1st 5s, 1922 
 
 Berlin Mills 5s, 1931 
 
 Bethlehem Steel 5s, 1926 951/3 951/2 
 
 Bethlehem Steel 1st Ref. 53, 1942 
 
 Bethlehem Steel P. M. 6s, 1998 
 
 Big Lost River Irr. 1st 6s, 1915-23 
 
 Big Sandy Ry. 1st 4s, 1944 
 
 Binghamton Gas Wks. 1st 5s, 1938 
 
 Binghamton Lt. Ht. & Pr. 1st 5s, 1942 
 
 Binghamton Ry. 5s, 1931 
 
 Birmingham Belt 1st 4s, 1922 
 
 Birmingham, Ensley & Bess. Ist 5s, 1941 
 
 Birmingham, Knox. & Allent'n 6s, 1931 
 
 Birmingham Ry. & Elec. 1st 5s, 1924 
 
 Birmingham Ry., Lt. & P. Gen. Ref. 41/38, 1954 
 
 Birmingham Ry. Lt. & Pr. 6s, 1957 
 
 Birmingham & Southeastern 1st 63, 1961 
 
 Birmingham Terminal 1st 4s, 1957 1 
 
 Bitter Root Valley Irrig. 1st 6s, 1914-19 
 
 Blackstone Val. Gas & Elec. Ss, 1939 
 
 Blackwell Lumber 1st 6s, 1912-21 
 
 Blazier Timber 1st & Gen. 6s, 1912-17 
 
 Bleecker St. & Fulton Ferry 1st 48, 1950 
 
 Bliss (E. W.) Co. 6s, 1932 
 
 Bloomfield St. Ry. 1st 5s, 1923 
 
 Bloomingham & Normal Ry. & Lt. 1st Ss, 1928 
 Blooming. Decat. & Champ. 1st & Ref. 5s, 1940 
 Bloomington & Nor. Ry. El. & Ht. 1st 5s, 1927 
 Bloomington, Pontiac & .Joliet EL 1st 5s, 1935 
 
 Blue Creek Coal & Land 1st 5s, 1938 ^_- 
 
 Blue Ridge Electric 1st 5s, 1940 
 
 Blue Ridge Power Gtd. 5s *6% basi» 
 
 Bluflf Point Land Imp. 1st 4s, 1940 __ __ 85 90 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1089 
 
 Bid 
 
 Asked 
 
 
 
 100 
 
 *6% basis 
 
 *93 
 
 *96 
 
 *90 
 
 
 ■ 
 
 ♦911/3 
 
 84 
 
 
 98 
 
 
 
 106 
 
 
 
 *90 
 
 
 
 __ 
 
 •89 
 
 IO8I/3 
 
 
 
 *94 
 
 
 
 
 
 99 
 
 100 
 
 
 
 100 
 
 1001/3 
 
 *92 
 
 
 
 
 
 98 
 
 100 
 
 
 
 *70 
 
 
 
 87 
 
 
 
 97 
 
 __ 
 
 95 
 
 __ 
 
 
 ♦93 
 
 ♦94 
 
 
 
 100 
 
 
 *101 
 
 ♦103 
 
 ~ 
 
 ♦100% 
 
 85 
 
 86 
 
 117 
 
 117y2 
 
 
 
 ♦30 
 
 851/8 
 
 873/4 
 
 98 
 
 100 
 
 97 
 
 100 
 
 *96 
 
 ♦97% 
 
 
 
 90 
 
 __ 
 
 ♦70 
 
 106l^ 107% 
 
 104 
 
 105 
 
 89 
 
 91 
 
 102 
 
 
 
 98 
 
 101 
 
 85 
 
 88 
 
 
 
 ♦100 
 
 99 
 
 101 
 
 
 
 ♦100 
 
 
 
 ♦991/2 
 
 68 
 
 76 
 
 '1021/2 
 
 
 
 •99 
 
 
 
 ♦97 
 
 •911/3 
 
 __ 
 
 *96 
 
 __ 
 
 ♦321/3 
 
 ♦50 
 
 __ 
 
 ♦75 
 
 'Q% basis 
 
High Low Bid Asked 
 
 Boca & Loyalton 6s, 1923 — __ 105 
 
 Boise City Gas Lt. & Coke Ss, 1941 __ ._ *90 
 
 Boise-Payette River Elec. Pow. 6s, 1921 __ __ *95 
 
 Bon Air Coal 2d 6s, 1928 — — 90 100 
 
 Boomer Coal & Coke Equip. 5s, 1915-17 — — *98% __ 
 
 Boone Elec. 1st 6s, 1931 — „ — *100 
 
 Boonville R. R. Bridge 1st 4s, 1951 __ __ 80 
 
 Boonville, St. L. & Son. 5s, 1951 — „ — 101 
 
 Booth Fisheries Deb. 6s, 1926 __ __ __ 96 
 
 Booth Mfg. 1st Conv. 4y2», 1931. „ __ __ *100 
 
 Bonner Coal & Coke 5s, 1912-17 — __ *98% _. 
 
 Boston & Albany R. R. — 
 
 41/81, 1937 — -_ — 103 
 
 48, October, 1913 __ __ 99l^ 99% 
 
 4s, 1933 __ __ 94 96 
 
 4s, 1934__J __ __ 94 96 
 
 4«, 1935 >_ __ ' 94 96 
 
 31/38, 1951 __ _- 83 85 
 
 Ref. 3i/a8, 1952 — __ 83 85 
 
 Equip. 41/aS, 1913-27 __ __ __ *100 
 
 Boston Elec. Light 1st 5s, 1924 — __ "107 
 
 Boston Elevated Deb. 4s, 1937 — — 94 
 
 Boston Elevated Deb. 41/2S, 1941 __ „ 931/2 — 
 
 Boston Elevated 53, 1942 __ — 101 
 
 Boston Elevated Ry. 4s, 1935 __ — 88 91 
 
 Boston & Lowell R. R. — 
 
 41/2S, 1933 __ __ 1011/2 1025/8 
 
 4s, 1915 __ „ 98I/2 991/3 
 
 4s, 1916 __ _- 98 99 
 
 Oct. 1st 4s, 1918 — -_ 97 9314 
 
 31/28, 1919 __ __ 94 951/3 
 
 31/28, 1921 __ -_ _- 94% 
 
 4a, 1932 _- __ 94 961/9 
 
 Boston & Maine R. R. — 
 
 41/2S, 1929 __ __ 97 991/3 
 
 4s, 1926 __ __ 921/2 94l^ 
 
 31/aS, 1921 __ _. 901/2 92 
 
 31/2S, 1923 __ __ 90 91 
 
 3s, 1950 __ ._ 69 72% 
 
 6s, 1914 __ __ *99y8 __ 
 
 41/2S, 1944 __ __ 97 991/2 
 
 48, 1937 ._ __ 90 913/8 
 
 4s, 1942 __ __ 891A 901/2 
 
 4% Notes, 1913 „ ._ ._ *100fs 
 
 Boston & New York Air Line 1st 4s, 1955 __ __ 95 
 
 Boston & Northern St. Ry. 4s, 1954 __ __ — 89 
 
 Boston & Providence 4s, 1918 __ __ 98 100 
 
 Boston & Worcester St. Ry. 1st 41/38, 1923 __ __ 91 96 
 
 Boston Rev. Bch. & Lynn 1st 41/28," 1927 __ __ 98I/2 _- 
 
 Boston Terminal 31/2S, 1947 __ __ 901/2 93 
 
 Boyer Valley Ist SVgS, 1923 __ ._ 91 
 
 Braden Copper 7s __ 175 180 
 
 Braden Copper Conv. 6s, 1919 ... ._ *199i/2»210y2 
 
 Brandon Gas & Pow. 1st 6s, 1929 __ __ — *104 
 
 Brandram-Henderson 1st 6s, 1936 6%% basis 
 
 Bremerton -Charleston Lt. & Fuel 6s, 1928 — — — *100 
 
 Bridgeport Gas Lt. 1st 4s, 1952 __ __ 92 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1090 
 
High Low 
 
 Bridgeton & Millv. 5a, 1930 
 
 Bristol Gas & El. 1st 5s, 1939 
 
 Broadway Realty 58, 1926 ^_ 
 
 B'way & Seventh Ave. 5s, 1943 
 
 B'way & Seventh Ave. 5s, 1943 (Reg'd) 
 
 Broadway & Seventh Av. 2nd 5s, 1914 
 
 Broadway Surface R. R. 1st 5s, 1924 
 
 Brockton Gas Lt. 1st 5s, 1928 
 
 Bronx Gas & Elec. 5s, 1960 
 
 Brooklyn, Bath B. & W. E. 5s, 1933 
 
 Brooklyn, Bath B. & W. E. 5s, 1917 
 
 Bklyn. Borough Gas 5s, 1945 
 
 Bklyn. Borough Gas 5s, 1938 
 
 Brooklyn City & Newt. 1st 5s, 1939 
 
 Bklyn. City R. R. Cons. 5s, 1941 
 
 Bklyn. Ferry Cons. 5s, 1948 
 
 Brooklj-n Heights 1st 5s, 1941 
 
 Bklyn. & Montauk 2nd 5s, 1938 
 
 Bklyn. & N. Y. Ferry 1st 6s, 1911 
 
 Bklyn., Queens Co. & Sub. Cons. 5s, 1941 
 
 Bklyn., Queens Co. & Sub. 1st 5s, 1941 
 
 Bklyn. Rap. Tran. 5s, 1945 
 
 Bklyn. Rap. Tran. Ref, 48, 2002 
 
 Brooklyn Rap. Trans. 5s, 1918 
 
 Bklyn. Union Elev. 1st 5s, 1950 
 
 Bklyn. Union Elev. 1st 5s, 1950 (stpd. guar.). 
 
 Bklyn. Union Gas 1st Cons. 5s, 1945 
 
 Brooks-Scanlon Lumber Co. 1st 6s, 1916 
 
 Brownsville Av. 5s, 1926 
 
 Brownsville & Matamoras Bridge 1st 5s, 1930 
 
 Brunswick & Western 1st 4s, 1938 
 
 BufiFalo, Bellevue & San. 53, 1927 
 
 Buffalo City Gas Ist 5s, 1947 
 
 Buffalo Creek Ist 5s, 1941 
 
 Buffalo Gas 1st 5s, 1947 
 
 Buff. Gen. El. 1st 5s, 1939 
 
 Buff. Gen. El. 1st Ref. 5s, 1939 
 
 Buffalo Iron 5s, 1925 
 
 Buffalo & Lockport 1st 5s, 1938 
 
 Buffalo, Lockp, & Roch. 1st 5s, 1954 
 
 Buff., N. Y. & Erie 1st 7s, 1916 
 
 Buffalo & Niag. Falls Elec. 1st 5s, 1935 
 
 Buffalo & Niag. Falls Elec. 2nd 5s, 1921 
 
 Buff. & Niag. Falls El. Lt. & Pr. 1st 5s, 1942— 
 
 Buffalo Ry. 1st 5s, 1931 
 
 Buffalo Ry. Deb. 6s, 1917 
 
 Buffalo, Rochester & Pittsburgh R. R. 
 
 Equip. 41/28 Ser. E, 1922 
 
 Equip. 41/28 Ser. F, 1927 
 
 Equip. 4s Ser. G, 1929 
 
 Gen. 58, 1937 
 
 Cons. 41/28, 1957 
 
 Roch. & Pits. 6s, 1921 
 
 Roch. & Pitts. 6s, 1922 
 
 Equip. 41/2S "D," 1919 
 
 Buff. & Southw. 1st 5s, 1918 
 
 Buff. & Southw. 2nd 58, 1918 
 
 Buff. & Susq. Iron deb. 5s, 1926 
 
 Buff. & Susq. Iron 5s, 1932 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1091 
 
 Bid 
 
 Asked 
 
 98 
 
 99 
 
 
 
 87 
 
 *98 
 
 
 
 103% 
 
 
 
 
 
 102 
 
 99 
 
 100 
 
 ^101 ' 
 
 *103 
 
 30 
 
 
 
 99 
 
 101 
 
 97 
 
 101 
 
 
 
 *96 
 
 96 
 
 981/a 
 
 *96 
 
 *98y3 
 
 99 
 
 101 
 
 1011/2 
 
 1021/4 
 
 
 
 12 
 
 101 
 
 103 
 
 ^102 
 
 
 
 85 
 
 90 
 
 
 
 981/^ 
 
 *99 
 
 
 1021/4 
 
 1021/3 
 
 881/4 
 
 88% 
 
 961/2 
 
 96% 
 
 100% 
 
 101 
 
 100% 
 
 101 
 
 105 
 
 105% 
 
 ' 
 
 *100 
 
 99 
 
 1011/3 
 
 
 
 •100 
 
 91 
 
 __ 
 
 100 
 
 
 
 50 
 
 55 
 
 102 
 
 
 
 50 
 
 55 
 
 103 
 
 __ 
 
 
 
 1001/3 
 
 65 
 
 75 
 
 98 
 
 100 
 
 __ 
 
 ♦73 
 
 107 
 
 110 
 
 103 
 
 104 
 
 102 
 
 __ 
 
 99 
 
 
 
 1031/2 
 
 105 
 
 1041/2 
 
 — 
 
 »101 
 
 
 4%% 
 
 472% 
 
 4%% 
 
 41/2% 
 
 109 
 
 1093/4 
 
 10414 1041/a 
 
 1101/4 
 
 -.-. 
 
 112 
 
 
 
 
 
 *101 
 
 102 
 
 102% 
 
 95 
 
 
 
 85 
 
 
 
 97 
 
 __ 
 
Buffalo & Susquehanna R. R. — 
 
 1st & Ref. 4s, 1951 
 
 Equip. 5s "C," 1917 
 
 1st 41/28, 1953 
 
 Buffalo Trac. 1st 5s, 1948 
 
 Burl., Ced. Rpds. & N. 1st 5s, 1934 
 
 Burl. Gas Lt. (Vt.) 1st 5s, 1955 
 
 Burlington & Mo. (Neb.) Con. 6s, 1918 
 
 Burlington Ry. & Light 1st 5s, 1932 
 
 Burns (P.) Co. 6s, 1924 
 
 Burns (P.) 1st & Ref. 6s, 1931 
 
 Bush Terminal 1st 5s, 1952 
 
 Bush Terminal Cons 6s, 1955 
 
 Bush Terminal Bldgs. 5s, 1960 
 
 Business Real Estate Tr. 1st 4s, 1921 
 
 Butte El. & Pow. 1st 5s, due serially 
 
 Butte Elec. & Pr. 5s, 1951 
 
 Cahaba Coal Mining 1st 6s, 1922 
 
 Calgary Brew. & Malting 1st 5s, 1942 
 
 Calgary Power 1st 5s, 1940 
 
 CaUf. Cable R. R. 1st 5s, 1915 
 
 Cal. Cent. Gas & Elec. 5s, 1931 
 
 Calif. Elec. Gen. 1st 5s, 1948 
 
 Cal. Gas & Elec. (Gen. Mtge. & C. T.) 5s, 1933 
 
 Calif. Gas & El. Un. & Ref. 5a, 1937 
 
 California Northwestern 1st 5s, 1928 
 
 California St. Cable Co. 5s, 1920 
 
 California Wine Ass'n 5s, 1925 
 
 Calumet & Copper Creek 6s 
 
 Calumet & So. Chic. 1st 5s, 1927 
 
 Camaguey Co. 1st 5s, 1946 
 
 Cambria & Clearfield 1st 5s, 1941 
 
 Cambria & Indiana R. R. 1st 5s, 1936 
 
 Camden & Rockland Water 4s, 1925 
 
 Camden Suburban 1st 5s, 1946 
 
 Cameron Lumber 1st 6s, 1916-22 
 
 Canada Bread 1st 6s, 1941 
 
 Canada Cement Ist 6s, 1929 
 
 Canada Southern Cons. 58, 1962 
 
 Canada Starch 6s, 1930 
 
 Canadian Car & Foundry Ist 6s, 1939 
 
 Cnadian Cons. Felt 1st 6s, 1940 
 
 Canadian Cons. Rubber 6s, 1946 
 
 Canadian Cottons 1st 5s, 1940 
 
 Canadian Interlake Line 1st 6s, 1927 
 
 Canadian Lt. & Pow. 1st 5s, 1949 
 
 Canadian Locomotive 1st 6a, 1951 
 
 Canadian Northern Ry. — 
 
 "D" 4V^s 
 
 Equip. «G" 4y2S 
 
 Equip. «F-1" 41/28 
 
 Equip. «E-1" 41/2 
 
 4s, 1919 
 
 Deb. 4s, 1939 
 
 Can. Nor. 48, 1929 
 
 Imp. Roll. Sk. 41/28, 1922 
 
 Winnipeg Ter. 41/2S, 1932 
 
 'Quotation nearest Marcb 1, 1913. No quotation on that date. 
 
 1092 
 
 High Low 
 
 Bid 
 
 Asked 
 
 381/2 
 
 
 
 
 •100 
 
 10 
 
 15 
 
 104 
 
 __ 
 
 
 
 109% 
 
 94 
 
 951/, 
 
 102 
 
 1021/2 
 
 941/2 
 
 961/2 
 
 103 
 
 104 
 
 100 
 
 101 
 
 __ 
 
 89 
 
 94 
 
 96 
 
 
 
 97 
 
 
 
 •99 
 
 931/2 
 
 94% 
 
 9!> 
 
 97y2 
 
 •1031/2 
 
 •110 
 
 
 
 •85 
 
 
 
 •921/2 
 
 101 
 
 101% 
 
 103 
 
 
 82 
 
 841/, 
 
 101% 
 
 
 951/2 
 
 953/4 
 
 
 •104 
 
 101 
 
 102 
 
 
 
 98% 
 
 
 
 •70 
 
 97 
 
 981/2 
 
 
 •88 
 
 1011/2 
 
 __ 
 
 *95 
 
 
 
 
 •95y, 
 
 105 
 
 106 
 
 ' 
 
 •101 
 
 •871/2 
 
 
 
 
 
 99% 
 
 IO6I/2 
 
 1071/a 
 
 
 
 100 
 
 __ 
 
 105 
 
 
 
 •98y, 
 
 93 
 
 94 
 
 803/4 
 
 81 
 
 
 *100 
 
 
 
 76% 
 
 — 
 
 100 
 
 5% basis 
 
 ._ •99.29 
 
 5% basis 
 
 -_ ♦lOO 
 
 100 
 
 
 
 95 
 
 __ 
 
 95 
 
 . 
 
 51/4% 
 
 
 
 51/4% 
 
 5% 
 
High Low Bid Asked 
 Canadian Pacific Ry. — 
 
 1st Deb. 5s, 1915 __ 
 
 Cons. Deb. Perp. 4s 
 
 Aroostook Valley 41/38, 1929 
 
 New Brunswick 1st 5s, 1934 
 
 New Bninswick Cons. Perp. 4s 
 
 Canadian Puget Sound Lumber 6s, 1915-21 
 
 Canadian Puget Sound Saw Mills 1st 6s, 1915 
 
 Canadian Venezuelan 1st 6s, 1927 
 
 Canal & Clairborne R. R. 1st 6s, 1946 *12iyz — 
 
 Canton & New Phila. 5s, 1923 
 
 Canton-Akron Ry. 1st 5s, 1932 
 
 Canton-Akron Cons. Ry. Cons. 5s, 1933 
 
 Canton Elec. 1st & Ref. 5s, 1937 
 
 Canton Massillon Ry. 1st 58, 1920 
 
 Cape Breton Coal, Iron & Ry. 1st 5s, 1933 
 
 Cape Breton Elec. 1st 5s, 1932 
 
 Capital Traction 5s, 1947 
 
 Carbondale & Shawneetown 1st 4s, 1932 
 
 Carbondale Ry. 5s, 1933 
 
 Carolina Central 1st Cons. 4s, 1949 
 
 Carolina, Clinchfield & Ohio 1st 58, 1938 
 
 Carolina Power & Light 1st 5s, 1938 
 
 Carolina Terminal 1st 5s, 1937 
 
 Carolina & Yadkin River 1st 5s, 1962 
 
 Carondelet Bridge 1st 41/28, 1938 
 
 Carthage & Adiron. 1st 4s, 1981 
 
 Carthage, Watert'n & Sack. Har. R. R. 5s, 1931 
 
 Carlton Cons. Lumber 1st 6s, 1921 
 
 Cass Ave. & Fair Grounds Ext. 4l^s, 1922 
 
 Caswell Hotel 1st 5s, 1915 
 
 Cataract Pow. & Cond. 1st 5s, 1927 
 
 Catawba Power Ist 6s, 1933 
 
 Catawissa R. R. Cons. 4s, 1948 
 
 Catlettsb'g, Ken. & Ceredo Wat. Cons. 5s, 1933 
 Cedar Rap., la. Falls & Northw'n 1st 5s, 1921 
 
 Cedar Rpids & M. 1st 7s, 1916 
 
 Central Ark. & Eas. 1st 5s, 1940 
 
 Central Branch Ry. 1st 4s, 1919 
 
 Central Branch (U. P.) 1st 4s, 1948 
 
 Central Calif. Gas 1st 6s, 1932 
 
 Central Calif. Traction Co. 58, 1936 
 
 Central Coal & Coke Gen. & Cons. 6s, 1913-25 
 
 Central Colorado Power 5s, 1946 
 
 Central Crosstown 1st 6s, 1922 
 
 Central Electric 5s, 1914 
 
 Central Georgia Power 5s, 1939 
 
 Central Hudson Steamboat 5s. 1919 
 
 Central Hlinois Pub. Serv. Ist & Ref. 5s, 1952 
 
 Central Hlinois Utilities 1st 6s, 1916-32 
 
 Central Indiana Ry. 1st 48, 1953 
 
 Central Leather 5s, 1925 951/3 951/2 
 
 Central Maine Power 5s, 1939 
 
 Central Maine Power 5% Notes, 1915 
 
 Central Market 1st 5s, 1922 
 
 Central Mass. Elec. 1st 6s, 1924 
 
 Central Mex. Lt. & Pow. 1st 68, 1940 
 
 Central National Bank (Cleveland) *168 
 
 Central New England 48, 1961 90i4 9014 
 
 'Quotation nearest March 1. 1913. No quotation on that date. 
 
 109S 
 
 101 
 
 103 
 
 991/3 
 
 1001/2 
 
 97 
 
 100 
 
 107 
 
 109 
 
 97 
 
 99 
 
 
 
 ♦100 
 
 
 
 ♦981/3 
 
 ~ 
 
 ♦93 
 
 95 
 
 98% 
 
 97% 
 
 99 
 
 
 ♦921/3 
 
 951/3 
 
 971/3 
 
 97 
 
 99 
 
 
 
 ♦90 
 
 
 
 951/3 
 
 110 
 
 111 
 
 90 
 
 _ 
 
 95 
 
 971/3 
 
 
 
 91% 
 
 95 
 
 100 
 
 901/2 
 
 931/3 
 
 
 ♦99 
 
 __ 
 
 ♦911/3 
 
 95 
 
 100 
 
 88 
 
 
 *1083/4 
 
 __ 
 
 
 »100 
 
 96 
 
 96% 
 
 
 
 51/2% 
 
 
 
 1011/3 
 
 ♦101 
 
 
 981/2 
 
 991/3 
 
 
 95 
 
 1011/2 
 
 106 
 
 107 
 
 108 
 
 
 
 971/3 
 
 91% 
 
 
 771/2 
 
 __ 
 
 
 
 100 
 
 
 
 95 
 
 *100 
 
 
 
 ^30 fl. 
 
 
 
 104 
 
 __ 
 
 93 
 
 96 
 
 *80 
 
 
 
 98 
 
 100 
 
 
 
 95 
 
 ■' 
 
 »100 
 
 87 
 
 ~ 
 
 97 
 
 99 
 
 •991/4 
 
 
 
 96 
 
 97 
 
 ♦99 
 
 
 
 83 
 
 86 
 
High Low Bid Asked 
 
 Central N. Y. Gas & Elec. 5s, 1941 __ __ *93i/2 ~ 
 
 Central N. Y. Gas & Elec. 6% Notes, 1916 __ __ __ ♦100 
 
 Central of Georgia Ry. — 
 
 Cons. 5s, 1945 ._ __ 106% 107 
 
 1st 58, 1945 __ __ 110 
 
 Chatt. Div. 4s, 1951 __ __ __ 90 
 
 Macon & Nor. 5s, 1946 __ __ *105y8 __ 
 
 Middle Ga. & Atl. 5s, 1947 __ __ *105y8 ._ 
 
 Equip. 41/2S, Series «H," 1916 __ __ 51/8 4% 
 
 Equip. 41/28, Series "I," 1917 __ __ SVs 4% 
 
 Equip. 41/38, 'Series "K," 1917 __ __ 51/3 4% 
 
 Mobile Div. 5s, 1946 __ __ 106 108 
 
 Oconee Div. 1st 5s, 1945 __ __ 106 108 
 
 Eatonville Br. 5, 1926 __ __ 100 
 
 Central Ohio R. R. 1st Cons. 41/38, 1930 __ __ 100 
 
 Central Pacific 1st Ref. 48, 1949 __ __ __ 95 
 
 Central Pacific 1st Ref. 31/2S, 1929 __ __ __ 9014 
 
 Central Pacific Thro. Sht. Line 1st 4s, 1954__ __ __ __ 9214 
 
 Central R. R. & Bkg. of Ga. Col. 5s, 1937 __ __ __ 101% 
 
 Central R. R. of Haiti 1st Coll. 6s, 1919 __ __ ♦95 *100 
 
 Central R. R. of N. J. Gen. 58, 1987 __ __ 1171/3 118% 
 
 Central R. R. of N. J. Col. 4s, 1951 __ ._ __ 96I/3 
 
 Central R. R. of N. J. Equip. 4s, April, 1913— __ __ 99% __ 
 
 Central R. R. of South Carolina 6s, 1921 __ __ 110 
 
 Central Ry. Con. 58, 1932 __ __ 107 108 
 
 Central Ry. Ext. Imp. 5s, 1932 >_ __ 105 107 
 
 Central States Elec. 5% Notes, 1922 __ __ __ *94i/2 
 
 Central Terminal 1st Chic. Term. 48, 1941 __ __ 95 961/2 
 
 Central Traction 1st 5s, 1929 __ __ 102 103% 
 
 Central Union Gas 5s, 1927 __ __ 102 103 
 
 Central Vermont 1st 4s, 1920_I __ __ _> 89 
 
 Central Vermont Equip. 5s, 1915 __ __ __ ^10014 
 
 Central Vermont Equip. 5s, 1917 __ __ _, ♦lOO^ 
 
 Central Vermont Equip. 5s, 1918 — -_ — MOOyg 
 
 Cent. Vermont Trans. "B" 5s, 1921 _. __ ♦100%^100% 
 
 Centralia & Chehalis Gas 1st 51/2S, 1930 __ __ __ ♦lOO 
 
 Chadwick Brass 1st S. F. 6s __ __ __ 971/3 
 
 Champaign & Urbana Wat. 1st 5s, 1932 __ __ __ 98 
 
 Champaign Lumber 1st 6s, 1914-28 __ __ __ ♦lOO 
 
 Charleston & Sav. 1st 7s, 1936 __ __ *127% — 
 
 Charleston & West. Car 1st 5s, 1946 __ __ 105 106 
 
 Charleston City Ry. 1st 5s, 1923 _> __ 103 104 
 
 Charleston Cons. Ry. & E. 5s, 1999 «._ _. 951/2 97 
 
 Charleston Gas & Elec. 1st 5s, 1922 __ __ ♦821/2 __ 
 
 Chateaugay Ore & Iron 4s, 1942 __ — 85 
 
 Cliattahoochee & Gulf 5s, 1930 __ — 100 
 
 Chattanooga Elec. Rys. 1st 5s, 1919 __ -_ 'lOO^ __ 
 
 Chattanooga Gas 1st 53, 1927 -_ __ 96 
 
 Chattanooga Rys. 1st Cons. 5s, 1956 __ __ ♦951/3 ♦§? 
 
 Chattanooga Ry. & Lt. 1st & Ref. 53, 1956 >_ __ 93 96 
 
 Chatt., Rome & Sou. 5s, 1947 _ 105 
 
 Chattanooga Station 1st 4s, 1957 __ _« 88 91 
 
 Cherry Riv. Boom & Lumber 1st Ref. 5s, 1929_ __ __ ♦99i/2»100% 
 
 Clies.'& Del. Canal 1st 5s, 1916 ._ _. __ 66 
 
 Chesapeake & Ohio Ry. — 
 
 Car Tr. Ser H 4s, 1916 „ „ 5% 4%% 
 
 Coll. Notes 41/2S, 1914 98% 9914 
 
 R. & A. Div. 1st 4s, 1989 __ >_ ^91% ^94 
 
 R. & A. Div. 2nd 4s, 1989 __ _. 88 
 
 "Quotation nearest March 1, 1913. No quotation on that date. 
 
 1094 
 
High Low 
 
 Elevator Co. 4s, 1938 
 
 Conv. 41/28, 1930 -_ 90% 90% 
 
 Gen. 5s, 1929 
 
 Com. 5s, 1939 __ " __ 
 
 Gen. 4s, 1939 
 
 41/28, 1993 IGOVs lOOi/s 
 
 Craig Valley 5s, 1940 
 
 Potts Creek 4s, 1946 
 
 Warm Springs Valley 1st 5s, 1941 
 
 dies. & Pot. Tel. 5s, 1909-29 
 
 Ches. S. S. 1st Equip. 58, 1914-24 
 
 Chester Co. Gas 1st cons. 58, 1925 
 
 Chesterfield & Lancaster 1st 5s, 1955 
 
 Chester Water 1st 5s, 1921 
 
 Chicago & Alton R. R. — 
 
 Deb. 5s, 1922 
 
 5% Notes, 1915 
 
 Eq. Assn. 4s, 1915 
 
 Eq. Assn. 4s, 1914 
 
 Impt. & Equip. 5% Notes, 1913 
 
 1st Lien 31/28, 1950 
 
 Ref. 3, 1949 
 
 Chic. & Atl. Term. 5s, 1918 
 
 Chic. Athletic Assn. 5s, 1926 
 
 Chic. Audit. 1st 6s, 1929 
 
 Chic. B'd of Trade 5s, 1927 
 
 Chicago, Burlington & Quincy R. R. — 
 
 Jt. 4s, 1921 
 
 Gen. 4s, 1958 
 
 Den. Div. 4s, 1922 
 
 111. Div. 31/28, 1949 
 
 111. Div. 4s, 1949 
 
 la. Div. 58, 1919 
 
 la. Div. 4s, 1919 
 
 Neb. Div. 4s, 1927 
 
 58, Deb. Mar., 1913 
 
 S. W. Div. 4s, 1921 
 
 Oiic. City & Conn. Coll. 5s, 1927 
 
 Chic. City Ry. 1st 5s, 1927 
 
 Chicago & Eastern Illinois R. R. — 
 
 Equip. 58, 1922 
 
 «E" 41/2S, 1915 
 
 1st Cons. 6s, 1934 
 
 Gen. Cons. 1st 5s, 1937 
 
 P. M. 1st 5s, 1942 
 
 Ref. 43, 1955 
 
 1st Extn. 6s, 1931 
 
 Chic. El. Ry. 5s Notes, 1914 
 
 Chic. & Erie 1st 5s, 1982 
 
 Chic. Gas Lt. & Coke 5s, 1937 
 
 Chicago Great Western R. R. — 
 
 Ist 4s, 1959 
 
 1st 5s, 1960 
 
 Ist Terra. 5s, 1936 
 
 Chic, Hammond & West. 6s, 1927 ____ 
 
 Chica!?o & Ills. Coal Ist 5s, 1936_ 
 
 Chic. & Ind. Coal Ry. 1st 5s, 1936 
 
 Chic, Ind. & So. 4s, 1956 
 
 Chic, Inpts. & Louis. Equip. 41/3S, 1915 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 lOOS 
 
 Bid . 
 
 A.sked 
 
 80 
 
 — 
 
 "" 
 
 101 
 
 108% 
 
 109 
 
 101 
 
 — 
 
 101% 
 
 :: 
 
 80 
 
 
 
 101 
 
 
 105 
 
 1051/2 
 
 — ♦100 
 
 *98i/2 ^ 
 
 *100 
 
 97 
 
 100 
 
 — ■ 
 
 *100 
 
 85 
 
 92 
 
 991/4 
 
 100 
 
 
 4%% 
 
 
 
 4%% 
 
 ♦991/4^ 
 
 *100 
 
 60 
 
 611/2 
 
 68 
 
 70 
 
 98 
 
 100 
 
 ♦96 ' 
 
 *101 
 
 90 
 
 94 
 
 97 
 
 99 
 
 94% 
 
 95 
 
 J)4i/2 
 
 95 
 
 99 
 
 991/2 
 
 841/4 
 
 85 
 
 96 
 
 971/3 
 
 1031/4 
 
 104 
 
 981/2 
 
 991/4 
 
 96% 
 
 100 
 
 100 
 
 100% 
 
 981/4 
 
 
 
 81% 
 
 851/2 
 
 1011/4 
 
 1011/2 
 
 5% 
 
 4% 
 
 5y4 
 
 4% 
 
 118 
 
 120 
 
 105 
 
 107 
 
 
 
 971/2 
 
 751/4 
 
 76 
 
 -_ ^1191/, 
 
 971/4 
 
 97% 
 
 
 
 1101/2 
 
 102% 
 
 1031/2 
 
 751/s 
 
 76 
 
 ^100 
 
 __ 
 
 1021/2 
 
 __ 
 
 115 
 
 118 
 
 104% 
 
 __ 
 
 104% 
 
 __ 
 
 
 
 91 
 
 51/4 
 
 4% 
 
High Low Bid Asked 
 
 Chic, Inpls. & Louis. Equip. 4VsS, 1921 
 
 Chic, Indpls. & Louis. Ref. 4s, 1947 
 
 Chic, Indpls. & Louis. Ref. 5s, 1947 
 
 Chic, Indpls. & Louis. Ref. 6s, 1947 
 
 Chic, Ind. & St. L. (Short Line) 1st 4s, 1953_ 
 
 Chicago Junction let 4s, 1945 
 
 Chic June Ry. & Stk. Yds. 5s, 1915 
 
 Chic. Jen. Rys. & Stk. Yds. Ref. 4s, 1940 
 
 Chic, Lake Shore & Eastern 1st 41/28, 1969— _ 
 
 Chic, Mera. & Gulf 1st 5s, 1940 
 
 Chicago & Mil. Elec Ry. 53, 1919 
 
 Chicago & Mil. Elec R. R. 1st 5s, 1922 
 
 Chic & Mil. Elec R. R., Wis. Div., 1st 58, 1925 
 Chicago, Milwaulcee & St. Paul Ry. — 
 
 Terminal 5s, 1914 
 
 Wis. & Minn. 5s, 1921 
 
 Wis. Valley 6s, 1920 
 
 4s, 1925 971/2 971/2 
 
 Deb. 43, 1934 . 90 Sdy^ 
 
 Gen. A 4s, 1989 
 
 Gen. B 31/2S, 1989 
 
 Conv. 41/2S, 1932 102^/8 102 
 
 Chic & Lake Sup. 5s, 1921 
 
 Chic & Mo. Riv. 5s, 1921 
 
 Chicago & Pacific West. 58, 1921 IO41/2 IO41/2 
 
 Dubuque 6s, 1920 
 
 La. Cr. & Davenpt. 5s, 1919 
 
 Chic, Mil. & Puget Sd. 4s, 1949 94 94 
 
 Chicago & North Michigan 1st 5s, 1931 
 
 Chicago & North Western Ry. — 
 
 Cons. 7s, 1915 
 
 Marshfield Ex. 1st 5s, 1922 ■— 
 
 Equip. "A" 41/2S, 1914-22 
 
 Equip. "B" 41/28, 1913-22 
 
 5s, 1929 
 
 6s, 1929 
 
 Gen. 4s, 1987 
 
 Ext. 4s, 1926 
 
 Gen. 31/2S, 1987 84 84 
 
 Deb. 5s, 1921 
 
 Deb. 53, 1933 
 
 Mil.-Ashland 6s, 1925 
 
 Chic, Peoria & St. L. P. L. 41/28, 1930 
 
 Chic PneuTn. Tool 5s, 1921 
 
 Chicago Railways Co. — 
 
 1st 5s, 1927 — 
 
 Cons. "A" 5s, 1927 
 
 Cons. **B" 5s, 1927 
 
 Cons. "C" 5s. 1927 
 
 Pur. M. 4s, 1927 
 
 Adj. Inc 4s, 1927 
 
 Chic & Rock Island Elev. 1st 5s, 1912-24 
 
 Chicago, Rock Island & Pacific Ry. — 
 
 Deb. 58, 1932 — * — 
 
 Gen. 4s. 1988 
 
 Ref. 4s, 1934- 86% 86% 
 
 4s, 2002 
 
 Equip. 41/28, 1917 
 
 Equip. 4y2S, 1919 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1096 
 
 5V4 
 
 4% 
 
 90 
 
 901/8 
 
 105 
 
 108 
 
 
 
 126 
 
 90 
 
 
 
 90 
 
 92 
 
 991/2 
 
 9978 
 
 
 87 
 
 
 
 103 
 
 *97 ' 
 
 »1033/4 
 
 99 
 
 1021/, 
 
 48 
 
 51 
 
 17 
 
 20 
 
 1001/4 
 
 ._ 
 
 1033/4 
 
 104% 
 
 1101/2 
 
 112% 
 
 97 
 
 971/2 
 
 83% 
 
 84 
 
 loi 
 
 1051/2 
 
 1051/2 
 
 ~ 
 
 1105/8 
 
 __ 
 
 102% 
 
 — 
 
 90 
 
 — 
 
 105 
 
 105% 
 
 104 
 
 
 ♦45/8% 
 
 __ 
 
 ♦4.70 
 
 
 
 103 
 
 1031/3 
 
 108 
 
 108% 
 
 961/2 
 
 97% 
 
 96 
 
 ~ 
 
 101 
 
 103 
 
 IO6I/3 
 
 1071/2 
 
 1141/4 
 
 __ 
 
 91 
 
 __ 
 
 93 
 
 94ya 
 
 991/2 
 
 99% 
 
 
 95% 
 
 831/4 
 
 83y2 
 
 
 94y2 
 
 70% 
 
 73ya 
 
 47 
 
 51 
 
 — 
 
 •99 
 
 86 
 
 87 
 
 92% 
 
 933/8 
 
 63 
 
 631/2 
 
 51/2-5% 
 
 basis 
 
 51/2-5% 
 
 basis 
 
High Low Bid Asked 
 
 Equip. 41/28, 1925 — — 51/2-6% basis 
 
 Is, 1917 ^ — — 1061/8 — 
 
 Coll. 4&, 1918 -- — — 51^% 
 
 Coll. "K," 1913 -_ — 97 
 
 Coll. "P," 1918 __ — — 95 
 
 Chic. & St. Louis 1st 6s, 1915 — __ lOSi/g — 
 
 Chic, St. L. & N. O. Cons. 5s, 1951 __ __ __ 112% 
 
 Chgo., St. L. & K 0. Cons. 31/3S, 1951 
 
 Chgo., St. L. & N. 0. Memp. Div. 4s, 1951 
 
 Chic, St. L. & Pitts. Con. 5s, 1932 
 
 Chic, St. P. & Minn. 1st 6s, 1918 
 
 Chicago, St. Paul, Minn. & Omaha Ry. — 
 
 Cons. 6s, 1930 120 120 
 
 Cons. SYgS, 1930 
 
 Deb. 5s, 1930 
 
 Chic, So. Bend & Nor. Ind. 1st 5s, 1937 
 
 Chic Telephone 1st 5s, 1923 
 
 Chicago Term. C. & G. W. 5s, 1936 
 
 Chic, Terre Haute & S. E. Ist 5s, 1960 
 
 Chic, Terre Haute & S. E. Inc. 5s, 1960 
 
 Chic Utilities 1st A. & B. 5s, 1942 
 
 Chicago & Western Indiana R. B. — 
 
 Cons. 4s, 1952 
 
 Gen'l 6s, 1932 
 
 3-vr. 5% Notes, 1915 
 
 Chic & West Mich. By. 5s, 1921 
 
 Chic, Wilm. & Verm. Coal 1st 6s, 1931 
 
 Chicago, Wis. & Minn. 1st 6s, 1916 
 
 Chino Copper 6s, 1921 155 155 
 
 Chippewa Val. By., Lt. & P. 1st 5s, 1924 
 
 Choctaw & Memphis 5s, 1949 
 
 Choctaw, Okla. & G. Gen. 5s, 1919 
 
 Choctaw, Okla. & G. Cons. 58, 1952 
 
 Choctaw Bv. & Ltg. 5s, 1938 
 
 Cicero Gas Bef. 5s, 1932 
 
 Cin., Daytcn & Chic. 1st 4s, 1942 
 
 Cine, Dayton & Ironton 1st 5s, 1941 
 
 Cin.. Day. & Tol. Tr. 5s, 1922 
 
 Cin. Edison Elec 58, 1917 
 
 Cine, Findlay & Ft. W. 1st 4s, 1923 
 
 Cin, Gas Transp. 5s, 1933 
 
 Cin. Gas Tranap. 5s (guar. Cin. Gas Co.) 
 
 Cincinnati & Ham. Elec St. By. 6s, 1918 
 
 Cincinnati, Hamilton & Dayton By. — 
 
 2nd 41/oS, 1937 
 
 1st 4s, 1959 
 
 P. M. Coll. Tr. 4s, 1913 
 
 41/38, 1939 
 
 5s, 1942 
 
 4s, fixed 
 
 Gen. Gtd. 4s. 1939 
 
 Cin., Indpls.. St. L. & Chic Cons. 6s, 1920 
 
 Cin., Ind., St. Louis & Chic 1st 4s, 1936 
 
 Cine, Indpls. & West. 1st 4s, 1953 
 
 Cine, Ind. & St. L. Short Line 1st 4g, 1953 
 
 Cine, Law. & Aur. 5s, 1919 
 
 Cin., Lebanon & Nor. 5s, 1916 
 
 Cin., Lebanon & Nor. By. 4s, 1942 
 
 Cine * Muskingum Val. 1st 4s, 1948 
 
 •Quotation nearest Maxch J, 1913. No quotation on that date. 
 
 1097 
 
 80 
 
 __ 
 
 89 
 
 —-. 
 
 107 
 
 Ill 
 
 419 
 
 ~ 
 
 120 
 
 1211/4 
 
 10114 102l^ 
 
 77 
 
 79 
 
 101 
 
 101 
 
 99 
 
 
 
 
 
 951/4 
 
 __ 
 
 •66 
 
 — 
 
 61 
 
 87 
 
 881/, 
 
 106% 
 
 
 •99% 
 
 *99% 
 
 951/2 
 
 99 
 
 i 
 
 »104 
 
 101 
 
 — 
 
 ♦94 
 
 ■" 
 
 107 
 
 107^4 
 
 1001/2 
 
 
 97 
 
 100 
 
 
 
 ♦67 
 
 
 
 98 
 
 ♦83 
 
 __ 
 
 991/4 
 
 
 
 
 85 
 
 1003/8 
 
 101 
 
 
 
 87 
 
 88 
 
 91 
 
 
 
 100 
 
 1011/2 
 
 110 
 
 95 
 
 1011/4 
 
 
 911/8 
 
 ♦99% 
 
 ♦99% 
 
 65 
 
 67 
 
 98 
 
 105 
 
 7472 
 
 76 
 
 ♦691/2 
 
 __ 
 
 1051/4 
 
 __ 
 
 931/s 
 
 __ 
 
 86% 
 
 
 
 92 
 
 __ 
 
 
 
 90 
 
 101 
 
 
 
 921/2 
 
 95 
 
 88 
 
 94 
 
High Low Bid Asked 
 
 Cine, N. O. & Texas Pac. Equip. 41/28, 1916__ __ >_ 48^ 514 
 
 Cine, N. O. & Texas Pac. Equip. 41/28, 1921__ __ __ 4% 514 
 
 Cin., Newp. & Gov. Lt. & Tr. Ist 5s, 1922 __ __ lOlVg 105 
 
 Cin., Newp. & Gov. Lt. & Tr. 2nd 5s, 1922 __ __ 100l^ 104 
 
 Ginc. Northern 1st 4s, 1951 __ __ 84 89 
 
 Cine., Rich. & Ft. W. 7s, 1921 __ ._ 112 
 
 Cine, Sand. & Gleve. 1st Cons. 5s, 1928 >_ __ 'lOS 
 
 Cin. Trac. Equip. "C" 5s, 1912-21 __ __ __ ♦101 
 
 Cin. Trac. Equip. "D" 5s, 1913-22 __ __ ._ 'lOl 
 
 Cine, Wab. & Mich. 1st 48, 1991 __ __ 88I/2 90 
 
 Citizens Gas (Indpls.) 1st Ref. 5s, 1942 __ ._ __ *101 
 
 Citizens Gas (Kankakee) 1st 5s, 1932 __ __ *97 
 
 atizens Gas & El. Cons. 6s, 1931 __ __ __ 96 
 
 Citizens Gas & Fuel Ist & Ref. 5s, 1960 __ __ 94 96y, 
 
 Citizens Gas Light 1st 5s, 1940 __ _. __ '104 
 
 Citizens Gas & Wat. 1st 5s, 1926 : __ __ *95 "gs 
 
 Citizens Ind. Tel. (T. H.) 1st 5s, 1936 __ __ __ 87 
 
 Citizens Lt., Ht. & Pr. 1st 5s, 1934 __ __ 991/2 101 
 
 Citizens R. R. (Ind.) 1st 5s, 1933 _- __ *100y2*102i/a 
 
 Citiz. Ry. & Lt. (Muscatine, la.) 1st 5s, 1917_ __ __ 97 100 
 
 Citizens Ry., L. & P. (Newport News) 5s, 1940 __ __ 79 
 
 Citizens Street Ry. Cons. 5s, 1933 101 101% 
 
 Citizens Street Ry. (Memphis) 6s, 1916 __ __ IO21/2 104 
 
 Citizens Trac. (Pitts.) lat 5s, 1927 __ __ 1021/2 105 
 
 Citiz. Tr. of Venango Co., Pa., 1st S. F. 5s, 1942 __ __ __ *99 
 
 Citizens Wat. Supply (Newtown) 2nd 4s, 1921 „ __ *78 
 
 City & Suburban 6s, 1916 „ __ 101 105 
 
 City & Suburban Cons. 4s, 1930 __ __ 89 92 
 
 City & Suburb. R. R. Bait. Ist 5s, 1922 — ._ 103% IO434 
 
 City & Suburban 5s, 1948 __ __ 103 IO41/4 
 
 City Electric 1st 5s, 1937 — _. 86^3 871/4 
 
 City Gas (Norfolk) 1st 6s, 1926 __ — *105 
 
 City Gas & Elec. 1st 5s, 1935 _ 79 
 
 City Realty Inv. Conv. 5s, 1927 __ __ __ ♦971/2 
 
 City Water Power 1st 5s, 1939 __ — >_ 98i/a 
 
 Clairton Steel 5s, 1913 __ __ _, lOOi/g 
 
 Clearfield & Jefferson 6s, 1927 — — — 117 
 
 Clearfield & Mahoning 1st 5s, 1943 __ _- 105 
 
 Clearf. Bit. Coal Co. 1st 4s, 1940 __ __ 75 80 
 
 Cleve., Akron & Col. 5s, 1927 -_ __ 103 108 
 
 Cleve., Akron & Col. 1st guar 4s, 1940 __ _. 88 
 
 Cleve., Akron & Col. Unguar. 4s, 1940 __ __ 88 
 
 Cleve., Berea, Elyria & Oberlin Cons. 5s, 1919- __ __ ♦lOO 
 Cleveland, Cine, Chicago & St. Louis Ry. — 
 
 41/2S, 1931 -_ — 911/8 91% 
 
 Gen. 4s, 1993 90% 90% 
 
 1st 4s, 1939 — — 90 911/a 
 
 St. Louis 1st 4s, 1990 90 90% 
 
 Sprgfld. & Col. Div. 1st 4s, 1940 •87 
 
 White W. Valley Div. 4s, 1940 — — ^87 
 
 Cleve., Col., Cine & Inpls. Cons. 7s, 1914 — __ __ 105 
 
 Cleve., Col., Cine & Inpls. Cons. S. F. 78, 1914 — — t02 
 
 Clece., Col., Cine & Ind. 63, 1934 __ — 120 124 
 
 Cleve. Elec. Ilium. 1st Ref. 5s, 1939 __ — 101 102 
 
 Cleveland & Elyria 6s, 1915 100 
 
 Cleve., Elyria & West. Cons. 5s, 1920 ^95 
 
 Cleve., Lorain & Wheeling 1st 5s, 1933 __ __ 100 
 
 Cleve., Lorain & Wheeling Cons. 41/2S, 1930 — __ 92 
 
 Cleve. & Mahoning Valley 5s, 1938 — — — 109% 
 
 ♦Quotation nearest Blareh 1, 1913. No quotation on that date. 
 
 1098 
 
High Low 
 
 Cleveland & Marietta 1st 41/28, 1935 
 
 Cleve., Painesv. & Ash. os, 1922 *72% _- 
 
 Cleveland, Painesv. & E. 5s, 1916 
 
 Cleveland, Painesv. & E. 58, 1918 
 
 Cleveland & Pitts. Gen. 41/38, Ser. A, 1942 
 
 Cleveland & Pitts. Gen. 41/2S, Ser. B, 1942 
 
 Cleve. & Pitts. Gen. 41/28, Red. to 31/2S, 1942__ 
 
 Cleveland & Pitts. Gen. 31/38, Ser. C, 1948 
 
 Cleveland & Pitts. Gen. Si/gS, Ser. D, 1950 
 
 Cleveland Ry. 5s, 1931 *101l^*101l^ 
 
 Cleve. & Sand. Brew. 68, 1948 *83 *83 
 
 Cleve. & S. W. Trac. Cons. 5s, 1923 *90l^ *90i4 
 
 Cleve., S. W. & Col. 5s, 1927 -, *83 *83 
 
 Cleve. Term. & Valley 1st 48, 1995 
 
 Clyde S. S. 1st 5s, 1931 , 
 
 Coal & Coke By. 58, 1919 
 
 Coal & Iron By. 5s, 1920 
 
 Coal Biver By. 1st 48, 1945 
 
 Coast Counties L. & P. 5s, 1946 
 
 Coast Vys. Gas & El. 1st 6s, 1952 
 
 Collegiate Bealty 1st 5s, 1922 
 
 Colorado Fuel Gen. 6s, 1919 
 
 Colo. Fuel & Iron Gen. 5s, 1943 
 
 Colo. Indust. 5s, 1934 
 
 Colo. Midland By. 1st 4s, 1947 
 
 Colorado Power 5s, 1953 
 
 Colorado Power 5s, 1936 
 
 Colorado Biver Bridge 1st 7s, 1920 
 
 Colo. So., N. O. & Pac. Equip. 5s 
 
 Colorado & Southern By. — < 
 
 1st 4s, 1929 92% 92% 
 
 Extd. 41/2S, 1935 
 
 Colo. Spgs. & Cripple Crk. Dist. 1st 5s, 1930-_ 
 Colo. Spgs. & Crip. Crk. Dis. 1st Cons. 5s, 1942 
 
 Colo. Spgs. Elec. 1st 5s, 1920 
 
 Colo. Spgs. Lt. & Pow. 1st 5s, 1919 
 
 Colo. I^rgs. L, H. & P. 1st & Bef. 5s, 1920 
 
 Colo. Yule Marble 1st 6s, 1915-20 
 
 Columbia & Greenville Ist 68, 1916 
 
 Columbia & St. Louis Ist 48, 1942 
 
 Columbia Gas <te Elec. 5s, 1927 
 
 Columbia By., Gas & Elec. 1st 5s, 1936 
 
 Colum. By., Gas & Elec. Conv. 6% Notes, 1916 
 
 Columbia Street By. 1st 6s, 1914 
 
 Columbia Street By. Ext. 53, 1914 
 
 Columbus, Buckeye L. & Newark 1st 5s, 1921- 
 
 Columbus Citizens Telephone 5s, 1920 
 
 Columbus Conn. & Ter. 1st 5s, 1922 
 
 Columbus Elec. 6s, 1922 
 
 Columbus Electric 1st 5s, 1933 
 
 Columbus Gas 1st 5s, 1932 
 
 Columbus & Hock. Val. 1st Ext. 4s, 1948 
 
 Columbus Interurban Ter. 1st 5s, 1935 
 
 Columbus Lt., Ht. & Pr. Gen. 6s, 1924 
 
 Columbus, London & Spgfd. 5s, 1920 
 
 Coliimbus, NewTc & Zanesv. 5s, 1924 
 
 Columbus, Newark & Z. 5s, 1926 
 
 Columbus & 9th Ave. 58, 1993 
 
 Columbus Pow. 5s, 1936 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1099 
 
 Bid 
 
 Asked 
 
 1001/3 
 
 — 
 
 99 
 
 101 
 
 86 
 
 90 
 
 102 
 
 __ 
 
 102 
 
 
 
 90 
 
 
 
 90 
 
 __ 
 
 90 
 
 __ 
 
 90 
 
 92 
 
 90 
 
 94 
 
 941/3 
 
 95 
 
 991/3 
 
 lOOi/a 
 
 831/4 
 
 
 941/2 
 
 95 
 
 
 101 
 
 ^ 
 
 •100 
 
 104 
 
 __ 
 
 99 
 
 100 
 
 81% 
 
 82 
 
 27 
 
 33 
 
 
 
 80 
 
 91 
 
 95 
 
 100 
 
 
 __5% basis 
 
 92% 
 
 931/4 
 
 101 
 
 103 
 
 91 
 
 97 
 
 971/3 
 
 100 
 
 971/3 
 
 100 
 
 92 
 
 95 
 
 __ 
 
 ♦87 
 
 1031/4 
 
 __ 
 
 
 *85 
 
 73% 
 
 80 
 
 93 
 
 95 
 
 
 100 
 
 1011/2 
 
 __ 
 
 100 
 
 _ 
 
 98 
 
 100 
 
 
 
 92% 
 
 
 
 106 
 
 991/3 
 
 101 
 
 87 
 
 90 
 
 94% 
 
 100 
 
 92 
 
 100 
 
 __ 
 
 95 
 
 92 
 
 95 
 
 951/3 
 
 97% 
 
 90 
 
 92 
 
 91 
 
 94 
 
 98 
 
 101% 
 
 __ 
 
 95 
 
High Low 
 Columbus Ry. 4s, 1939 
 
 Columbus Street Ry. 5s, 1932 
 
 Columbus & Toledo Ry. 1st 4s, 1955 
 
 Commercial Cable 1st 4s, 2397 
 
 Commonw. Edison 1st 5s, 1943 
 
 Commonw. Elec. 1st 5s, 1943 
 
 Commonw. Pow. 1st 5s, 1924 
 
 Compton Heights & Mer. Term. 6s, 1913 IOO14 10014 
 
 Comput.-Tab.-Rec. 6s, 1941 
 
 Concord Elec. 1st 5s, 1931 
 
 Concord, Maynard & Hud. 1st 5s, 1922 
 
 Concord & Mont. Con. 4s, 1920 
 
 Concord & Mont. Deb. 4s, 1920 
 
 Concord & Mont. Deb. 31/38, 1920 
 
 Conestoga Trac. 1st 4s, 1950 
 
 Conev Isld. & Bklyn. 4s, 1948 
 
 Coney Isld. & Bklyn. 4s, 1955 
 
 Congress Hotel 1st 5s, 1941 
 
 Congress Hotel 1st 6s, 1911-41 
 
 Conn. & Pass. R. 4s, 1943 
 
 Connecticut Power 1st & Col. 5s, 1956 
 
 Conn. Ry. & Ltg. 1st & Ref. 4y2S, 1951 
 
 Conn. Ry. & Ltg. 1st & Ref. (stpd.) 41/28, 1951 
 
 Conn. Riv. Pow. 1st 5s, 1937 
 
 Conn. River 31/3S, 1923 
 
 Conn. River 31/3S, 1921 
 
 Connecticut River 4s, 1943 
 
 Connellsv. & Monong. 1st 4s, 1930 
 
 Consol. Gas (Bait.) Gas 41/3S, 1954 
 
 Cons. Gas (Bait.) Cons. 5s, 1939 
 
 Consol. Gas (N. J.) 5s, 1936 
 
 Cons. Gas (Pitts.) 1st 5s, 1948 
 
 Cons. Gas, El. Lt. & Pr. 5% Notes, 1913 
 
 Cons. Gas, El. Lt. & P. Gen. 41/38, 1935 
 
 Consol. Indiana Coal 5s, 1935 
 
 Consol. Lighting 1st 5s, 1926 
 
 Consolidated Ry. Deb. 48, 1955 
 
 Consolidated Ry. Deb. 4s, 1956 
 
 Consolidated Ry. Cons. 31/38, 4s, 1930 
 
 Cons. Ry. & Pr. 1st 5s, 1921 
 
 Cons. Rubber Tire 4s, 1951 
 
 Cons. Telep. of Pa. 1st 5s, 1931 
 
 Consol. Tobacco 4s, 1951 
 
 Consol. Trac. (N. J.) 1st 5s, 1933 
 
 Cons. Trac. (Pitts.) Equip. 6s, 1913-18 
 
 Cons. Water (Utica) 1st 5s, 1930 
 
 Cons. Water (Utica) Deb. 5a, 1930 
 
 Cons. Wtr. Supply 1st 5s, 1929 
 
 Consolidation Coal Conv. 6s, 1923 100 100 
 
 Consolidation Coal 41/38, 1934 — — 91 92 
 
 Consolidation Coal 5s, 1950 901/3 901/3 
 
 Constitution Pub. 1st 58, 1930 
 
 Consumers Elec. Lt. & Pr. 1st 5s, 1936 ^ „ __ 91 
 
 Consumers Gas 1st 5s, 1936 ._ — 100 
 
 Consum. Lt., Ht. & Pr. 5s, 1938 - — 100 
 
 Consumers Power, Minn,, 1st 5s, 1929 — __ 88 
 
 Consumers Power, Mich.. 1st & Ref. 5s, 1936— __ — 951/2 
 
 Consumers Pow. & Lt. (S. D.) 1st 5s, 1929 — 
 
 Continental Bldg. 1st 68 — — - * 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1100 
 
 Bid . 
 
 A,8ked 
 
 
 
 85 
 
 10014 
 
 1021/3 
 
 92 
 
 95 
 
 74 
 
 80 
 
 102% 
 
 1023/4 
 
 101% 
 
 102 
 
 98 
 
 100 
 
 79 
 
 81 
 
 ^ 
 
 »101i/a 
 
 __ 
 
 100 
 
 96 
 
 978/4 
 
 95% 
 
 97 
 
 •SlVa 
 
 ♦93% 
 
 
 
 871/3 
 
 80 
 
 85 
 
 78 
 
 83 
 
 90 
 
 95 
 
 
 
 »100 
 
 95 
 
 96 
 
 ♦80 
 
 
 
 981/8 
 
 102% 
 
 991/4 
 
 __ 
 
 91 
 
 96 
 
 92 
 
 931/3 
 
 92 
 
 __ 
 
 93 
 
 _„ 
 
 95 
 
 98 
 
 94% 
 
 
 
 
 
 107% 
 
 981/2 
 
 991/3 
 
 65 
 
 72 
 
 99% 
 
 100 
 
 
 
 89y3 
 
 75 
 
 80 
 
 98 
 
 100 
 
 85 
 
 __ 
 
 85 
 
 __ 
 
 86 
 
 
 
 99 
 
 100 
 
 60 
 
 70 
 
 *34 
 
 •371/2 
 
High Low 
 
 Continental Coal 1st 6s, 1941 
 
 Cont'l Coal 5s, 1952 
 
 Cont'l Gas & Elec. 1st 5s, 1927 ^__ 
 
 Contra Costa Water Co. 5s 
 
 Copper Range 1st 5s, 1949 
 
 Corn Products Refin. 5s, 1931 
 
 Corn Products Refin. 5s, 1934 93 93 
 
 Corning Cas & Elec, 1st 5s, 1951 
 
 Corona City Water Co. Bonds 
 
 Corona Power & Water 6s, 1923 
 
 Corrigan Cons. St. Ry. 5s, 1916 
 
 Council Bl. Gas & El. 1st 5s, 1928 
 
 Counties Gas & Elec. Gen. 5s, 1902 
 
 Covington & Cine. Bridge 1st 4s, 1915 
 
 Cramp (Wm.) & Sons Ship & Eng. Bldg.— 
 
 1st 5s, 1929 
 
 Criterion Club 4s, 1954 
 
 Grosstown St. Ry. (Buf.) 1st 5s, 1932 
 
 Crosstown Street Ry. (Col.) 5s, 1933 
 
 Crowell & Thurlow S. S. 1st 6s, 1914-23 
 
 Crucible Coal (Pitts.) 5s, 1936 
 
 Cuba R. R. 1st 5s, 1952 
 
 Cuban-Amer. Sugar 6s, 1918 
 
 Cucamonga Water 6s, 1922 
 
 Cudahy Packing 1st 58, 1924 
 
 Cumberld Co. Pow. & Lt. 5s, 1942 
 
 Cumberland Corp. 5% Notes, 1915 
 
 Cumb. & Penna. 1st 5s, 1921 
 
 Cumberland Tel. & Tel. 5s, 1918 J_ 
 
 Cumberld Tel. & Tel. Deb. 5s, 1920 
 
 Cumberld Tel. & Tel. 1st & Gen. 53, 1937 
 
 Current River 1st 5s, 1927 
 
 Cuyahoga Telephone 1st 5s, 1919 
 
 Dakota & Gt. Sou. 1st 5s, 1916 
 
 Dakota Power 1st 6s, 1930 
 
 Dallas & Waco 1st 5s, 1940 
 
 Dallas Electric 5% Notes, 1917 
 
 Dallas Electric 1st Coll. 5s, 1922 
 
 Dallas Gas 1st 58, 1925 
 
 Danbury & Bethel Horse Ry. 1st 5s, 1915 
 
 Danbury & Bethel St. Ry. 5s, 1914 
 
 Danbury & Norwalk 1st 4s, 1955 
 
 Danbury & Norwalk Cons. 5s, 1920 
 
 Danbury & Norwalk Gen'l 5s, 1925 
 
 Danville & Grape Creek 1st 6s, 1920 
 
 Danville St. Ry. & Lt. Ref. 58, 1924-25 
 
 Danville, Urbana & Champaign 1st 5s, 1923 
 
 Darby, Media & Chester St. Ry. 1st 41/38, 1936 
 
 Dauphin County Gas Cons. 5s, 1925 
 
 Davidson (Thos.) Mfg. 1st 6s, 1942 
 
 Davies (Wm.) Co. Ist 6s, 1926 
 
 Davis Sewing Mach. 1st 69, 1915-21 
 
 Davison Chemical 1st 6s, 1932 
 
 Dawson Ry. & Coal 1st 5s, 1951 
 
 Dayton & Mich. 1st Cons. 41/28, 1931 
 
 Dayton Breweries 6s, 1929 *77% __ 
 
 Dayton Citizens Elec. 5s, 1932 
 
 Dayton, Covington & Piq. Trac. 5s, 1922 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1101 
 
 Bid 
 
 Asked 
 
 
 •80 
 
 97% 
 
 __ 
 
 
 •93 
 
 99 
 
 __ 
 
 95 
 
 100 
 
 95% 
 
 96% 
 
 
 •22 
 
 99 
 
 102 
 
 99 
 
 102 
 
 *100 
 
 
 
 *92 
 
 __ 
 
 
 
 100 
 
 95 
 
 100 
 
 100 
 
 101% 
 
 
 
 •65 
 
 1031/2 
 
 
 
 100 
 
 102 . 
 
 
 
 100 
 
 
 
 101% 
 
 100 
 
 101 
 
 
 
 95% 
 
 99 
 
 100% 
 
 100% 
 
 
 
 __ 
 
 *98 
 
 
 
 •97% 
 
 *100 
 
 
 100 
 
 102 
 
 97 
 
 99 
 
 
 
 99% 
 
 98 
 
 100 
 
 883/4 
 
 93 
 
 1011/4 
 
 __ 
 
 
 100 
 
 noii/g 
 
 
 
 ;.70% basis 
 
 95 
 
 97% 
 
 80 
 
 
 
 
 100 
 
 
 
 •100 
 
 95 
 
 __ 
 
 105 
 
 
 
 106 
 
 __ 
 
 104 
 
 
 
 98 
 
 100 
 
 •971/2 
 
 __ 
 
 90 
 
 93 
 
 • 
 
 •100 
 
 
 
 •100 
 
 101 
 
 102 
 
 
 
 •100 
 
 
 
 100 
 
 1001/2 
 
 102 
 
 981/2 
 
 ~ 
 
 •95 
 
 
 90 
 
 96 
 
High Low 
 
 Dayton Elec. Ltg. 1st 5s, 1921 
 
 Dayton Gas 1st 5s, 1930 
 
 Dayton Lighting 1st 5s, 1937 
 
 Dayton Pow. & Lt. 53, 1941 
 
 Dayton Traction 5s, 1916 
 
 Dearborn Bldg (Chic.) 6s, 1914-23 
 
 Decatur Ry. & Lt. 1st & Cons. 5s, 1933 
 
 Deep Well Water 1st 5s, 1950 
 
 Deere & Co. 5% Notes, 1912-16 
 
 Delano Land 1st 5s, 1932 
 
 Delaware & Bound Brook Ist 3y2S, 1955 
 
 Delaware Co. Elec. 1st 5s, 1939 
 
 Delaware Co. & Phil. Elec. 4s, 1949 
 
 Delaware & Hudson Co. — 
 
 Deb. 4s, 1916 
 
 Penn. Div. 7s, 1917 
 
 1st Lien Equip. 4y2S, 1922 
 
 1st & Ref. 4s, 1943 
 
 Delaware River R. R. & Bdge. 1st 4s, 1936 
 
 Delaware Riv. Term. 5s, 1942 
 
 Delmarria Telephone 6s, 1918_— 
 
 Demerara Elec. 7% Notes, 1916 
 
 Denver & North West 1st 5s, 1932 
 
 Denver Realty 514% Notes, 1913 
 
 Denver Reservoir Irrigation Co. 6s 
 
 Denver & Rio Grande R. R. — 
 
 1st Cons. 4s, 1936-__. 873/3 873/3 
 
 Cons. 41/28, 1936 
 
 Imp. 53, 1928 
 
 1st & Ref. 5s, 1955 
 
 Adj. Inc. 7s, 1932 
 
 1st 4s, 1940 
 
 Denver City Tramway 5s, 1919 
 
 Denver City Tramway 1st & Ref. 5s, 1933 
 
 Denver Cons. Tram. 1st Cons. 5s, 1933 
 
 Denver Gas & Elec. Con v. 6s, 1914 
 
 Denver Gas & Elec. 5s, 1949 
 
 Denver, Laramie & N. W. 5s, 1940 
 
 Denver Tram. Pow. Co. 1st 5s, 1923 
 
 Denver Tramway Terras. 1st 5s, 1937 
 
 Denver Un. Stk. Yds. 58, 1926 
 
 Denver Union Water 5s, 1914 
 
 Dering Coal 1st 5s, 1955 
 
 Des Moines & Fort D'ge 1st 4s, 1935 
 
 Des Moines City Ry. Ref. 5s, 1921 
 
 Des Moines Elec. 1st 5s, 1938 
 
 Des Moines Union 5s 1917 
 
 Des Plaines Val. Ry. 41/28, 1947 
 
 Detroit City Gas Co. Gen. 5s, 1923 
 
 Detroit Edison Ist 5s, 1933 
 
 Detroit Edison Conv. 6s, 1920 
 
 Detroit Edison Conv. 6s, 1921 
 
 Detroit Elect. Ry. 58, 1916 
 
 Detroit & Flint 5s, 1921 
 
 Det., Ft. W. & Belle Isle Cons. 5s, 1928 
 
 Detroit Gas Co. Cons. 5s, 1918 
 
 Det., Grand Haven & Mil. 1st Equip. 6s, 1918- 
 Det., Grand Haven & Mil. 1st Con. 6s, 1918— 
 Det., Grand Rapids & Western 1st 4s, 1946— 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1102 
 
 Bid . 
 
 A.sked 
 
 98V2 
 
 __ 
 
 981/2 
 
 100 
 
 89 
 
 90 
 
 __ 
 
 86 
 
 
 
 100 
 
 1 
 
 100 
 
 95 
 
 
 
 ■* 
 
 100 
 
 *983/4 
 
 993/4 
 
 106 
 
 
 
 88 
 
 
 
 
 
 103 
 
 70 
 
 74 
 
 96 
 
 97 
 
 110% 
 
 
 
 
 
 100 
 
 983/4 
 
 98% 
 
 95 
 
 
 
 107 
 
 __ 
 
 
 
 ♦98 
 
 * 
 
 »100 
 
 90 
 
 92 
 
 »lool^ 
 
 
 
 ~ 
 
 *30 
 
 93 
 
 95% 
 
 971/4 
 
 981/a 
 
 8I1/4 
 
 82 
 
 100 
 
 102 
 
 
 
 70 
 
 99 
 
 10014 
 
 90 
 
 93 
 
 99 
 
 101 
 
 100 
 
 looy. 
 
 95 
 
 97 
 
 
 •30 
 
 991/2 
 
 looy. 
 
 5%% 
 
 51/4% 
 
 •92 
 
 
 92 
 
 93 
 
 __ 
 
 ♦45 
 
 
 
 78 
 
 93 
 
 95 
 
 
 
 983/4 
 
 98 
 
 
 
 ^4.45% 
 
 basis 
 
 993/4 
 
 lOOi/g 
 
 1011/2 
 
 1021/4 
 
 125 
 
 __ 
 
 122 
 
 __ 
 
 88 
 
 _„ 
 
 90 
 
 
 
 *82 
 
 ♦90 
 
 100 
 
 _„ 
 
 102 
 
 106 
 
 102 
 
 104 
 
 81 
 
 84 
 
High Low Bid Asked 
 
 Detroit & Lake St. Clair 5s, 1920 — — __ 88 
 
 Det., Mack. & Marq., Inc., 7s, 1911 , __ _. 25 31 
 
 Detroit & Mack. Gen'l 4s, 1995 — __ 87 
 
 Detroit «& Mack. 1st Lien 4s, 1995 — __ 89 90 
 
 Detroit, Monroe & Toledo Short Line 58, 1933 __ — 94l^ 95ya 
 
 Detroit & Northwestern 41/38, 1921 — __ __ 94 
 
 Detroit & Pontiac 5s, 1922 _- __ __ 102 
 
 Detroit & Pontiac 41/28, 1926 __ — 87 90 
 
 Detroit & Pt. Huron S. L. 58, 1950 — -_ __ 81 
 
 Detroit Railway 5s, 1924 — — — 89 
 
 Det. Riv. Tunn.-Det. T. & T. 41/38, 1961 __ __ 971/2 98I/2 
 
 Detroit, Roch., Romeo & Lake Orion 58, 1920. — — 97 99 
 
 Det., Toledo & Ironton Gen. Lien. 1st 4s, 1955 — — 20 35 
 
 Det., Toledo & Ironton- Con. 41/2S, 1980 _« __ _- 5 
 
 Detroit, Toledo & tronton — 
 
 Ohio Sou. Div. 1st 4s, 1941 — __ __ 62ya 
 
 Det. & Toledo Shore L. 1st 4s, 1953 — __ 81 85 
 
 Detroit United 1st Cons. 41/2S, 1932 __ — 73% 75 
 
 Detroit, Ypsilanti & A. A. Jackson 5s, 1926__ __ — 85 87 
 
 Detroit, Ypsilanti & A. A. 6s, 1924 __ __ „ 101 
 
 Detroit, Ypsilanti & A. A. 6s, 1917 __ -_ •1001/2*1011/3 
 
 Diamond Match Deb. 6s, 1920 — __ _- 108 
 
 Diamond State Telep. Ist 5s, 1943 >_ __ *99i/2 — 
 
 Dighton, Somerset & Swansee St. Ry. 5s, 1915 „ „ -_ *98% 
 
 Distillers Secur. 53, 1927 ._ — 68 69l^ 
 
 Dist. of Columbia Paper Mfg. 5s, 1910-40 — __ 90 100 
 
 Doe Run Lead 6s, 1915 *99i/2 — 
 
 Dolese & Shepard Gen. 6s, 1930 — __ — *90 
 
 Dominion Canners 6s, 1940 — — *10iy2*103 
 
 Dominion Coal 1st 5s, 1940 _- __ 99 
 
 Dominion Cotton Mills 2nd 6s, 1922 __ — 'lOl *10iya 
 
 Dominion Iron & Steel 5s, 1929 — __ 91 911/3 
 
 Dominion Nat. Gas 6s, 1915 >- __ — "lOOi/a 
 
 Dom. Pow. & Trans. 1st 58, 1932 __ __ __ 98 
 
 Dominion Sewer Pipe 6s, 1927 — __ — *100 
 
 Dominion Steel Deb. 5s, 1915 — _- *5%% basis 
 
 Dorer Gas Lt. Cons. 5s, 1925 — — •4.90% basis 
 
 Drake Hotel 1st 5s, 1933 __ __ __ ^95 
 
 Dry Dock, East B'way & Battery 1st 5s, 1933 — _> 100 105 
 
 Dry Dock, E. By. & Batt. Certif. Ind. 5s, 1914 __ __ 32 40 
 
 Du Bois Elec. & Tr. 5s, 1932 __ __ _» 90 
 
 Duluth Edison 1st 5s, 1931 __ __ 95 
 
 Duluth & Iron Range 1st 5s, 1937 — __ 100 103% 
 
 Dul. & Ir. Range 2nd 6s, 1916 >_ _- 101l^ — 
 
 Duluth, Missabe & Nor. 1st 6s, 1922 __ __ 95 
 
 Duluth, Missabe & Nor. 1st Con. 6s, 1923 „ — 104 
 
 Dul., Missabe & Nor. Ry. Gen. 5s, 1941 __ __ — 105 
 
 Duluth, Rainey Lake & W. 1st 5s, 1916 — __ 99 99ya 
 
 Duluth Short Line 1st 5s, 1916 __ __ 991/3 >- 
 
 Duluth, So. Shore & Atl. 1st 5s, 1937 „ -_ 103 107 
 
 Duluth Street Ry. Ist 5s, 1930 __ __ 99 99% 
 
 Duluth Street Ry. Gen. 5s, 1930 __ __ ♦991/2 _- 
 
 Duluth Union Depot Deb. 5s, 1930 ._ __ 100 
 
 Dunkirk & Fredonia Tr. 1st 5s, 1962 __ — *96 
 
 Dunlop Tire & Rub. 1st 68, 1927 — — — *98 
 
 DuPont 41/2S, 1936 87 87 
 
 DuPont Internat. Pow. 5s, 1922 — — *97 
 
 DuPont Internat. Pow. Coll. 5s, 1934 — — '97 
 
 Duquesne Traction 1st 5s, 1930 — — 102 1021/3 
 
 •Quotation nearest March 1, 1913, No quotation on that date. 
 
 1103 
 
High Low Bid Asked 
 
 Durham Trac. 1st 5s, 1941 — — — *100 
 
 Dutchess County 4y2S, 1940 100 103 
 
 Eagle & Phenix Mfg. 5s, 1936 ~ — 93 98 
 
 East Chic. & Ind. Harb. Water 5s, 1927 — — *91i/2 __ 
 
 East End El. Lt. Ist 6s, 1915 — — •lOliA __ 
 
 East Liverpl. Tr. & Lt. 1st 5s, 1925 — — 64 70 
 
 East McKees. St. Ry. 1st 5s, 1929 — — — *100 
 
 East Ohio Gas 1st 5s, 1939 — — 98 100 
 
 East Penn. Gas & Elec. 1st 5s, 1942 — — — 96 
 
 East St. Louis & Interurban 5s, 1932 — — 94 96 
 
 East St. Louis & Suburban Ss, 1932 — — — *97 
 
 East St. Louis Gas Lt. 5s, 1922 — - 99% lOOi/o 
 
 East Tenn, Va. & Ga. 5s, 1930 — — 105 
 
 East Tenn., Va. & Ga. Cons. 5s, 1956 — — 108 1083^ 
 
 East Tenn. & West No. Car. Ist 5s, 1935 __ — — *10iy2 
 
 Eastern Car Co. 1st 6s, 1952 — — — *102 
 
 Eastern Mfg. 1st 5s, 1914-33 — — *5.38% basis 
 
 Eastern Michigan Edison Ist 5s, 1931 — — 96y2 100 
 
 Eastern Oregon Lt. & P. 1st & Ref. 6s, 1929-_ __ __ — 100 
 
 Eastern Penna. Pow. 1st & Ref. 5s, 1939__^__ __ — *93 *96y2 
 
 Eastern Penna. Rys. 1st 53, 1936 __ — 7iy2 73y2 
 
 Eastern Ry. of Minn., North Div., 1st 4s, 1948 __ _. 92 97 
 
 Eastern S. S. 1st 58, 1927 __ — 100 102 
 
 Eastern Steel 1st 5s, 1931 — __ 84 88 
 
 Eastern Texas Elec. 1st Coll. 5s, 1942 — — — 94 
 
 Eastern Wise. Ry. & Lt. 1st 5s, 1923 „ — 95 97 
 
 Easton & Amboy 5s, 1920 __ „ 104 106 
 
 Easton Cons. Elec. 5s, 1949 >_ __ 98 100 
 
 Easton, Palmer & Beth. 1st 5s, 1918 __ __ 99 100 
 
 Economy Lt., Ht. & Pow. 1st 5s, 1930 — __ *96 *100 
 
 Economy Lt. & Power 1st 5s, 1956 __ — 97y2 100 
 
 Eden Irrig. & Land Co. 6s __ ._ — *60 
 
 Edgefield Street Ry. Con. 6s, 1920 __ __ 106 lOSy^ 
 
 Edison El. (Lancaster, Pa.) 1st & Ref. 5s, 1943 __ __ _. *97y2 
 
 Edison Elec. (Los Angeles) 1st Ref. 5s, 1922— __ — 101 102^} 
 
 Edison Elec. (Los Angeles) 5s, 1929 __ __ 100 
 
 Edison Elec. (New Orleans) 5s, 1929 __ __ 103 
 
 Edison Elec. Dlum., B'klyn, 1st 4s, 1939 __ — SSYs — 
 
 Edison Elec. Ilium, of N. Y. 1st 5s, 1995 ._ __ 108 111 
 
 Edison Elec. 111. of Paterson Cons. 5s, 1925___ __ __ __ *100 
 
 Edison Elec: Light (Phila.) 5s, 1946 __ __ 107 108 
 
 Edison Light & Power 6s, 1921 __ __ 106% __ 
 
 Eighth Avenue Cert. Ind. 6s, 1914 __ __ 99 101 
 
 Elec. & Ppls. Trac. Tr. Ctfs. 4s, 1945 __ __ 84y2 85 
 
 Electrical Development 1st 5s, 1933 __ __ *96 *97 
 
 Electrical Secur. Coll. 5s, 1935 __ >_ 99 101 
 
 Electro Metallurgical 6s, 1937 »_ __ *102y2 __ 
 
 Elgin, Aurora & So. Tr. 1st 5s, 1916 __ _.. *98y2 — 
 
 Elgin, Joliet & East. 5s, 1941 __ _. 106y2 107y2 
 
 Elizabeth, Plain. & Cent. Jersey 1st 5s, 1950— __ __ 96 97y2 
 
 Elizabethtown Water, 4s, 191 __ __ __ *96y2 
 
 Elkin & Allegheny, 1st 6s, 1941 __ __ 98 100 
 
 Ellsworth Coal, 1st 5s, 1919-25 __ __ *99 
 
 Elmira Contl. & North'n, 1st 6s, 1914 __ __ 100 
 
 Elmira Contl. & North'n, 1st 5s, 1914 __ _> 100 100% 
 
 Elmira Water, Light & R. R., 1st 5s, 1949 __ __ 97 100 
 
 Elmira Wtr., Lt. & R. R., 1st 5s, 1956 __ __ 93 95 
 
 Elmira & Williamspt., 1st Ex. 4s, 1950 __ __ 97Va _- 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1104 
 
Elmira & Williamspt., Inc. 5s, 2863 
 
 El Paso Elec, Ist Con. 5s, 1933 
 
 El Paso Gas & El. Gen. 6s, 1934 
 
 El Paso & R. I., 1st 5s, 1951 
 
 Ely & Walker Dry Gds. Bldg., 5s, 1931 
 
 Elyria & Oberlin, 6s, 1917 
 
 Emerson Steam Pump, 6s, 1938 *65 
 
 Empire Dist. Elec, 1st 5s, 1949 
 
 Empire G. & El. Jt., 1st & Ref. 5s, 1941 
 
 Empire Pass. Ry., 1st Si/gS, 1930 
 
 Enid Elec. & Gas, 1st 6s, 1930 
 
 Enterprise Mfg., 51/28.. 1930 
 
 Equitable Gas, 1st 5s, 1939 
 
 Equitable Gas & Elec, 5s, 1943 
 
 Equit. Gas Lt., N. Y., Cons. 5s, 1933 
 
 Equit. Ilium. Gas Lt. (Phila.), 1st 5s, 1938 
 
 Equitable Mtge. & Tr., 5s, 1933 
 
 Erie Elec Motor, 6s, 1941 
 
 Erie Lighting, 1st 5s, 1943 
 
 Erie & Pittsburgh, "B" 31/28, 1940 
 
 Erie & Pittsburgh, "C" 31/2S, 1940 
 
 i:rie R. R.~ 
 
 1st Cons. P. L., 4s, 1996 
 
 1st Cons. G. L., 4s, 1996 
 
 Penn. Coll., 4s, 1951 
 
 Conv. "A," 4s, 1953 
 
 Conv. "B," 4s, 1953 
 
 Equip., 41/2S, 1931 
 
 Equip., "I" 4s, 1916 
 
 Equip., "N" 5s, 1917 
 
 Col., 6s, 1914 
 
 Col., 5s, 1914 
 
 Col., 5s, 1915 
 
 Buff. & S. W. Div., 3nd 5s, 1918 
 
 Erie Ry., funded 7s, 1930 
 
 Erie & Western Transp., 1st 4s, 1935 
 
 Escanaba Traction, 1st 5s, 1934 
 
 Estate of Long Beach, 1st 6s, 1917 
 
 Eureka Construction coll. tr. 6s, 1914-19 
 
 European & N. Am., 4s, 1933 
 
 Evansville & East. EL, 1st 5s, 1936 
 
 Evansville Elec, 1st 4s, 1931 
 
 Evansville Gas &, Elec. Light, 5s, 1933 
 
 Evansville, Hend. & Nash., 1st 6s, 1919 
 
 Evansville & Indpls., Ist Cons. 6s, 1936 
 
 Evans. & Indpls., 1st 6s, 1934 
 
 Evansville & Mt. Vernon El. Ry., 1st 5s, 1935— __ 
 
 Evansville & Princeton Trac, 1st 5s, 1933 
 
 Evansville & Terre H., 1st Cons. 68, 1931 
 
 Evansville & Terre H., Ref. 5s, 1941 
 
 Evansville & T. H., Ist Genl. 5s, 1943 
 
 E. & T. H., Mt. Vernon, 1st 6s, 1933 
 
 E. & T. H. Equip. "C," 1916 __ 
 
 Evans., T. H. & Chic, Inc., 6s, 1930 
 
 Everett Gas, 1st 5s, 1940 
 
 Everett Ry. Lt. & W., 1st Cons. 5s, 1935 
 
 Excelsior Spgs. W., G. & E. 1st 6s, 1933 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1105 
 
 High Low 
 
 Bid 
 
 Asked 
 
 110 
 
 113 
 
 97 
 
 100 
 
 *98i/2 
 
 
 
 
 
 101 
 
 97 
 
 99 
 
 100 
 
 — 
 
 86 
 
 89 
 
 97 
 
 98 
 
 
 •93 
 
 98 
 
 101 
 
 
 
 -1011/2 
 
 98 
 
 99 
 
 103 
 
 
 
 
 
 107 
 
 
 
 1061/, 
 
 i 
 
 noo 
 
 981/2 
 
 — 
 
 
 
 •931/2 
 
 
 
 901/4 
 
 ~ 
 
 901/8 
 
 841/2 
 
 851/a 
 
 73 
 
 75 
 
 891/4 
 
 90 
 
 79 
 
 8OI/2 
 
 731/2 
 
 74 
 
 5-4%% basis 
 
 5iA-5%basi3 
 
 
 
 1001/3 
 
 1003/8 
 
 1003/4 
 
 991/4 
 
 993/4 
 
 981/2 
 
 99 
 
 •95 
 
 
 
 ♦114 
 
 
 
 971/2 
 
 99 
 
 
 •97 
 
 
 
 •76 
 
 
 
 *100 
 
 93 
 
 __ 
 
 __ 
 
 •89 
 
 85 
 
 88 
 
 931/2 
 
 96 
 
 ♦1101/2- 
 
 •1111/3 
 
 106 
 
 1098/4 
 
 105 
 
 
 
 •58 
 
 •78 
 
 97 
 
 
 
 
 111 
 
 •80 
 
 
 
 99% 
 
 103 
 
 •107 
 
 
 
 4.90% basis 
 
 104 
 
 
 
 __ 
 
 85 
 
 
 
 100 
 
 98 
 
 100 
 
High Low Bid Asked 
 
 Fairmont & Clarksburg Tr. 1st 5s, 1938 -_ ._ *100y2»10iya 
 
 Fairmont Coal 5s, 1931 __ __ 95 96 
 
 Fairmont Park Transp. 1st 5s, 1937 _> __ __ 96 
 
 Fargo & Moorhead St. Ry. 1st 5s, 1925 _> __ *92 
 
 Fargo & Southern 63, 1924 __ _. 1131/2 __ 
 
 Federal Light & Trae. 1st 5s, 1942 __ >_ 92 94 
 
 Federal Publishing 1st 6s, 1920 >_ __ __ *100 
 
 Federal St. & P. V. 5s, 1942 __ __ lOlVg 102% 
 
 Federal Sugar Refin. 5% Notes, 1914 __ __ 98 98% 
 
 Federal Tel. (Buffalo) 5s, 1954 ._ __ __ ♦78 
 
 Federated Min. & Mill. 6s __ __ __ *60 
 
 Fellsmere Farms Deb. 6s, 1917 __ __ __ *97 
 
 Fellsmere Farms 1st 6s, 1925 __ __ __ *98 
 
 Ferries & Cliff House Ry. 6s, 1914 _. __ 1001/4 __ 
 
 First Fed. Trust (S. F.) 5s, 1943 __ __ IOO1/2 ,__ 
 
 Fitchburg & Leominster St. Ry. 1st 5s, 1917— __ __ __ 101 
 
 Fitchburg R. R. 41/38, 1914 __ „ 99 100 
 
 Ref. 41/2S, 1928 __ __ 991/2 101% 
 
 41/2S, 1933 1 __ __ __ 102 
 
 4s, 1915 __ __ 98 993/3 
 
 4s, 1916 __ __ 98 99l^ 
 
 4s, 1925 __ __ 95 96 
 
 4s, 1927 __ __ _- 96 
 
 48, 1928 >- -_ 95 96 
 
 31/3S, 1920 __ __ 931/2 __ 
 
 31/2S, 1921 _ 931/2 937/8 
 
 Flatbush Water Works Gen. 6s, 1931 .__ _- •103 
 
 Flint & Pere Marq. 6s, 1920 _„ 104 
 
 1st Cons. 5s, 1939 __ __ __ 98 
 
 Port Huron 5s, 1939 _ 95 98 
 
 4s, 1920 __ _- 92 94 
 
 Toledo Div. 5s, 1937 90 96 
 
 Fla. Cent. & Renin. 1st 5s, 1918 __ __ 10214 __ 
 
 Ist Ld. Grt. 5s, 1930 __ — 1031/4 — 
 
 Cons. 5s, 1943 __ __ __ 107 
 
 Fla. East Coast Ry. 1st 41/oS, 1959 „ __ __ 951^ 
 
 Florida Lumber Prod. 68, 1917-22 __ >_ — 'lOO 
 
 Florida Southern 1st 4s, 1945 91 92 
 
 Florida West Shore 1st 5s, 1934 _> __ 90 100 
 
 Fonda, Johns. & Gl. 1st 41/2S, 1947 __ __ 91 93 
 
 Gen. 4s, 1950 >_ __ 80 
 
 1st Cons. 41/2S, 1952 89 91 
 
 Ft. Dearborn, Saf. Vlt. & Bldg. 6s, 1917 _. — _> •102 
 
 Fort Pitt Traction 1st 5s, 1935 __ -_ 102% 105 
 
 Fort Scott Gas & Elec. 1st 5s, 1922 __ __ __ ^90 
 
 Ft. Smith Light & Trac. 5s, 1936 _ 95 
 
 Fort Smith & West 1st 4s, 1954 45 55 
 
 Fort St. Union Depot Ist 41/2S, 1941 — __ ^88 
 
 Ft. Wayne & Wab. Valley 1st 5s, 1934 __ — 78 80 
 
 Ft. Wayne Bl. & M. 1st 5s, 1935 .. _. 91 94 
 
 Ft. Wayne, Van Wert & Lima Ist 5s, 1930__ 86% 89 
 
 Fort Worth & Denver City 1st 6s, 1921 ._ 108 
 
 Ft. Worth Pow. & Lt. 58, 1931 ^97 ^98 
 
 Ft. Worth & Rio Grande 1st 4s, 1928 — ' «. 74 75% 
 
 Frankford, Tacony & Hohnes. 1st 5s, 1940_._ __ ._ 95 99 
 
 Freeport Gas 1st 5s, 1932 __ __ __ ♦96 
 
 Freeport Ry., Lt. & Pr. 1st 5.^, 1922 — >_ — ^90 
 
 Fremont, Elk & Mo. Valley Ist 6s, 1933 _» _> 122 
 
 Frick (H. C.) Coke (Pit. Mon.) 1st 5s, 1915-44 — __ 4.65% Basis 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1106 
 
High Low 
 
 Fries Mfg. & Power 1st 5s, 1940 
 
 Frisco Bldg. 1st 5s, 1928 __ 
 
 Frisco Construe. 5% Equip., 1913-22 
 
 Frontier Telephone 1st 5s, 1922 
 
 Galesburg Ry. & Lt. 1st 5s, 1934 
 
 Galeton Eldron Water 1st Ss, 1926 
 
 Galveston Elec. Co. 1st 5s, 1940 
 
 Gal., Harris. & S. An. M. & P. 5s, 1931 
 
 Galveston-Houston Elec. 1st 5s, 3954 
 
 Gal., Houston & Hend. 5s, 1933 100 100 
 
 Gary & Interurban Ist 5s, 1930 
 
 Gas & Elec. of Bergen Co. Cons. 5s. 1949 
 
 Gas & Electric of Bergen Co. Gen. '5s, 1954 
 
 Gas Securities 6% Notes, 1914 
 
 Genl. Baking 1st 6s, 1936 95 95 
 
 5% Notes, 1915 
 
 General Elec. Deb. 5s, 1917 
 
 Deb. SVgS, 1942 
 
 5s, 1952 103% 103% 
 
 Gen. Gas & Elec. 5s, 1932 
 
 General Motors 6s, 1915 
 
 General Rubber Deb. 41/28, 1915 
 
 Genessee & Wyoming 1st 5s, 1929 
 
 Georgetown Gas 5s, 1961 
 
 Georgetown & Lex. Trac. 1st 5s, 1921 
 
 Georgetown, Rowley & Ip. 5s, 1920 
 
 Ga. & Alabama 1st Cons. 5s, 1945 
 
 Georgia & Ala. Term. 1st 5s, 1948 
 
 Ga. Car. & Northorn 1st 5s, 1929 
 
 Georgia Coast & Piedmont 1st 5s, 1946 
 
 1st 5s, 1962 
 
 Georgia Elec. Lt. 1st 5s, 1930 
 
 Georgia & Flor. 1st 5s, 1956 
 
 Georgia & Fla. Term. 1st 6s, 1930 
 
 Georgia Lt., P. & Rys. 5s, 1941 
 
 Georgia Mid. 1st 3s', 1946 
 
 Georgia Pac. 1st 63, 1922 
 
 Georgia R. R. & Bkg. 68, 1922 
 
 5s, 1922 
 
 4s, 1947 
 
 Georgia Ry. & Elec. 5s, 1932 
 
 58, 1949 
 
 Ga., South. & Florida 5s, 1945 
 
 German-Amer. Copper 6s 
 
 Germantown Pass. Ry 112% 
 
 Gettysburg & Har. Ry. Cons. 5s, 1926 
 
 Gila Valley G. & N. W. 1st 5s, 1924 
 
 Girard Point Storage 1st 3%s, 1940 
 
 Glencoe Lime & Cement 
 
 Glens Falls G. & El. Lt. 5s, 1919 
 
 Gordon, Ironsides & Fares 1st 6s, 1927 
 
 Goshen Coal 1st 6s, 1913-25 
 
 Goshen, So. Bend & Chic. Coll. 4s, 1932 
 
 Gottlieb, Bauerschmidt-Straus Brew. — 
 
 2nd Inc. 5s, 1951 
 
 1st 4s, 1951 481/2 48l^ 
 
 Gouverncnr & Osgchie. 1st 5s, 1942 __ __ 108 
 
 Grand Rap. & Ind. Ext. 41/38, 1941 ^^ 
 
 Muskegon Div. 5s, 1926 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1107 
 
 Bid 
 
 Asked 
 
 *89 
 
 
 
 
 
 *99 
 
 5.25% Basis 
 
 7IV2 
 
 73 
 
 __ 
 
 *92 
 
 __ 
 
 ♦100 
 
 90 
 
 95 
 
 
 
 104% 
 
 95 
 
 97 
 
 93% 
 
 95 
 
 100 
 
 
 
 98 
 
 99 
 
 — 
 
 ♦100 
 
 " 
 
 ♦97% 
 
 
 
 141 
 
 _- 
 
 82 
 
 "■" 
 
 ♦94 
 
 991/8 
 
 991/2 
 
 96% 
 
 971/2 
 
 85 
 
 88 
 
 103 
 
 
 
 *6% Basis 
 
 99 
 
 1001/2 
 
 104 
 
 104% 
 
 101 
 
 103 
 
 104 
 
 __ 
 
 *80 
 
 __ 
 
 
 
 ♦64 
 
 100 
 
 
 
 
 
 75 
 
 
 
 ♦98 
 
 
 
 871/2 
 
 631/3 
 
 64% 
 
 109% 110% 
 
 106 
 
 110 
 
 101 
 
 
 
 90 
 
 93 
 
 1011/2 
 
 102 
 
 97 
 
 98 
 
 104 
 
 
 
 — 
 
 ♦48 
 
 1031/2 
 
 1041/2 
 
 *1011/2- 
 
 •1031/4 
 
 
 ♦84 
 
 991/4 
 
 101 
 
 ♦92 
 
 
 
 
 
 100 
 
 
 
 •100 
 
 
 
 ♦52 
 
 8 10 
 
 1021/a 
 85 
 
High Low Bid Asked 
 
 Grand Rap. Belding & S. 1st 58, 1924 >_ __ __ 92 
 
 Grand Rapids Edison 1st 58, 1916 _« __ — 100 
 
 Grand Rapids Gas Light 53, 1915 __ __ ^- 101 
 
 Grand Rap., Gr. Haven & H. 1st 5s, 1926 „ __ __ 90 
 
 Grand Rap. -Muskegon Pow. 5s, 1931 __ __ *98 
 
 Grand Rapids Ry. 5s, 1916 __ __ 991/2 101 
 
 Grand River Coal & Coke 1st 6s, 1919 __ „ 96 102ya 
 
 Grand River Valley 4s, 1959 __ __ 93 
 
 Grand Trunk Ry. Equip. "A" & "B" 41/38, 1922 __ __ 4.70% Basis 
 
 Grand Trunk &*West. 1st 4s, 1950 ( £)__ „ 90 92 
 
 Grand Trunk & West. 1st 4s, 1950 ($)._ __ 91 93 
 
 Grandin Lumber 1st 6s, 1914-25 — >_ __ *100 
 
 Grayling Lumber 1st 6s, 1913-28 — __ — 100 
 
 Grays Pt. Term. 5s, 1947 — __ 98 
 
 Great Eastern Lumber 1st 6s — — — *100 
 
 Great Eastern Timber 6s, 1917 __ » __ *99i/a 
 
 Great Falls Power 1st 5s, 1940 __ __ „ 99 
 
 Great North, of Can. Con. 4s, 1934 „ __ 83 85 
 
 Gt. Northern Pow. 1st 5s, 1935 __ — — 82 
 
 Gt. Northern Ry. 41/48, 1961 ; 100 100 
 
 Great Shoshone & Twin Falls Nat. Pow. — 
 
 6% Notes, 1920-25 - '100 
 
 Great Western Power Co. 5s, 1946 — __ 8614 86% 
 
 Green Bay & Western Deb. Certs. A __ __ 78 84 
 
 Green Bay & W. Deb. Income Bonds "B" 15 15 
 
 Green Bay Gas & El. Ref. 5s, 1935 _. __ *96 
 
 Greenbrier Ry. 1st 4s, 1940 ._ __ 88 911/, 
 
 Greenville-Car. Pow. 1st 58, 1935 __ — — '95 
 
 Griswold Mfg. 1st 6s, 1927 — -_ — 'lOO 
 
 Guanajuato Pow. & Elec. 1st 68, 1932 >_ — 93 95 
 
 Guilford -Chester Water 5s, 1939 __ — 5% Basis 
 
 Gulf & Ship Island Ist & Ref. 58, 1952 __ __ 91 94 
 
 Ref. 6s, 1917 — _- — noo 
 
 Gulf, Beau. & Kan. City 1st 6s, 1913 __ „ 99l^ _. 
 
 2nd 5s, 1913 __ __ 97 
 
 Gulf Term, of Mobile 1st 4s, 1957 85 90 
 
 Hackensack Water 48, 1952 __ __ 85 
 
 Hamilton & Lindenwald 1st 58, 1922 __ __ 98I/2 100 
 
 Hamilton Cataract Pow., Lt. & Tr. 1st 5s, 1943 __ „ __ "100 
 
 Hamilton El. Lt. & Cataract Pow. 1st 5s, 1929 __ — — 102 
 
 Hamilton Gas & Elec. 5s, 1935 __ __ 62 
 
 Hammond Ilium. 5s, 1926 __ __ •9514 — 
 
 Hampton Cotton Mills 6s, 1916 — __ — 100 
 
 Hampton Roads Trac. 1st 41/28, 1931 — >_ — •Ql 
 
 Harb. -Walker Ref. 58, 1922 — __ ♦104 
 
 Hardin-Wyandot Ltg. Ist 58, 1930 __ __ ._ •92ya 
 
 Harlem Riv. & Porte. 48, 1954 _. — 951/3 96% 
 
 Harriman & N. E. 1st 6s, 1916 __ __ '96 
 
 Harris Abbatoir 1st 6s „ — — MOO 
 
 Harrisburg Gas 58, 1928 — __ — •103i/a 
 
 Harrisburg Lt., Ht. & Pr. Ist 5s, 1924 __ __ '99% _. 
 
 Harrisburg Lt. & Pr. Ist Ref. 5s, 1952 — — 93 95 
 
 Harr. Ports. Mt. J. & Lan. 1st 4s, 1913 __ >_ 99^8 — 
 
 Harrison Bros. 5s, 1924 __ __ 83 85 
 
 Hartford & Conn. West 1st 41/38, 1923 __ __ 100 
 
 Hartford, Man. & Roch. 6s, 1924 __ __ 106 
 
 Hartford & Springfield 58, 1921 __ __ 92 
 
 Hartford Street Ry. 1st 4s, 1930 „ — 99 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1108 
 
High Low Bid Asked 
 
 Harwood Elec. 1st 5s, 1939 - - 101 103 
 
 Harwood Electric 6s, 1943 r- — — lOOVs ipoi/g 
 
 Hattiesburg Trac. 6s, 1953 — — 92 _- 
 
 Havana Elec. Ry. 5s, 1953 - - -- 98 
 
 Havana Tobacco 5s, 1933 — -- 63 63ya 
 
 Hawaiian Com'l & Sugar 5s, 1919 — — lOlVs — 
 
 Hawkinsville & Fla. Sou. R. R. 5s, 1953 — — — 94 
 
 Hayes Wheel Co. 68, 1913-17 — — — *100 
 
 Hazard Mfg. 1st 5s, 1913 - - -- JOO 
 
 Hecker-Jones-Jewell 6s, 1933 — ~ lOl^A 1031/2 
 
 Hecker-Jones-Jewell Deb. 6s, 1916 — — — *98 
 
 Helena Lt. & Ry. 1st 5s, 1935 — — 89 93 
 
 Henderson Bridge 1st 6s, 1931 ~ — 105 
 
 Hercules Powder 6s, 1933 — — *97ya *99 
 
 Hereford Ry. Gen. 4s, 1930 — — 93 
 
 Hest., Manch. & Fairm. 5s, 1934 — — 103 
 
 Hilton-Dodge Lumber 1st 6s, 1914-33 — — — *100 
 
 Hoboken Ferry 5s, 1946 — — 103 
 
 Hoboken Land & Imp't 1st 5s, 1930 — — 103 105 
 
 Hocking Coal 6s, 1933 — — — *100 
 
 Hocking Valley Prod. 5s, 1961 — — 40 45 
 
 Hocking Valley Ry. — 
 
 1st Con. 41/3S, 1999 — — 991/2 101 
 
 41/3% Notes, 1913 — — *99% *99y8 
 
 HoUiston Water 1st 5s, 1930 — — — 100 
 
 Holly Mfg. 1st 5s, 1933 — — — *89y, 
 
 Holton Power 1st & Ref. 6s, 1943-49 — — 61/3% basis 
 
 Home Telephone 5s, 1933 — — 85% 86y2 
 
 Home Telephone 1st Ref. 5s, 1945 — — 791/3 791/2 
 
 Home Telephone of Hlinois 5s, 1936 __ — — *87 
 
 Home T. & T. (Los Ang.) 1st & Ref. 5s, 1945 __ __ *78i/2 *80i/8 
 
 Home Tel. & Tel. of S. D. 5s, 1934 __ „ — 631/^ 
 
 Honesdale Cons. Lt., Ht. & Pow. 1st 5s, 1938— — __ — 100 
 
 Honolulu R. T. & L. Co. 6s, 1937 __ — 106 
 
 Hoopeston Gas & Elec. Ist 5s, 1936 — — — *83 
 
 Hoosac Tunnel & Wilm. 1st 5s, 1933 __ — 80 
 
 Hoosick Falls Elec. 5s, 1930 __ __ — 100 
 
 Hoster-Col. Brew. 6s, 1940 *66l^ __ 
 
 Hoster-Columbus Brew. 6s, 1955 __ „ 65 6614 
 
 Hot Springs Water __ __ __ 99 
 
 Houghton Co. Elec. Lt. 1st 5s, 1937 __ __ __ 96 
 
 Houghton Co. Gas & Coke 5s, 1931 __ __ __ *90 
 
 Houghton Co. Street Ry. 5s, 1930 __ __ 96 981/, 
 
 Houghton Co. Trac. 1st 58, 1937 __ __ 93 94 
 
 Housatonic Power 41/33, 1914 __ __ __ 99% 
 
 Housatonic R. R. 5s, 1937 _» __ 110 
 
 Houston Belt & Term. 1st 5s, 1937 __ __ 991/2 100 
 
 Houston East & West Texas 1st 5s, 1933 __ __ 103 
 
 Houston Electric 5s, 1935 __ __ 99 100 
 
 Houston Gas 1st 5s, 1930 __ __ __ ♦lOO 
 
 Houston Lighting & Power 5s, 1931 *97i4 __ 
 
 Houston Oil 6s, 1935 __ __ __ *82 
 
 Houston & Texas Cen. 1st 5s, 1937 __ __ IO914 109% 
 
 Houston & Texas Cen. Gen'l 4s, 1931 __ __ 93 94 
 
 Houston, T. C, Waco & N. W. 6s, 1930 __ __ 114 118 
 
 Huasteca Pipe Line 6s, 1939 __ 75 80 
 
 Hudson Coal Co. 4s, 1917 __ __ 90 
 
 Hudson Companies 6s Notes, 1913 __ __ 98l^ _« 
 
 Hudson County Gas 5s, 1949 __ __ 103^^ 
 
 "Quotation nearest March 1, 1913. No quotation on that date. 
 
 1109 
 
High Low Bid Asked 
 
 Hudson & Manhattan 41/28, 1957 "64 *65 
 
 Hudson Navigation 6s, 1938 — — 90 93 
 
 Hudson River Gas & Elec. 1st 5s, 1929 — — 95 100 
 
 Huebuer-Toledo Brew. 6s, 1930 — — 69 71 
 
 Hunter Canal 6s, 1933 *90 
 
 Huntingdon & B. Top. 1st 4s, 1920 — — 91 93 
 
 Huntingdon & B. Top. 2d 4s, 1925 — — 85 
 
 Huntingdon & B. Top. Cons. 6s, 1925 — — 91 93 
 
 Huntingdon & Broad Top 1st 6s, 1922 — — 104 
 
 Huntington & Big Sandy 1st 6s, 1922 — — *104 
 
 Huron Light & Power 1st 6s, 1932 — — ~ *100 
 
 Hutchinson & Southern 1st 5s, 1928 — — 103 106 
 
 Hutchinson Water, Light & Gas 5s, 1935 __ — *80 
 
 Hutchinson Water, Light & Power 1st 48, 1928 _. — *74 
 
 Hydraulic Power 1st Ref. 5s, 1950 — — — *103i/2 
 
 Hydraulic Pressed Brick 5s, 1913-22 — — — *100 
 
 Idaho Irrigation Co. 6s, 1912-21 ~ — — *60 
 
 Idaho-Oregon Lt. & Pr. 1st Ref. 6s, 1925-40— — — 92 951/2 
 
 Idaho-Oregon Lt. & Pr. 1st Ref. 6s, 1940 — — "70 
 
 Idaho & Washington Northern 1st 5s, 1932— — ~ — 96 
 
 Illinois Athletic Club 51/38, 1926 — — — *9iy2 
 
 Illinois Central R. R. — 
 
 Cairo Bridge 4s, 1950 — — 92 94 
 
 Middle Div. 5s, 1921 — — *102 
 
 St. Louis Div. Sy^s, 1951 — — — 85 
 
 Springfield Div. 31/2S, 1951 — ~ 80 
 
 Deb. 5s, 1913 — — 100 
 
 West. Lines 4s, 1951 — ,— 94 961/2 
 
 St. Louis & Term. 3s, 1951 (Coupon) __ _. — 77 
 
 St. Louis & Term. 38, 1951 (Regular) __ — ~ 73 
 
 Deb. 41/2S, 1940 — — — 88 
 
 41/38, 1914 — — 99 99% 
 
 Equip. 41/2S, 1922 — — 4.60% basis 
 
 Equip. 41/28, 1913-23 — — 4.62% basis 
 
 Ist 4s, 1951 — — 1021A __ 
 
 1st 31/2S, 1951 -_ — 88I/2 — 
 
 Coll. 4s, 1952 _- — — 961/a 
 
 Ref. 4s, 1955 __ „ 94l^ 96 
 
 Pur. Lines 31/2S, 1952 __ ._ — 83i/a 
 
 L. N. 0. & T. 4s, 1953 „ __ 95 971/2 
 
 Litchfield Div. 3s, 1951 __ __ __ 751/3 
 
 Louis. Term. 31/2S, 1953 __ __ __ 84 
 
 Omaha Div. 3s, 1951 __ __ __ 69% 
 
 niinois Central Trac. Ist 5s, 1933 — „ *93i/2 — 
 
 Illinois Northern Util. 1st Ref. 5s, 1957 — — 931/2 95 
 
 Illinois Steel Deb. 5s, 1913 __ __ 100 
 
 Illinois Steel Deb. 41/08, 1940 __ __ __ 88 
 
 Illinois Stone 6% Notes, 1917 — __ __ *100 
 
 Illinois Valley 1st 58, 1935 __ __ 96 100 
 
 Independent Brew. 6s, 1955 __ __ 82% __ 
 
 Independent Brew. 6s, 1937 __ __ __ *44 
 
 Independent Elec. 1st 6s, 1932 __ __ *100 
 
 Indian Refining 1st 6s, 1912-21 __ __ __ *100% 
 
 Indiana, Bloomington & Western 1st 4s, 1940 __ __ *90 
 
 Indiana, Colo. & East. 5s, 1926 __ __ 88 90 
 
 Indiana Co. 1st 5s, 1950 __ 97 
 
 Indiana, Decatur & Western Ry. 5s, 1935 __ __ *102 *105 
 
 Indiana, Illinois & Iowa 1st 4s, 1950 _. __ 91 94% 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1110 
 
High Low Bid Asked 
 
 Indiana Lighting 4s, 1958 — — 68 70 
 
 Indiana & Mich. Elec. 1st 5s, 1957 — — *93 
 
 Indiana Nat. Gas & Oil 5s, 1936 ~ — — 89^8 
 
 Indiana Nor. 1st 5s, 1933 — — 78 80 
 
 Indiana Rya. & Lt. 1st & Ref. 5s, 1943 — — — 94 
 
 Indiana Steel 5s, 1952 lOOi/g lOOi/g 
 
 Indiana Union Trac. 1st 5s, 1933 — — 83 84 
 
 Indiana Union Trac. Ist 4y2S, 1926 — — 90 100 
 
 Indianapolis Canal Club Prop. 1st 6s, 1917-23 — — *5%% basis 
 
 Indpls. Dec. & West. 5s, 1935 — — 102 105 
 
 Indpls. Dec. & West. guar. 5s, 1935 __ — 100 105 
 
 Indianapolis & Eastern 5s, 1927 — — 102 103 
 
 Indpls. Gas 1st Cons. 5s, 1952 — — 87 90 
 
 Indianapolis & Green. Rap. T. 1st 5s, 1929 — — — 101 
 
 Indpls. Lt. & Heat, Cons. 5s, 1940 __ — 991/2 __ 
 
 Indianapolis Light & Pr. 1st Os, 1922 — — "lOl^ ~ 
 
 Indianapolis & Louisville 1st 4s, 1956 — — — 84 
 
 Indianapolis & Martinsville R. T. 1st 5s, 1932 „ __ 91 97 
 
 Indianapolis Northern Ry. 5s, 1932 __ — 82 84 
 
 Indianapolis & Northwest. Tr. 1st 5s, 1923 __ __ 92 94 
 
 Indianapolis & St. Louis 1st 7s, 1919 — — 110 
 
 Indpls. Shelbyv. & Southeast 5s, 1919 >_ __ __ *100 
 
 Indpls. Shelbyv. & Southeast 1st 5s, 1932 __ __ 94 101 
 
 Indianapolis & Southeast. Trac. 1st 5s, 1935. __ — 82% 87 
 
 Indianapolis Street Ry. 4s, 1933 __ __ 82% 84 
 
 Indpls. Trac. & Term. 1st 5s, 1933 981/2 100 
 
 Indianapolis Union Ry. 41/28, 1926 «_ __ *96 *100 
 
 Indianapolis Water 5s, 1926 __ __ 100 100% 
 
 Indianapolis Water 1st Ref. 41/3S, 1940 __ __ 9I1/2 931/3 
 
 Indianapolis Water Works Secur. 6s, 1948 __ __ -_ *100y2 
 
 Ingersoll-Rand 5s, 1935 __ __ 100 
 
 Inland Steel 1st 6s, 1911-28 __ __ __ 'loe 
 
 Inland Steel Ext. & Ref. 6s, 1942 _. __ __ *102i/2 
 
 Inspiration Cons. Copper 1st 6«, 1922 100 103 
 
 Inst, for Encouragement of Irr. Wks. & Dev. 
 
 of Agric. 41/2S, 1943 .. __ __ 95 
 
 Insurance Exch. Bldg. 5s, 1925 *99% 
 
 Insurance Exch. Bldg. 2nd 6s, 1915 __ — __ *95% 
 
 Interborough-Met. Col. Trust 41/2S, 1956 79% 791/2 
 
 Interborough Rap. Tran. 5s, 1952 __ __ 103% 103l^ 
 
 Interborough Rap. Tr. 1st & Ref. 5s, 1956 __ — __ IO3V2 
 
 Intermtn. Ry., Lt. & P. 1st 6s, 1942 __ -_ _- 97y2 
 
 Int'l. Agric. Corp. Coll. 5s, 1952 __ » 93 95 
 
 Intemt'l. & Gt. Northern 1st 6s, 1919 __ __ 106% 107 
 
 Internt'l. & Gt. Northern 6% Notes, 1914 _- __ 98l^ 98% 
 
 Int'l. Harvester 5% Notes, 1915 __ _« 100 100% 
 
 Inter. Merc. Marine 41/2S, 1922 ._ __ 63V2 64 
 
 Inter. Navigation 58, 1929 __ 791^^ 
 
 Int'l. Paper 6s, 1918 __ __ 103% 104 
 
 Int'l. Paper Conv. 5s, 1935 ._ >_ 88I/2 89 
 
 Internat. Ry. ref. & imp. 5s, 1962 __ 971A 
 
 Int'l. Salt 5s, 1951 __ __ 61 53 
 
 Int'l. Silver 6s, 1948 __ __ no 
 
 Int'l. Steam Pump 5s, 1929 __ __ 84l^ 89 
 
 Int'l. Traction 4s, 1949 69 69V2 
 
 Interstate Indep. Tel. & Tel. 5s, 1927 __ __ >_ ♦57 
 
 Interstate Rys. 4s, 1943 __ __ 59 60 
 
 Interstate Telep. 1st 5s, 1921 __ _« *46 •48 
 
 Intenirban Ry. (Des Moines) 1st 5s, 1921 __ «» _« •95 
 
 •Quotation nearest March 1, 1913. No quotation on that date, ; 
 
 1111 
 
High Low Bid Asked 
 
 Intenirban Ry. & Term. 58, 1928 
 
 Intenirban Ry. & Term. 1st 5s, 1943 
 
 Iowa Central 1st 5s, 1938 
 
 Iowa Central 1st & Ref. 4s, 1951 
 
 Iowa Falls & S. C. 1st 7s, 1917 
 
 Iowa., Minn. & N. W. 1st SVgS, 1935 
 
 Iowa-Nebraska Public Serv. 1st 6s, 1931 
 
 Iowa Ry. & Lt. 1st & Ref. 5s, 1933 
 
 Iron Mtn. Lt. & Fuel 58, 1937 
 
 Iroquois Iron deb. 6s, 1917 
 
 Ithaca- Cortland Trac. 5s 
 
 Jackson & Battle Cr. 5s, 1923 
 
 Jackson Cons. Trac. 5s, 1934 
 
 Jackson Gas 5s, 1937 
 
 Jack., Lans. & Sag. 1st 31/38, 1951 
 
 Jackson Lt. & Trac. 1st 58, 1922 
 
 Jacksonville Electric 5s, 1927 
 
 Jacksonville Ferry & Land 1st 6s, 1937 
 
 Jacksonville Gas 1st 5s, 1942 
 
 Jacksonville Gas deb. 68, 1922 
 
 Jacksonville Ry. & Lt. 1st 5s, 1931 
 
 Jacksonville Term. 1st 5s, 1939 
 
 Jacksonville Trac. 1st 5s, 1931 
 
 Jamaica & B'klyn 1st 5s, 1930 
 
 Jamaica Water Supply Ist 5s, 1928 
 
 Jamaica Water Supply 5s, 1954 
 
 Jamestown Fr. & Clearfield 1st 43, 1959 
 
 Jamestown St. Ry. 1st 68, 1923 
 
 Jamison Coal & Coke 1st 58, 1930 
 
 Jamison Coal & Coke 1st 5s, 1931 
 
 Jeff. City L., H. & P. Ist 5s, 1925 
 
 Jeff. & Clearf. Coal & Iron 2nd 5s, 1926 
 
 Jeff. & Clearf. Coal & Iron 5s, 1926 
 
 Jefferson R. R. 5s, 1919 
 
 Jenkintown & Cheltenham Gas Ist & ref. 
 
 5s, 1933 
 
 Jersey Central Trac. 1st 5s, 1931 
 
 Jersey Central Trac. Ref. 5s, 1954 
 
 Jersey City, Hob. & Paterson 4s, 1949 
 
 Jewett City Water 1st 5s, 1915 
 
 Johnson Co. (Pa.) 1st 6s, 1914 
 
 Johnstown (Pa.) Pass. Ry. Ref. 4s, 1931 
 
 Joliet, Economy Lt. & Water 5s, 1956 
 
 Joliet & North. Ind. 1st 4s, 1957 
 
 Jones & Laughlin Steel 5s, 1939 
 
 Joplin Home Telep. Cons. 5s, 1925 
 
 Joplin «& Pittsburgh 1st Ss, 1930 
 
 Joplin Union Station 1st 41/28, 1940 
 
 Kal. Allegan & G. R. 1st 5s, 1938 
 
 Kalamazoo & White Pigeon 5s, 1940 
 
 Kaministiquia Pow. 1st 58, 1937 
 
 Kanawha & Michigan 4s, 1990 
 
 Kanawha & Hock. Coal & Coke 5s, 1951 
 
 Kanawha & Michigan 2nd 5s, 1927 
 
 Kana. & Mich. Eq. 41/38, 1913 
 
 Kana. & Mich., St. Mary's Div. 4s, 1951 
 
 Kanawha & W. Va. 1st 5s, 1955 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1112 
 
 
 
 100 
 
 
 100 
 
 97% 
 
 98 
 
 59 
 
 60 
 
 1071/2 
 
 109 
 
 86 
 
 
 
 *90 
 
 *99 
 
 951/2 
 
 971/2 
 
 
 99 
 
 
 
 *98%, 
 
 ~ 
 
 *75 
 
 98 
 
 100 
 
 96 
 
 100 
 
 97 
 
 100 
 
 85 
 
 87 
 
 94 
 
 97 
 
 97 
 
 99 
 
 
 
 *10 
 
 94 
 
 96 
 
 1 
 
 100 
 
 
 
 93 
 
 95 
 
 
 
 951/2 
 
 971/2 
 
 100 
 
 __ 
 
 *94i/2 
 
 
 
 
 *95 
 
 
 
 93 
 
 103 
 
 __ 
 
 
 
 ♦93 
 
 ■• 
 
 *100 
 
 951/4 
 
 99 
 
 95 
 
 __ 
 
 101 
 
 __ 
 
 100 
 
 — 
 
 •991/2 
 
 
 96 
 
 100 
 
 85 
 
 92 
 
 80 
 
 8O1/2 
 
 5% basis 
 
 1031/2 
 
 
 
 85 
 
 88 
 
 ^ 
 
 •^100 
 
 85 
 
 88 
 
 1001/4 
 
 10034 
 
 86 
 
 
 96 
 
 98 
 
 90 
 
 — 
 
 104 
 
 
 113 ' 
 
 •1151/2 
 
 
 
 104 
 
 911/2 
 
 
 
 951/2 
 
 97y4 
 
 971/2 
 
 98y2 
 
 51/4% 
 
 4%% 
 
 87 
 
 90 
 
 — 
 
 87% 
 
High Low Bid Asked 
 
 Kankakee Gas & Elee. 1st ref. os, 1930 — — 961/2 98ya 
 
 Kankakee & S. W. 5s, 1921 .- — — 101 
 
 Kan. City Belt Ut 6s, 1916 — — IO31/2 104^4 
 
 Kan. City Brew. 6s, 1930 *75 
 
 Kan. City. Clin. & Springf. 5s, 1925 — — 92 96 
 
 Kansas City Elev. By. 4s, 1922 — — 75 80 
 
 Kansas City Elev. By. 6s, 1922 — — 102 
 
 Kan. City, Ft. S. & Memp. Cons. 6s, 1928 __ — lHVg 1121/2 
 
 Kan. City, Ft. S. & Memp. Ref. 48, 1936 — — 76 77 
 
 Kan. City, Fort S. & Memp. Eq. 41/2S, 1915 — — — 99^/8 
 
 Kan. City Gas 1st 53, 1922 — — — 94 
 
 Kansas City Home Teleph. 5s, 1923 — — 921/2 931/2 
 
 Kansas City Home Teleph. 5s, 1923 — — 921/2 93i/g 
 
 Kansas City Long Dist. Tel. 5s, 1925 — — 90% 92 
 
 Kan. City, Mem. & Birm. 4s, 1934 — — — 93 
 
 Kan. City, Mem. & Birm. Inc. 5s, 1934 „ __ — 83 
 
 Kan. City & Mem. By. & Bridge 1st 5s, 1929__ — _. — IOI14 
 
 Kan. City, Mex. & Orient 1st 4s, 1951 — — 25 33 
 
 Kan. City & N. W. Ist 5s, 1933 — — 96 100 
 
 Kansas City & Pacific 1st 4s, 1990 — — 86 
 
 Kansas City By. & Lt. 5s, 1913 __ — 89 90 
 
 Kansas City By. & Lt. 6s Notes, 1912 — __ 831/3 911/2 
 
 Kansas City, Southern By. — 
 
 Bef. 5s, 1950 971/2 971/2 
 
 Equip. "D" 5s, 1913-24 __ _. — 100 
 
 1st 3s, 1950 — -_ — 71% 
 
 1st 3s, 1950 -- — — 71% 
 
 Kansas City Stk. Yds. conv. 5s, 1913 __ — *99i/2*100 
 
 Kan. City Terminal 1st 4s, 1960 __ __ 93% 94 
 
 K. C. Viad. & Term. 41/28,1934 . __ __ 44 50 
 
 Kansas City- Western 1st 5s, 1925 __ __ 82 85 
 
 Kansas City & Westport Belt 5s, 1926 __ __ 90 91 
 
 Kansas & Colo. Pac. Ist ref. 6s, 1938 __ __ __ *105i4 
 
 Kan. Gas & Elec. 1st 5s, 1922 __ __ 95 98 
 
 Kansas & Missouri 1st 5s, 1961 __ __ 86 93 
 
 Kansas Natural Gas 6s, 1916 __ __ 93 98 
 
 Kansas Natural Gas 2nd 6s, 1918 __ __ 65 70 
 
 Karpen Bldg. (Chic.) 1st 5s, 1913-25 __ __ __ *99i/2 
 
 Keene Gas & El. 1st 5s, 1935 __ __ __ 102 
 
 Kennebunk El. Lt. 1st 5s, 1930 __ _. __ 100 
 
 Kentucky Central 4s, 1987 __ __ 90% 91 
 
 Kentucky Elec. 1st 5s, 1926 __ _« ._ *98 
 
 Kent. Pub. Serv. 1st & Bef. 6s, 1922 __ __ __ 100 
 
 Kentucky Solvay Coke 1st 6s, 1915-20 __ __ __ *100 
 
 Kentucky Trac. & Term. 1st 5s, 1951 __ __ 89 94 
 
 Keokee Consol. Coke 1st Bef. 5s, 1959 __ __ *84 
 
 Keokuk & Des Moines 1st 5s, 1923 __ _> 97 100 
 
 Key West Elec. 1st 5s, 1956 __ __ *5.60% basis 
 
 Key West Gas 1st 63, 1931 __ __ __ 96 
 
 Keystone Coal & Coke 1st 6s, 1912-31 __ __ __ *102% 
 
 Keystone Telep. 1st 53, 1935 __ __ 391/2 90 
 
 Kings Co. El. Lt. & P. 1st 5s, 1937 __ __ __ 103i/a 
 
 Kings Co. E. L. & P. Pur. M. 6s, 1997 __ __ 1121/4 114% 
 
 Kings Co. E. L. & P. Conv. 6s, 1925 __ __ 120 123 
 
 Kings Co. E. L. & P. Deb. 6s, 1922 __ __ 120 123 
 
 Kings Co. Elevated 1st 4s, 1949 __ __ 83l^ __ 
 
 Kings Co. Gas & Hlum. 1st 58, 1940 __ __ 95 100 
 
 Kings Co. Ltg. 1st Ref. 5s, 1954 __ __ 98 100 
 
 Kingston Gas & Elec. 1st 58, 1952 __ __ __ 96i/J 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1113 
 
High Low 
 
 Kinloch Long Dist. Tel. 1st Ss, 1929 
 
 Kinloch Telephone 6s, 1928 
 
 Kirby Lumber 6% cert., 1914-16 
 
 Kirby Lumber 6% cert., 1923 
 
 Klots Throwing 1st 6s, 1939 .__- 
 
 Kneeland-McLurg Lumber 1st 6s, 1923 
 
 Knickerbocker Ice 1st 5s, 1941 
 
 Knickerbocker Ice 1st 5s, 1928 
 
 Knox. & Cine, lat 4s, 1920 
 
 Knoxville Gas 1st 5s, 1933 
 
 Knoxville & Ohio 1st 63, 1925 
 
 Knoxville Ry. & Lt. 5s, 1945 *100% „ 
 
 Knoxville Ry. & Lt. 5s, 1946 
 
 Knoxville Trac. 5s, 1938 
 
 Kokomo Marion & W. Trac. 1st 5s, 1933 
 
 La Belle Iron Works 68, 1923 
 
 Lackawanna Coal & Lumber cons. 6s, 1961 
 
 Lackawanna Steel 5s, 1915 
 
 Lackawanna Steel 5s, 1923 
 
 Lackawanna Steel 5s, 1950 
 
 Lackawanna Tel Ist 5s, 1930 
 
 Lackawanna & Wyo. Val R .T. 58, 1951 
 
 Laclede Gas Lt. 1st 5s, 1919 
 
 Laclede Gas Lt. Ref. & Ex. 53, 1934 
 
 La Crosse Gas & Elec. 5s, 1921 
 
 La Crosse G. & E. ref. 51/28, 1931 
 
 Lafayette & Logansport Ist 5s, 1936 
 
 Lake Erie & Det. Riv. 1st 41/2S, 1932 
 
 Lake Erie & West'n 1st 5s, 1937 
 
 Lake Erie & West'n 2nd 5s, 1941 
 
 Lake Gas (Chic.) 1st 6s, 1915 
 
 Lake Roland Elev. 1st 5s, 1942 107 107 
 
 Lake Shore Elec. Cons. 5s, 1923 *9434 __ 
 
 Lake Shore Elec. Gen. 5s, 1933 __ __ 83 83% 
 
 Lake Shore & Michigan Southern Ry. — 
 
 31/38, 1997 
 
 Deb. 4s, 1928 91 91 
 
 4s, 1931 91 90% 
 
 Coll. Tr. 31/38, 1998 
 
 Lake St. Elevated 1st 5s, 1928 
 
 Lake Superior Corp. 5s, 1924 
 
 Lake Superior Corp. Coll. 5s, 1944 
 
 Lake Tahoe Ry. & T. Co. 5s, 1931 
 
 Lansing Fuel & Gas 5s, 1921 
 
 La Porte & Mich. City Trac. 1st 5s, 1930 
 
 Laramie, H. P. & Pac. ref. 6s, 1932 
 
 La Salle Hotel 6s, 1915-25 
 
 Latrobe-Connels. Coal & Coke 1st 6s, 1931— 
 
 Latrobe Water gen. 5s, 1932 
 
 Laurentide Paper 1st 68, 1920__ 
 
 Leadville Lt. & Pow. 1st 6s, 1924 
 
 Leavenw. Lt. H. & P. 1st 5s, 1923 
 
 Leavenw. Term. Ry. & Edge. 1st 5s, 1923 
 
 Leggett (F. H.) Co. 1st 6s, 1922 
 
 Lehigh Coal & Navig. 41/3S, 1921 
 
 Lehigh Coal & Navig. 41/2S, 1914 
 
 Lehigh Coal & Navig. R. R. 4s, 1914 
 
 Lehigh Coal & Navig. Ext. 4s, 1914 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1114 
 
 Bid 
 
 Asked 
 
 911/4 
 
 913/4 
 
 1041/2 
 
 1051/2 
 
 •991/4 
 
 
 
 
 
 981/2 
 
 98 
 
 100 
 
 __ 
 
 ♦100 
 
 85 
 
 87 
 
 •843/4 
 
 
 
 94 
 
 
 
 90 
 
 95 
 
 113 
 
 1131/2 
 
 911/2 
 
 
 104 
 
 105% 
 
 97 
 
 100 
 
 1021/2 
 
 1031/2 
 
 __ 
 
 •66 
 
 94 
 
 95 
 
 93 
 
 97 
 
 75 
 
 781/2 
 
 70 
 
 80 
 
 85 
 
 90 
 
 102 
 
 10234 
 
 100 
 
 1011/2 
 
 
 
 100 
 
 
 
 •971/2 
 
 •84 
 
 
 
 85 
 
 92 
 
 
 
 104 
 
 
 
 1031/2 
 
 — '' 
 
 *102i/2 
 
 ~ 
 
 88I/2 
 
 771/4 
 
 773/4 
 88 
 
 741/4 
 90 
 
 741/2 
 95 
 
 
 
 97 
 
 96 
 
 97 
 
 •86I/2 
 
 •70 
 
 •991/2 
 100 
 
 101 
 
 971/2 
 
 100 
 107 
 
 __ 
 
 •80 
 
 92 
 
 96 
 
 80 
 
 
 
 •99 
 
 __ 
 
 102 
 
 
 
 100 
 
 
 
 971/2 
 97 
 
 ~ 
 
High LfOW Bid Asked 
 
 Lehigh Coal & Navig. Gen. 41/28, 1924 — — 103 :.- 
 
 Lehigh Coal & Navig. 4s, 1948 ^ - - 96 .- 
 
 LehiSh Coal & Navig. Coll. Tr. 41/33, 1930 — - - 103 102% 
 
 Lehigh & Hud. River 2nd 5s, 1917 — — 100 
 
 Lehigh & Hud. Riv. Gen. 5s, 1920 — — 102 
 
 Lehigh & Lake Erie 1st 41/28, 1957 — — 100 105 
 
 Lehigh & New Eng. 1st 5s, 1945 — — IO41/2 IO6I/2 
 
 Lehigh & N. Y. 1st 4s, 1945 ~ — — 94 
 
 Leh. Val. Coal 5s, 1933 IO51/2 IO51/2 
 
 Leh. Val. Coal 4s, 1933 — — 94 96 
 
 Lehigh Valley of N. Y. 1st 41/2S, 1940 — — 101 i/a 1033/^ 
 
 Lehigh Valley R. R.— 
 
 1st Ex. 4s, 1948 - - 101 103 
 
 Col. T. 4s, 1926 — ~ 4.50% 4.30% 
 
 Irredeemable 41/2S, — — *111 *lliy3 
 
 Irredeemable 6s — — — *144 
 
 Cox Bros, serial 4s, 1926 — — *4i/2% basis 
 
 Cons. 6s, 1923 — — 114 
 
 41/2S, 1923 — — — 103% 
 
 4s, 2003 - - 951/2 95% 
 
 Term. Ry. 5s, 1941 — — HOVs — 
 
 Lehigh Valley Term. 1st 5s, 1941 — — •I10i/8*112 
 
 Lehigh Valley Transit 1st 5s, 1935 — — 102^/8 1031/3 
 
 Lehigh Valley Transit 1st 4s, 1935 — — 871/2 88 
 
 Lehigh Valley Transit Cons. 4s, 1935 __ — 76 79 
 
 Lehigh Valley Transit Ref. 5s, 1960 _- — 901/2 93 
 
 Lehigh & Wilkesb. Coal Con. 4s, 1915-35 — __ 4.40% 414% 
 
 Lenawee Co., Gas & Elee. 51/2S, 1927 — — — *100 
 
 Leominster, Shirley & Ayer St. Ry. 1st 
 
 5s, 1921 — — — 102 
 
 LeRoy & Caney Valley A. L. 1st 5s, 1926 — — *98 
 
 Lewiston & Auburn Elec. 1st 5s, 1939 __ -_ *97 
 
 Lewiston, Augusta & Waterville St. Ry. 5% 
 
 Notes, 1913 _- — — *100 
 
 Lexington & Boston St. Ry. 1st 41/2S, 1920 — — — 96 
 
 Lewiston, Bruns. & Bath 1st 5s, 1918 __ __ 95 100 
 
 Lex. Ave. & Pav. Ferry 5s, 1993 — — 100 
 
 Lewiston & Clarkston Imp't. 6s, 1925 __ „ __ *93% 
 
 Lexing. Hydr. & Mfg. 1st 5s, 1936 __ __ — 96 
 
 Lexington Ry. 1st 5s, 1949 __ __ 94 95 
 
 Liggett & Myers Tob. 7s, 1944 __ __ 121 121% 
 
 Liggett & Myers Tob. 5s, 1951 __ ._ 981/2 99 
 
 Lima Electric 1st 5s, 1916 __ __ 98 100 
 
 Lima Electric 2nd Cons. 5s, 1925 __ __ 96 97l^ 
 
 Lima Locomotive 1st 63, 1932 __ 98 101 
 
 Lincoln Gas & El. Lt. 1st 5s, 1941 __ __ 85 90 
 
 Lincoln Telephone 6s, 1923 ,- __ __ *95i/2*100 
 
 Lindell Ry. 1st 41/2S, 1921 __ _. 97% _- 
 
 Lindsay Water 1st 5s, 1919 __ __ *80 
 
 Litchfield & Mad. 1st 5s, 1934 __ __ 87 95 
 
 Little Miami 5s, 1962 __ __ 96% 97 
 
 Little Rock Bridge Ist 6s, 1919 __ ._ __ *105 
 
 Little Rock Gas & Elec. Ref. 6s, 1937 — „ »_ *100 
 
 Little Rock & Hot Spgs. West. 1st 4s, 1939__ __ __ 82% ~ 
 
 Little Rock, June. 1st 6s, 1916 __ __ 99 
 
 Little Rock Ry. & Elec. 5s, 1933 __ __ __ 105l^ 
 
 Little Rock Ry. & Elec. 6s, 1938 *107i/4 — 
 
 Lockport & Olcott Ist 5s, 1920 __ __ __ 97 
 
 Lockport Gas & Elec. 1st 5s, 1920 -. >_ 96 100 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1115 
 
High Low Bid Asked 
 
 Lockport Lt., H. & P. Ist 6s, 1938 - - 91 95 
 
 Locomobile Co. of Amer. 1st 6s, 1922 — — — *99 
 
 Locomotive Machine Co. 1st 4s, 1924 __ __ *86 
 
 London & Jefferson Bridge gtd. 4s, 1945 — — SS^^ — 
 
 Lone Star Gas 1st 6s, 1919 — — — 97 
 
 Long Beach Co. 1st 68, 1935 — — •1221/2 _- 
 
 Long Beach Cons. Gas. 6s, 1935 — — 10054 __ 
 
 Long Beach (Estates of) 6s, 1917 — — — *76 
 
 Long Bell Lumber Ist ref. 6s, 1911-22 — — *99 
 
 Long Dock Co. Cons. 6s, 1935 — — 122% ~ 
 
 Long Island C. & F. Con. 5s, 1937 — — 101 
 
 Long Isld. Ltg. Ist 5s, 1936 — — 931/2 95 
 
 Long Island R. R. — 
 
 Unified 4s, 1949 — — 89 90 
 
 2nd 7s, 1918 — — 108 
 
 Deb. 5s, 1934 — — — 103 
 
 Montauk Ex. 5s, 1945 — — 101 
 
 North Shore Br. 1st 5s, 1932 __ — 103 
 
 1st Con. 5s, 1931 — — — 110 
 
 1st Con. 4s, 1931 _> __ 90 
 
 Gen'l. 4s, 1938 - _- — 91% — 
 
 Ferry 41/38, 1922 — — __ 100 
 
 R. R. 4s, 1932 89 90 
 
 Ref. 4s, 1949 „ __ 94% 951/2 
 
 Lorain & Cleve. Ry. 5s, 1927 "99% __ 
 
 Lorain St. Ry. cons. 5s, 1949 __ __ __ *95 ' 
 
 Lorillard Co. (P.) 7s, 1944 __ -_ 120% 1211/, 
 
 Lorillard Co. (P.) 5s, 1951 __ __ 981/2 99 
 
 Los Angeles Elec. 5s, 1928 .._ __ 100 
 
 Los Angeles Gas & Elec. 5s, 1934 _. __ 99% __ 
 
 Los Ang. Gas & El. 1st & ReL 58, 1939 __ __ 971/2 981/, 
 
 Los Angeles Light'g G'd. 5s, 1924 __ __ 100 
 
 L. A. Pac. R. R. 1st Con. Mtg. 5s, 1931 __ __ IO31/2 104 
 
 Los Angeles Pacific 1st 4s, 1950 __ __ 84 86% 
 
 Los Ang. Pac. R. R. of Cal. 5s, 1943 __ __ 99 
 
 L. A. Pac. R. R. of Cal. 5s, 1946 __ __ 99 
 
 Los Angeles & Pasadena Elec. Ry. 1st 5s, 1928 __ __ *102 *104 
 
 Los Angeles Ry. 5s, 1938 __ __ 105 
 
 Los Angeles Ry. 5s, 1940 __ __ 96l^ __ 
 
 Los Angeles Traction 5s, 1938 106 
 
 Louisiana & Arkansas 1st Ss, 1927 __ __ 93 941/3 
 
 Louisiana Western 1st 6s, 1921 __ 106 
 
 Louisville Lighting 1st 5s, 1953 __ __ *92% 
 
 Louis., Cine. & Lex. 41/38, 1931 __ __ 102 104 
 
 Louisv., Henderson & St. L. 1st 58, 1946 __ __ 106 107 
 
 Louisville Home Teleph. 1st 5s, 1922 __ __ 89Vi 
 
 Louisville & Jeff. Bridge 4s, 1945 __ __ 85% 
 
 Louisville & Nashville R. R, — 
 
 Atl., Knox & Cine. 4s, 1955 92 92 
 
 Mob. & Montg'y. 41/2S, 1945 __ __ 102% 103% 
 
 South Mon. Jt. 4s, 1952 __ 89% 
 
 Pens. & Atl. 1st 6s, 1921 __ __ loo 
 
 St. Louis Prop. 1st 5s, 1916 *98 
 
 St. L. S. E. 6s, 1921 ._ „ •log •112% 
 
 Genl. 6s, 1930 112 
 
 Genl. 5s, 1937 __ __ m ~~ 
 
 Unified 4s, 1940 96% 971/, 
 
 Col. Tr. 5s, 1931 . loes/I 
 
 E. H. & Nash. 1st 6s, 1919 110% 1111/ 
 
 N. O. & Mobile Ist 6s, 1930 II7 120U 
 
 N. 0. & Mobile 2nd 6i, 1930 _ 114^ 
 
 1116 
 
High Low Bid Asked 
 
 Pad. & Memp. Div. 6s, 1920 — — 105% __ 
 
 Pad. & Memp. Div. 4s, 1946 — — *90 
 
 St. Louis 1st 6s, 1921 — — ~ H^Vg 
 
 St. Louis 2nd 3s, 1980 — — — WVa 
 
 Louisv. & Nor. Ry. & Ltg. 1st 5s, 1925 — — — 75 
 
 Louisville Ry. Cons. 6s, 1930 — — .104% IO51/3 
 
 Louisville Ry. 2nd 4y3S, 1940 — — 95% 96% 
 
 Louisville Ry. Genl. 5s, 1950 — — IOO3/4 101 
 
 Louisville & South Ind. Trac. 1st 5s, 1923—— — — — *65 
 
 Louisville Water 4s, 1946 — — 100 102 
 
 Louisville Water 4s, 1950 — ~ 100 102 
 
 Lowell Elec. Light. 1st 5s, 1914 — — 100 
 
 Lowell Law. & Hav. 1st 5s, 1923 — — 102 105 
 
 Luzerne Co. Gas & El. 1st Ref. & Imp. 5s, 1948 — __ 971/2 99 
 
 Lynch. Trac. & Lt. Cons. 5s, 1931 — — — 95 
 
 Lynch. Trac. & Lt. 1st 5s, 1931 — — — 97 
 
 Lynn & Boston 1st 5s, 1924 — — 102 104 
 
 Lynn & Boston 6% Notes, 1917 — — — *104% 
 
 Macon, Dublin & Sav. 1st 58, 1947 — — 98 991/3 
 
 Macon Ry. & Lt. 1st Cons. 5s, 1953 __ — — 99 
 
 Madison Gas & El. 1st 6s, 1926 — — 103 109 
 
 Madison Interurban Trac. 1st 5s, 1931 — — — *97 
 
 Madison River Pr. 1st 5s, 1935 — — 95 97i/a 
 
 Mahoning & Shenaugo Ry. & L. 1st 5s, 1916— __ — 971/2 98 
 
 Mahoning Coal R. R. l»t 5t, 1934 __ — 109 lioy, 
 
 Maine Central R. R. 
 
 Col. 5s, 1923 — — 103 
 
 "A" 41/2S, 1916 ~ — — *99i/s 
 
 «B" 41/2S, 1917 — — — *100 
 
 4% Notes, 1914 — — — 99 
 
 Maine & New Brims. El. Pow. 6% perp. deb— __ — — 104 
 
 Mallory S. S. 1st 5s, 1932 „ __ 84 88 
 
 Manchester & Law. 4s, 1922 — — — 98% 
 
 Manchester (N. H.) Tr. L. & P. 1st, 5s, 1921 — — 100 
 
 Mangum Elec. 1st 5s, 1946 __ — — *93 
 
 Manhattan Ry. Cons. 4s, 1990 — __ 93% 95 
 
 Manila Elec. 5s, 1953 __ __ 96 971/2 
 
 Manilla R. R. (South Lines) 1st 4s, 1936 — ._ __ *86 
 
 Manilla Suburban Rys. 1st 5s, 1946 — — 85 871/2 
 
 Manistee & N. E. 1st 5s, 1912-39 __ __ *85i/3 „ 
 
 Manitoba & Southeastern, lat 4s, 1929 ( £)— __ __ 981/2 100 
 
 Manitoba S. W. Colonization 5s, 1934 __ __ 101 
 
 Manitowoc, Gr. Bay & West 1st SVgS, 1941 __ __ 841/2 __ 
 
 Mankato Gas & Elec. Lt. 1st 5s, 1920 __ __ 96 IO21/2 
 
 Mankato Gas & Elec. Lt. Cons. & Ref. 5s, 1935 __ __ __ 100 
 
 Manufacturers Co. 5% Notes, 1916 __ __ __ *98% 
 
 Manufacturers Lt. & Ht. 1st 6s, 1915 __ __ *102 
 
 Manufacturers Water 1st 5s, 1939 __ __ 102% 
 
 Marietta Elec. 6s, 1917 __ — __ ♦103 
 
 Marin Water & Power 5s 99% 
 
 Market St. El. Pass. Ry. 4s, 1955 __ __ 96% 96% 
 
 Mkt. St. Ry. 1st Con. Mtg. 5s, 1924 __ __ _. 93 
 
 Marquette Co. G. & E. 1st 6s, 1930 __ __ __ *100 
 
 Marq. Houghton & Ont. 6s, 1925 __ __ 111 113% 
 
 Marshfield & So. East. 1st 4s, 1951 __ _> 87 90 
 
 Maryland Coal & Coke 6% Notes, 1915 __ __ __ *98% 
 
 Maryland, Del. & Va. 5s, 1955 __ __ 95 98 
 
 Maryland Electric Rys. 1st 5s, 1931 97% 97% 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1117 
 
High Low 
 Maryland & Pa. 1st 4s, 1951 
 
 Income, 4s, 1951 
 
 Maryland Steel 1st 5s, 1922 
 
 Mason City & Clear Lake Trae. Ref. 68, 1932 
 
 Mason City & Ft. Dodge 1st 4s, 1955 
 
 Masonic Hall & Asylum Fund Trustees of 
 
 N. Y 
 
 Mass. Co. Coll. 5s, 1937 
 
 Mass. Elec. 41/2% Notes, 1913 
 
 Mass. Gas 41/2S, 1929 
 
 Mass. Gas 41/28, 1931 
 
 McGregor & Mclntyre, Ltd., 6s, 1927 
 
 McKeesp. & Belle V. 1st 6s, 1918 
 
 McM., M., W. & Al. 1st 6s, 1917 
 
 Meadow Brook Water 1st 5s, 1947 
 
 Mechanical Rubber 6s, 1918 
 
 Memphis Lt. & Pr. Ref. 5s, 1931 
 
 Memphis St. Ry. 5s, 1945 
 
 Memphis Union Station Col. Notes 5s, 1913 — 
 
 Merchants Bridge 6s, 1919 
 
 Merch. Despatch Transp. Equip. 41/285 1913-26 
 
 Merch. Elec. Lt. & Pw. 5s, 1929 *97y3 — 
 
 Merchants Heat & Lt. Ref. 5s, 1922 
 
 Merchants Power (Mem.) 1st 5s, 1940 
 
 Merchants Refrigerating 1st 6s, 1917-31 
 
 Meriden Horse R. R. Genl. 5s, 1924 
 
 Meriden Terminal 1st 4s, 1955 
 
 Meridian Lt. & Ry. 58, 1944 
 
 Merion & Radnor Gas & Elec. 1st 5s, 1954 
 
 Metropolitan Corrigan 5s, 1916 
 
 Metropolitan Elec. Ist 5s, 1939 
 
 Metropolitan Elevated 1st 4s, 1938 
 
 Metropolitan Gas 1st 5s, 1941 
 
 Metropolitan R. R. 5s, 1925 
 
 Metropolitan St. Ry. Ref. 4s, 2002 
 
 Metropolitan Street Ry. 5s, 1913 
 
 Metrop'n Tel. & Tel. 5s, 1918 
 
 Met. West Side Eler. 1st 4s, 1938 
 
 Met. West Side 'ev. Ext. 4s, 1938 
 
 Mexican Cent. Eq. & Col. 5s, 1917 
 
 Mexican Cent. 2nd Ser. 5s, 1919 
 
 Mexican Coal & Coke 5s, 1926 
 
 Mexican Elec. Lt. 1st 5s, 1935 
 
 Mexican International P. L. ^V^s, 1947 
 
 Mexican International 1st 4s, 1977 
 
 Mexican Lt. & Pow. 1st 53, 1933 
 
 Mexican Mahogony & Rubber 6s, 1931 
 
 Mexican Nat. Gas bonds 
 
 Mexican Nat'l Packing 1st 6s, 1931 
 
 Mexican Northern 1st 6s, 1930 
 
 Mexican Petrol. 6s, 1921 
 
 Miamisburg & Germantown 5s„ 1922 
 
 Mich. Air Line Ist 4s, 1940 
 
 Michigan Central R. R. — 
 
 5s, 1931 (Coup.) 
 
 1st 3ypS, 1952 
 
 5s, 1931 (Reg.) 
 
 (Det. & Bay City) 1st 5s, 1931 
 
 41/3% Notes, 1914 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1118 
 
 Bid . 
 
 Asked 
 
 871/3 
 
 
 
 68 
 
 68I/3 
 
 99 
 
 100 
 
 ♦101 * 
 
 ^105 
 
 65 
 
 70 
 
 ♦102 *104 
 
 91 
 
 96 
 
 1 
 
 '100 
 
 931/2 
 
 95 
 
 
 
 95 
 
 __ *100 
 
 105 
 
 
 
 1051/2 
 
 IO6I/4 
 
 103 
 
 105 
 
 ♦100 
 
 __ 
 
 100 
 
 102 
 
 971/3 
 
 98 
 
 100 
 
 1001/2 
 
 110 
 
 iiiya 
 
 6-5% 
 
 basis 
 
 96 
 
 98 
 
 ♦82 
 
 
 
 *5%% 
 
 basis 
 
 104 
 
 __ 
 
 78 
 
 83 
 
 Qiy^ 
 
 
 
 ♦103 
 
 
 
 100 
 
 __ 
 
 •991/3 
 
 
 
 
 
 ♦79% 
 
 
 
 981/3 
 
 104 
 
 1051/a 
 
 36 
 
 __ 
 
 93 
 
 96 
 
 101 
 
 i02y. 
 
 80 
 
 soy. 
 
 8OI/2 
 
 81 
 
 96 
 
 
 
 96 
 
 
 
 
 
 30 
 
 79 
 
 81 
 
 
 
 98 
 
 70 
 
 75 
 
 891/2 
 
 __ 
 
 1 
 
 *100 
 
 55 
 
 70 
 
 
 
 ♦94 
 
 85 
 
 
 
 971/0 
 
 100 
 
 981/3 
 
 100 
 
 
 98 
 
 IO6I/2 
 
 
 84y3 
 
 
 
 104 
 
 _^ 
 
 •loeva 
 
 
 
 — 
 
 •99y3 
 
High Low Bid Asked 
 
 Coll. Tr. 31/38, 1998 — — — 78 
 
 Deb. 4s, 1929 — — — 91 
 
 Michigan City & North. Indiana 1st 5s, 1933. — — *95 *97i/3 
 
 Michigan City Gas & Electric 5s, 1937 — __ 941/3 961/2 
 
 Michigan-Lake Sup. Pow. 1st 5s, 1945 — — *21 
 
 Michigan Power 1st 5s, 1911-16 — — — 98 
 
 Michigan State Tel. 5s, 1924 __ __ 991/2 lOQi/g 
 
 Michigan Traction Co. 5s, 1921 — — *99 *102 
 
 Michigan Traction Extension Co. 5s, 1923 __ __ *93 *97 
 
 Michigan United Ry. Ref. 5s, 1936 „ — *90 *93 
 
 Middlesex & Boston St. Ry. Ref. 41/28, 1932— — — — *94 
 
 Middlesex & Somerset Trac. 1st 5s, 1950 — __ __ *97 
 
 Middlesex Valley 1st 5s, 1942 — __ __ *105 
 
 Middletown Horse R. R. 1st 5s, 1914 __ __ *4.40% basis 
 
 Midland Cont'l R. R. 6% Notes, 1913-15 __ „ 5%% basis 
 
 Midland Counties Gas & Elec. 68, 1932 __ __ 991/2 — 
 
 Midland R. R. of N. J. 1st 53 Ex. to 1940 __ __ 105 lOTi/g 
 
 Midland Terminal 1st 5s, 1925 — __ 97 
 
 Milford & Uxbridge St. Ry. 1st 5s, 1918 __ __ 100 
 
 Milford, Attleb. & W'nsocket St. Ry. 5s, 1919 >_ __ __ *100 
 
 Milford, Holliston & Fram. St. Ry. 5s, 1918___ __ __ __ 100 
 
 Millbury Water Ist 58, 1915 __ — __ 100 
 
 Millen & Southw. 5s, 1955 __ __ 90 
 
 Milliken Bros. Conv. 68, 1921 __ >_ *50i/3 *60 
 
 Mill Valley & Mt. Tamal's St. Ry. 5s, 1929— __ __ 100 
 
 Millville, Etna & Sharpsb. 1st 5s, 1923 __ __ 100 101 
 
 Milo Water Co. 1st 5s, 1929 __ __ *5% basis 
 
 Milwaukee & Nor. Ex. 41/3S, 1913 __ __ 99% __ 
 
 Milwaukee & Nor. Ex. 1st Cons. 6s, 1913 __ __ __ 99% 
 
 Milwaukee & Nor. Ex. 1st 5a, 1931 __ __ ._ *98 
 
 Milwaukee & State Line 1st 31/2S, 1941 __ __ 84l^ __ 
 
 Milwaukee El. Ry. & Lt. 5s, 1926 __ __ 103 IO41/3 
 
 Milwaukee El. Ry. & Lt. 41/28, 1931 __ __ 94 941/3 
 
 Milwaukee El. Ry. & Lt. Gen. & Ref. 5s, 1951 __ __ 951/3 96I/3 
 
 Milwaukee Gas Light let 4s, 1927 __ __ 891/3 91 
 
 Milwaukee, Lake Shore & Western. — 
 
 Ext. 5s, 1929 __ __ 1071/3 — 
 
 (Ashland Div.) 6s, 1925 __ __ ♦11414 __ 
 
 (Marsh. Div.) 1st 5s, 1922 __ __ __ *104 
 
 (Mich. Div. 1st 6s, 1924 __ __ 11414 — 
 
 1st 6s, 1921 1111/2 1111/2 
 
 Milwaukee Light, Heat & Trac. 1st 5s, 1929— __ __ 100 102 
 
 Milwaukee, Sparta & Northw'n Ist 4s, 1947— 931/3 931/3 
 
 Minneapolis Brew. 7s, 1913 __ __ 101 
 
 Minneapolis Chamber of Com'ce 41/2S, 1913-22 __ — *100 
 
 Minneapolis Gas Light Gen. 58, 1930 __ __ 991/2 IOO1/2 
 
 Minneapolis General Elec. 1st 5s, 1934 __ __ 991/2 IOO1/2 
 
 Minn. & Pac. 1st 4s, 1936 — __ 95 
 
 Minneapolis & St. Louis R. R. — 
 
 1st 7s, 1927 _. — 105 
 
 Pac. Ex. 1st 6s, 1921 __ — — 109 
 
 Ist Con. 58, 1934 __ __ __ 110 
 
 1st & Ref. 4s, 1949 — __ — 78 
 
 6% Notes, 1914 __ __ 98i4 98y^ 
 
 Minneapolis, St. Paul & S. S. Marie Ry. — 
 
 2d 48, 1949 — __ 90 
 
 Equip. «E" 41/2S, 1923 — — — "100 
 
 1st Cons. 48, 1938 __ „ 95 97 
 
 Minneapolis, S. Ste. Marie & Atl. 1st 4s, 1926 — — 961/3 __ 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1119 
 
High Low Bid Asked 
 
 Minneapols St. Ry. 2d 6s, 1913 __ __ 100 
 
 Minneap. St. Ry. (M. L. & M.) Cons. 5s, 1919 __ __ 101 
 
 Minneap. St. &. St. Paul City Cons. 5s, 1928__ _. _.. 1023^ lOSy^ 
 
 Minneapolis Term. SMjS, 1950 __ __ 80 
 
 Minneapolis Union Ry. 1st 6s, 1922 „ __ 110% __ 
 
 Minneapolis Union 1st 5s, 1922 __ __ 100 
 
 Minneapolis Union Ry. 1st 6s, 1922 __ — 100% __ 
 
 Minnesota & Iowa 1st Zy^s, 1924 __ __ 91 
 
 Minnesota & Ontario Power 1st 6s, 1928 __ __ __ *99 
 
 Minnesota Transfer 1st 5s & 4s, 1916 __ __ __ *10iy^ 
 
 Mission Trans. & R. Co. 5s, 1921 __ __ 95 100 
 
 Mississippi Central 1st 5s, 1949 __ __ 94 95 
 
 Mississippi Glass 1st 6s, 1924 __ __ __ *102 
 
 Mississippi River & Bonne T. 1st 5s, 1931 __ __ 99 lOOVg 
 
 Mississippi River Power 1st 5s, 1951 __ __ *84 
 
 Mississippi Val. Gas & Elec. Coll. 5s, 1922 __ — 85 88 
 
 Missouri Edison Elec. 5s, 1927 — __ lOOVa 101 
 
 Missouri Elec. Lt. 6s, 1921 __ __ __ 1081/3 
 
 Missouri, Kan. & Eastern 1st 5s, 1942 __ __ 106 
 
 Missouri, Kan. & Okla. 1st 5s, 1942 __ __ IO31/2 1041/2 
 
 Missouri, Kansas & Texas Ry. — 
 
 Cons. 5s, 1940 ._ __ 95 
 
 5s Notes, 1913 __ __ 99% lOOVg 
 
 Ist 4s, 1990 __ __ „ 92% 
 
 2nd 4s, 1990 79 78I/2 
 
 1st Ex. 5s, 1944 __ __ 971/2 98% 
 
 1st & Ref. 4s, 2004 __ __ __ 76% 
 
 Gen'l 41/2S, 1936 __ __ 84 
 
 St. L. Div., 2001 __ _« __ 771/2 
 
 Missouri, Kan. & Tex. of Texas 1st 5s, 1942— __ __ — 100% 
 
 Missouri, Okla. & Gulf. 1st 5s, 1951 »_ __ 75 
 
 Missouri Pacific R. R. — 
 
 1st Con. 6s, 1920 __ _. 104% 105 
 
 Trust 5s, 1917 — — 99 991/2 
 
 Ist Col. Tr. 5s, 1920 98% 98% 
 
 Col. 4s, 1945 69% 69% 
 
 1st Conv. 5s, "A," 1959 __ __ 86 87% 
 
 3rd 78 Ex. at 4s, 1938 __ __ __ 96I/2 
 
 - Equip. 5s, 1921 __ _. 5%% 5%% 
 
 Equip. 5% Notes, 1914 __ __ 97 971/2 
 
 (Lex. Div.) 5s, 1920 __ „ 97 
 
 Missouri River Power 1st 6s, 1920 __ __ *102 *104 
 
 Mobile & Birm. P. L. 5s, 1945 _. „ 104 
 
 Gen'l 4s, 1945 __ __ 77 
 
 Mobile Elec. 5s, 1946 __ „ 90 92 
 
 Mobile Gas Deb. 6s, 1921 __ „ — "100 
 
 Mobile Gas 1st 5s, 1924 __ ._ '94 ^g? 
 
 Mobile Light & R. R. 1st 5s, 1937 — — 95 97 
 
 Mobile Light & R. R. Cons. 5s, 1941 — __ 85 87 
 
 Mobile & Ohio R. R.— 
 
 New 6s, 1927 ._ __ 116% 117% 
 
 Ist Ex. 6s, 1927 __ __ _- 112% 
 
 Gen'l 4s, 1938 . __ ._ 84% __ 
 
 Montgomery Div. 1st 5s, 1947 __ „ IO81/2 110 
 
 St. Louis & Cairo Col. 48, 1930 ._ __ 88% — 
 
 St. Louis & Cairo Gtd. 4s, 1931 >_ __ 91 92% 
 
 Coll. 48, 1938 __ __ 85% 88% 
 
 Equip. 5s to 1919 __ „ 5% 4%% 
 
 Equip. 41/2S, 1916-22 __ — 5 4%% 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1120 
 
High Low 
 
 Mobile Street R. R. 1st 6s, 1923 
 
 Mobile Term. & Ry. 6s, 1935 
 
 Mogul Mining 6s 
 
 Mohawk Hydro Elec. 1st 6s, 1940 
 
 Mohawk & Mai. 4s, 1991 
 
 Mohawk & Mai. Cons. Zy^s, 2002 
 
 Monon Coal 5s, 1936 
 
 Monongahela Lt. & Pr. 5s, 1949 
 
 Monon. River Con. Coal & Coke 6s, 1949 
 
 Monongahela River R. R. 1st 5s, 1919 
 
 Monongahela St. Ry. 5s, 1928 
 
 Monongahela Valley Trac. Ist 5s, 1942 
 
 Montana Central Ist 6s, 1937 
 
 1st 45s, 1937 
 
 Montana Indep. Tel. 1st 6s, 1926 
 
 Montana Power Transm. 1st 5s, 1933 
 
 Montana Water 1st 6s, 1933 
 
 Monterey Lt. & Pow. 1st 6s, 1929 
 
 Montg. Lt. & Trae. 1st & Ref. 5s, 1942 
 
 Montg. Lt. & Trae. 6% Notes, 1914 
 
 Montg. Lt. & Water Pow. 1st Cons. 5s, 1943_ 
 Montreal L., H. & P. 1st & Coll. 41/28, 1932— 
 
 Montreal Lt. Ht. & Pr. 5s, 1933 
 
 Montreal Power Trans. 1st 5s, 1933 
 
 Montreal Street Ry. 41/38, 1922 
 
 Montreal Tramways 1st 5s, 1941 
 
 Montreal Tram. & Pow. 6% Notes, April, 1915 
 Montreal Tram. & Pow. 6% Notes, Jan., 1915 
 
 Montreal Water & Power, P. L. 41/2 s, 1932 
 
 Montville Street Ry. 5s, 1920 
 
 Morgan's La. & Tex. 1st 7s, 1918 
 
 Morgan's La. & Tex. Gtd. 6s, 1920 
 
 Morningside Elec. Street Ry. 1st 5s, 1935 
 
 Morris & Co. 1st 41/2S, 1939 
 
 Morris County (N. J.) Trac. 1st 5s, 1935 
 
 Morris & Essex 1st 7s, 1914 
 
 Morris & Essex 1st 7s, 1915 
 
 Morris & Essex 1st Ref. 3i/3», 2000 
 
 Morris & Somerset Elec. 5s,~ 1940 
 
 Mortgage Bond Co. 5s, 1932 
 
 Mt. Vernon Woodb. Cott. D'ck 1st 5s, 1949 
 
 Mt. Washington Street Ry. 1st 5s, 1933 
 
 Mt. Whitney Power & Elec. 1st 6s, 1939 
 
 Muncie & Union City 5s, 1936 
 
 Muncie Elec. Lt. 5s, 1932 
 
 Muncie, Hartford & Ft. W. 1st 5s, 1935 
 
 Municipal Gas & Elec. 1st 41/38, 1942 
 
 Municipal Serv. Coll. 5s, 1932 
 
 Muskegon Gas & Elec. 1st & Ref. 5s, 1926 
 
 Muskogee Gas & Elec. Ref. 5s, 1912-26 
 
 Muskegon, Gr. Rpds. & Ind. R. R. 5s, 1926 
 
 Muskegon Trac. & Lighting 1st 5s, 19^1 
 
 Muskogee Elec. & Gas 58, 1924 
 
 Muskogee Elec. Trac. 1st 5s, 1934 
 
 Mutual Fuel Gas 5s, 1947 
 
 Mutual Term, of Buffalo 1st 4s, 1924 
 
 Mutual Union Tel. 1st 5s, 1941 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1121 
 
 Bid 
 
 Asked 
 
 99 
 
 100 
 
 95 
 
 100 
 
 
 
 *42i/2 
 
 *99 
 
 __ 
 
 95 
 
 
 
 80 
 
 
 
 921/2 
 
 95 
 
 961/2 
 
 991/2 
 
 1153/4 
 
 
 1021/2 
 
 — 
 
 100 
 
 101 
 
 
 
 96 
 
 124 
 
 
 
 IO8I/2 
 
 110 
 
 *54 
 
 *57i/2 
 
 
 
 *98 
 
 100 
 
 106 
 
 
 103 
 
 981/2 
 
 
 
 *98i/2 
 
 
 
 82 
 
 86 
 
 98 
 
 99 
 
 101 
 
 
 
 
 
 971/2 
 
 100 
 
 
 
 _ 
 
 1001/2 
 
 991/2 
 
 1001/2 
 
 
 'IOOI/2 
 
 __ 
 
 95 
 
 102 
 
 
 
 
 
 111% 
 
 
 
 1071/s 
 
 ■" 
 
 *101 
 
 88I/2 
 
 891/2 
 
 60 
 
 70 
 
 io2ys 
 
 
 
 
 1051/2 
 
 *86i/2 
 
 
 
 _- *100 
 
 991/2 
 
 
 
 751/2 
 
 76 
 
 1001/4 
 
 101 
 
 102 
 
 1021/2 
 
 81 
 
 86 
 
 951/2 
 
 98 
 
 89 
 
 92 
 
 95 
 
 961/2 
 
 90 
 
 95 
 
 95 
 
 971/2 
 
 
 
 *98 
 
 *96 
 
 
 
 79 
 
 
 
 
 
 *98 
 
 
 
 *93i/2 
 
 100 
 
 1011/2 
 
 *95 
 
 
 101 
 
 103 
 
High Low 
 Nashua St. Ry. 4s, 1931 
 
 Nash., Chat. & S. L. (Tracy City Br.) 68, 1917 
 
 Nash., Chat. & St. L. 1st 7s, 1913 
 
 1st Cons. 5s, 1928 
 
 Jasper Br. 1st 68, 1923 
 
 Centerville Br. 6s, 1923 
 
 Lebanon Br. 6s, 1917 
 
 Nashv., Flor. & Sheffield 1st 5s, 1937 
 
 Nashv. Gas & Htg. 1st 5s, 1937 
 
 Nashv. Ry. & Lt. 5s, 1953 
 
 Nashv. Ry. & Lt. Ref. & Ex. 5s, 1958 
 
 Nashville Street Ry. 5s, 1925 
 
 Nashville Water 4s, 1928 
 
 Nassau El. R. R. 1st 5s, 1944 
 
 Nassau Elec. R. R. Cons. 4s, 1951 
 
 Nassau Lt. & Pow. 1st 5s, 1927 
 
 Nassau & Suffolk Light 5s, 1935— 
 
 Nat'l Breweries 6s, 1939 
 
 Nat'l Enam. & Stamp. 5s, 1929 
 
 Nat'l Gas, E. L. & P. Coll. 6s, 1931 
 
 Nat'l Lt., Ht. & P. Coll. "B" 5s, 1919 
 
 Nat'l Lt., Ht. & P. Coll. "C" 5s, 1920 
 
 National Rys. of Mexico. — 
 
 Prior L. 41/38, 1957 
 
 Gtd. 4s, 1977 1. 
 
 Prior L. 41/38, 1926 
 
 1st Cons. 4s, 1951 
 
 Coll. Tr. 41/2S, 1913 
 
 Nat'l Starch Deb. 5s, 1930 
 
 Nat'l Sugar Mfg. 1st 6s, 1933 
 
 National Tube 1st 5s, 1952 
 
 Natomas Cons. Co. of Calif. (Am.) 6s, 1930— 
 
 Nebraska Land & Feeding 1st 6s, 1914-15 
 
 Nev.-Cal.-Ore. Ry. 5s, 1919 
 
 Nevada-Calif. Pow. 1st 6s, 1927 
 
 New Amsterdam Gas 58, 1948 
 
 New Bedford Extractor 1st Ref. 5s, 1933 
 
 New Bedford, Middleb. & Brock. 1st 58, 1920— 
 
 New Bedford & Onset 1st 5s, 1922 
 
 New Brit. Gas Lt. 1st 5s, 1926 
 
 New Castle & Slien. Val. 6s, 1917 
 
 New Castle Lt., Ht. & Pr. 1st 5s, 1929 
 
 New Castle Water 1st 5s, 1932 
 
 New Departure Mfg 1st 6s, 1921 
 
 New England Brewing Ref. 5s, 1931 
 
 New Eng. Cotton Yarn 5s, 1929 
 
 New Engld. Pow. 1st 5s, 1951 
 
 New England R. R. 5s, 1945 
 
 48, 1945 
 
 (Boston Term'l) 48, 1939 
 
 New Engl. Tel. & Tel. 5s, 1915 
 
 58, 1916 
 
 Deb. 5s, 1919 
 
 4s, 1930 , 
 
 Deb. 5s, 1932 
 
 New Gas Light 5s, 1934 
 
 New Haven & Centreville Ist 5s, 1933 
 
 New Haven & Derby Cons. 5s, 1918 
 
 New Haven & Northamp. Ref. 4s, 1956 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1122 
 
 Bid 
 
 Asked 
 
 __ 
 
 921/4 
 
 104% 
 
 __ 
 
 1001/2 
 
 1003/4 
 
 1071/3 
 
 108ya 
 
 iiiy^ 
 
 
 110 
 
 __ 
 
 105 
 
 __ 
 
 
 
 108 
 
 98 
 
 1031/, 
 
 1001/2 
 
 101 
 
 97 
 
 98 
 
 1011/2 
 
 102 
 
 97 
 
 98 
 
 102 
 
 1031/4 
 
 
 
 77% 
 
 1001/2 
 
 1021/2 
 
 *95 
 
 __ 
 
 ■5%% Basis 
 
 91 
 
 951/8 
 
 
 
 101 
 
 98 
 
 100 
 
 98 
 
 100 
 
 
 86 
 
 __ 
 
 80 
 
 
 
 99 
 
 
 
 767a 
 
 97% 
 
 98% 
 
 
 95 
 
 
 
 •85 
 
 98 
 
 983/4 
 
 9434 
 
 
 *100 
 
 __ 
 
 95 
 
 
 
 100 
 
 102 
 
 1011/4 
 
 101% 
 
 
 ^102% 
 
 97 
 
 100 
 
 94 
 
 
 
 
 
 107 
 
 98 
 
 __ 
 
 •77 
 
 _ 
 
 
 ♦99 
 
 •99 
 
 
 __ 
 
 ♦85 
 
 91% 
 
 92 
 
 
 92 
 
 110 
 
 __ 
 
 961/2 
 
 __ 
 
 
 
 1031/2 
 
 991/2 
 
 100% 
 
 991/2 
 
 lOOS/a 
 
 991/2 
 
 lOOS/s 
 
 88 
 
 90 
 
 101% 
 
 __ 
 
 i 
 
 »103% 
 
 105 
 
 __ 
 
 100 
 
 __ 
 
 94 
 
 _„ 
 
High Low Bid Asked 
 
 New Haven Street Ry. 1st 5s, 1913 — ._ 100 
 
 Edgew. Div. 5s, 1914 — — 100 
 
 New Haven Water, Deb. 4s, 1915 — — 155 
 
 N. J. & Hud. Riv. Ry. & Ferry 1st 4s, 1950— „ __ 82 83 
 
 New Jersey Gas 1st 5s, 1940 — — — 95ya 
 
 N. J. Junction 1st 4s, 1986 — — 94 
 
 N. J. & N. Y. Ry. 1st 6s, 1950 — — 101 
 
 New Jersey Steamboat 5s, 1921 — — *87 
 
 New Jersey Zinc 1st 4s, 1926 — — *95 *98 
 
 New London Gas & Elec. 5s, 1927 — — 103 
 
 2nd 5s, 1929 — — 100 
 
 Cons. & Ref. 5s, 1933 — — 100 
 
 New London Northern 1st 4s, 1940 — — 92i4 — 
 
 New Long Dist. Tel. 1st 5s, 1923 — — 791/4 SOi/g 
 
 New Mexico Ry. & Coal 1st 5s, 1947 — — 98 101 
 
 1st Cons. 5s, 1951 — — 97 100 
 
 New Milford Pow. 1st 5s, 1932 — — 1021/2 IO41/2 
 
 New Orl. & CarroUton 58, 1933 — — 107% 108 
 
 New Orl. City & L. R. R. 1st 5s, 1943 — _. IO71/2 IO8I/2 
 
 New Orleans City & Lake Pow. House 6s, 1917 ._ — 102 
 
 New Orleans City R. R. 5s, 1943 __ >_ 1051/2 — 
 
 New Orl. Cold Stge. & WTise. 6s, 1922 — — 100 110 
 
 6s, 1924 — — 100 
 
 New Orl., Gt. North. 1st 53, 1955 __ _- 67i/a 69 
 
 N. O., Mobile & Chic. 1st 5s, 1960 — — — 84% 
 
 New Orl. & Northeast. Equip. 41/2S, Apr., 1913 — __ 6% _- 
 
 N. 0. & Nor. Eastern Prior Lien 6s, 1915 __ — -_ 104 
 
 New Orleans Power 5s, 1943 *100 
 
 New Orleans Ry. & Lt. 41/2S, 1935 ._ — 85% 85% 
 
 "A" 5s, 1949 — — 86 871/2 
 
 N. 0. R. E. Mtge. & Sec. 5s, 1926 *101i/2 — 
 
 New Orl. Stk. Ex. 5s, 1924 *97i/2 — 
 
 New Orl. Terminal 1st 4s, 1953 — — — 88 
 
 New Orl., Tex. & Mex. 5s, 1940 — — 92 95 
 
 New River Co. 1st 5s, 1934 — — 60 70 
 
 New River R. R. 1st 6s, 1932 — — 120 123 
 
 New Telephone Co. Cons. 53, 1920 __ — *84 
 
 New W'msburg & Flatb. R. R. 1st 41/2S, 1941_ „ __ _- *92 
 
 N. Y. Air Brake 6s, 1928 — — 991/2 101 
 
 New York Bay Ex. R. 1st 5s, 1943 — — 101 
 
 N. Y., Bklyn. & Man. Beach 1st Con. 5s, 1935. _. _- *102 
 New York Central Lines — 
 
 41/2 Notes, 1914 '_ — __ 993/g 99% 
 
 Equip. 41/2S, 1922 — — 4.85-60% Basis 
 
 Equip. 41/2S, 1925 __ _- 4.85-65% Basis 
 
 Equip. 41/2S, 1927 — — 4.85-65% Basis 
 
 Equip. 41/2S, 1928 — — 4.65% Basis 
 
 Equip. 41/3S, 1917 — — — 101% 
 
 New York Central & Hudson River R. R. — 
 
 1st 31/2S, 1997 — — 8414 841/2 
 
 Deb. 4s, 1934 89 89 
 
 Lake Shore 31/2S, 1998 — — — 7778 
 
 Mich. Cent. 31/2S, 1998 771/2 771/2 
 
 41/2% Notes, 1915 — — *99i4 *99i/3 
 
 N. Y., Chicago & St. Louis 1st 4s, 1937 __ __ — 98% 
 
 Deb. 4s, 1931 — — — 87^8 
 
 N. Y. & Cuba Mail S. S. 1st 5s, 1932 — — *71iA ♦73 
 
 N. Y. Dock 4s, 1951 — — 83 
 
 N. Y. & East River Ferry 5s, 1922 — — 50 60 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1123 
 
High Low 
 
 New York & East River Gas 1st 5s, 1944 
 
 Cons. 58, 1945 
 
 N. Y. & Erie 1st 4s, 1947 
 
 2n(i Ex. OS, 1919 
 
 3rd Ex. 41/38, 1933 
 
 4th Ex. 5s, 1920 
 
 5th Ex. 4s, 1928 
 
 1st Ex. 7s, 1920 
 
 N. Y. Gas, E. L., H. & P. 1st 5s, 1948 
 
 P. M. 4s, 1949 
 
 N. Y. & Greenwood Lake 5s, 1946 
 
 N. Y. & Harlem SVgS, 2000 
 
 N. Y. & Hoboken Ferry 5s, 1946 
 
 N. Y. & Interurban Water 5s, 1931 
 
 N. Y. & Jersey E. R. 1st 5s, 1932 
 
 New York, Lackawanna & Western R. R. — 
 
 1st 6s, 1921 
 
 Construction 5s, 1923 
 
 Term. & Imp. 4s, 1923 
 
 N. Y., L. E. & Western 1st Cons. 7s, 1920 
 
 N. Y., L. E. & W. Coal & R. R. Co. 1st 6s, 1922 
 New Y., L. E. & W. D. & L Co. 1st 6s, 1913-_ 
 
 N. Y. & Long Branch Gen. 4s, 1941 
 
 Gen. 5s, 1941 
 
 N. Y. & New England (Bost. Term.) 4s, 1939_ 
 New York, New Haven & Hartford R. R.— 
 
 Deb. 4s, 1914 
 
 4s, 1947 
 
 5% Notes, 1913 
 
 Deb. 31/28, 1947 
 
 1st 4s, 1954 
 
 Non-Conv. sy^s, 1954 
 
 Non-Conv. 4s, 1955 
 
 Non-Conv. 4s, 1956 
 
 Conv. 31/23, 1956 
 
 Conv. 68, 1948 122 122 
 
 N. Y. & N. J. Ferry 5s, 1946 
 
 N. Y. & N. J. Telep. Gen. 5s, 1920 
 
 N. Y. & N. J. Water Ist 5a, 1920 
 
 N. Y. & Northern 1st 5s, 1927 
 
 New York, Ontario & Western Ry. — 
 
 Ist 4s, 1992 
 
 Genl. 4s, 1955 90% 9078 
 
 Ref. 43, 1992 
 
 5% Notes, 1915 
 
 Equip. 41/28, 1916 
 
 N. Y., Penna. & Ohio 1st 41/oS, 1935 
 
 N. Y. & Pa. Tel. & Tel. 1st 5s, 1926 
 
 Gen. 4s, 1929 
 
 N. Y., Phila. & Norf. 1st 4s, 1939 
 
 Inc. 4s, 1939 
 
 4% Stk. Tr. Ctfs., 1948 
 
 N. Y. & Porto Rico S. S. 58, 1932 
 
 N. Y., Prov. & Boston 4s, 1942 
 
 New York & Putnam 1st 4s, 1993 
 
 New York & Queens Co. 4s, 1946^ 
 
 N. Y. & Q. E. L. & P. 1st C. G. 5s, 1930 
 
 N. Y. & Queens Gas 1st & Gen. 5s. 1934 
 
 N. Y. Rys. Adj. 5s, 1942 59 58% 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1124 
 
 Bid 
 
 Asked 
 
 104 
 
 106 
 
 101 
 
 103 
 
 99 
 
 
 
 1021/2 
 
 104 
 
 100 
 
 ■ 
 
 103 
 
 104 
 
 92% 
 
 101 
 
 113 
 
 115 
 
 loiya 
 
 103% 
 
 84% 
 
 __ 
 
 1031/2 
 
 109 
 
 86I/2 
 
 
 
 991/4 
 
 100 
 
 *74 
 
 *78 
 
 — 
 
 1021/, 
 
 1108/4 
 
 111 
 
 103 
 
 105% 
 
 961/4 
 
 971/4 
 
 113 
 
 1171/4 
 
 
 
 1071/4 
 
 lOOi/a 
 
 101 
 
 98 
 
 
 
 100 
 
 _ 
 
 ~ ' 
 
 »105 
 
 983/s 
 
 991/4 
 
 88 
 
 91% 
 
 100 
 
 100% 
 
 
 
 81% 
 
 __ 
 
 98 
 
 
 
 82 
 
 _- 
 
 88% 
 
 
 
 8874 
 
 83 
 
 86 
 
 97 
 
 " 
 
 100 
 
 100 
 
 *78 
 
 
 106 
 
 107% 
 
 ~ 
 
 90% 
 
 *91i/2 
 
 "" 
 
 991/2 
 
 100 
 
 5% 
 
 4%% 
 
 94 
 
 __ 
 
 100 
 
 101 
 
 85 
 
 
 971/2 
 
 98% 
 
 90 
 
 92 
 
 __ 
 
 •97% 
 
 
 
 •95 
 
 95 
 
 96 
 
 93 
 
 96 
 
 65 
 
 75 
 
 100 
 
 101 
 
 98 
 
 100 
 
High Low Bid Asked 
 
 N. Y. Rys. 1st R. E. & Ref. 4s, 1942 . __ __ 761/2 77 
 
 N. Y. & Rich. Gas 1st 5s, 1921 __ __ 961/2 _- 
 
 N. Y. & Rockaway Beach 1st 5s, 1927 __ __ 1031/2 105% 
 
 N. Y. State Rys. 1st Cons. A 41/28, 1962 __ __ 921/2 941/2 
 
 New York & Stamford 1st 6s, 1931 __ >_ IO21/2 IO41/3 
 
 1st & Ref. 4s, 1958 _. __ 87 90 
 
 N. Y., Suburban Gas 1st 5s, 1949 ._ __ 102 105 
 
 New York, Susquehanna & Western R. R. — 
 
 1st 5s, 1937 __ __ 991/2 101% 
 
 2nd 41/3S, 1937 __ __ 821/2 90 
 
 Genl. 5s, 1940 __ __ ._ 87 
 
 Term. 1st 5s, 1943 __ __ __ IO71/2 
 
 N. Y. Telep. 1st & Gen. 41/2S, 1939 __ __ 97 97l^ 
 
 N. Y., Westchester & Bost. 41/2S, 1946 97 97 
 
 N. Y. & Westch. Ltg. 4s, 2004 __ __ 821/3 85 
 
 Deb. 5s, 1954 __ __ 100 102 
 
 Newark Cons. Gas Cons. 5s, 1948 __ __ 103l^ __ 
 
 Newark Gas 6s, 1944 __ __ I251/3 127 
 
 Newark Pass. Ry. Cons. 53, 1930 _> __ 105 106 
 
 Newburg & N. Y. 1st 5s, 1929 __ __ 100 
 
 Newburg Lt., Htg. & Pow. 1st 6s, 1921 __ >_ *98i/2*101 
 
 Newport & Cine. Bridge 41/2S. 1945 __ __ 100% __ 
 
 Newport & Davton 1st 6s. 1917 __ __ 101 105 
 
 Newport & Fall Riv. St. Ry. 1st 5s, 1918 __ __ __ 101 
 
 Newport & Richford 1st 5s, 1941 __ __ __ 110 
 
 Newport News & 0. P. Ry. & E. C. 1st 5s, 1938 __ __ 98 IOOI/3 
 
 Genl. 5s, 1941 » __ 76I/2 771/2 
 
 Newpt. News Shipb. & Dry Dk. 5s, 1990 __ __ 95 
 
 Newtown Ry. 1st 5s, 1924 «, >. __ ♦9814 
 
 Niagara & Erie Pow. 1st 5s, 1941 __ _> 87 921/3 
 
 Niagara Falls G. & E. L. 1st 5s, 1921 __ >_ _. 97 
 
 Niagara Falls Pow. Ist 5s, 1932 __ __ 1021/3 102l^ 
 
 Niagara Falls Pow. Ref. & Gen. 68, 1932 __ __ 105l^ 106 
 
 Niagara Lt., Ht. & Pr. 1st 5s, 1922 „ __ __ 100 
 
 Niagara L., H. & P. Cons. & Ref. 5s, 1925 __ __ __ 95 
 
 Niagara, Lockport & Ont. Pow. 1st 5s, 1954-_ __ __ 89l^ 921^ 
 
 Niagara, St. Catharine & Tor. Ry. 1st 5s, 1929 __ __ _„ 99 
 
 Nipe Bay Co. 1st 6s, 1914 ._ _. _. 100% 
 
 Deb. 6s. 1917 __ __ _. *100 
 
 Nodaway Valley 78, 1920 __ ._ 1031/3 _, 
 
 Norfolk & Carolina 1st 5s, 1939 __ __ 108 112 
 
 Norfolk & Portsm. Trac. 5s, 1936 __ __ 9I1/3 92 
 
 Norfolk Ry. & Light 1st 5s, 1949 _> __ 99 991/3 
 
 Norfolk &' Southern R. R.— 
 
 1st 5s, 1941 __ __ 102% >_ 
 
 1st "A" 58, 1961 ._ __ 98% 98% 
 
 1st 5s, 1954 __ _- 95 991/2 
 
 Norfolk Street Ry. 1st 5s, 1944 ._ _- 104 
 
 Norfolk Term. 1st 4s, 1961 __ ._ 91 
 
 Norfolk Term. & Transp. 5s, 1948 __ __ ♦98 
 
 Norfolk & Washington Steamboat 5s, 1931___ __ __ 104% 105 
 
 Norfolk & Western Ry.— 
 
 Equip. 4s "D," 1916 __ __ 4% -1/2% Basis 
 
 Equip. 4s «G," 1916 „ .. 434.1/2% Basis 
 
 Equip. 4s "M-0," 1917 „ __ 4.60-45% Basis 
 
 Pocohontas Coal Jt. 4s, 1941 __ __ 891/2 QOV^ 
 
 New River Div. 6s, 1932 __ __ 120 123 
 
 1st Cons. 4s, 1996 — — 96I/2 96% 
 
 1st Lien & Genl. 4s, 1944 ._ __ 91% 923^ 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1125 
 
High Low 
 
 10-25-Y. Conv. 4s, 1932 
 
 10-20-Y. Conv. 48, 1932 105% 105% 
 
 Conv. 41/28, 1938 
 
 Imp. & Ext. 6s, 1934 , 
 
 Gen. 68, 1931 
 
 Norristown Transit 1st 5s, 1942 
 
 North Caro. Elec. Pow. 1st Ref. 1940 
 
 North. Caro. Pub. Serv. 1st Ref. 5s, 1934 
 
 North End Ry. 5s, 1915 
 
 North Hudson County Ry. 1st 6s, 1914 
 
 Cons. 5s, 1928 
 
 2nd Ext. 5s, 1924 
 
 North Hudson Lt., Ht. & Pr. 5s, 1938 
 
 North Jersey & Poc. Mtn. Ice 5s, 1919 
 
 North Jersey St. Ry. 4s, 1928 
 
 North Mtn. Water Sup. 5s, 1933 
 
 North Penna. Ist 4s, 1936 
 
 Genl. 3 3/lOs, 1953 
 
 North Platte Val. Irrig. Co. 6s, 1919 
 
 North Sh. Elec. 1st 5s, 1922 
 
 Ref. 5s 1940 _ 
 
 North Shore Gas 1st 5s, 1937 
 
 North Spgld. Water 5s, 1928 
 
 North Sterling Irrig. Co. 6s 
 
 North Wisconsin 1st 6s, 1930 
 
 Northampton, Easton & Wash. Trac. 5s, 1950 
 
 Northampton Traction 5s, 1933 
 
 Northeast Penna. 1st 5s, 1920 
 
 Northeastern R. R. of S. C. 6s, 1933 
 
 Nor. Cal. Power. Cons., Ref. & Cons. 5s, 1948_ 
 
 Northern Calif. Power 5s, 1932 
 
 Northern Calif. Ry. 5s, 1929 
 
 Northern Central Gas 58, 1962 
 
 Northern Central Ry. Cons. 41/38 "E," 1925 — 
 
 5s "A," 1926 
 
 5s "B," 1926 
 
 Northern Colorado Power 5s, 1928 
 
 North. Conn. Lt. & P. 1st 5s, 1946 
 
 Northern Electric Co. 5s, 1955 
 
 Northern Elec. St. Ry. 58, 1957 
 
 North. Id. & Mont. Pow. 1st 6s, 1949 
 
 North, m. Lt. & Tr. 1st 5s, 1923 
 
 North. Ind. Gas & El. 1st Ref. 5s, 1929 
 
 Ry. Cons. 58, 1936 
 
 Northern Lake S. S. Co. 5s, 1912-21 
 
 Northern Maine Seaport & Term. 5s, 1935 
 
 Northern Ohio Rv. 1st 5s, 1945 
 
 North. Ohio Ry. Con. 5s, 1919 
 
 Nor. Ohio Trac. 5s, 1919 
 
 Nor. Ohio Tr. & Lt. 5s, 1933 
 
 Nor. Ohio Tr. & Lt. 4s, 1933 
 
 North. Ont. Lt. & Pow. Ist 6s, 1931 
 
 Northern Pacific Ry. — 
 
 Prior Lien 4s, 1997 
 
 Genl. Lien 3s, 2047 
 
 St. Paul, Duluth Div. 1st 5s, 1916 
 
 Gt. Nor., C. B. & Q. Jt. 4s, 1921 100 100 
 
 Northern Pacific Term. 1st 6s, 1933 
 
 North. Ry. of Cal. 53, 1938 
 
 ^Quotation nearest Mard) 1, 1918. No quotation on that date. 
 
 1186 
 
 Bid 
 
 Asked 
 
 ~ 
 
 107% 
 
 104 
 
 104% 
 
 1211/4 
 
 
 119 
 
 122% 
 
 
 
 •94% 
 
 92 
 
 97 
 
 921/2 
 
 96 
 
 98 
 
 __ 
 
 101 
 
 102 
 
 1031/4 
 
 
 
 98 
 
 
 
 100 
 
 
 
 621/2 
 
 70 
 
 80 
 
 81 
 
 103 
 
 1038/4 
 
 1001/2 
 
 102% 
 
 821/2 
 
 84% 
 
 
 •30 
 
 102% 
 
 __ 
 
 993/4 
 
 100% 
 
 951/2 
 
 97 
 
 *90 
 
 •95% 
 
 221/2 
 
 __ 
 
 119 
 
 
 •94 
 
 
 
 *98i/2 
 
 
 
 101 
 
 103 
 
 121 
 
 __ 
 
 903/4 
 
 __ 
 
 1003/4 
 
 102 
 
 1061/2 
 
 __ 
 
 
 
 •95 
 
 102 
 
 104% 
 
 105 
 
 
 105 
 
 
 
 •74 
 
 ♦78 
 
 97% 
 
 98 
 
 
 95% 
 
 711/2 
 
 73% 
 
 
 
 60% 
 
 95 
 
 97 
 
 89 
 
 93 
 
 •901/4 
 
 
 
 5.20% Basis 
 
 95 
 
 100 
 
 
 
 102 
 
 
 
 100 
 
 100 
 
 103 
 
 
 
 90 
 
 
 
 80 
 
 — 
 
 •95 
 
 97 
 
 97% 
 
 663/4 
 
 67% 
 
 99% 
 
 
 110% 
 
 """ 
 
 108% 
 
 — 
 
High Low Bid Asked 
 
 North. Ry. of Costa Rica 5s, 1915 — „ __ 100 
 
 Northern Spgfd. Wtr. 5s, 1928 __ .. *95i/8 __ 
 
 Northern States Power Coll. 6% Notes, 1917_ __ __ 991/2 lOOi/g 
 
 North. States Trac. 5s, 1933 __ __ *10iy2 __ 
 
 North. Tex. Elee. Coll. 5s, 1940 __ ._ 96 97i/a 
 
 Northern Texas Trac. 1st 5s, 1933 __ __ 98 100 
 
 Northern Union Gas 5s, 1927 _. __ 100 102 
 
 Northeni Westch. Ltg. lat 5s, 1955 __ __ 98 99 
 
 Northumberld. Go. Gas & El. 1st, 58, 1946 __ __ 931/2 95 
 
 Northwestern Coal 5s, 1923 __ __ _« *98 
 
 Northwestern Elev. (Union Loop) 5s, 1945 __ 75 90 
 
 Northwestern Gas Lt. & Coke 5% Notes, 1917 __ __ 96% 96^8 
 
 Northwestern Gas Lt. & C. Cons. 5s, 1928 __ __ 100 
 
 Northwestern Penna. Ry. 5s, 1941 __ __ *98V2 __ 
 
 Northwestern Telephone 4l^s, 1934 94 
 
 Northwest. Term. (D. W. W. & P.) 5s, 1926— — — 80 87 
 
 N. W. Union 7s, 1917 __ __ 109 
 
 Norwich Gas & Elec. 5s, 1927 __ __ 101 105 
 
 Norwich Street 1st 5s, 1923 __ _- 102 
 
 Norwich & Wor. 4s, 1927 ._ ._ 97 
 
 Norwood & Mont. 1st 5s, 1916 __ __ 101 
 
 Nova Scotia Stl. & Coal 5s, 1959 __ _. __ •941/2 
 
 Oakland Gas Lt. & Ht. 2nd 5s, 1916 __ __ 100 IOII/2 
 
 Oakland Rys. 6% Notes, 1913 __ __ __ *100 
 
 Oakland Traction Co. 5s, 1935 __ __ >_ 91% 
 
 Oakland Traction Con. 5s, 1933 __ __ __ 98 
 
 Oakland Transit Co. 6s, 1918 __ ._ 107 
 
 Oakland Transit Co. 5s, 1931 __ __ 103 
 
 Oakland Transit Con. 5s, 1932 __ __ lOli/g IO214 
 
 Oakland Water 5s, 1915 __ __ 97 98iA 
 
 Oakland Water Co. Gtd. 5s, 1937 __ __ 97 
 
 Ocean Freight Line 5s, 1913-22 __ __ *5.20% Basis 
 
 Ocean Steamship Co. 5s, 1920 __ __ 99 101 
 
 O'Gara Coal 5s, 1955 __ __ 75 77 
 
 Ogden. Gas 1st 5s, 1945 __ __ 96l^ 97 
 
 Ogdensb. & Lake Champ. 1st 4s, 1948 __ __ 81 85 
 
 Ogilvie Flour Mills 1st 6s, 1932 __ ._ __ 105 
 
 Ohio & Little Kanawha R. R. 1st 5s, 1950 __ __ *100i/2 _- 
 
 Ohio Cent. Cons. Tr. 5s, 1923 __ __ _. *90 
 
 Ohio Cent. Trac. 5s, 1919 90 
 
 Ohio Connecting Ry. Ist 4s, 1943 __ __ 97 
 
 Ohio Copper 1st 6s, 1917 __ __ _, *60 
 
 Ohio, Indiana & West. 1st Pfd. 5s, 1938 __ __ 90 
 
 Ohio River Railroad 1st Gtd. 5s, 1936 __ _. 108 
 
 Ohio River Railroad Genl. 5s, 1937 __ __ 101 llOi/g 
 
 Ohio Traction 5s, 1936 __ __ __ 101 
 
 Oil Belt Co. 1st 5s, 1943 _. ._ _. *90 
 
 Okla. Cent. Ry. 5s, 1945 __ __ *28 
 
 Okla. Gas & Elec. 1st 5s, 1929 __ __ 92l^ 96 
 
 Okla. Nat'l Gas 1st Serial 6s __ __ 100 
 
 Oklahoma Ry. Ist 58, 1941 __ __ 92l^ 94l^ 
 
 1st & Ref. 5s, 1938 __ __ *93 *94i/3 
 
 Old Colony R. R. 48, 1924 — __ 95 97l^ 
 
 48, 1925 __ __ 95 971^ 
 
 4s, 1938 __ ._ 95 961/8 
 
 31/2S, 1932 ._ __ 88 891/2 
 
 Old Colony St. Ry. 4s, 1954 __ __ _^ *87 
 
 Old Dom. S. S. 1st 5s, 1913 >. ., *99l^ _. 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1127 
 
High 
 Olean Elec. Lt. & P. 1st 5s, 1951 
 
 Om. & Coun. Bl. Ry. & Edge. Ist Cons. 5s, 1928 
 
 Omaha & Council Bl. St. Ry. 1st 5s, 1928 
 
 Omaha Elec. Lt. & P. 1st 5s, 1933 
 
 Omaha Gas 1st Con. 5s, 1917 
 
 Omaha Gas Mfg. 1st 6s, 1914 
 
 Omaha St. Ry. Cons. 5s, 1914 *99% 
 
 Omnibus Cable Ry. 6s, 1918 
 
 Oneonta Light & Pow. 1st 5s, 1922 
 
 Ontario Power 1st 5s, 1943 
 
 Deb. 69, 1921 
 
 Ontario Pulp & Paper 6s, 1931 
 
 Ontario & Quebec 5s Deb. Perp 
 
 Ontario Transm. 1st 5s, 1945 
 
 Orange & Passaic Valley Ry. 1st 5s, 1938 
 
 Oregon & Calif. 1st 5s, 1927 ' 
 
 Oregon Electric Ry. 1st 5s, 1933 
 
 Oregon R. R. & Navig. 4s, 1946 
 
 Oregon Short Line 6s, 1922 
 
 5s, 1946 107 
 
 4s, 1929 
 
 Oregon Short Line Ry. 4s, 1961 89% 
 
 Oregon-Washington R. R. & Nav. 1st 4s, 1961 
 
 Oro Electric 1st 6s, 1951 
 
 Oswego & Rome 1st 7s, 1915 
 
 Oswego and Rome 2nd Gtd. 5s, 1915 
 
 Oswego & Syracuse 5s, 1923 
 
 Otis Elevator Deb. 5s, 1920 
 
 Otis Steel 1st 5s 
 
 Ottawa Elec. Ref. & 1st 5s, 1933 
 
 Otto Electric Ss, 1933 
 
 Ottumwa Ry. & Lt. 1st & Ref. 5s, 1924 
 
 Ousatonia Water Pr. 4s, 1921 
 
 Ozark & Cherokee Cent. Ry. 1st 5s, 1913 
 
 Pacific Coast Co. 1st 5s, 1946 
 
 Pacific Coast Pr. 1st 5s, 1940 
 
 Pacific & Eastern Ry. 6s, 1937 
 
 Pacific Electric Ry. Co. 5s, 1942 
 
 Pac. Gas & Elec. (Ariz.) 1st 6s, 1931 
 
 Pac. Gas & El. (Cal.) Gen. & Ref. 5s, 1942 
 
 Pacific Gas & Elec. Ref. 5s, 1937 
 
 Pacific Gas Imp. 4s, 1930 
 
 Pac. Lt. & Pow. 1st 5s, 1942 
 
 1st & Ref. 5s, 1951 
 
 Pac. Pow. & Lt. 1st & Ref. 5s, 1930 
 
 Pacific Ry. of Mo. 1st Ex. 4s, 1938 
 
 2nd Ex. 5s, 1938 
 
 St. L. R. E. 5s, 1938 
 
 Carondelet 41/28, 1938 
 
 Pac. Telep. & Teleg. 1st Coll. 5s, 1937 
 
 Packard Motor Car 5% Notes, 1916 
 
 Paducah Trac. & Lt. Coll. 5s, 1935 
 
 Page Wov. Wire Fence 5s, 1922 
 
 Paint Creek Collieries 5s, 1956 * — 
 
 Pan America R. R. 5s, 1934 
 
 Pardee Works 5s, 1931 
 
 Park & Ocean R. R. 6s 
 
 Park & Tilford Deb. 68, 1936 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1128 
 
 Low 
 
 Bid Asked 
 
 __ 
 
 96 
 
 __ 
 
 *97 'gg 
 
 __ 
 
 *97 '99 
 
 — 
 
 93V4 _. 
 
 __ 
 
 97 99 
 
 
 
 - noiVa 
 
 *99% 
 
 
 
 — 
 
 - 102% 
 
 
 
 95 
 
 
 
 951/2 97 
 
 
 
 971/2 99 
 
 
 
 -_ •94 
 
 
 
 122 124 
 
 
 
 91 921/2 
 
 
 
 94 96 
 
 
 
 102 
 
 __ 
 
 931/2 101 
 
 
 
 931/2 95 
 
 
 
 111 112% 
 
 107 
 
 
 
 
 
 89% _- 
 
 89% 
 
 
 
 
 
 901/2 90% 
 
 
 
 97 981/3 
 
 
 
 - 1011/2 
 
 
 
 _. 1051/a 
 
 
 
 100 
 
 
 
 _- 'lOOi/a 
 
 
 
 - ♦931/2 
 
 
 
 — 100 
 
 
 
 — •lOO 
 
 
 
 85 881/a 
 
 
 
 4%% Basis 
 
 ~ 
 
 991/2 .. 
 
 __ 
 
 - 1031/8 
 
 __ 
 
 991/2 1001/3 
 
 
 
 _- 'gs 
 
 
 
 1041/4 1041/3 
 
 
 
 101 102 
 
 
 
 88 89 
 
 
 
 951/2 95% 
 
 
 
 89% -. 
 
 
 
 971/2 100 
 
 
 
 93 
 
 
 
 g3 gs 
 
 
 
 g2i/2 - 
 
 
 
 103 
 
 
 
 •102 
 
 __ 
 
 •95 *100 
 
 __ 
 
 99% lOOi/s 
 
 
 
 971/3 g8i/2 
 
 __ 
 
 70 75 
 
 
 
 •68 ^72 
 
 
 
 39 41 
 
 
 
 - •911/3 
 
 
 
 •92 
 
 
 
 100 
 
 
 
 ♦95 •g6i/3 
 
Parker Cott. Mills 6% Notes, 1917 
 
 Passaic Gas Lt. 6s, 1922 
 
 Lighting 58, 1925 - 
 
 Water Gen. 5s, 1937 
 
 Water 2n(i 5s, 1937 
 
 Paterson & Pass. G. & E. 1st Cons. 5s, 1949 
 
 Paterson Ry. Cons. 6s, 1931 
 
 2nd 6s, 1914 
 
 Pawtucket Gas 4s, 1932 
 
 Pearsons-Taft "BBB" 4.40s 
 
 "C" 4.40s 
 
 «E" 4.60s 
 
 "F" 4.80s 
 
 Peekskill Ltg. & R. R. 1st 5s, 1930 
 
 Peerless Motor Car 1st 6s, 1913-24 
 
 Penmans, Ltd, 1st 5s, 1926 
 
 Penna Cen. L. & P. 1st & Ref. 5s, 1950 
 
 1st & Cons. 6s, 1963 ^ 
 
 Penn-Mary Coal 5s, 1939 ' 
 
 Penna. Cent. Brewing 6s, 1927 
 
 Penna. Coal & Coke 1st 5s, 1932 
 
 Pennsylvania Co. — 
 
 1st 41/28, 1921 
 
 Coll. "A" 81/2S, 1937 
 
 Coll. «B" 31/28, 1941 
 
 Coll. «C" 31/38, 1942 
 
 Coll. "D" 31/2S, 1944 
 
 Coll. "E" 4s, 1952 
 
 Coll. 4s, 1931 
 
 31/2S, 1937 
 
 Trust 31/2S, 1916 
 
 Penna. Lighting 1st 5s, 1940 
 
 Pennsylvania & Mah. Val. 5s, 1922 
 
 Penna. & Maryland Steel Cons. 6s, 1925 
 
 Pa. & N. Y. Canal Cons. 41/38, 1939 
 
 Cons. 4s, 1939 
 
 Penna. & N. Y. Canal Cons. 5s, 1939 
 
 Penna. & Northw. 58, 1930 
 
 Penn. Pub. Serv. 1st 5s, 1962 
 
 Pennsylvania R. R. — 
 
 Col. T. 41/38, 1913 
 
 R. E. P. M. 48, 1923 
 
 Steel Rolling Stock, 31/3S, 1915 
 
 "A" Equip. 4s, 1914 
 
 Gen. Fr't. Equip. 4S, 1920 
 
 Equip. 4s, 1913-22 
 
 1st R. E. 4s, 1923 
 
 Cons. 5s, 1919 
 
 Cons. 31/2S, 1915 
 
 Cons. 4s, 1948 
 
 R. R. Cons. 4s, 1943 
 
 R. R. Cons. 31/3S, 1945 
 
 Penna. Steel 1st 5s, 1917 
 
 Penna. Steel Coll. 5s, 1932 
 
 Penna. Street Pass. Ry. 5s, 1922 _. 
 
 Penna. Water Co. 2d 5s, 1929 
 
 Penna. Wtr. & Pow. 1st 5s, 1940 
 
 Penobscot 'Short Line 1st 48, 1920 
 
 Pensacola & Atlantic Ry. 1st 6s, 1921 
 
 'Quotation nearest March 1, 1913. No quotation on that 
 
 1129 
 
 High 
 
 Low 
 
 Bid Asked 
 
 
 
 __ 
 
 — noo 
 
 __ 
 
 __ 
 
 *105 
 
 
 
 
 
 *102 
 
 __ 
 
 __ 
 
 *97 
 
 
 
 __ 
 
 *90 
 
 _^ 
 
 __ 
 
 1001/2 1021/2 
 
 
 
 __ 
 
 112 1131/3 
 
 __ 
 
 
 
 100 103 
 
 
 
 
 
 89 921/3 
 
 __ 
 
 
 
 94 
 
 __ 
 
 _„ 
 
 94 
 
 
 
 
 
 95 
 
 _« 
 
 __ 
 
 961/4 -. 
 
 __ 
 
 
 
 *95 *99 
 
 __ 
 
 __ 
 
 _- *100 
 
 
 
 
 
 901/4 941/4 
 
 
 
 
 
 971/3 981/3 
 
 __ 
 
 
 
 — 100 
 
 __ 
 
 __ 
 
 - *983/4 
 
 
 
 
 
 64 
 
 ~ 
 
 — 
 
 91 931/3 
 
 __ 
 
 
 102 103 
 
 
 
 
 
 *85 
 
 
 
 
 
 85% __ 
 
 
 
 
 
 85% -- 
 
 
 
 
 
 - 95% 
 
 
 
 
 
 __ *96 
 
 
 
 
 
 -- 95% 
 
 __ 
 
 
 
 851/3 .. 
 
 
 
 
 
 961/2 __ 
 
 
 
 
 
 95 98 
 
 __ 
 
 
 
 101 1021/a 
 
 __ 
 
 __ 
 
 103 105 
 
 
 
 
 
 103 
 
 __ 
 
 
 
 98 
 
 
 
 
 
 -. 112 
 
 ^_ 
 
 __ 
 
 1051/g 107 
 
 — 
 
 — 
 
 95 
 
 ._ 
 
 __ 
 
 991/3 - 
 
 
 
 
 
 1011/4 - 
 
 
 
 
 
 5-41/3% basis 
 
 
 
 
 
 98 
 
 
 
 
 
 5-41/2% basis 
 
 
 
 
 
 5-41/2% basis 
 
 
 
 __ 
 
 1011/4 -- 
 
 
 
 
 
 106 107 
 
 
 
 
 
 96% 97% 
 
 __ 
 
 __ 
 
 „ 102 
 
 __ 
 
 
 
 — 101 
 
 
 
 
 *90 
 
 __ 
 
 __ 
 
 998/4 100% 
 
 __ 
 
 __ 
 
 •98% - 
 
 
 
 __ 
 
 •101% _- 
 
 
 
 __ •99 
 
 __ 
 
 __ 
 
 - 92% 
 
 __ 
 
 __ 
 
 •97% - 
 
 
 
 __ 
 
 •109 
 
High Low 
 
 Pensacola Elec. Co. 1st 5s, 1931 
 
 Peoples Gas L. & C. 1st Cons. 68, 1943 
 
 Peoples Gas L. & C. Ref. 5s, 1947 
 
 Peoples Pass. Ry. 4s, 1943 
 
 Peoples St. Ry. (Scranton) 1st 6s, 1918 
 
 Peoples Telephone 1st 5s, 1929 
 
 Peoples Water 5s, 1937 
 
 Peoria Gas & Elec. 5s, 1923 
 
 Peoria Light, Coll. 5s, 1936 
 
 Peoria & Eastern 1st Cons. 4 s, 1940 
 
 Peoria & Eastern Income 4s, 1990 
 
 Peoria, Bloom. & Champ. Tr. 1st 58, 1936 
 
 Peoria & Northw. sy^s, 1926 
 
 Peoria & Pekin Union 1st 6s, 1921 
 
 Peoria & Pekin Un. 2d 41/38, 1921 
 
 Peoria Ry. 1st 5s, 1910-26 
 
 Peoria Ry. Term. 4s, 1937 
 
 Pere Marquette R. R. — 
 
 Cons. 4's, 1951 
 
 Deb. 6s, 1912 
 
 (Lake E. & Det. R.) 1st 41/28, 1932 
 
 41/2% Rec. Ctfs., 1914 
 
 Ref. 4s, 1955 
 
 Ref. 4s, 1955, gtd 
 
 Pere Marquette R. R. of Ind. 1st 4s, 1943 
 
 Perkiomen R. R. 1st 5s, 1918 
 
 Perkomen R. R. 2nd 5s, 1918 
 
 Petersburg R. R. Class A 5s, 1926 
 
 Petersburg R. R. Class B 6s, 1926 
 
 Phila. & Bait. Cent. 1st 4s, 1951 
 
 Phila. & Chester Valley R. R. 48, 1938 
 
 Phila. & Erie Ist 6s, 1920 
 
 Genl. 5s, 1920 
 
 Phila. & Erie, Gen. 4s, 1920 
 
 Phila. & Garretsford St. Ry. 1st 5s, 1955 
 
 Phila. & Reading 2nd 5s, 1933 
 
 Phila. & Reading Imp. Ex. 4s, 1947 
 
 Phila. & Reading Cons. 4s, 1937 
 
 Phila. & Reading Term. 5s, 1941 
 
 Phila. & Reading Coal & L 4s, 1932 
 
 Phila. & West Chester Trac. 1st 58, 1918 
 
 Phila. & West Chester Trac. 4s, 1954 
 
 Phila., Balto. & Wash. 1st 4s, 1943 
 
 Phila. Bourse Ist 58, 1913 
 
 Phila. Co. 1st Coll. 5s, 1949 
 
 Phila. Co. Cons. 5s, 1961 
 
 Phila. Co. Conv. Deb. 5s, 1919 
 
 Phila. Co. Conv. Deb. 53, 1922 
 
 Phila. Elec. Coll. 5s, 1948 
 
 Phila. Elec. Coll. 4s, 1949 
 
 Phila. Elec. 4s, 1950 
 
 Phil., Germ. & Chest. Hill 1st 41/38, 1913 
 
 Phila. Harris. & Pitts. 1st 5s, 1925 
 
 Phila. Hydro. El. 1st 5a, 1939 
 
 Pittsb., McKeesp't. & Greensb. Ry. 1st 5s, 1931 
 
 Phila., Newtown & N. Y. 1st 3s, 1942 
 
 Phila. Rap. Tr. Coll. 58, 1957 
 
 Phila. Rap. Tr. 58, 1962 
 
 Phila. Suburban Gas 5s, 1931 
 
 Bid 
 
 Asked 
 
 90 
 
 93 
 
 1151/2 
 
 117 
 
 101% 
 
 101% 
 
 90 
 
 91 
 
 104 
 
 1071/3 
 
 57 
 
 60 
 
 813/4 
 
 81% 
 
 100 
 
 1003/4 
 
 96 
 
 99 
 
 
 90 
 
 431/4 
 
 48 
 
 99 
 
 1003/4 
 
 90 
 
 
 
 102 
 
 
 
 
 95 
 
 __ 
 
 *97 
 
 85 
 
 ~ 
 
 70 
 
 731/3 
 
 20 
 
 40 
 
 85 
 
 92 
 
 5% basis 
 
 
 
 591/3 
 
 51 
 
 54% 
 
 70 
 
 76 
 
 1021/4 
 
 1031/, 
 
 102 
 
 1031/, 
 
 106 
 
 
 114 
 
 
 
 971/2 
 
 981/4 
 
 *92 
 
 
 110 
 
 111 
 
 1041/2 
 
 1051/2 
 
 99 
 
 991/3 
 
 *89 
 
 
 1121/2 
 
 1131/3 
 
 981/2 
 
 991/4 
 
 981/3 
 
 991/4 
 
 1133/4 
 
 1141/4 
 
 971/2 
 
 99 
 
 99 
 
 100 
 
 80 
 
 82 
 
 99% 
 
 
 
 99 
 
 100 
 
 1001/2 
 
 1011/4 
 
 
 
 921/3 
 
 
 
 104 
 
 
 
 981/3 
 
 1031/2 
 
 104 
 
 801/3 
 
 8I1/4 
 
 8II/4 
 
 8iy, 
 
 98 
 
 
 106 
 
 107 
 
 
 
 100 
 
 76 
 
 82 
 
 76 
 
 79 
 
 991/3 
 
 100 
 
 98y, 
 
 99 
 
 104 
 
 _„ 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1130 
 
High Low 
 
 Phila. Sub. G. & E. 1st & Ref. 5s, 1960 
 
 Phila. Trac. Coll. 4s, 1915, 1917 
 
 Phila., Wil. & Bait. Deb. 4s, 1917 
 
 Phila., Wil. & Bait. Deb. 4s, 1922 
 
 Phila., Wil. & Bait. Deb. 4s, 1926 
 
 Phila., Wil. & Bait. Deb. 4s, 1932 
 
 Phila. Wil. & Bait. Col. 7.40 1,921 
 
 Philippine Ry. 1st 4s, 1937 
 
 Pierce Bldg. 5s, 1936 
 
 Pillsbury-Washburn Fl. Mills 5s, 1928 
 
 Pine Bluff & West. Ist 5s, 1923 
 
 Pine Creek Ry. 1st 68, 1932 
 
 Pine Hill Coal 6s, 1914 
 
 Pitcairn & Wilmerding St. Ry. 1st 5s, 1931 
 
 Pittsburgh Alleg. & M., 5s, 1930 
 
 Pittsburgh & Bifniingham Tr. 5s, 1929 
 
 Pitts., Bess. & L. E. Con. 5a, 1947 
 
 Pitts., Bess. & L. E. Deb. 5s, 1919 
 
 Pittsb. Brew'g. 6s, 1949 
 
 Pitts.-Buff. 5s, 1929 
 
 Pitts.-Cannonsburg & Wash. Ry. 5s, 1917 
 
 Pittsb. & Charleroi 5s, 1932 
 
 Pittsb., Chartiers & Yonghiogheny Ry. 4s, 1932 
 f*ittsburgh, Cine, Chic. & St. Louis R. R. — 
 
 "B" 41/2S, 1942 
 
 "D" 4s, 1945 
 
 "G" 4s, 1957 
 
 "H" 4s, 1960 
 
 Cons. "A" 41/28, 1940 
 
 Cons. "C" 41/2S, 1942 
 
 Cons. "E" 31/28, 1949 
 
 Cons. "F" 4s, 1953 
 
 Pitts., Cleve. & Toledo 1st 68, 1922 
 
 Pittsburgh Coal 1st 5s, 1954 
 
 Pitts. Coal Deb. 5s *91i/2 89% 
 
 Pittsburgh Coal Equip, 41/2S, 1914 
 
 Pitts. Crucible Steel 1st 5s, 1916-45 
 
 Pittsb. Gas 5s, 1956 
 
 Pitts. & Jamestown R. R. Ist 6s, 1922 
 
 Pittsburgh June. 2nd 5s, 1922 
 
 Pittsburgh June. 1st 6s, 1922 
 
 Pitts. & Lake Erie 1st 6s, 1928 
 
 Pitts. & L. E. 2d A & B 5s, 1928 
 
 Pitts., McKeesp. & Connells. R. R. 1st Cons 5s, 
 
 1931 
 
 Pitts., McKeesp't. & Greensburg Ry. 1st 5s, 
 
 1931 
 
 Pitts., McK. & Y. 1st 6s, 1932 
 
 Pitts, McK. & Y. 2nd 6s, 1934 
 
 Pittsburgh & Shawmut 1st 58, 1959 
 
 Pittsburgh & Shawmut Notes 6s, 1913 
 
 Pitts., Shawmut & N. Ist 5s, 1949 
 
 4s, 1952 
 
 Receiver's Cfs. 5s, 1914 
 
 Receiver's Cfs. 5s, 1915 
 
 Receiver's Cfs. 5s, 1916 
 
 Pitts., Shenango & Lake E. 1st 5s, 1940 
 
 Pitts., Shenango & Lake E., Cons. 58, 1943— 
 Pitts. Term. R. R. & Coal 1st 5s, 1942 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1131 
 
 Bid 
 
 Asked 
 
 93 
 
 931/2 
 
 93 
 
 96 
 
 981/2 
 
 100 
 
 99 
 
 100 
 
 99 
 
 100 
 
 98 
 
 100 
 
 981/2 
 
 
 
 
 *84 
 
 
 
 95 
 
 
 *72 
 
 961/2 
 
 100 
 
 *120i/2 
 
 
 
 
 
 ■^10014 
 
 ' 
 
 "1921/2 
 
 1021/2 
 
 1031/2 
 
 102 
 
 102% 
 
 109 
 
 110 
 
 98 
 
 101 
 
 923/4 
 
 95 
 
 1001/2 
 
 1011/2 
 
 *98i/4 
 
 
 101 
 
 1011/2 
 
 — 
 
 *90 
 
 103 
 
 1033/« 
 
 
 98 
 
 951/2 
 
 96% 
 
 
 
 *98 
 
 
 
 105 
 
 102 
 
 
 
 90 
 
 
 
 951/4 
 
 
 
 1121/4 
 
 _. 
 
 109 
 
 ~ 
 
 *4%% basis 
 
 1 
 
 *100 
 
 
 
 *74 
 
 *109i/2 
 
 
 
 90 
 
 
 
 *109i/8 
 
 
 
 114 
 
 
 
 106 
 
 ~ 
 
 102 
 
 — 
 
 *76 
 
 •82 
 
 116 
 
 
 
 116 
 
 
 
 85 
 
 94 
 
 991/2 
 
 100 
 
 36 
 
 
 
 25 
 
 32 
 
 97 
 
 100 
 
 
 
 98 
 
 98 
 
 100 
 
 IO8I/4 
 
 
 
 109 
 
 110 
 
 93 
 
 97 
 
High Low Bid Asked 
 Pittsb. Term. Wareh. & Trans. 1st Ref. 5s, 
 
 1936 - - 991/4 1011/2 
 
 Pittsb. Trac. 1st 5s, 1927 — — 103 103 
 
 Pitts., Va. & Charleston Ry. 1st 4s, 1943 __ — 9514 __ 
 
 Pittsburgh & West. 1st 4s, 1917 — — 971/3 — 
 
 Pittsb.-Westmoreland Coal 1st 5s, 1947 — __ 84 86 
 
 Pittsb.-Westmoreland Coal 5s, 1925 __ __ 94 96 
 
 Pitts., Wheel. & Lake E. Coal 4s, 1931 __ __ 34 45 
 
 Pitts., Youngs. & Asht. 4s, Ser. A., 1948 __ __ __ 99% 
 
 Pitts., Ygston & Ash. 1st Con. 5s, 1927 __ — 1061/2 IO81/2 
 
 Plainfield Union Water 1st 5s, 1931 *101 *101 
 
 Piatt Iron Works 5s, 1944 „ — __ *65 
 
 Plattsb. Gas & El. 1st 5s, 1939 __ __ — 96 
 
 Pleasant Valley Coal 5s, 1928 — — 88 95 
 
 Pneumatic Scale Corp. 1st 7s, 1917 — — *97 
 
 Pocahontas Coal & Coke— N. W. jt. 4s, 1941_ __ __ 891/2 901/2 
 
 Pocahontas Collieries 1st 5s, 1937 — — — *98 
 
 Pocahontas Cons. Coll. 5s, 1957 — — 87iA 88 
 
 Pomona Cons. Water bonds __ __ 99 
 
 Pontiac Light & Water 5s, 1927 __ __ *90 
 
 Pontiac Realty 5s, 1922 __ __ — 87 
 
 Pope Mfg. 6% Notes, 1914 „ „ — *100 
 
 Port Huron Ltg. & Pr. 5s, 1921 — — *101 
 
 Portland & Cape Eliz. 5s, 1915 __ __ __ 100 , 
 
 Portland (Me.) Elec. 5s, 1926 __ — 99 101 
 
 Portland (Me.) Gas Light 1st 4s, 1936- __ __ „ *100 
 
 Portland (Me.) Lighting & Pr. 1st 41/2S, 1921 __ — — *99i/2 
 
 Portd. (Ore.) Gas & Coke 1st & Ref. 5s, 1940 __ __ 101 103 
 
 Portland (Ore.) Gas 1st 5s, 1951 __ __ 103 
 
 Portland (Ore.) Gen. Elec. 1st 5s, 1935 „ __ __ *101i/o 
 
 Portland, Nehalem & Seacoast Ry. 1st 5s, 
 
 1942 *90 *90 
 
 Portland & Ogdens, 1st 41/2S, 1928 __ __ 100 101 
 
 Portland R. R. 1st 41/3S, 1913 __ __ 100 
 
 Portland R. R. 1st Cons. 31/2S, 1951 __ __ 75 80 
 
 Portland Ry. 1st & Ref. 5s, 1930 __ „ lOliA IO21/2 
 
 Portland Ry. Lt. & Pr. 5% Notes, 1914 __ __ 981/2 991/3 
 
 Portland Ry., L. & P. 1st & Ref. A 5s, 1942-_ __ __ __ 96 
 
 Portland & Rumford F. 1st 4s, 1926 __ __ 94 96 
 
 Deb. 4s, 1927 __ __ 93 
 
 Portland Terminal 1st 4s, 1961 __ __ 91 91% 
 
 Portland Water 4s, 1927 __ __ 971/2 98 
 
 Porto Rico Brew. 1st Serial 6s *100 *100 
 
 Porto Rico Rys. 1st 5s, 1936 __ __ __ 89% 
 
 Porto Rico Rys. 5s, 1962 __ __ '91 
 
 Porto Rico Telephone 1st 7s, 1937 __ __ __ *100 
 
 Port Reading R. R. 1st 5s, 1941 __ __ *106 
 
 Portsmouth, Berkley & Suffolk Water 5s, 1944 __ __ __ *100 
 
 Portsmouth Gas 1st Ref. 6s, 1931 __ ._ __ *99i/a 
 
 Portsm., Gt. Falls & Conway 41/2S, 1937 __ „ 98 100 
 
 Portsmouth St. Ry. & Lt. 58, 1916 __ __ *98i/2 — 
 
 Postal-Teleg.-Cable 1st 58, 1928 'lOO 'lOO 
 
 Potomac El. Pow. 1st 5s, 1929 __ __ 104% 10514 
 
 Potomac El. Pow. Cons. 5s, 1936 __ __ 100% 102 
 
 Potomac Valley 1st 58, 1941 1_ __ 105 
 
 Potts. Run Land 1st 5s, 1953 «_ __ __ *80 . 
 
 Powell River Co., Ltd., 1st 6s, 1915-27 *100 *100 
 
 Prescott Gas & EI. 1st 6s, 1940 >_ __ 85 89 
 
 Price Bros. & Co., Ltd. 1st 58, 1940 __ __ __ 86 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1132 
 
High Low Bid Asked 
 
 Princeton & Northwestern SVgS, 1926 — __ *90 
 
 Princeton Lt., Ht. & P. 1st & Ref. 5s, 1939— __ — — 98 
 
 Producers Oil Deb. 6s, 1913 — — *96 *102 
 
 Prod. Transportation 5s, 1921 _ — — 92% __ 
 
 Providence Securities Deb. 4s, 1957 — — — 84 
 
 Providence Terminal 1st 4s, 1956 — — 95 
 
 Prov. & Wore. 4s, 1947 — — 96 971/3 
 
 Provident Loan Soc. of N. Y. 41/2S, 1921 — — 95 97 
 
 Provincial Lt., Ht. & P. 1st 5s, 1946 — — 103 1031/2 
 
 Pub. Serv. Co. of Nor. 111. 1st & Ref. 5s, 1956 — — 96% 9714 
 
 Public Serv. Co. (St. Cloud, Minn.) 5s, 1911-30 — — 5.40% basis 
 
 Pub. Serv. Corp. of N. J. Perp. 6s, Ctfs — — 106 107 
 
 Pub. Serv. Corp. of N. J. Gen. 5s, 1959 __ — 9II/2 92 
 
 Public Utilities Corp. 6% Notes, 1914-16 __ __ — *101 
 
 Pueblo & Subur. Tr. & L'tg. 1st 5s, 1922 __ — 921/2 — 
 
 Pueblo Trac. & Ltg. 1st 5s, 1921 — — 971/2 100 
 
 Puget Sd. Elec. Ry. Cons. 5s, 1932 __ — 85 92 
 
 Puget Sd. Mills & Timber 6s, 1926 *100 *100 
 
 Puget Sd. Power 1st 5s, 1933 — — 99 IOII/3 
 
 Puget Sd. Trac, Lt. & Pr. 5s, 1914 — — 991/3 100 
 
 Quannah, Acme & Pac. 1st 6s, 1939 __ __ — *101 
 
 Quapaw Gas 1st 6s, 1912-21 — — *85 
 
 Quebec, Jacques, Cartier Elec. 1st Ref. 5s, 
 
 1931 — — — *87 
 
 Quebec Ry., Lt., Ht. & P. Cons. 5s, 1939 __ __ 571/3 58 
 
 Quebec Ry., Lt., Ht. & P. 5s, 1942 __ __ 56 57 
 
 Queensboro Corp. (N. Y.) 1st 6s *100 *100 
 
 Queensboro Gas & El. 1st 5s, 1952 — — 97 100 
 
 Quincy Gas & Elec. 5s, 1929 — __ 93 
 
 Quincy Gas, Elec. & Ht. 1st Cons. 5s, 1935___ __ — 851/2 90 
 
 Racine Water 5s, 1931 — — 96 971/3 
 
 Rail & River Coal 1st 5s, 1938 __ __ *90% __ 
 
 Railroad Secur. 1st 4s, 1952 — — *82 *85 
 
 Railway & Lt. Secur. 2nd 5s, 1939 — — — *100 
 
 Railway & Lt. Secur. 4th 5s, 1932 __ — *5% basis 
 
 Railway Steel Spr. 5s, 1921 (Latrobe PI.) — — — 98i/8 
 
 Railway Steel Spring 1st 5s, 1931 __ „ 94 97 
 
 Raleigh & Augusta 1st 6s, 1926 __ — — II31/2 
 
 Raleigh & Cape F. 1st 5s, 1943 — — 98 103 
 
 Raleigh & Charleston R. R. 1st 4s, 1956 — __ — *85 
 
 Raleigh & Charleston R. R. Cons. 4s, 1956 — — — *72i/3 
 
 Raleigh & Gaston Ist 5s, 1947 — — IO71/3 — 
 
 Raleigh & Southp. Con. 5s, 1965 __ — 97 102 
 
 Raleigh & S. W. 1st 4s, 1936 __ __ 80 
 
 Rapid City Ry. 1st Cons. 5s, 1916 __ — 90 
 
 Rapid Ry. 1st 5s, 1915 — — — *100 
 
 Rapid Transit St. Ry. 1st 5s, 1921 — __ 103 
 
 Raritan River 1st 5s, 1939 __ — 108 II21/3 
 
 Rav., Spenc. & Glen. 1st 6s, 1920 — — 105 
 
 Ray Cons. Copper 6s, 1921 IIII/2 IIII/3 
 
 Reading Belt R. R. 1st 4s, 1950 — — *96i/2 — 
 
 Reading Co, — 
 
 Gen. 4s, 1997 96I/2 96I/3 
 
 Jer. Cent. 4s, 1951 — — — 96I/2 
 
 Ext. 4s, 1937 __ _- — *99i/2 
 
 Phil. & Read. Coal & Ir. 4s, 1997 — — — *97% 
 
 Reading Traction 1st 6s, 1933 __ __ 112 117 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1133 
 
High Low Bid Asked 
 
 Reading & Womelsdorf Elec. Ry. 1st 5s, 1925 — ._ 100 102 
 
 Real Estate Title Insur. & Trust 4s, 1918 ^931/4 *93y4 
 
 Red River, A. & B. B. Dist. (La.) "Ser. B" 
 
 6s, 1950 *107 
 
 Red River, A. & B. B. Dist. (La.) "Ser. C" 
 
 5s, 1953 *109 
 
 Red River Power 1st 5s, 1915 — — — *93 
 
 Reeves Timber Ist 5s, 1923 *100 *100 
 
 Reno Pw., Lt. & Wtr. 6s, 1944 — — 95 
 
 Rensselaer & Saratoga 1st 7s, 1921 — — 117 
 
 Repub. Iron & Steel 5s, 1934 — — 10278 — 
 
 Repub. Iron & Steel 5s, 1940 911/2 911/2 
 
 Republic Ry. & Lt. 5s, 1916 — — 96 971/3 
 
 Republican Valley 1st 6s, 1919 __ __ 102 
 
 Retsof Mining Ist 5s, 1925 — __ 56 60 
 
 Rhode Island Suburban 1st 4s, 1950 — — 85 87 
 
 Rich. & Alleghany 1st 4s, 1989 __ — 91% 94 
 
 Rich. & Alleghany 2nd 4s, 1989 — — *88 *89 
 
 Richmond & Danville 6s, 1915 — — — 103 
 
 Richmond & Danville 5s, 1927 — — — 103 
 
 Rich. Fredkbg. & Potomac 41/2S, 1940 __ — IO31/2 — 
 
 Richmond, Light & R. R. 4s, 1952_ — — *65 "70 
 
 Richmond & Mecklinburg 1st 4s, 1948 __ — 72 
 
 Richmond & Peters. 6s, 1915 — — 106 
 
 Cons. 7s, 1915 — — 109 
 
 Cons. 41/2S, 1940 — — 101 
 
 Richmond- Washington Co. 4s, 1943 „ ._ 90 97% 
 
 Riggs Realty 5s, 1923-40 — — IO21/2 103 
 
 Riggs Realty 5s, 1913-23—^ — — 101 103 
 
 Rio de Jan. Tram., Lt. & Pr. 1st 5s, 1935 „ — 98 
 
 Rio Grande June. 1st 5s, 1939 ._ __ 83% 841/3 
 
 Rio Grande Southern 1st (gtd.) 4s, 1940 __ __ — 771/2 
 
 Rio Grande Southern 1st 4s, 1940 __ __ *40 *50 
 
 Rio Grande Western 1st 4s, 1939 841/3 841/3 
 
 Rio Grande Western Col. A 4s, 1969 __ „ — 80 
 
 Riordon Pulp & Paper Ist 6s, 1942 *100 'lOO __ ' __ 
 
 Ritz-Carlton Hotel (Mont.) 1st 5s, 1942 — — — *95 
 
 River Coal 6s, *116i/4 *115% 
 
 Riverside Home Tel. & Tel. bonds — — 50 
 
 Riverside Traction 1st 5s, 1960 __ — — *97i/8 
 
 Roanoke Gas Lt. 1st 5s, 1927 — — — 961/2 
 
 Roanoke Ry. & Elec. 1st 5s, 1949 __ __ 95 
 
 Roanoke Ry. & Elec. 1st Cons. 5s, 1953 __ -_ — 98 
 
 Roanoke Trac. & Light 1st & Coll. 5s, 1958— __ __ 921/2 95 
 
 Roch. & Pitts. Coal & Iron 1st 41/2S, 1932 — — 93% __ 
 
 Roch. & Pitts. Coal & Tr. 5s, 1946 _- — 100 
 
 Roch. & Pitts. 1st 6s, 1921 __ — 110% — 
 
 Roch & Pitts. Cons. 63, 1922 — — 112 
 
 Roch. Elec, Lt., Heat & P. 1st Ref. 6s, 1943— __ — — 100 
 
 Roch. Gas & Elec. 2nd 4i/oS, 1920 — — 96i/a — 
 
 Rochester Ry. Cons. 5s, 1930 — — 102 
 
 Rochester Ry. 2nd 5s, 1933 — — 102 104 
 
 Roch. Ry. & Light Cons. 5s, 1954 __ __ 100% __ 
 
 Roch., Syracuse & Eastern Ist 5s, 1945 __ — 83% 841/3 
 
 Rochester Telephone 1st 5s, 1920 -_ — 95 100 
 
 Rochester Telephone Gen. 5s, 1933 _- — 75 90 
 
 Rock I. & Peoria 6s, 1925 — — 101 
 
 Rock Id., Ark. & Louis'a. r.st 41/28, 1934 __ — — 87% 
 
 Rock Id.-Frisco Term. Ist 6s, 1927 — — 99 100 
 
 *Quot&tloD nearest March 1, 1913. No quotation on that date. 
 
 1134 
 
High Low Bid Asked 
 
 Rock Island Imp't. Co. 41/28, 1915 __ _- — *99 
 
 Rock Island Southern 1st 5s, 1947 — — — 95 
 
 Rockford & Freeport Elec. Ry. 1st 5s, 1923_- — — 92 96 
 
 Rockford & Inter-Urban Ry. 1st 5s, 1923 — — 93 96 
 
 Rockford, Beloit & Janesv. 1st 5s, 1930 __ _- 92 96 
 
 Rockford Elec. 1st & Ref. 5s, 1939 -_ — 961/2 98 
 
 Rockford Home Telephone 1st 6s, 1922 — — *95 
 
 Rockland Light & P. 1st 53, 1938 — — — 100 
 
 Rockland Rockport Lime 5s, 1920 __ — 51/2% basis 
 
 Rockville Gas & Elec. 5s, 1936 — — 5% basis 
 
 Rogers-Brown Iron 1st & Ref. 5s, 1914-40 — — 90 96 
 
 Rogue River Water 5s, 1926 — — — *88 
 
 Roland Park Water 1st 5s, 1937 — — *97 *99 
 
 RoUand Paper 1st 6s, 1937 — — — 100 
 
 Rome Gas, El., Lt. & P. lat 5s, 1931 — — 90 
 
 Rome Ry. & Lt. 1st 5s, 1937 — — — 90 
 
 Rome, Watertn. & Ogden. 31/2S, 1922 __ — 90 
 
 Rome, Watertn. & Ogden. Cons. 5s, 1922 __ __ IO61/2 . — 
 
 Rome, Watertn. & Ogden. Term. 5s, 1918 — — ^Vi% basis 
 
 Rumford Falls Pow. 1st 4s, 1945 __ — — 921/, 
 
 Rumford Falls Pow. Gen. 41/2S, 1929 — — — 99 
 
 Rumley Co. 6% Notes 1915 — — — 100 
 
 Rutland Canadian 4s, 1949 — — 85 87 
 
 Rutland R. R.— 
 
 1st Cons. 41/28, 1941 — — 92l^ 97% 
 
 Equip. 41/28, 1913-27 — — 6-51/2% basis 
 
 Car. Tr. 41/2S, 1917 — — 5-6% basis 
 
 Rutland Ry., Lt. & P. 1st 5s, 1946 — — 94 97 
 
 Sacramento & Woodland R. R. 5s, 1941 — — 951/2 — 
 
 Sacramento Elec, Gas & Ry. 5s, 1927 — — 102% 103 
 
 Sacramento Val. Irrig. 1st 6s, 1920 — — *100 
 
 Sacramento Valley P'r. 6s, 1941 __ — — *100 
 
 Safety Insulated Wire & Cable 6s, 1942 — — *78 
 
 Sagman-Bay City Ry. 1st & Ref. 5s, 1935 ._ — 86 91 
 
 Sagman City Gas 5s, 1916 — — 97 99 
 
 Saginaw, Tusc. & Hur. 1st 4s, 1931 — — — 90 
 
 Saginaw Valley Trac. 5s, 1920 >- — 98 100 
 
 St. Charles Street R. R. 4s, 1952 — — 90 
 
 St. Clair County Gas & Elec. 1st Cons. 5s, 1959 __ __ 90 95 
 
 St. Clair Furnace 1st 5s, 1913-39 — __ 4.90-70% basis 
 
 St. Clair, Mad. St. L. Belt (A. B.) 1st 4s, 1951 _- — — 781/2 
 
 St. Clair Term. 1st s5, 1932 __ __ 99 102 
 
 St. Clair Steel 1st 5s, 1912-25 — — 4.60% basis 
 
 St. Cloud Water Power 68, 1916-39___ — „ — *100 
 
 St. Croix Paper 5s, 1913-27 — — 51/4% basis 
 
 St. Croix Power 1st 5s, 1929 — — *94i/2 __ 
 
 St. Francois Co. Ry. 5s, 1914 — — *100 
 
 St Joe Bay Co. 1st 6s, 1918 — — — *90 
 
 St. John Ry. Cons. 5s, 1927 — — *5% basis 
 
 St. Johnsb. & Lake Champ. 1st 5s, 1944 ._ — 102 
 
 St. Joseph Gas 1st 5s, 1937 — — 92 96 
 
 St. Jos. & Grd. Isld. 4s, 1947 — — — 87 
 
 St. Jos. Ry., Lt., Ht. & P. 1st 5s, 1937 — — 98I/2 99% 
 
 St. Joseph Stock Yds. 41/2S, 1930 — — 87 
 
 St. Joseph Water 58, 1941 — — — 5.20% basis 
 
 St. Law. & Adir. 1st 58, 1996 __ — 106 110% 
 
 2nd 6s, 1996 — — 119 
 
 St. Lawrence Pulp & Tbr. 6s, 1916-33 __ — *100 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1135 
 
High Low Bid Asked 
 
 St. Lawrence Segar Refin. 6s, 1933 __ «_ __ *102 
 
 St. Louis & Cairo 1st 4s, 1931 __ __ *91 *923^ 
 
 St. Louis & Meramec 6s, 1916 _.. __ 102 103 
 
 St. Louis & San Francisco Ry. — 
 
 (Miss. & West.) 6s, 1919 __ __ __ ♦1053^ 
 
 6s, 1920 __ __ 101 
 
 Eq. "I" 5s, 1917 __ __ 5l^% 5% basis 
 
 Col. Trust 5s, 1987 __ __ 98 100 
 
 6% Notes, 1913 __ , __ 995/8 100 
 
 6% Notes, 1914 __ __ 99% >_ 
 
 N. O. T. & M. 5s, 1940 __ __ 92 95 
 
 Gen. 6s, 1931 >_ __ 113% lUi/g 
 
 Gen. 5s, 1931 __ __ 1021/2 1043^ 
 
 Gen. 4s, 1996 ._ __ __ 87 
 
 15-20 yr. 5s, 1927 __ __ 793/8 79% 
 
 Southn. Div. 5s, 1947 — __ 991/2 __ 
 
 Ref. 4s, 1951 76 76 
 
 Eq. "G" 41/2S, 1916 •993^ __ 
 
 Eq. "L" 5s, 1908-17 __ __ __ 'lOOi/g 
 
 Eq. «S" 5s, 1912-23 __ __ __ *99 
 
 St. Louis & Southw. 1st Term 5s, 1952 __ __ 89 901/2 
 
 St. Louis & Suburban 1st 5s, 1921— __ __ 101 102 
 
 St. Louis & Suburban Gen. 5s, 1923 __ >_ 85 85% 
 
 St. L. Brew. Ass'n. 6s, 1914 — __ 998^ lOOyg 
 
 St. Louis Bridge 1st 7s, 1929 ._ >_ >_ 129 
 
 St. Louis County Gas 1st 5s, 1951 __ __ __ 99 
 
 St. Louis Iron Mt. & Sou. Equip. 5s, 1921 __ __ 991/2 100% 
 
 St. L. Iron Mt. & Sou. Equip. "I" 5s, 1914-15 __ __ __ *100% 
 
 St. L. Iron Mt. & Sou. Genl. 5s, 1931 104% 104% 
 
 St. L. Mt. & Sou. Unif. & Ref. 4s, 1929 „ „ 8I1/2 82 
 
 St. L. Iron Mt. & Sou. Riv. & Gulf Div. 1st 
 
 4s, 1933 __ __ 83 83% 
 
 St. L. Merch. Bridge Term.- Co. 5s, 1930 __ __ 104% __ 
 
 St. L. Merch. Bridge Co. 6s, 1929 ._ __ 110 111% 
 
 St. Louis Nat. Stockyards 1st 4s, 1930 __ __ *84 
 
 St. Louis Portland Cement __ __ 99% 99 
 
 St. Louis Ry. (B'way) 41/2S, 1920 __ __ 96% 97% 
 
 St. Louis Real Est. 1st 5s, 1938 __ __ 101 
 
 St. L. ,Rky. Mtn. & Pac. 5s, 1955 >_ __ 76% 77% 
 
 St. Louis, Southern 1st 4s, 1931 __ __ __ 95% 
 
 St. Louis Southw'n, 1st 4s ctfs., 1989 __ __ __ 88% 
 
 2nd 4s Inc. Ctfs., 1989 __ __ 78 79 
 
 Cons. 4s, 1932 __ >_ 79 80% 
 
 St. Louis, Spring. & Peoria Ist Ref. 5s, 1939— — — — 100 
 
 St. Louig Sugar Refineries 6s, 1932 — — 578% basis 
 
 St. L. Transit 5s, 1924 __ __ 70 76 
 
 St. Louis Union Depot Cons. 5s, 1944 __ — __ 102% 
 
 St. L., Wichita & West. 6s, 1919 __ __ 100 
 
 St. Maurice Val. Cotton Mills 1st 6s, 1952 — — — *96 
 
 St. Paul & Duluth 1st 5s, 1931 __ __ 109 
 
 St. Paul & Duluth 2nd 5s, 1917 — — 101 
 
 St. Paul & Duluth 1st Con. 4s, 1968 — __ — 93 
 
 St. Paul & Kan. City Short Line 1st 4%s, 1941 __ — — 89 
 
 St. Paul & North. Pac. Genl. 6s, 1923 — — 113 
 
 St. P. & Nor. Pac. (Reg.) Genl. 6s, 1923 — — 11134 __ 
 
 St. Paul & Sioux City 1st 6s, 1919 — — 108s/8 110 
 
 St. Paul City Ry. 5s, 1937 — — 104 106 
 
 St. Paul City Ry. 1st 6s, 1932 >_ __ 111 
 
 St. Paul City Ry. 1st Cons. 6s, 1934 — __ 112 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1136 
 
St. Paul City Ry. Cable 5s, 1937 
 
 St. Paul, Eastern Grd. Trk. Ry. 41/2S, 1947 — 
 
 St. Paul Gas Light Con. ext. 6s, 1918 
 
 St. Paul Gas Light Con. 1st 6s, 1915 
 
 St. Paul Gas Light Gen. 5s, 1944 
 
 St. Paul, Minn. & Manitoba 4y2S, 1933 
 
 St. P., M. & M. Cons. 4s, 1933 
 
 St. P., M. & M. 1st Cons. 6s, 1933 
 
 St. P., M. & M. Mont. Ext. 48, 1937 
 
 St. P., M. & M. Pac. Ext. 4s, 1940 
 
 St. Paul Union Depot Cons. 5s, 1944 
 
 St. Paul Union Stk. Yds. 5s, 1916 
 
 Salisbury & Spencer 1st 5s, 1945 
 
 Salmon Riv. Power 5s, 1952 
 
 Salt Lake & Ogdensbg. 5s, 1934 
 
 Salt L. City Un. Dep. & R. R. 1st 5s, 1938 
 
 San Ant. & Aransas Pass. 1st 4s, 1943 
 
 San Ant. Water Supply 1st & ref. 5s, 1933 
 
 San Cristobal Sugar 7s, 1932 
 
 San Diego Cons. G. & E. 5s, 1939 
 
 S. F. & Nor. Pac. 1st 5s, 1919 
 
 San Fran. & San Joa. Valley 1st 5s, 1940 
 
 S. F. Elec. Rys. 5s, 1932 
 
 San Fran. Gas & Elec. 41/2S, 1933 
 
 S. F. Napa & Calistoga Ry. 6s, 1936 
 
 S. F., Oak. & San Jose Ry. 5s, 1933 
 
 S. F., Oak. & San Jose Ry. 2nd Mtg. 5s, 1933_- 
 
 S. F., Oak. & San Jose Con. Ry. 5s, 1938 
 
 San Joaquin Lt. & P. 1st & Ref. 6s, 1950 
 
 San Joaquin Lt. & P. 1st & Ref. 53, 1950 
 
 San Joaquin Lt. & P. 1st 5s, 1945 
 
 S. J. & S. Clara. R. R. 41/33, 1946 
 
 Sanford & St. Petersburg 4s, 1924 
 
 Santa Barbara G. & E. Ist 6s, 1941 
 
 Santa Fe, Prescott & Phoenix 5s, 1942 
 
 Santiago Elec. Lt. & Trac. 1st 6s, 1959 
 
 San Paulo Tram., L. & Pr. 1st 5s, 1929 
 
 Sault Ste Marie & So. W. 5s, 1915 
 
 Sault Ste Marie Edge. 1st 5s, 1937 
 
 Savannah, Fla. & West. 5s, 1934 
 
 Savannah, Fla. & West. 6s, 1934 
 
 Savannah & Statesboro 1st 5s, 1953 . 
 
 Savannah Elec. 1st Cons. 5s, 1952 
 
 Savannah Gas 1st 5s^ 1923 
 
 Sawyer, Massey Co. 1st 6s, 1927 
 
 Sayre Electric 1st 6s, 1947 
 
 Schenectady & Duanes. 1st 6s, 1924 
 
 Schenectady Ry. 1st 41/38, 1941 
 
 Schenectady Ry. Cons. 41/38, 1953 
 
 Schuylkill River, East Eide 4s, 1925 
 
 Schuylkill Trac. 1st 5s, 1943 
 
 Schwarz. & Sulzb. Co. Deb. 6s, 1916 
 
 Scioto Valley & N. E. 1st 4s, 1989 
 
 Scioto Valley Traction 5s, 1923 
 
 Scranton & Carb. Trac. 1st 68, 1923 
 
 Scranton & Pittston 6s, 1923 
 
 Scranton Elec. 1st & Ref. 5s, 1937 
 
 Scranton Gas & Water Deb. 58, 1935 
 
 Scranton Gas & Water 1st 5s, 1923 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1137 
 
 High Low 
 
 Bid 
 
 Asked 
 
 104 
 
 106 
 
 4.45% basis 
 
 1051/3 
 
 
 
 1031/4 
 
 
 
 971/3 
 
 981/3 
 
 102 
 
 104 
 
 971/2 
 
 981/4 
 
 1221/8 
 
 
 95% 
 
 97 
 
 91 
 
 
 
 *102i/3 
 
 
 
 80 
 
 82 
 
 *5i/2% basis 
 
 *91 
 
 
 
 
 
 98 
 
 94 
 
 95 
 
 83 
 
 843/8 
 
 88 
 
 91 
 
 
 *95 
 
 921/3 
 
 96 
 
 95 
 
 
 
 108 
 
 111% 
 
 
 
 90 
 
 92 
 
 931/3 
 
 102 
 
 
 1041/8 
 
 
 
 94% 
 
 951/4 
 
 85 
 
 
 
 1011/3 1021/3 
 
 93 
 
 94 
 
 1001/3 
 
 
 
 
 
 90 
 
 *90 
 
 
 
 101 
 
 
 
 IO6I/3 
 
 
 
 . 981/4 
 
 981/3 
 
 
 
 100 
 
 *100i/3 
 
 
 
 971/3 
 
 101 
 
 1061/8 
 
 1121/3 
 
 118% 
 
 1231/4 
 
 90 
 
 
 74 
 
 76 
 
 103 
 
 105 
 
 1 
 
 101 
 
 *93i/ 
 
 5 95 
 
 1131/3 
 
 114% 
 
 103 
 
 103% 
 
 105 
 
 
 __ 
 
 99% 
 
 87 
 
 
 9878 
 
 991/4 
 
 *93 
 
 
 99 
 
 1001/3 
 
 105 
 
 1071/3 
 
 105 
 
 1071/3 
 
 1011/3 
 
 1031/, 
 
 102 
 
 1031/3 
 
 103 
 
 104 
 
High Low Bid Asked 
 
 Scranton Gas & Water Deb. 5s, 1939 _ _- 1021/2 103 
 
 Scranton Ry. 1st 5s, 1932 __ — 991/2 101 
 
 Scranton Ry. Gen. 5s, 1920 »_ — 961/2 98 
 
 Scranton Ry. 5s, 1935 __ — 93 95 
 
 Scranton Traction 1st 6s, 1932 -_ >_ 110 112 
 
 Scullin, Gallagher Ir. & Steel 58, 1913-25 __ __ __ 100 
 
 Sea Beach Ry. 1st 48, 1916 — — 92 95 
 
 Seaboard & Roanoke 1st 5s, 1926 — - — — 106% 
 
 Seaboard & Roanoke Deb. 6s, 1916 >_ __ 102% 105 
 
 Seaboard Air Line Ry. — 
 
 4s, 1950 _- — 85 861/8 
 
 "Stpd." 1950 — — __ 85 
 
 Adj. 5s, 1949 711/a 7IV2 
 
 Ref. 48, 1959 __ _. 77 771/3 
 
 «C" 41/2S, 1913 -_ __ 5-4%% basis 
 
 *T)" 5s, 1914 — >_ 51/8-47/8% basis 
 
 «E" 5s, 1914 -_ __ 51/8-47/8% basis 
 
 «F" 58, 1915 — — 5-4%% basis 
 
 «G" 5s, 1916 — ._ 51/8-4%% basis 
 
 **H" 5s, 1916 _- __ 51/8-4%% basis 
 
 *T' 5s, 1917 — -_ 51/8-4%% basis 
 
 "J" 5s, 1917 — __ 51/8-47/8% basis 
 
 **K" 5s, 1917 — __ 51/8-4%% basis 
 
 **N" 41/28, 1921 -_ __ 51/8-47/8% basis 
 
 41/2S, 1923 >- __ 51/8-47/8% basis 
 
 5% Notes, 1916 — — 98I/2 98% 
 
 Equip. 41/2S, 1922 — — 6-4%% basis 
 
 Equip. 5s, 1919 __ __ 5-4%% basis 
 
 Seacoast R. R. of N. J. 5s, 1948 — __ 105 108 
 
 Seattle Electric 1st 5s, 1930 — — 103 
 
 Seattle Electric Cons. & Ref. 5s, 1929 >_ -_ 98 100 
 
 Seattle, Everett Trac. 1st 5s, 1939 __ — 97 99 
 
 Seattle Lighting 1st 5s, 1944 — __ 102 
 
 Seattle Lighting Ref. 58, 1949 __ — 95 96i/a 
 
 Seattle Lighting deb. 6s, 1920 __ — — '100 
 
 Seattle Ry. 58, 1921 — — 100 102 
 
 Second Ave. R. R. (N. Y.) 5s, 1948 __ „ 25 36 
 
 Second Ave. R. R. (N. Y.) Rec. ctfs. 5s, 1913 __ __ 991/2 100 
 
 Second Ave. Trac. 5s, 1934 — — 100% lOlVa 
 
 Second Ave. Trac. 5s, 1933 __ -_ 103 103% 
 
 Securities Co., N. Y. Cns. 4s >_ __ 59 61 
 
 Shamokin, Sun. & LewVg. 2nd 6s, 1925 __ — 110 
 
 Shamon Arizona Ry. 1st 68, 1919 — __ 93 95 
 
 Sharon & New Castle 1st 5s, 1931 — — 97% — 
 
 Shawinigan Wtr. Pr. 1st Cons. 5s, 1934 __ __ — 103% 
 
 Sheboyan Ry. & Elec. Ref. & Imp. 5s, 1926 __ — — 99 
 
 Sheldon Axle Ist 5s, 1930 — __ 94 97% 
 
 Sheldon Axle 1st 6s, 1921 — — 99 101 
 
 Sherbrooke Ry. & Pow. Cons. 1st 5s, 1940 __ — — 95 
 
 Sher., Shreveport & So. 1st 58, 1943 — — — 102 
 
 Sherwin-Williams 6s, 1949 — — — " •100 
 
 Shreveport Bridge & Term. 5s, 1955 — — 93 96 
 
 Shreveport Gas & Elec. 58, 1922 __ — '95 
 
 Sibley Mfg. 1st 5s, 1922 __ — 90 95 
 
 Sierra & S. F. Pow. 1st 5a, 1949 ^- — 93 94% 
 
 Sierra & S. F. Pow. 2d "A" 68, 1949 __ — 84 86 
 
 Sierra & S. F. Pow. 2d "B" 5s, 1949 — — 45 50 
 
 Sierra Ry. of Cal. 6s, 1937 — — 100 
 
 Silver Spgs., Ocala & Gulf 4s, 1918 __ — 97% 100 
 
 'Quotation nearest March 1, 1913. No Quotation ou that date. 
 
 1138 
 
High Low Bid Asked 
 
 Simpson Realty 6s, 1932 — — 97 100 
 
 Simpson Secnr. 63, 1929 — ' — 95 
 
 Sioux City & Pac. 31/28, 1936 - — 85% __ 
 
 Sioux City Service 1st Ref. 5s, 1928 — — 96 99 
 
 Sioux City Stk. Yds. 1st 5s, 1930 — — — 100 
 
 Sioux City Trac. 1st 5s, 1919 — _- — 100 
 
 Sioux Falls Lt. & Pow. Ist 6s, 1914-26 __ __ *90 
 
 Slate Belt & Elee. Ry. 2nd 4s, 1942 — — — *55 
 
 Sloss Iron & Steel 1st 6s, 1920 . — — 104% lOSVa 
 
 Slo^s Iron & Steel Cons. 41/28, 1918 — __ 94 95 
 
 Smith (C. A.) Timber 1st 68, 1927 — — 6% basis 
 
 Sortus Bay & Southern 1st 5s, 1924 __ — 95 
 
 Somerset Coal 5s, 1913-18 — — — *100iA 
 
 Somerset Hotel Tr. 4s, 1921 — — — 100 
 
 Somerset Lighting 1st 5s, 1939 — — — *101 
 
 Somerset Ry. 1st 4s, 1955—1 _ — — — 95 
 
 Somerset Union & Middlesex Ltg. 4s, 1943__ „ — 79 
 
 South & North Alabama Cons. 5s, 1936 — — -* IIO14 
 
 South Bend & Mishawaka Gas Cons. 5s, 1926_ _- „ 9414 98 
 
 So. Bound & So. Mich. 5s, 1927 — — — 97 
 
 South Bend Fuel & Gas 6s, 1920 „ — — *99% 
 
 South Bound 1st 5s, 1941 -_ __ 107 IO814 
 
 So. Caro. & Ga. 1st 5s, 1919 — ._ 100 1021/4 
 
 South Caro. Lt., Pr. & Ry. Ist 5s, 1937 — — — 92i/a 
 
 So. Cov. & Cin. cons. 6s, 1932 __ — 115 125 
 
 South Dakota Cent. Ry. 5s, 1927 — — — *97 
 
 South Ferry 1st 5s, 1919 — — 971/2 — 
 
 South Iron & Steel 4-5s, 1929 — — — 15 
 
 South Jersey Gas, Elec. & Trac. 5s, 1953 __ __ 99 99% 
 
 South Pac. Coast Ist 4s, 1937 — — 91 
 
 South Platte Canal & Res. 5s, 1923 __ — 89l^ 90 
 
 South Shore & Boston 5s, 1919 — — 99 IOI1/3 
 
 South Shore Gas & El. Gen. 5s, 1933 „ __ *91i/2 — 
 
 South "Side Elevated Ry. 41/2S, 1924 „ — 92 931/2 
 
 So. Bell T. & T. 5s, 1941 lOOi/g lOOi/g 
 
 Southern Boulevard 5s, 1945 __ __ 88 93 
 
 Southern Cal. Ed. Gen. 5s, 1939 „ >- 96 98 
 
 Southern Cal. Gas 1st 58, 1950 __ __ — *101 
 
 Southern Counties Gas 1st 6s, 1941 — — ' — •lOO 
 
 Southern Elec. 5s, 1916 — .. IOO1/2 101 
 
 South. Heat, Lt. & P. of Pitts. 5s, 1949 — — *98 
 
 South. Improvement 5s, 1941 *85 
 
 Southern Ind. Pow. 1st 6s, 1931 __ __ __ 101 
 
 Southern Indiana 1st 4s, 1951 __ __ 76I/2 79 
 
 Southern Light & Trac. 5s, 1949 __ „ 93 97 
 
 Southern N. E. Teleph. 1st 5s, 1948 — — 112 
 
 Southern Ohio Trac. 5s, 1920 *93% *93% 
 
 Southern Pacific Co. — 
 
 Ref. 48, 1955 93 93 ._ ,— 
 
 Conv. 4s, 1929 90% 991/3 
 
 Brch. Ry. of Cal. 6s, 1937 — — 124 126 
 
 R. R. of Cal. 53, 1937 — — — 112% 
 
 Cen. Pac. 4s, 1949 __ — 94% 951/2 
 
 S. F. Term. 4s, 1950 __ — — 881/2 
 
 Southern Power 1st 5s, 1930 >_ __ 99 IOOI/2 
 
 Southern Railway — 
 
 5% Notes, 1916 __ — 99% 99% 
 
 Equip. 41/28, 1913 — — 5.4%% basis 
 
 *T." Equip. 41/2S, 1921 — — 5.4%% basis 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1139 
 
High Low Bid Asked 
 
 «N" Equip. 41/28, 1920 __ __ 5.43/4% basis 
 
 Aiken Br. 1st 4s, 1998 _. __ 5.4%% basis 
 
 "K" Equip. 4s, 1915 __ ._ 5.43/4% basis 
 
 1st Con. 5s, 1994 105i/g IO51/2 
 
 Genl. "A" 48, 1956 — __ TTS/g 773^ 
 
 Memp. Div. 1st 5s, 1996 __ __ 107 107% 
 
 St. Louis Div. Ist 4s, 1951 __ __ __ S6% 
 
 Cons. 5s, 1944 ^ __ __ *103 
 
 East Tenn. Div. 5s, 1938 __ __ *103% __ 
 
 M. & O. 5s, 1938 — — *843^ __ 
 
 6s, 1915 — — — 1011/2 1031/2 
 
 Southern Sierra Pow. 1st 68, 1936 — __ 98 100 
 
 Southern Timber 1st 6s, 1913-15 — — __ *100 
 
 Southern Traction 1st & Coll. Tr. 5s, 1950— „ — 86 86I/2 
 
 Southern Wise. Pow. 1st 5s, 1938 __ __ __ 961/2 
 
 Southwest Missouri El. Ry. Ref. 5s, 1923 __ __ 96 100 
 
 Southwest Missouri R. R. Gen. 5s, 1931 __ __ 91 93 
 
 Southw. Coal & Imp. 1st 6s, 1929 __ __ 102 
 
 Southw. Gas & El. 1st & Ref. 5s, 1932 — — 93 931/2 
 
 Span.-Amer. Iron 6s, 1927 — — IOI14 IOII/2 
 
 Spanish Riv. Pulp & Pap. Mills 6s, 1931 __ __ 9i% 95 
 
 Spartansburg Un. & Columbia 4s, 1995 __ __ *83 
 
 Spokane & Inland Empire 1st Ref. 5s, 1926— — — 97 99 
 
 Spokane Falls & North. 1st 6s, 1939 „ __ 107 
 
 Spokane Intern'l. 1st 5s, 1955 __ __ 100 103 
 
 Spokane Trac. 1st 5s, 1925 __ __ *98i/3 __ 
 
 Spring Brook Water 5s, 1926 __ __ 102 105 
 
 Spring Riv. Pow. 1st 5s, 1930 __ __ 92 
 
 Spring Riv. Pow. 1st 5s, 1937 __ „ *92 
 
 Spring Valley Water Co. Genl. Mtg. 4s, 1923. __ __ 931/2 — 
 
 Springfield & Duanesburg R. R. 1st 6s. 1924__ __ __ __ *115i/2 
 
 Springfield Lt., Ht. & Pr. 1st 58, 1929 __ __ 94 97 
 
 Springfield (111.) Ry. & Lt. Coll. Tr. 5s, 1933__ __ __ 91 95 
 
 Springfield (Mo.) Ry. & Lt. 1st 5s, 1926 __ __ 94 96 
 
 Springfield (Mo.) Water 1st 58, 1936 __ __ *88 
 
 Springfield (Pa.) Water Cons. 58, 1926 __ __ — •96 
 
 Springfield (Vt.) Water Works 3s, 1930 — — *87i4 __ 
 
 Standard Chain 1st 6s, 1920 __ __ *92 
 
 Standard Cordage 1st 5s, 1931 __ __ 10 I21/2 
 
 Standard Cordage Adj. 58, 1931 __ __ 12 
 
 Stand. Gas & Elec. Conv. 6s, 1926 __ __ 99 100 
 
 Stand. Gas Lt. 1st 5s, 1930 __ — IO51/4 IO53/4 
 
 Standard Ideal, Ltd. 1st 6s, 1941 __ __ __ *95 
 
 Standard Milling 5s, 1930 __ __ 88I/2 89 
 
 Standard Oilcloth 6% Notes, 1913-18 100 100 
 
 Standard Sanitary Mfg. Deb. 6s, 1920 „ — *98 
 
 Standard Steels Works 58, 1928 __ __ IO21/2 — 
 
 Stanfields, Ltd. Ist 6s, 1931 __ — *5%% basis 
 
 Stark Elec. Ry. 5s, 1928 *97 
 
 Stark-Tus. Brew. 68, 1930 75 
 
 State & Lake Bldg. 6s, 1916-22 _. __ *98 
 
 State Line & Sullivan 41/28, 1929 __ — 98 
 
 Staten Island Ry. 1st 41/2S, 1943 __ — 91 
 
 Statlcr Co. 1st 6s, 1931 __ __ __ *100 
 
 Bteel Co. of Canada Ist & Coll. 6s, 1940 — — — *99i/2 
 
 Steel Co. of Canada 5% Notes, 1915-17 — — *6i/2% basis 
 
 Steelton Home Gas 5s, 1925 — — *100 *103 
 
 Steinway Ry. 1st 6s, 1922 — — 100 102 
 
 Stephenville, N. & S. Texas 5s, 1940 — — — 971/2 
 
 •Quotation nearest March 1, 1913. No (iiiotatlon on that date. 
 
 1140 
 
High Low Bid Asked 
 
 Steub. & East Liv. R. & L. 1st 5s, 1927 — __ 40 
 
 Steubenv. & Ind. 1st 5s, 1914 __ __ 100 
 
 Steubenv. & Wheel. Trac. 1st 68, 1935 — — — *94y2 
 
 Steubenv. Trac & Lt. 5s, 1926 ^ — — „ *88 
 
 Stone, Ltd. 1st 6s, 1931 — — *103 
 
 Strathmore Paper 1st 5s, 1926 — — — ^lOSi/g 
 
 Strathmore Paper ^ 1st 5s, 1928 — — — *105% 
 
 Strathmore Paper 1st 5s, 1930 — — — *106y8 
 
 Strathmore Paper 1st 5s, 1932 — — — *106y2 
 
 Streator Tel. & Tel. 5s — — *87y3 __ 
 
 Streets Western Stable-Car Line 1st Equip. 
 
 5s, 1913-27 — — 5.30-5.25% basis 
 
 Struthers Furnace 6s, 1912-26 *100 *100 
 
 Studebaker Corp. 5% Notes, 1912-22 — — 5%% basis 
 
 Sturgis, Goshen & St. L. R. R. 3s, 1989 — _. — 73y3 
 
 Suburban Gas Co. 1st 5s, 1952 — — 100 101 
 
 Suburb. Rap. Tran. 6s, 1913 — __ 100 
 
 Suffolk & Car. Con. 5s, 1952 — — 100 105 
 
 Sullivan & Slauson Co. 1st 6s — — *101 
 
 Sulzberger Sons & Co. Deb. 6s, 1916 — — 98% 99^4 
 
 Summer Street Ry. 1st 6s, 1926 -_ — 113 116 
 
 2nd Series 6s, 1937 — — 116 119 
 
 Sumter & Wat. Riv. 5s, 1919 __ — 93 
 
 Suubury & Lewiston 1st 4s, 1936 __ — 96y3 -_ 
 
 Sunbury, Hazel. & Wilkes-Barre 1st 5s, 1928— __ __ 101 
 
 Suubury, Hazel. & Wilkes-Barre 2nd 6s, 1938 _- — — lisya 
 
 Sunbury & Lewiston 1st 4s, 1936 __ — 96y2 — 
 
 Sunday Creek Co. Coll. 5s, 1944 __ __ 62 75 
 
 Superior Short Line 1st 5s, 1930 __ „ 109% __ 
 
 Superior Wtr., Lt. & Pow. 1st 4s, 1931 __ — 81 84 
 
 Superior Wtr., Lt. & Pow. Ref. 5s, 1929 __ — — 90 
 
 Susq., Blooms. & Ber. 1st 5s, 1952 — — *100 
 
 Swift & Co. 1st 5s, 1944 __ „ 99% 100 
 
 Symington (T. H.) & Co. Conv. 6s, 1920 — — — 100 
 
 Syracuse Gas 5s, 1946 — — lOiyg 102% 
 
 Syracuse, Lake Shore & Northern 1st 5s, 1947 __ — *96 *97y3 
 
 Syracuse Lt. & Pow. Coll. 5s, 1954 __ __ 82y2 85 
 
 Syracuse Lighting 1st 5s, 1951 — — — 101 
 
 Syracuse Rap. Transit 1st 5s, 1946 — — 101 102y2 
 
 Syracuse Rap. Transit 2nd 5s, 1930 __ — 97 99 
 
 Tacoma Eastern 1st 5s, 1923 __ __ *10iy2 — 
 
 Tacoma Gas & Elec. 5s, 1915 __ __ 92 97 
 
 Tacoma Gas Lt. Ref. 5s, 1926 __ __ 80 82y2 
 
 Tacoma Ry. & Pow. 1st 5s, 1929 __ . __ 98 100 
 
 Tacoma Water Supply 1st 5s, 1925 __ __ __ 92 
 
 Tampa & Jacksonv. 1st 5s, 1949 __ — 85 95 
 
 Tampa Elec. 1st 5s, 1933 __ __ 99 101 
 
 Tampa Gas 1st 5s, 1937 — __ 92 96y, 
 
 Tampa North. 1st 5s, 1936 __ — 81 86 
 
 Tarkio Valley 7s, 1920 __ __ 103y8 — 
 
 Tarrytown W. P. Mam. 5s, 1928 __ — 75 80 
 
 Taunton & Brockton St. Ry. 1st 5s, 1917 — — — *100 
 
 Taylor Ave. Ry. 6s, 1913 — — 100 lOOy, 
 
 Taylor-Wharton Ir. & Steel 1st 6s, 1942 — — *99 *101 
 
 Taylor's Falls & L. Sup. 6s, 1914 __ „ 102 
 
 Telluride Power Co. 1st 6Sj 1923 __ __ *98 
 
 Temescal Water 6s, 1921 __ __ 100 
 
 Temple Iron 1st & Coll. Tr. 4s, 1952 __ — 104y2 105 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1141 
 
High Low Bid Asked 
 
 Tern. Coal, Iron & R. R. 5s, 1951 — ._ 100 lOOy, 
 
 Tern. Coal. Iron & R. R. (Birm. Div.) 6s, 1917 — — 101 103% 
 
 Tern. Coal, Iron & R. R. (Tenn. Div.) 6s, 1917 — - -_ 101 103% 
 
 Tennessee Copper 1st 6s, 1913-17 — — 991/2 101 
 
 Tennessee Pow. 1st 5s, 1963 — — 81% 821/3 
 
 Tenth & 23rd St. Ferry 1st 5s, 1919 — — 55 65 
 
 Term. R. A. Ass'n of St. L. Cons. 5s, 1944 __ __ — 1091/^ 
 
 Term. R. R. Ass'n of St. L. Ref. 4s, 1953 __ >_ — 91 
 
 Term. R. R. Ass'n of St. L. 1st 41/2S, 1939 -_ ._ IO214 104 
 
 Term. Wharf & R. R. Warehouse 5s, 1928 — __ *97ya — 
 
 Terre Haute & Ind. 5s, 1925 — — 103 106 
 
 Terre Haute & Peoria 1st 5s, 1942 — — 100 
 
 Terre Haute Elec. 5s, 1929 __ — 99 102 
 
 Terre Haute Indpls. & East Ref. 5s, 1945 — — 971/2 98i/, 
 
 Terre Haute Trac. & Lt. 1st Cons. 6s, 1944 — — — 98 100 
 
 Terre Haute Water Works 41/2S, 1919 — — 93 97 
 
 Texarkana Gas & Elec. Ref. & Prior 6s, 1941 __ __ 'lOl 
 
 Texarkana Gas &. Elec. 1st 5s, 1930 — — *94 *97y, 
 
 Tex. & New Orl. Cons. 5s, 1943 — — lOOi/g 101 
 
 Texas & N. 0., Dallas Div. 1st 4s, 1930 _- — 87 91 
 
 Texas & Okla. 1st 5s, 1943 — — lOli/a 102 
 
 Texas & Pacific Ry.— 
 
 1st 5s, 2000 106l^ 1061A 
 
 2nd 5s, 2000 — — 45 
 
 (Louis. Div.) 5s, 1931 — — *95 
 
 Equip. «A-A" 5s, 1916 - — — *100i/8 — 
 
 Texas Central 1st 5s, 1923 . — — 98 103 
 
 Texas Co. deb. 6s, 1931 — — 991/3 99y8 
 
 Tex. Pow. & Lt. 1st 58, 1937 — — 96 98 
 
 Texas Trac. 1st 5s, 1937 — — — 96 
 
 Third Ave. Ry. Ist Gen. 5s, 1937 : — — IO61/2 107% 
 
 Third Ave. Ref. 4s, 1916 8II/2 8II/2 
 
 Third Ave. Ref. 4s, 1960 8II/2 8I1/3 
 
 Thirteenth & 15th Sts. Pass. Ry. 31/2S, 1934-. „ „ *86i/2 „ 
 
 Thirty-fourth St. Crosstown 1st 5s, 1996 — — 100 
 
 Thompson-Conn. Coke 58, 1931 — — *80 *85 
 
 Three Rivers Gas Ist 5s, 1936 — — *80 
 
 Tidewater Power 1st 5s, 1949 -_ — 94 98 
 
 Tiffin Water Works 5s, 1932 — — *100 
 
 Tillamook Timber & Logging Serial 6s *100 "100 
 
 Tintern Manor Water 5s, 1930 — — *91 
 
 Titusville Elec. Trac. 6s, 1913 — — "100 
 
 Toledo & Indiana Trac. 1st 5s, 1931 — — 96 99 
 
 Toledo & Ohio Central Ry.— 
 
 Ist 5s, 1935 — — 10614 107 
 
 Western Div. 6s, 1935 — — IO61/8 — 
 
 Gen. 5s, 1935 — — 100 IOI1/3 
 
 (St. Mary's Div.) 4s, 1951 — — •87 ^90 
 
 Car. Tr. 4s, 1917 — — 614% 4%% 
 
 Car. Tr. «B" 4s, 1920 — — 51/4% 4%% 
 
 Toledo & Western Ry. 1st 5s, 1926 — — 68 70 
 
 Toledo, B. G. & So. Trac. 5s, 1921 — — — 85 
 
 Toledo, Can. Sou. & Det. 1st 4s, 1956 — — 93 
 
 Toledo, Fremont & Norwalk 5s, 1920 — — 97 100 
 
 Toledo Gas, El. & Ht. Cons. 5s, 1935 — — 61 1/2 65 
 
 Toledo Home Tel. 5s, 1922 — — 9I1/2 93 
 
 Toledo, Peor. & West. P. L. 31/2S, 1925 — — 83 85 
 
 1st 4s, 1950 — — 54 561/2 
 
 Toledo, Peoria & Western 1st 48, 1917 — ~ 89 91 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1142 
 
High Low Bid Asked 
 
 Toledo, Port Clinton & Lakeside 5s, 1928 __ __ *35 
 
 Toledo, St. Louis & Western R. R.— 
 
 Prior Lien 31/38, 1925 . __ __ 83 85 
 
 Prior Lien 31/38, 1925 (Reg'd.) __ __ __ 83 
 
 4s, 1950 _- __ 64 551/3 
 
 Coll. Tr. "A" 4s, 1917 _- _- __ 60 
 
 Equip. 41/3S, 1916 __ »_ '100 
 
 Toledo Terminal 1st 41/38, 1957 — __ 84 91 
 
 Toledo Trac. Lt. &, Pr. 6s, 1918 __ __ 100 lOOy, 
 
 Tol., Walhoning Vy. & O. 1st "A" 41/38, 1931 __ __ IOOI/3 _. 
 
 Tol., Walhoning Vy. & O. 1st "B" 41/38, 1933 __ — IOOI/3 __ 
 
 Tol., Walhoning Vy. & O. lat "C" 4s, 1942— — — 94 98 
 
 Tombigbee Valley 1st 58, 1956 __ __ 92 100 
 
 Tombigbee Valley Genl. 63, 1935 __ -_ 95 100 
 
 Tonopah & Goldfield 1st 68, 1921 __ _. __ *102 
 
 Topeka Edison 1st 5s, 1930 __ __ 97 99 
 
 Topeka Ry. 5s, 1930 __ __ 97 99 
 
 Toronto & York Radial Ry. 5s, 1919 _- __ *100 
 
 Toronto, Ham. & Buff. 1st 4s, 1946 __ __ 89 89l^ 
 
 Toronto, Ham. & Buff. Equip "A" 41/3S, 1923__ *4%% basis — 
 
 Toronto Paper Mfg. 6s, 1942 __ __ *96 
 
 Toronto Ry. 41/3S, 1913-21 »_ __ 95 
 
 Torrington Co. 1st 5s, 1918 _- __ 100 
 
 Trenton Gas & Elec. 1st Gen. 5s, 1949 __ __ IO31/3 __ 
 
 Trenton Pass. Ry. 63, 1931 __ __ 113 114 
 
 Trenton, Penn. & Hop. 5a, 1943 _> __ 96 
 
 Trenton St. Ry. Cons. 5s, 1938 __ __ 95 100 
 
 Trenton St. Ry. Gen. 6s, 1941 __ __ *99 
 
 Tri City Ry. & Lt. 58, 1923 97% 97% 
 
 Tri City Ry. & Lt. Ref. 5s, 1930 __ __ *92l^ *95 
 
 Trinidad Elec. 1st 5s, 1931 __ __ __ *92ya 
 
 Troy & Boston 78, 1924____ __ ._ 120 123 
 
 Troy & W. Troy Bridge 5s, 1915 __ __ 101 103 
 
 Troy City Ry. 5s, 1942 __ ._ 104 106 
 
 Troy Gas 2nd 68, 1923 108 110 
 
 Troy Gas Cons. 58, 1939 __ — 106 108 
 
 Trumbull Pub. Serv. Ist 6s, 1929 — __ 100 101 
 
 Tuckerton R. R. 1st 5s, 1930 __ __ — 100 
 
 Tulsa (Okla.) Corp. 1st 5s, 1932 __ >_ 92 95 
 
 Turner (J. Sp.) Co. Deb. 63, 1926 __ — *81 *82i/a 
 
 Twenty-eighth & 29th St. 1st 5s, 1996 — >_ — 20 
 
 Twin City Teleph. 1st 5s, 1912-26 __ __ *92 
 
 Twin Falls, North Side Land & Water 1st 68, 
 
 1912-20 _. __ __ *100 
 
 Twin Falls, Oakley Land & Wat. 6s, 1912-20_- __ __ — *100 
 
 Twin Falls Ry. Ist 6s, 1932 *100 •lOO 
 
 Twin Falls Salmon River Land & Wat. 1st 
 
 6s, 1912-20 __ __ >- *100 
 
 Twin State G. & E. 1st & Ref. 41/3S, 1926 _. __ „ 74 
 
 Ulster & Delaware 1st 5s, 1928 __ __ 103% __ 
 
 Ulster & Delaware Ref. 48, 1952 — — — 84 
 
 Underg'd. Elec. Rys. of Lon. 41/38, 1933 __ 95l^ 
 
 Underg'd. Elec. Rys. of Lon. 6s, 1948 __ __ 91 95 
 
 Union Bag & Pap. 5s, 1930 __ __ 89 
 
 Union Depot Cons. 6s, 1918 : _'_ __ IO41/2 IO51/3 
 
 Union El. Lt. & Pow. 1st 1932 — -_ 100 IOI1/3 
 
 Union El. Lt. & Pow. Ref. & Ext. 53, 1933 __ __ 95 971/4 
 
 Union Elevated R. R. Ist 5s, 1945 ._ — '75 *90 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1143 
 
High Low 
 Union Ferry 5s, 1920 
 
 Unoin Gas (McK.) 5s, 1929 __ - „ 
 
 Union Gas (Spok.) 5s, 1935 
 
 Union Lt., Ht. & Pr. (Gov.) 1st 4s, 1918 -_ , __ 
 
 Union Lt., Ht. & Pr. (Fargo) 1st 5s, 1933 
 
 Union Oil 5s, 1931 
 
 Union Pacific R. R. — 
 
 Conv. 4s, 1927 941/2 94i^ 
 
 4s, 1947 98-78 98% 
 
 Ist Ref. 4s, 2008 
 
 Union Ry. 1st 58, 1942 
 
 Union Ry., Gas & El. Coll. 5s, 1939 
 
 Union Ry., Gas & El. 5% Notes, 1916 97iA 97^4 
 
 Union Steel 1st 5s, 1953 
 
 Union St. Ry. (New Bedf.) Cons. 5s, 1914 
 
 Union Trae. of Ind. 5s, 1919 
 
 Union Trae. of Pitts. 5s, 1997 
 
 Union Trae. of (Santa Cruz) 1st 5s, 1935 __ — *95 
 
 Union Trae (Indep. & Coff., Kan.) 5s, 1937— *93i4 *93iA 
 
 Union Transportation 5s, 1923 91 
 
 Union Typewriter 5s, 1916 
 
 Union Utilities 6s, 1944 . 
 
 Union Water of Cal. 6s, 1956 
 
 Unit. Boxbd. & P. Coll. 6s, 1936 
 
 Unit. Boxbd. & P. Gen. 6s, 1936 
 
 United Breweries 1st 6s, 1938 *70 *70 
 
 United Coal 6% Notes, 1916-35 
 
 United Coal 1st 5s, 1955 
 
 United Elec. Co. of N. J. 4s, 1949 
 
 United Elec, Lt. & Pow. 1st 5s, 1934 
 
 United Elec, Lt. & Pow. ref. & ext. 5s, 1933— 
 United Elec, Lt. & Pr. 1st Cons. 41/2S, 1939— 
 United Elec Securities Co. C. T. 5s, 1933-1937 
 
 United Elec. Securities Co. C. T. 5s, 1943 *99i/2 *99i/2 
 
 United Equities 6% Notes, 1915 *100 *100 
 
 United Fruit 41/2*, 1923 
 
 United Fruit Deb. 41/2S, 1935 
 
 United Fruit Deb. 5s, 1916 
 
 United Gas & Elec. Conv. 5% Notes, 1915 
 
 United Gas & Elec 5s (Cal.), 1933 
 
 United Gas & El. (N. J.) 1st Coll. 5s, 1933 
 
 Unit. Gas, EL, Lt. & P. Cons. 5s, 1930 
 
 Unit. Ilium. (New Haven) 1st 5s, 1940 
 
 United Iron & Steel 5s, 1936 
 
 United Kansas Portl. Cement 6s, 1930 
 
 United Lead Deb. 5s, 1943 
 
 United Light, Ht. & Pr. 1st 5s, 1933 
 
 United Light & Pr. 6s, 1914 
 
 Unit. Lt. & Rys. 1st & Ref. 5s, 1932 
 
 United Missouri River Pr. 6s, 1936 
 
 United N. J. R. R. & Canal Co. Gen. 4s, 1944— 
 United N. J. R. R. & Canal Genl. 4s, 1923 
 
 Genl. 4s, 1939 
 
 1st 31/28, 1951 
 
 United Properties Realty 6s, 1916 
 
 Unit. Pub. Util. (Del.) 1st Coll. 6s, 1943 '100 
 
 United Publishers Coll. 6s, 1930 
 
 United R. R. of S. F. 4s, 1937 
 
 *QuoUtlon nearest March 1. 1913. No quotation on that date. 
 
 1144 
 
 Bid . 
 
 Asked 
 
 88 
 
 93 
 
 *96 
 
 
 
 •98 
 
 
 
 931/2 
 
 95 
 
 *93i/2 
 
 *96 
 
 871/2 
 
 90 
 
 931/4 
 
 95 
 
 104 
 
 
 
 91 
 
 93 
 
 104 
 
 105 
 
 100 
 
 101 
 
 951/2 
 
 — 
 
 
 
 971/2 
 
 931/2 
 
 971/2 
 
 
 
 •98 
 
 20 
 
 
 
 38 
 
 ~ 
 
 100 
 
 "■"* 
 
 *83 
 
 •86 
 
 81 
 
 82 
 
 
 
 92% 
 
 *95 
 
 •98 
 
 93 
 
 931/2 
 
 98 
 
 100 
 
 ~ 
 
 951/2 
 
 
 
 95 
 
 ^1003/4 
 
 
 
 961/2 
 
 98 
 
 
 1011/4 
 
 100 
 
 1011/2 
 
 
 
 100 
 
 93 
 
 __ 
 
 *93i/2 
 
 __ 
 
 *50 
 
 
 
 *63 
 
 __ 
 
 
 
 •94 
 
 »_ 
 
 •991/2 
 
 
 
 92% 
 
 *98 
 
 
 
 99 
 
 
 
 99 
 
 100 
 
 99 
 
 1001/2 
 
 871/2 
 
 89 
 
 
 ♦96 
 
 •93 
 
 •94 
 
 621/, 
 
 63 
 
High Low Bid Asked 
 
 United Rys. 4s, 1949 __ __ 74 741/2 
 
 United Rys. & Elec. 5% Notes, 1914 __ __ lOli/g 102 
 
 Unit. Rys. & EL, Bait., Inc. 4s, 1949 63 63 
 
 Unit. R. & E. Bait. 1st Cons. 4s, 1949. __ __ __ 85 
 
 Unit. R. & E. Bait., Inc. 5s, 1936 — 871/2 871/2 
 
 Unit. Rys., Inc., Ist Lien Coll. 5s, 1926 __ — 76% 761/3 
 
 Unit. Rys. of St. L. 1st Gen. 4s, 1934 __ __ 731/2 741/3 
 
 U. S. Envelope 1st 5s, 1913-34 __ __ 991/2 IO21/2 
 
 U. S. Equipment 6% Notes, 1916 __ __ __ *99i/2 
 
 U. S. Finishing 1st 5s, 1919 __ __ 99 102 
 
 U. S. Finishing Cons. 5s, 1929 __ — __ 97 
 
 U. S. Glass 5s, 1923 __ __ __ *95 
 
 U. S. Gypsum 1st 5s, 1922 __ __ 97 98 
 
 U. S. Gypsum 6% Notes, 1917 __ __ *97 *99 
 
 U. S. Leather, deb. 6s, 1913 __ __ lOOi/g 100% 
 
 U. S. Long Dist. T. & T. Co. 5s, 1934 __ __ 70 
 
 U. S. Mtge. & Trust.— 
 
 Coll. Tr. "E" 4s, 1917 __ __ __ 100 
 
 Coll. Tr. "G" 4s, 1918 __ __ __ 100 
 
 Coll. Tr. "H" 4s, 1918 __ __ __ 100 
 
 Coll. Tt. «I" 4s, 1919 _. -_ >_ 100 
 
 Coll. Tr. "J" 4s, 1919 __ __ __ 100 
 
 Coll. Tr. "K" 4s, 1920 __ _. __ 100 
 
 U. S. Motor 6s, 1916 __ __ __ *59 
 
 U. S. Natural Gas 6s, 1929 _« __ *99i/2 — 
 
 U. S. Radiator 1st 6s, 1912-27 — „ __ *100 
 
 U. S. Realty & Imp. deb. 5s, 1924 __ __ 86 87 
 
 U. S. Reduction & Ref. 6s, 1931 __ __ 25 321/2 
 
 U. S. Rubber 6s, 1918 __ __ 102% 102% 
 
 U. S. Smelt 1st 6s, 1922 __ __ __ 50 
 
 U. S. Smelt. Refin. & Min. 5% Notes, 1914__ __ __ 99 99% 
 
 U. S. Steel Coll. Tr. 5s, 1951 __ __ 114 
 
 U. S. Steel "S. F. 5s, 1963 100% lOOiA 
 
 U. S. Telephone 1st 5s, 1919 __ __ __ 90 
 
 U. S. Whip 1st 6s, 1923 >_ __ __ *96i/2 
 
 United Trac. (Albany) Deb. 41/2S, 1919 __ __ 971/3 981/2 
 
 United Trac. (Albany) Cons. 4i/oS, 2004 ... __ 96I/2 971/2 
 
 United Traction (Pitts.) 5s, 1997 __ __ 95 96 
 
 Unit. Trac. & El. 1st Coll. 5s, 1933 __ __ 100 IO31/2 
 
 Unit. Traction R'd'g. 1st Coll. 5s, 1926 __ __ __ 96 
 
 United Utilities 1st Coll. Conv. 6s, 1943 __ __ __ 94 
 
 United Water & Light Coll. 6s, 1912-25 __ __ „ *100 
 
 Universal Crushed Stone Co. 6s, 1922 *100 *100 
 
 Upchurch Lumber 1st 6s, 1917 __ __ __ *100 
 
 Upper Coos 1st 4s, 1930 __ __ 91 
 
 Upper Coos, Ex. 41/2S, 1930 __ __ 97 
 
 Upson Nut Co., Serial 6s __ __ *100 
 
 Urbana & Champaign Ry., Gas & Elec. 1st 5s, 
 
 1917 __ >_ *101 
 
 Utah & Northern 5s, 1926 __ __ 103 
 
 Utah & Northern 1st ext. 4s, 1933 __ __ 9314 99 
 
 Utah Central 1st 4s, 1917 __ -_ *82 
 
 Utah Co. Coll. Tr. 6% Notes, 1917 __ __ — IOO1/3 
 
 Utah Fuel 5s, 1931 __ __ 85 87 
 
 Utah Gas & Coke 1st 5s, 1936 __ __ 91 
 
 Utah Light & Pr. Cons. 4s, 1930 __ __ 8O14 821/3 
 
 Utah Securities 6% Notes, 1922 __ __ 85% 861/4 
 
 Utica & Black River 4s, 1922 __ __ 95 
 
 Utica & Mohawk Valley 1st 41/2S, 1941 __ __ 97 981/^ 
 
 ^Quotation nearest Marcb 1, 1913. No quotation on that date. 
 
 1145 
 
High Low 
 
 Utica Belt Line 1st 6s, 1939 
 
 Utica Belt Line 2nd 5s, 1931 
 
 Utica, Clinton & Bing. Ss, 1939 
 
 Utica Elec, Lt. & P. Ist 5s, 1950 
 
 Utica Gas & Elec. Ref. & Ext. 58, 1957 
 
 Uxbridge & Blackstone St. Ry. 5s, 1923 
 
 Valier-Montana Lt. & Pow. Ser. "B" 6s, 1926. 
 
 Valley Counties Power Co. 58, 1930 
 
 Valpraiso & Northern 6s, 1929 
 
 Vandalia Coal 1st 6s, 1930 
 
 Vandalia R. R. Ser. "A" 4s, 1955 
 
 Vandalia R. R. Ser. "B» 48, 1957 
 
 Ventura County Power 1st 68, 1936 
 
 Vera Cruz & Pac. 41/28, 1934 
 
 Verdigris Val. Ind. & W. 1st 6s, 1926 
 
 Vermont Pow. & Ltg. 6s, 1927 
 
 Vermont Valley 1st 41/28, 1940 
 
 Vicksburg & Meridian 1st 68, 1921 
 
 Vicksburg Lt. & Trac. 1st 5s, 1932 
 
 Vicksburg Lt. & Trac. Deb. 6s, 1922 
 
 Vicksb'g., ShrVt. & Pac. 6s, 1941_- 'lOlVa ~ 
 
 Vicks., Shreve. & Pac. P. L. 6s, 1915 
 
 Victor- Amer. Fuel 1st & ref. 6s, 1940 
 
 Victor Fuel 5s, 1953 
 
 Virginia & Southw. 5s, 2003 
 
 Ist 6s, 1958 
 
 Virg.-Car.-Chem. 5s, 1923 
 
 Virg. Iron, Coal & Coke 6s, 1949 
 
 Virginia Midland Ser. "C" 6s, 1916 
 
 Virginia Midland Ser "D" 4s-5s, 1921 
 
 Virginia Midland 'Ser. "E" 5s, 1926 
 
 Virginia Midland Ser'. "F" 5s, 1931 
 
 Virginia Midland Genl. 5s, 1936 
 
 Virginia Ry. & Pow. 1st & Ref. 6s, 1934 
 
 Virginian Ry. Ser. "A" 6s, 1962 
 
 Virginian Ry. Equip. "A" 6s, 1913-18 
 
 Wabash-Pitts. Term. 1st 4s, 1954 
 
 Wabash-Pitts. Term. 2nd 4s, 1954 
 
 Wabash-Pitts. Term. 6% Rec. Ctfs., 1914 *100 *100 
 
 Wabash-Pitts. Term. Cent. Tr. Rects 
 
 Wabash-Pitts. Term. Col. Tr. Ctfs. Dep 
 
 Wabash R. R.— 
 
 Omaha Div. 31/28, 1941 
 
 Deb. "B" 6s, 1939 
 
 Equip. "B" 41/2S, 1914 
 
 Equip. "C" 41/2S, 1916 
 
 1st 5s, 1939 
 
 2nd 5s, 1939 
 
 1st Lien Equip. 5s, 1921 
 
 1st Lien Term. 4s, 1954 
 
 1st Ref. & Ext. 48, 1956 
 
 Det. & Chic. Ext'n. 6s, 1941 
 
 Tol. & Chic. Div. 48, 1941 
 
 Deg Moines Ist 4s, 1939 
 
 Wabash River Trac. 6s, 1931 
 
 Waccannaw Lumber 6s, 1914-28 *100 "100 
 
 Walker Co. Ist 6s, 1916 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1146 
 
 Bid Asked 
 
 104 
 
 110 
 
 102 
 
 108 
 
 102 
 
 
 
 103 
 
 105 
 
 98 
 
 100 
 
 ~ 
 
 100 
 
 
 *40 
 
 101 
 
 __ 
 
 *75 
 
 
 
 
 
 100 
 
 
 
 93% 
 
 9iy2 
 
 93 
 
 
 100 
 
 
 
 93 
 
 95 
 
 
 
 97 
 
 99 
 
 103 
 
 105 
 
 103 
 
 
 
 
 
 95 
 
 ~ 
 
 100 
 
 103 
 
 " 
 
 96 
 
 100 
 
 
 
 79% 
 
 
 
 108 
 
 95 
 
 95% 
 
 96% 
 
 97 
 
 961/8 
 
 971/2 
 
 104 
 
 
 103 
 
 
 
 1031/2 
 
 
 
 104% 
 
 
 
 1051/2 
 
 
 
 94 
 
 941/2 
 
 
 
 98% 
 
 ~ 
 
 •100 
 
 26 
 
 
 iy4 
 
 • 2 
 
 241/2 
 
 25% 
 
 26% 
 
 
 65 
 
 
 
 
 108 
 
 51/2% basis 
 
 51/3% basis 
 
 104ys 
 
 105 
 
 971/2 
 
 98% 
 
 98 
 
 100 
 
 80 
 
 
 
 59% 
 
 60 
 
 105 
 
 107% 
 
 80 
 
 
 *77 
 
 •79 
 
 — 
 
 ♦97 
 
 97 
 
 101 
 
High Low Bid Asked 
 
 Ward Baking 1st 6s, 1937 — — *95 
 
 Ward Building Si/gS, 1925 „ __ — 100 
 
 Warren R. R. 1st & Ref. Sy^a, 2000 — __ _- *83 
 
 Warwick Iron & Steel 6% Notes, 1914___ __ __ *10iyz — 
 
 Wash., Alex. & Mt. Ver. 5s, 1955 . — „ __ 97 
 
 Wash., Arlington & Falls Church 5s, 1958 — __ __ *91 
 
 Wash., Bait. & Ann. 58, 1941 87% __ 
 
 Washington Central Ry. 1st 4s, 1948 __ __ 88 93 
 
 Washington County Ry. 1st Si/gS, 1954 __ — 80 83 
 
 Washington Gas 5s, 1960 — __ 109 110 
 
 Washington Market Co. 5s, 1917-27 *104 
 
 Washington Market Co. 5s, 1927-47 *102 
 
 Wash. Market Cold. Storage 5s, 1939 *99ya — 
 
 Wash., No. Car. 1st 6s, 1914 ^ __ __ 101 
 
 Wash'gtn., Ohio & W. 1st 4s, 1924 __ __ 93 
 
 Washington Ry. & Elee. 4s, 1951 — __ 83 84 
 
 Washington Term'l. Ist Zy^a, 1945 _- __ 83% __ 
 
 Washington Term'l. 1st 4s, 1945 >_ — 97iA — 
 
 Wash. Wtr. Pow. 1st & Ref. 53, 1939 __ __ 102 104 
 
 Wash. W^tr. Pow. Coll. 5s, 1929 — — 102 
 
 Watauga Power 1st 6s, 1952 __ __ — 101 
 
 Waterbury Lt. & Pow. 5s, 1916 __ __ — *99i/a 
 
 Waterbury Lt. & Pow. 5s, 1921 _- __ __ 99 
 
 Waterford Min. Wells & Northw'n. 5s, 1930— __ __ 100 102 
 
 Waterloo, Cedar Falls & No. R. 1st 5s, 1940— — __ 87 89 
 
 Waterloo, Cedar Falls & No. Ry. 1st 5s, 1929— — __ *87 
 
 Watertown Lt. & Pow. 5s, 1959 — _- *97y2 — 
 
 Watervliet & Turnpike R. R. 1st 63, 1919 — __ 106 108 
 
 Watervliet & Turnpike R. R. 2nd 6s, 1919 — __ 106 108 
 
 Weaver (W. T.) Power 5s, 1931 __ ._ __ *98 
 
 Webster Coal & Coke Ist 5s, 1942 -_ __ 881/2 91 
 
 Welsbaeh Co. 5s, 1930 -_ __ 93 93i/a 
 
 West End Colliery 5s, 1913 __ __ 96 99 
 
 West End St. Ry. 5s, 1932 __ __ — 1051/9 
 
 West End St. Ry. 41/28, 1914 __ — 99% 100 
 
 West End St. Ry. 41/28, 1923 __ — 98iA 99l^ 
 
 West End St. Ry. 41/33, 1930 ._ __ 98 99 
 
 West End St. Ry. Curr. 4s, 1915 __ -_ 98 98% 
 
 West End St. Ry. Curr. 4s, 1916 — — 971/2 98% 
 
 West End St. Ry. Curr. 4s, 1917 — — 97% 98% 
 
 West End St. Ry. 4s, 1932 __ __ 91% 92% 
 
 West End Trae. Cons. 5s, 1938 102% 102% 
 
 West India Elec. 5s, 1928 — __ — *92 
 
 West Jersey & Seashore Cons. 4s, 1936 — — 98 99% 
 
 West Jersey & Seashore Ser. "B" 31/2S, 1936— — _- — 90 
 
 West Kentucky Coal 58, 1935 „ __ 72 80 
 
 West Koot. Pr. & Lt. 1st 6s, 1940 __ _- — 109 
 
 West Liberty Street Ry. 1st 5s, 1930 — __ 95 100 
 
 West Penn. Rys. 1st 5s, 1931 101% 101% 
 
 West Penn. Trac. 1st 58, 1960 — — 96 97 
 
 West Phila. Pass. Ry. 2nd 5s, 1926 __ — 101 104 
 
 West Sacramento Co. 1st 6s, 1930 — — — *100 
 
 West Shore 1st 48, 2361 — — 98 98% 
 
 West Side Belt 1st 5s, 1937 95 100 
 
 West Side Belt 6% Ctfs., 1913 _- _- — "100 
 
 West Transit Co. 31/2S, 1923 __ — 89% 92% 
 
 West. Va. & Pitts. 1st 4s, 1990 — __ 90 
 
 West Va. Pulp & P. 58, 1921 ._ ._ *95 
 
 West Va. Timber 6s, 1913-22 'lOO •100 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1147 
 
High Low Bid Asked 
 
 West Va. Trac. & Elec. 5% Notes, 1915 — — *96i/2 __ 
 
 Westchester Electric 1st 5s, 1943 — __ 96 100 
 
 Westchester Lighting 1st 5s, 1950 __ __ — IO41/2 
 
 Westchester Lighting 5% Notes, 1920 — — __ *98 
 
 Westchester St. Ry. 1st 5s, 1932 — — 76 80 
 
 Westerly Light & Pow. 1st 5s, 1937 — __ — 100 
 
 Western Canada Fl. Mills 1st 6s, 1928 __ — 103 104 
 
 Western Canada Fl. Mills, 1st & ref. 6s, 1931 __ __ 100 101 
 
 Western Canada Pow. 5s, 1949 __ — __ *88 
 
 Western Elec. 5s, 1922 — — 1021/2 IO21/2 
 
 Western Foundry & Metal 7% Notes, 1913 — — — *102 
 
 Western Maryland 1st 4s, 1952 — — * — 82 
 
 Western Maryland 5% Notes, 1915 „ — 971/2 931/2 
 
 Western N. Y. & Penna. 5s, 1937 — __ 106 
 
 Western N. Y. & Penna. Gen. 4s, 1943 __ — __ 86 
 
 Western N. Y. & Pa., Inc. 5s, 1943 __ — 30 35 
 
 Western N. Y. & Pa. Trac. 1st Ref. 5s, 1957_- „ — 93 94 
 
 Western Nor. Cars 6s, 1914 __ __ *101l^*1013^ 
 
 Western Ohio Ry. 5s, 1921 *93i/4 „ 
 
 Western Pacific 5s, 1933 — — 86 86% 
 
 Western Penna. 1st 4s, 1928 __ — 981/2 991/2 
 
 Western Ry. of Ala. 41/2S, 1918___ __ — 95 
 
 Western States, G. & E. 1st & Ref. 5s, 1941__ __ __ 88 
 
 Western Telep. & Teleg. Coll. 5s, 1932 „ __ 991/3 991/2 
 
 Western Union Tel. 5s, 1938 — — 100% 101% 
 
 Western Union Tel. Fdg. & R. E. 41/2S, 1950— — — — 95 
 
 West. Unit. G. & E. 1st Serial 5s — — *99 *100 
 
 West. Unit. G. & E. Deb. Serial 6s __ „ *100 
 
 Westingh. Elec. & Mfg. 6% Notes, 1913 __ — IOO1/4 IOO34 
 
 Westingh. Elec. & Mfg. 5% Notes, 1915 — __ *100 100% 
 
 Westinghouse Elec. & Mfg. 5s, 1931 92 92 
 
 Westinghouse Elec. & Mfg. 5s, 1917 — — 96^/4 97i/o 
 
 Westinghouse Machine It & Ref. 6s, 1940 __ __ 83 90 
 
 Westinghouse Machine 6% Notes, 1914 — — *84 
 
 Whatcom Co. Ry. & Lt. 5s, 1935 __ — 93 95 
 
 Wheeling & Lake Erie Ry. — 
 
 Lake Erie Div. 1st 5s, 1926 — __ — 101 1/2 
 
 Wheeling Div. 5s, 1928 __ — 99 
 
 Ext. & Impt. 5s, 1930 ._ — — 104l^ 
 
 1st 48, 1949 — — 80% 81 
 
 Equip. 5s, 1922 — — 98i4 _. 
 
 5% Rec. Ctfs., 1913-23 100-96.19 ace. to mat. __ 
 
 Wheeling Elec. (W. Va.) 1st 58, 1941 „ „ 941/2 96I/2 
 
 Wheeling Term. 4s, 1940 — — 88 92 
 
 Wheeling Trac. 5s, 1931 __ — 97 99 
 
 Whipple Car 1st 6s, 1913-22 *100 *100 
 
 Wliipple Car Serial 51/2S, - •lOO 
 
 White & Black Riv. Val. Ist 5s, 1980 — — — *100i/. 
 
 White Plains Ltg. 1st 5s, 1938 _. __ *98i/2 — 
 
 Whittier Home T. &T. Co. 5s, 1929 __ — 68 
 
 Wichita Falls & Northwestern Ry. — 
 
 1st 5s, 1939 — — "gSi/s'lOO 
 
 1st & Ref. 5s, 1940 — — *96 *97i/2 
 
 1st 5s, 1925 — — — *96i/2 
 
 South. 5s, 1938 ,— — *93 *97 
 
 Wichita Natural Gas 1st 6s, 1915 — — *97 
 
 Wichita R. R. & Lt. Ref. & Cons. 5s, 1932 — ~ — 99 
 
 Wichita Union Term. 1st 41/2S, 1941 — — 99 101 
 
 Wilkes-Barre & Eastern Ist 5s, 1942 — — — 98% 
 
 "Quotation nearest March 1, 1913. No quotation on tbat date. 
 
 1148 
 
High Low 
 
 Wilkes-Barre & Hazelton 1st 5s, 1951 
 
 Wilkes-Barre & Wyo. Val. 5s, 1931 
 
 Wilkes-Barre & Wyo. Val. 5s, 1925—^ 
 
 Wilkes-Barre Co. 1st 5s, 1960 
 
 Wilkes-Barre, Dal. & Har. Lake 5s, 1938 
 
 Wilkes-Barre Gas & Elec. 5s, 1955 
 
 Wilkinsburg & E. Pitts. 1st 5s, 1929 
 
 Wilkinsburg & Verona St. Ry. 5s, 1931 
 
 Williamsburg & Flatbush AYza, 1941 
 
 Williamsport & North Br. 1st ^y^s, 1931 
 
 Williamsport Gas 1st 5s, 1939 
 
 Willimantic Gas & Elec. 5s, 1923 
 
 Wilmur & Sioux Falls, 1st 5s, 1938 
 
 Wilm. & Chester Trac. 5s, 1918 
 
 Wilmington & North. Sk. Trust 4s 
 
 Wilmington & North. 1st 5s, 1927 
 
 Wilmington & North. Genl. 5s, 1933 
 
 Wilmington & Weldon Gen. 5s, 1935 
 
 Gen. 4s, 1935 
 
 Wilmington City El. 1st 5s, 1951 
 
 Wilmington Gas 1st & Ref. 5s, 1949 
 
 Wilmington Lt. & Pow. 1st 5s, 1960 
 
 Winnipeg Elec. Ry. 1st & Ref. 5s, 1935— 
 
 Winnipeg Terminal 4s, 1939 
 
 Winono & Pacific 1st 7s, 1916 
 
 Winona & St. Peter. 1st 7s, 1916 
 
 Winona Interurban Ry., Goshen 5s, 1925 
 
 Winston-Salem Southbound Ry. 5s, 1960 
 
 Wisconsin Central Ry. — 
 
 Sup. & Dul. Div. & Term. 4s, 1936 
 
 1st Ref. 4s, 1959 
 
 Marsh. & 'S. E. P. M. 4s, 1951 
 
 4s, 1949 9014 901/4 
 
 Wisconsin Gas & Elec. 1st 5s, 1952 
 
 Wisconsin, Minn. & Pac. 1st 4s, 1950 
 
 Wisconsin Pub. Serv. 1st & Ref. 5s, 1943 
 
 Wisconsin Riv. Pow. 1st 5s, 1941 
 
 Wisconsin Trac, Lt., Ht. & P. 1st 5s, 1931 
 
 Wladikawkas Ry. 4s, 1957 
 
 Woodward Iron 1st 5s, 1952 
 
 Worcester & Clinton Ry. 1st 5s, 1919 
 
 Worcester & Conn., Eastern 1st 4y2S, 1943 
 
 Worcester & Marlborough St. Ry. 1st 5s, 1917 
 Worcester & Southridge St. Ry. 41/2S, 1922— 
 
 Worcester & Web. 1st 5s, 1919 
 
 Worcester Cons. St. Ry, 4y2S, 1920 
 
 Worcester Cons. St. Ry. 1st Ref. 41/2S, 1930__ 
 
 Worcester Cons. St. Ry. Deb. 5s, 1927 
 
 Worcester, Nashua. & Roch. 4s, 1930 
 
 Worcester, Nashua. & Roch. 4s, 1934 
 
 Wright Bldg. 5s, 1931 
 
 Yadkin Riv. Pow. 1st 5s, 1941 
 
 Yale & Towne Mfg. 5s, 1920 
 
 Yonkers Ry. 1st 5s, 1946 
 
 York Haven Wtr. & Pow. 1st 5s, 1951 
 
 York Haven Wtr. & Pow. Cons. 5s, 1957 
 
 York Rys. 1st & Coll. 5s, 1937 
 
 Yosemite Valley R. R. 5s, 1936 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1149 
 
 Bid . 
 
 Askeil 
 
 66 
 
 67% 
 
 102 
 
 103 
 
 100 
 
 103 
 
 921/2 
 
 95 
 
 100 
 
 1021/3 
 
 102 
 
 103 
 
 1003/4 
 
 103 
 
 101 
 
 
 
 92 
 
 95 
 
 50 
 
 60 
 
 100 
 
 
 
 
 
 102 
 
 109 
 
 
 
 96 
 
 98 
 
 95 
 
 __ 
 
 991/2 
 
 
 
 107 
 
 109 
 
 1091/2 
 
 110 
 
 93 
 
 
 
 98 
 
 100 
 
 99 
 
 100 
 
 841/3 
 
 
 
 100 
 
 102 
 
 94 
 
 97 
 
 IO8I/2 
 
 1091/4 
 
 IO8I/2 
 
 1091/4 
 
 *70 
 
 *80 
 
 ~ 
 
 891/2 
 
 893/s 
 
 89% 
 
 
 *89V^ 
 
 *87 
 
 *90 
 
 97 
 
 99 
 
 35 
 
 45 
 
 95 
 
 96 
 
 
 
 90 
 
 
 
 99 
 
 841/2 
 
 90 
 
 
 *96 
 
 98 
 
 
 
 100 
 
 __ 
 
 98 
 
 
 
 95 
 
 
 
 97 
 
 
 
 96 
 
 
 
 96 
 
 
 
 100 
 
 103 
 
 95 
 
 
 95 
 
 971/2 
 
 96 
 
 — 
 
 
 85 
 
 991/2 
 
 100 
 
 88 
 
 95 
 
 76 
 
 85% 
 
 60 
 
 65 
 
 94 
 
 951/2 
 
 
 
 *90 
 
High Low 
 
 Yonghiogheny-Mon. Coal 6s, 1913-15 
 
 Young Men's Christ. Assoc. (Indpls.) 1st 41/28 *100 *100 
 
 Youngstown & Ohio River 1st 5s, 1935 
 
 Youngstown & Southern Ry. 1st 5s, 1933 
 
 Youngstown, Sharon Ry. 5s, 1931 
 
 Youngstown Telephone 1st 6s, 1919 
 
 Zanesville Ry., L. & P. 5s, 1924 __ __ 931/2 100 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 Bid 
 
 Asked 
 
 981/2 
 
 ~ 
 
 98 
 
 100 
 
 82 
 
 87 
 
 100 
 
 102 
 
 — 
 
 •99% 
 
 1150 
 
Government, State and 
 Municipal Bonds 
 
 UNITED STATES GOVERNMENT 
 
 High Low Bid Asked 
 
 U. S. Cons. Reg. 2s, 1930 __ __ lOOyg 101 
 
 U. S. Cons. Coup. 23, 1930 __ _. 100% 101% 
 
 U. S. Reg. 3s, 1918 __ __ 1021/2 103l^ 
 
 U. S. Coup. 3s, 1918 __ __ 1021/2 103l^ 
 
 U. S. Reg. 4s, 1925 __ __ II31/2 114 
 
 U. S. Coup. 4s, 1925 __ __ 113% 114% 
 
 U. S. Pan. Can. 2s, 1936 „ __ 100% 101 
 
 U. S. Pan. Can. 3s, 1961 -_ __ 1023/8 103 
 
 U. S. Pan. Can. 2s, 1938 __ __ 100% 101 
 
 ALABAMA 
 
 Alabama, Renewal CI. C. 4s, 1956 __ __ 103 104 
 
 Alabama, Curr. Fdg. 4s, 1920 __ __ 100 101 
 
 Alabama, Renewal 31/2S, 1956 93 96 
 
 Attalla (Ala.) 6s, 1922 __ __ __ '100 
 
 Bessemer (Ala.) 5s, 1931 __ __ __ *102i/2 
 
 Birmingham (Ala.) Ref. 6s, 1923 __ __ 105 108 
 
 Birmingham (Ala.) Imp. 5s, 1921 __ 102 106 
 
 Birmingham (Ala.) School 5s, 1924 __ __ 102 106 
 
 Birmingham (Ala.) Sewer 5s, 1938 __ __ 103 106 
 
 Birmingham (Ala.) Fund 5s, 1941 __ __ 104 106 
 
 Decatur (Ala.) 6s, 1923 __ __ _- *100 
 
 Geneva (Ala.) 5s, 1930 __ __ __ *97 
 
 Jasper (Ala.) Sewer 8s, 1923 __ __ __ *106 
 
 Jefferson Co. (Ala.) 6s, 1921 __ __ 4%-i/2% basis 
 
 Jefferson Co. (Ala.) 6s, 1917 — __ 4%-i/2% basis 
 
 Jefferson Co. (Ala.) 41/2S, 1931 __ __ 100 IO21/3 
 
 Jefferson Co. (Ala.) Hosp. 41/2S, 1963 __ __ 101 103 
 
 Jefferson Co. (Ala.) 5s, 1920 __ __ 41/2% basis 
 
 Madison Co. (Ala.) 5s, 1919 __ __ 4%-i/2% basis 
 
 Madison Co. (Ala.) 5s, 1929 __ __ 4%-i/2% basis 
 
 Montgomery (Ala.) 6s, 1924 __ ._ 4%-i/2% basis 
 
 Montgomery (Ala.) 6s, 1921 __ __ 4%-i/2% basis 
 
 Montgomery (Ala.) St. Pav. 5s, 1921 ._ -._4.80-.60% basis 
 
 Montgomery (Ala.) Fdg. 5s, 1940 — — 102 105 
 
 Montgomery (Ala.) Wtr. 41/2S, 1928 __ __ . __ 99l^ 
 
 Montgomery (Ala.) S. W. W. & S. 41/2 s, 1944_ __ __ 97 99 
 
 Mobile (Ala.) 5s, 1914-19 __ __ 99 100 
 
 Mobile (Ala.) Ref. 41/2S, 1937 __ _- 95 100 
 
 Mobile (Ala.) Wtr. & Sr. 41/2S, 1939 >_ — 95 100 
 
 Mobile (Ala.) Impot. 4s, 1921 __ __ 90 95 
 
 Mobile Co. (Ala.) Ref. 5s, 1928 __ __ 104 106 
 
 Mobile Co. (Ala.) Ref. 5s, 1931 __ __ 104 108 
 
 Mobile Co. (Ala.) Road 5s, 1932 4.80-.60% basis 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1151 
 
ALABAMA (Continued). 
 
 High 
 
 Mobile Co. (Ala.) Jail 4s, 1926 
 
 Montgomery Co. (Ala.) 5s, 1935 
 
 Prattville (Ala.) 6s, 1923 
 
 Selma (Ala.) Wtr. 5s, 1927 
 
 ARIZONA 
 
 Arizona, Fund 5s, 1942 
 
 Arizona, Ref. 41/28, 1928 
 
 Mohave County (Ariz.) 5s, 1928-38 
 
 Phoenix Sch. (Ariz.) 5s, 1933 
 
 Tucson (Ariz.) Wtr. 5s, 1950 
 
 Tucson (Ariz.) W. W. Mch. 41/28, 1938 
 
 Prescott (Ariz.) 41/2S, 1948 
 
 Prescott (Ariz.) 5s, 1955 
 
 ARKANSAS 
 
 Arkansas Co. (Ark.) 6s, 1918-32-—^ 
 
 Cypress Creek (Ark.) 51/2S. 1930-35 
 
 Danville Sch. (Ark.) 6s, 1918 
 
 Dead Timber (Ark.) 6s, 1927-32 
 
 Ft. Smith (Ark.) Wtr. 5s, 1918-26 
 
 Ft. Smith (Ark.) Sewer 5s, 1926 
 
 Ft. Smith (Ark.) School 5s, 1917-33 
 
 Green & Lawrence Cos. (Ark.) 6s, 1916-31 
 
 Heber Springs (Ark.) Sch. 58, 1942 
 
 Jefferson Co. (Ark.) 6s, 1925-38 
 
 Little Rock (Ark.) 5s, 1913-21 
 
 Miller Co. (Ark.) 6s, 1931 
 
 Mississippi Co. (Ark.) 6s, 1920-27 
 
 Mississippi Co. (Ark.) 51/2S, 1929-31 
 
 Poinsett Co. (Ark.) 6s, 1922-36 
 
 St. Francis (Ark.) Levee Dist. 6s, 1943 
 
 St. Francis (Ark.) Levee Dist. 6s, 1947 
 
 St. Francis (Ark.) Levee Dist. 5s, 1949 
 
 St. Francis (Ark.) Levee Dist. 58, 1939 
 
 White & Cache River (Ark.) 6s, 1922 
 
 White River (Ark.) 6s, 1929-33 
 
 Woodruff Co. (Ark.) Rd. 6s, 1923-33 
 
 Wynne (Ark.) Sewer, Wtr. & Lt. sy^s, 1914-32 
 
 Low 
 
 Bid Asked 
 92 95 
 
 103 105 
 
 __ *107% 
 
 100 102 
 
 99 100 
 
 101 102l^ 
 
 __ *103.86 
 
 _- *105 
 
 100 101 
 4%% basis 
 
 100 
 
 100 
 
 51/2% 
 *5.30% 
 
 •51/2% 
 
 *43/4% 
 
 *5y2% 
 
 •5%% 
 
 *5i/2% 
 *5.40% 
 
 *5y8% 
 
 105 
 
 105 
 
 97 
 
 *5y"% 
 
 *5.40% 
 
 '51/4% 
 
 basis 
 basis 
 
 *105 
 basis 
 
 *100 
 
 *100 
 basis 
 basis 
 •98 
 basis 
 
 *100 
 
 *ioiy8 
 
 basis 
 basis 
 basis 
 
 108 
 
 108 
 99 
 
 •981/2 
 basis 
 *100 
 
 basis 
 
 CALIFORNIA 
 
 California, Harb. Imp. 48, 1985 
 
 California, High. 4s, 1919-20 
 
 Alameda (Cal.) 4s, 1913-41 
 
 Alameda (Cal.) Mun. Imp. 41/2S, 1948 
 
 Bakersfield (Cal.) 5s, 1952 
 
 Burlingame (Cal.) Sch. 5s, 1930-41 
 
 Colusa Co. (Cal.) Sch. 5s 
 
 Fullerton (Cal.) Sewer 7s 
 
 Glendale (Cal.) 5s, 1914-53 
 
 Inglewood (Cal.) 5s, 1913-32 
 
 Los Angeles (Cal.) 41/33, 1913-35 
 
 Los Angeles (Cal.) O. R. 41/2S, 1914-47 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1152 
 
 4% 
 4% 
 4.45% 
 4.50% 
 4.60%, 
 ^4.60%, 
 
 - *4.70%, 
 
 - *4.70% 
 .4.60-.50%, 
 .4.60-.50% 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 *101 
 •101 
 basis 
 basis 
 basis 
 basis 
 
CALIFORNIA (Continued). 
 
 High Low Bid Asked 
 
 Los Angeles (Cal.) Harb. imp. 41/38, 1913-51___ __ __4.60-.50% basis 
 
 Los Angeles (Cal.) Elec. pit. 41/28, 1917-51 __ __4.60-.50% basis 
 
 Los Angeles (Cal.) Wtr. 4s, 1913-45 __ __4.60-.50% basis 
 
 Los Angeles (Cal.) 4s, 1913-30 __ __4.60-.50% basis 
 
 Los Angeles (Cal.) Wtr. 3%s, 1913-41 __ __4.60-.50% basis 
 
 Los Angeles (Cal.) Sch. 3%8, 1913-44 __ __4.60-.50% basis 
 
 Los Angeles (Cal.) Water 41/3S, 1923 __ __ — *100.86 
 
 Los Angeles (Cal.) Ser. 334s, 1932-33 __ __ *4 1/2% basis 
 
 Los Angeles Co. (Cal.) 41/2S, 1915-49 ._ __ 4.30% basis 
 
 Los Angeles Co. (Cal.) 41/2S, 1941 __ __ __ *100 
 
 Los Angeles Co. (Cal.) 41/2S, 1942 — — __ *102i/2 
 
 Los Angeles (Cal.) Sch. 4s, 1932-45 __ „ *4.40% basis 
 
 Los Angeles Co. (Cal.) Sch. 41/2 s, 1944-48 __ __ __ *100 
 
 Los Angeles Co. (Cal.) 41/28, 1938-49 __ __ *4i/2% basis 
 
 Los Angeles Co. (Cal.) Sch. 41/3S, 1930 __ __ __ *102.39 
 
 Merced Co. (Cal.) 4s, 1913-16 __ __ 4.30% basis 
 
 Merced Co. (Cal.) 68 __ __ *100 104 
 
 New Home (Cal.) Sch. 5s, 1914-22 __ __ *4.80% basis 
 
 Newport (Cal.) Sch. 5s, 1934-39 __ __ *4.60% basis 
 
 Oakland (Cal.) S. D. 48, 1913-44 __ __ 4.45% basis 
 
 Oakland (Cal.) 41/38, 1935 __ __ __ *101% 
 
 Oakland Co. (Cal.) 41/38, 1915-47 — __ 4.45% basis 
 
 Oakland Co. (Cal.) Sch. & C. 41/2S, 1913-51__ __ __ 4.45% basis 
 
 Ocean side- Carlsbad (Cal.) Sch. 5s, 1913-31 __ __ *4.70% basis 
 
 Pasadena (Cal.) 4s, 1941-42 __ __ 41/3% basis 
 
 Pasadena (Cal.) Wtr. 41/38, 1917-36 __ __ 41/3% basis 
 
 Pasadena (Cal.) Sch. Dis. 41/3S, 1913-22 __ __ 41/3% basis 
 
 Sacramento (Cal.) 4s, 1915-45 __ __ 4.40% basis 
 
 Sacramento Co. (Cal.) 41/2S, 1917-46 __ __ 4.40% basis 
 
 San Diego (Cal.) 41/38, 1913-41 __ __ 41/2% basis 
 
 San Diego (Cal.) Wh. & Har. 41/oS, 1914-52___ __ __ 4%% basis 
 
 San Diego (Cal.) Sch. 5s, 1914-21 __ __ *4.45% basis 
 
 San Diego (Cal.) 41/3 s, 1944-47 __ __' *4.60% basis 
 
 San Francisco (Cal.) 5s, 1913-55 __ __4.60-.40% basis 
 
 San Francisco (Cal.) 31/3S, 1913-44 __ __4.60-.40% basis 
 
 San Francisco (Cal.) Sch. 31/2S, 1919 __ __ *4.45% basis 
 
 San Francisco (Cal.) 41/2S, 1913-34 __ __ __ *100 
 
 San Francisco (Cal.) 5s, 1940__. __ __ __ *107y8 
 
 San Francisco (Cal.) 5s, 1918-39 __ __ *4i/2% basis 
 
 Santa Monica (Cal.) Sch. 5s, 1939-52 __ __ *4.60% basis 
 
 Stanislus Co. (Cal.) 5s __ __ __ *101 
 
 Suisun (Cal.) Water 5s, 1941-53 __ __ *4.70% basis 
 
 San Joaquin Co. (Cal.) 5s, 1913-49 __ __ 4.30% basis 
 
 San Jose (Cal.) 48, 1913-46 __ __ 4.45% basis 
 
 Santa Barbara (Cal.) 5s, 1913-41 __ __ 41/2% basis 
 
 Santa Barbara (Cal.) 41/38, 1943 __ __ 41/3% basis 
 
 Stockton (Cal.) S. D. 5s, 1913-21 __ — 41/3% basis 
 
 Tehama Co. (Cal.) Sch. 6s __ __ __ *102 
 
 Venice (Cal.) Sch. 6s, 1918-47 __ __ *4.60% basis 
 
 West Glendale (Cal.) Sch. 5s , __ __ *4.45% basis 
 
 CANADA (DOMINION OF) 
 
 Antigonish (N. S.) 41/38, 1921 __ __ __ *98.35 
 
 Antigonish (N. S.) 41/3S, 1940 _> __ __ *96i/2 
 
 Bassano (Alberta) Wtr. & 'Sewer 5s, 1914-43-_ __ __ *5% basis 
 
 Black Lake (Que.) 5s, 1938 __ __ __ *96y2 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1153 
 
CANADA, DOMINION OP (Continued). 
 
 High Low Bid Asked 
 
 Bolivia Ry. 1st 5s, 1927 __ — 94 
 
 Brandon (Man.) 41/2S, 1942 __ __ __ *92.33 
 
 Brantford (Ont.) 4s, 1934 __ __ *^%% basis 
 
 Bridgewater (N". S.) 5s, 1954 __ __ __ *100 
 
 Brockville (Ont.) 41/28, 1931 __ _. *4i/2% basis 
 
 Calgary (Alberta) 41/2S, 1926 — — *5% basis 
 
 Calgary (Alberta) Sch. 4y2S, 1947-49 _ *^7s% basis 
 
 Calgary (Alberta) 41/28, 1919-52 __ __ *4t%% basis 
 
 Calgary (Alberta) Sch. 41/2S, 1914-53 __ „ *4%% basis 
 
 Campbellton (N. B.) 4s, 1934 __ _- *5% basis 
 
 Canada (Dom. of) Ref. 31/28, 1913 __ >_ 98 
 
 Cartierville (Que.) 5s, 1942 _- __ __ *98.13 
 
 Castor (Alberta) 51/38, 1913-32 „ __ __ *95.97 
 
 Cobalt (Ont.) 6s, 1914 __ __ *6% basis 
 
 Coldstream (B. C.) 5s, 1940 __ __ — *100 
 
 Edmonton (Alberta) 41/2S, 1913-21 __ __ __ *97.79 
 
 Edmonton (Alberta) 5s, 1933 __ __ *5% basis 
 
 Edmonton (Alberta) 41/2S, 1944-45 __ __ *5i/2% basis 
 
 Edmonton (Alberta) 41/2S, 1931-51 __ __ *4.06% basis 
 
 Edmonton (Alberta) 5s, 1953™ __ — — *96.65 
 
 Fernie (B. C.) 5s, 1940 __ — *5i/2% basis 
 
 Ft. William (Ont.) 5s, 1933 __ _> — *100 
 
 Gait (Can.) 41/2S, 1931 __ __ 4%% basis 
 
 Gait (Can.) El. Pr. 41/2S, 1931 __ __ 4%% basis 
 
 Glace Bay (N. S.) 41/38, 1933 __ __ *5i/2% basis 
 
 Gravenhurst (Ont.) 5s, 1939 __ __ *5i/8% basis 
 
 Guelph (Ont.) 5s, 1917 — __ 5% basis 
 
 Guelph (Ont.) Cons. 58, 1920 — — 5% basis 
 
 Halifax (N. S.) 4s, 1945 „ __ 4%% basis 
 
 Halifax (N. S.) 31/2S, 1920 __ — 5% basis 
 
 Hamilton (Ont.) 48, 1920 __ „ 4%% basis 
 
 Hamilton (Ont.) 4s, 1932 — __4.30-.20% basis 
 
 Manitoba (Prov. of) 4s, 1930 __ — 97 98 
 
 Manitoba (Prov. of) Drnge. 4s, 1929 __ __ 97 98 
 
 Maisonneuve (Que.) 414s, 1951 — — 4%% basis 
 
 Medicini Hat (Alberta) 5s, 1942 — __ *5.40% basis 
 
 Medicini Hat (Alberta) 58, 1942 __ — — *94.13 
 
 Mexico (U. S. of) External Loan of 1899 58__ __ __ 92 93 
 
 Mexico (U. S. of) 4s, 1954 __ — — 84 
 
 Montcalm (Que.) 41/28, 1952 __ __ — *97i/4 
 
 Montreal (Que.) 48, 1925 __ _- 41/2% basis 
 
 Montreal (Que.) 4s, 1927 _- — 4%% basis 
 
 Montreal (Que.) 4s, 1933 — — 41/2% basis 
 
 Montreal (Que.) 4s, 1944 __ — 41/2% basis 
 
 Montreal (Que.) Ref. 31/2S, 1939 __ — 41/2% basis 
 
 Montreal (Que.) School 4s, 1942 __ ._ — *90.44 
 
 Moose Jaw (Sask.) School 41/2S, 1913-28 __ — '51/2% basis 
 
 Moose Jaw (Sask.) 58, 1933 __ __ — *97.53 
 
 Manaimo (B. C.) 5s, 1922 — — — *96.34 
 
 Nelson (B. C.) 53, 1923 — — — *94.06 
 
 New Brunswick (Prov. of) 31/28, 1933 _. — 92 93 
 
 New Brunswick (Prov. of) 31/2S, 1932-36 __ — *4.10% basis 
 
 New Brunswick (Prov. of) 4s, 1921 __ — 99 100 
 
 New Bnmswick (Prov. of) 4s, 1930 _. — 99 100 
 
 New Brunswick (Prov. of) 4s, Jan., 1932 — — 99 100 
 
 New Brunswick (Prov. of) 3s, 1938 — — *4.10% basis 
 
 New Brunswick (Prov. of) 4s, 1942 — — "4.40% basis 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1154 
 
CANADA, DOMINION OP (Continuea). 
 
 High Low Bid Asked 
 
 New Brunswick (Prov. of) 4s, 1942 __ __ *4.40% basis 
 
 No. Vancouver (B. C.) 5s, 1929 __ __ *5% basis 
 
 North Vancouver (B. C.) 5s, 1960 __ __ __ 100 
 
 Nova Scotia (Prov. of) 4s, 1919 __ __ 99 100 
 
 Nova Scotia (Prov. of) 4s, Jan., 1920 __ __ 99 100 
 
 Nova Scotia (Prov. of) 4s, May, 1920 __ __ 99 100 
 
 Oak Bay (B. C.) 5s, 1929 __ „ __ *100 
 
 Oak Bay (B. C.) 5s, 1922-32 __ __ __ *99 
 
 Ontario (Prov. of) SVgS, 1936 __ __ 4.-3.90% basis 
 
 Ottawa (Ont.) SYzS, 1928 __ __4.50-.30% basis 
 
 Ottawa (Ont.) 4s, 1932 _> __ __ 95.11 
 
 Owen Sound (Ont.) ^%s, 1932 __ __ *5% basis 
 
 Penticton (B. C.) 5s, 1953 __ __ __ *84.90 
 
 Pt. Arthur (Ont.) 53, 1937 __ __ *5% basis 
 
 Pt. Hawkesbury (N. S.) 5s, 1942 „ __ *5i/8% basis 
 
 Prince Albert (Sask.) 5s, 1933 -_ ._ *5.40% basis 
 
 Quebec (Prov. of) stock 3s, 1937 __ __ — *80 
 
 Quebec (Prov. of) stock 4s, 1949 __ __ *4.40% basis 
 
 Quebec City (Que.) 31/28, 1930 __ __ 41/2-14% basis 
 
 Quebec City (Que.) 41/2 s, 1922 __ __ 41/2-14% basis 
 
 Quebec City (Que.) 31/28, Jan., 1931 __ __ 41/2-14% basis 
 
 Quebec City (Que.) 31/2S, Jul., 1931 __ __ 41/2-14%, basis 
 
 Quebec City (Que.) 31/2 s, 1933 __ __ 41/2-14%, basis 
 
 Red Deer (Alberta) 5s, 1913-15 __ __ *6% basis 
 
 Revelstoke (B. C.) 5s, 1927 __ __ __ *95.05 
 
 Revelstoke (B. C.) 5s, 1934 __ __ *5i/8%, basis 
 
 Richmond (B. C.) 41/2S, 1962 __ ._ *5% basis 
 
 St. Boniface (Man.) 5s, 1932 __ __ __ *100 
 
 St. Boniface (Man.) 5s, 1932-42 __ __ __ *100 
 
 St. Boniface (Man.) 5s, 1931 __ __ 4%% basis 
 
 St. Thomas (Ont.) 5s, 1941 __ ._ *5%, basis 
 
 Sao Paulo 5s, 1919 __ __ 961/2 97 
 
 Sorel (Que.) 5s, 1952 __ __ __ *98.95 
 
 Spallumcheen (B. C.) 5s, 1941 __ __ *5i/8% basis 
 
 Sydney Mines (N. S.) 41/2S, 1925 __ __ __ *95 
 
 Tokyo (Japan) 5%, Loan of 1912 — __ 86% 8814 
 
 Toronto (Ont.) 4s, 1916 __ __ 5% basis 
 
 Toronto (Ont.) 4s, 1918 __ __ 5% basis 
 
 Toronto (Ont.) St. Imp. 4s, 1922 -_ __ „ 94% 
 
 Toronton (Ont.) 31/2S, 1914 __ __ 5% basis 
 
 Toronto (Ont.) 31/2S, 1944-45 ^- __ __ __ 41/2 
 
 Vancouver (B. C.) St. Imp. 4s, 1922 __ — — 92.49 
 
 Vancouver (B. C.) St. Imp. 4s, 1927 __ — — 89.76 
 
 Vancouver (B.C.) St. Imp. 4s, 1932 __ __ — 87.62 
 
 Vancouver (B.C.) 31/2S, 1942 — — ♦4%%o basis 
 
 VancouverB. C.) 4s, 1943 __ — *4%% basis 
 
 Vancouver (B. C.) 4s, 1946 __ — *4%% basis 
 
 Vernon (B. C.) 5s, 1926-36 — — *5i/2% basis 
 
 Victoria (B. C.) 4s, 1922 __ — — *92.51 
 
 Victoria (B. C.) 4s, 1936 — — *4%% basis 
 
 Victoria (B. C.) 41/2S, 1938 ^ __ — — *96.36 
 
 Welland (Ont.) 41/2S, 1939 — — — *92.70 
 
 Westmount (Que.) 4s, 1954 _- _« *4.40% basis 
 
 Winnipeg (Man.) 4i, 1934 _- __ 41/2% basis 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1155 
 
CANADA, DOMINION OP (Continued). 
 
 High Low Bid Asked 
 
 Winnipeg (Man.) Sch. 31/38, 1948 __ __ *4y2% basis 
 
 Yorkton (Sask.) 5s, 1913-40 __ __ *6% basis 
 
 York (Ont.) 5s, 1914-31 __ ._ __ *100 
 
 Youville (Que.) school 5s, 1952 — __ — *97.89 
 
 COLORADO 
 
 Colorado 4s, 1922 __ „ 99 100 
 
 Colorado 3s, 1929 — __ __ *88.01 
 
 Boulder (Colo) 5s, 1926 __ __ lOli/g 1031/2 
 
 Boulder (Colo.) Water 41/2S, 1923 __ __ __ *97.90 
 
 Colo. Spgs. (Colo.) Ref. 4s, 1929 __ __ 92 95 
 
 Colo. Spgs. (Colo.) Wtr. 5s, 1918-28 __ __ __ *101i/2 
 
 Cortez (Colo.) Water 6s, 1919-24 __ __ __ *101 
 
 Delta Co. (Colo.) Ref. 5s, 1920 __ __ 97 100 
 
 Denver City & County (Colo.) 51/38, 1917-27— __ __ *5.10% basis 
 
 Denver (Colo.) 5s, 1919 __ __ 103 105 
 
 Denver (Colo.) S. D. 41/2S, 1917 __ „ 99 100 
 
 Denver (Colo.) S. D. 4s, 1922 __ __ 41/2% basis 
 
 Denver (Colo.) 6s __ «_ __ *101i/2 
 
 Denver (Colo.) 51/2S, 1915-16 „ __ *5.40% basis 
 
 Denver (Colo.) 51/2S, 1927 — — — *100 
 
 East Denver (Colo.) 51/2S __ __ __ *100 
 
 Grand Jet. (Colo.) 5s, 1926 __ __ 100 IOO1/2 
 
 Gunnison Co. (Colo.) 4s, 1919 __ __ 89 93 
 
 Gypsum (Colo.) Water 7s, 1922-27 — — — *105.31 
 
 Haxtun (Colo.) Water 6s, 10-15 yrs __ __ __ *100 
 
 Holyoke (Colo.) Water 6s, 1919-27 — — *5%-6% basis 
 
 Hotehkiss (Colo.) Water 6s, 1914-19— — „ — *100i/2 
 
 Jackson Co. (Colo.) 5s, 10-20 yrs __ __ „ *100 
 
 Julesburg (Colo.) Water 68, 1920 __ „ — *100.79 
 
 Lake Co. (Colo.) 4s, 1921 „ — 82 86 
 
 Las Animas Co. (Colo.) 41/2S, 1931 __ — 98 100 
 
 Ouray Co. (Colo.) 48, 1921 __ __ 85 90 
 
 Olathe (Colo.) Water 6s, 1921-26 — — — *101 
 
 Pueblo (Colo.) 5s, 1918 __ __ 4.60% basis 
 
 Pueblo (Colo.) Wtr. 41/38, 1914 __ __ 4.60% basis 
 
 Pueblo Co. (Colo.) 41/2S, 1931 __ — 4.60% basis 
 
 Pueblo Co. (Colo.) S. D. 41/38, 1932 — — 99 100 
 
 Rio Grande Co. (Colo.) 5s, 1919 „ — 96 99 
 
 Trinidad (Colo.) Ref. Wtr. 5s, 1932 __ — 971/2 101 
 
 Victor (Colo.) 5s, 1916 __ — 85 90 
 
 Weld Co. (Colo.) 6s, 1927-42 — — — *107y2 
 
 DISTRICT OF COLUMBIA 
 
 Columbia (Dist. of) Fd. Cur. 3.65s, 1924 — __ 105 107 
 
 CONNECTICUT 
 
 Connecticut 4s, 1936 — __ 3.80% basis 
 
 Bridgeport (Conn.) 41/38,1918 __ _. 4.21-10% basis 
 
 Bridgeport (Conn.) 4s, 1919 __ __ 98 
 
 Bridgeport (Conn.) 4s, 1920-40 — — *4.07-4y8% basis 
 
 Bristol (Conn.) Fdg. 4s, 1927 — — 98 
 
 Danbury (Conn.) 4s, 1920 __ — 4.20-10% basis 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1156 
 
CONNECTICUT (Continued). 
 
 High Low Bid Asked 
 
 Danbury (Conn.) Si/gS, 1941 , __ __ 90 
 
 Danbury (Conn.) 31/38, 1933 __ __ __ *90% 
 
 Danbury (Conn.) 4s, 1935 __ __ *4i4% basis 
 
 East Hartford (Conn.) 4s, 1924 __ __ 99 
 
 East Hartford (Conn.) Fire D., 4s, 1931 __ __ 99 
 
 Hartford (Conn.) 4s, 1918 __ __ 100 
 
 Hartford (Conn.) Wtr. 4s, 1918 __ __ 100 
 
 Hartford (Conn.) 31/28, 1954 __ __ 90 92i/8 
 
 Hartford (Conn.) S. D. Ars'l 4s, 1917 _. __ 100 
 
 Hartford (Conn.) 2nd 4s, Nor. 1924 __ __ 100 
 
 Hartford (Cnn.) 4s, South., 1927 __ __ 100 
 
 Hartford (Conn.) 31/2S, South., 1931 __ __ 92 
 
 Hartford (Conn.) 31/2S, South., 1955 __ __ 91 
 
 Meriden (Conn.) 31/2S, 1917-24 __ __ 4.15% basis 
 
 Meriden (Conn.) 4s, 1914-18 __ __ 4.15-10% basis 
 
 Middletown (Conn.) 4s, 1922 __ __ 98 
 
 Middletown (Conn.) Seh. 4s, 1915 __ __ 99 100 
 
 Middletown (Conn.) 31/2S, 1921 __ __ 93 96 
 
 New Britain (Conn.) 4s, 1927 __ __ 98 
 
 New Britain (Conn.) Sewer, 31/2S, 1924 __ __ 4.15% basis 
 
 New Brit. Farm (Conn.) School, 31/2S, 1929— __ __ 4.15-10% basis 
 
 New Haven (Conn.) 4s, 1913-19 __ __ 4:%% basis 
 
 New Haven (Conn.) Serv., 4s, 1913-25 __ __ 414% basis 
 
 New Haven (Conn.) 31/2S, 1913-24 __ __ 4l^% basis 
 
 New Haven Town (Conn.) 4s, 1939 __ __ 41/^% basis 
 
 New Haven (Conn.) 31/3S, 1913-29 __ __ 414% basis 
 
 New Haven (Conn.) 31/2S, 1922 __ __ *4.20 basis 
 
 New Haven (Conn.) 31/3S, 1939 __ __ *90 
 
 New Haven (Conn.) 4s, 1929-30 __ __ 4.10% basis 
 
 New London (Conn.) Sch. 4s, 1927 __ __ 98 
 
 New London (Conn.) Wtr., 31/2S, 1926 __ __ 92 
 
 New London (Conn.) 4y8S, 1941 __ __ __ *10iy8 
 
 Norfolk (Conn.) 4s, 1935 __ __ 98 
 
 Norfolk Town (Conn.) 31/2S, 1918 __ __ 95 
 
 Norfolk (Conn.) Wtr., 31/2S, 1929 __ __ 92 
 
 Norwich (Conn.) 4s, 1930 __ __ 98 
 
 Norwich Town (Conn.) 31/2S, 1925 __ __ 92 
 
 Orange (Conn.) Fund, 4s, 1925 __ __ 98 
 
 South Norwalk Conn.) 4i/4s, 1942 __ __ 4.30-20% basis 
 
 South Norwalk (Conn.) 4s, 1935 __ __ *100 
 
 Stamford (Conn.) Park, 4s, 1942 __ __ __ 99 
 
 Waterbury (Conn.) 'Sch., 414s, 1921 __ __ 4.15% basis 
 
 Waterbury (Conn.) Wtr., 414 s, 1971 __ __ 4.15%, basis 
 
 Waterbury (Conn.) Wtr., 4s, 1920-49 __ __ 4.15% basis 
 
 Waterbury (Conn.) Park, 4s, 1913-58 __ __ 4.15% basis 
 
 Waterbury (Conn.) Sch., 31/2S, 1914-32 __ __ 4.15% basis 
 
 Wallingford (Conn.) 41/3S, 1943-53 __ __ *4.15%, basis 
 
 Willimantic (Conn.) 4s, 1934 __ __ 98 
 
 DELAWARE 
 
 Delaware, 4s, 1933 __ __ ggi/g 100 
 
 Delaware Hos., 31/2S, 1915 __ __ 41/3% basis 
 
 Delaware, 3s, 1937 __ __ 41/3% basis 
 
 Newcastle Co. (Del.) 41/2S, 1936-34 __ __ 4.30% basis 
 
 Newcastle Co. (Del.) Ref., 4s, 1913-34 __ __ 4.30% basis 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1167 
 
DELAWARE (Continued). 
 
 High Low Bid Asked 
 
 Newcastle Co. (Del.) 31/28, 1914-20 __ __ 4.30% basis 
 
 Sussex Co. (Del.) 4s, 1913-22 __ — 41/8% basis 
 
 Wilmington (Del.) 41/28, 1932 >_ — 4.20-10% basis 
 
 Wilmington (Del.) St. & Sr., 41/2S, 1934 __ __ 4.20-10% basis 
 
 Wilmington (Del.) 4s, 1925 __ — 4.20-10% basis 
 
 FLORIDA 
 
 Duval Co. (Fla.) 51/38, 1932 — __ 991/2 100 
 
 Duval Co. (Fla.) Road, 5s, 1939 — __ 10614 108 
 
 Apalachiola (Fla.) 6s, 15 yrs >_ „ •102.56 __ 
 
 Bradentown (Fla.) 5s, 1933-43 __ — *5% basis 
 
 Dade Co. (Fla.) 5s, 1923-33 __ __ *43/4% basis 
 
 Ft. Lauderdale (Fla.) Wt., Sw. & St., 6s, 1932 — — __ *105.95 
 
 Franklin Co. (Fla.) Rd. 41/28, 1923-33 __ __ *4%%o basis 
 
 Gulfport (Fla.) 6s, 1923 __ __ — 'lOO 
 
 High Springs (Fla.) St., 6s, 1922-32 __ __ *5i/4% basis 
 
 Jacksonville (Fla.) 5s, 1924 __ „ 1043/3 1051/4 
 
 Jacksonville (Fla.) Imp., 5s, 1936 _- — lOTVs 108% 
 
 Jacksonville (Fla). 41/2S, 1936 — — IOOI/2 101 1/2 
 
 Jacksonville (Fla.) 41/2S, 1937 — — — 103l^ 
 
 Key West (Fla.) 5s, 1935-55 __ __ •4.75%o basis 
 
 Lakeland (Fla.) Sewer & St. 5s, 1942-56 __ __ __ *101 
 
 Pensacola (Fla.) Ref. 41/3S, 1941 „ __ __ IOI1/2 
 
 Tampa (Fla.) 6s, 1921 — — 4.60% basis 
 
 Tampa (Fla.) 5s, 1955 __ __ 4.60 %basis 
 
 St. Lucie Co. (Fla.) Rd., 5s, 1925-40 — __ *4.90%j basis 
 
 St. Petersburg (Fla.) 6s, 1942 __ __ — *112 
 
 Titusville (Fla.) 5s, 28 yrs __ — *95 
 
 West Tampa (Fla.) 5s, 1941 ._ „ — *103i4 
 
 GEORGIA 
 
 Georgia Ref., 41/28, 1914-16 __ __ 4.50-40%, basis 
 
 Georgia 41/2S, Act of '84-'15 „ __ 99% 1001/2 
 
 Georgia 41/2S, 1922 — — 4.10-4% basis 
 
 Georgia 4s, 1926 __ — 4-3%% basis 
 
 Georgia 31/2S, 1917-35 __ — 4-3.65%, basis 
 
 Georgia 31/38, 1929 — __ — *97 
 
 Georgia 31/38, 1920-30 __ __ „ *98i/2 
 
 Albany (Ga.) 5s, 1941 __ ._ — '108 
 
 Americus (Ga.) 41/38, 1941 _- __ — *100 
 
 Athens (Ga.) 58, 1922 — __ 4%-i/2% basis 
 
 Atlanta (Ga.) Cap., 6s, 1914 __ __ 4.40-.30% basis 
 
 Atlanta (Ga.) Red., 5s, 1915 __ __ 4.40-.30% basis 
 
 Atlanta (Ga.) Red., 41/2S, 1916 — — 4.50-.30% basis 
 
 Atlanta (Ga.) 41/38, 1932 — __ 4.50-.40% basjs 
 
 Atlanta(Ga.) 41/38, 1940 — __ 4.50-.25%j basis 
 
 Atlanta (Ga.) Sewer, 41/2S, 1916-40 — __ 4.35-.20% basis 
 
 Atlanta (Ga.) Wtr., 4s, 1923 — -_ 4.40-.25%j basis 
 
 Atlanta (Ga.) 31/38, 1931-33 „_ — 41/2% basis 
 
 Augusta (Ga.) 6s, 1915 __ — 41/3% basis 
 
 Augusta (Ga.) 5s, 1921 __ __ 4i/o% basis 
 
 Augusta (Ga.) Flood Prot., 41/3S, 1942 — — 101 102 
 
 Augusta (Ga.) Red 41/38, 1924 __ __ 100 101 
 
 Augusta (Ga.) Ref., 48, 1934 — — 93 
 
 •Quotation nearest March 1, 1913. No Quotation on that date. 
 
 1158 
 
GEORGIA (Continuea). 
 
 High Low Bid Asked 
 
 Augusta (Ga.) Si/gS, 1930 ■ — >_ 41/2% basis 
 
 Augusta (Ga.) 41/2S, 1925 __ __ *4.40% basis 
 
 Baxley (Ga.) 5s, 1934 — __ __ *96 
 
 Bogart (Ga.) Sch., 5s, 1924-43 __ __ __ *100 
 
 Buford (Ga. 5s, 1927-28 — -_ __ *97 
 
 Brunswick (Ga.) 5s, 1921 „ __ 100 103 
 
 Camilla (Ga.) Sewer, 51/2S, 1941 __ ._ — 'lOTy^ 
 
 Chatham Co. (Ga.) 5s, 1913-19 _. __ 4.20% basis 
 
 Claxton (Ga.) 53, 1931 — — — *96 
 
 Clarke Co. (Ga.) 5s, 1923-41 __ __ 41/3% basis 
 
 Columbus (Ga.) 5s, 1913-22 __ __ 41/3% basis 
 
 Columbus (Ga.) Ref., 4s, 1939 __ __ 4.50-.40% basis 
 
 Columbus (Ga.) 31/38, 1931 __ __ __ *883^ 
 
 Brunswick (Ga.) 5s, 1921 — __ 100 103 
 
 Doerum (Ga.) SVgS, 1942 __ __ __ *105 
 
 Fitzgerald (Ga.) 5s, 1942 — __ — *104 
 
 Gwinnett Co. (Ga.) Sch., 6s, 1943 __ __ __ *109.66 
 
 Macon (Ga.) 5s, 1923 __ __ 4.45-.30% basis 
 
 Macon (Ga.) 41/38, 1926 — __ 4.45-.30% basis 
 
 Macon (Ga.) W. W., 41/38, 1916-36 __ __ 4.45-.30% basis 
 
 Macon (Ga.) Pav. 1/2 St., 4s, 1920-39 — __ 4.45-.30% basis 
 
 Macon (Ga.) 4 1/3 s, 1939 __ __ __ *103 
 
 Manchester (Ga.) 5s, 1936-40 __ __ __ *99 
 
 McRae (Ga.) 5s, 1936 __ __ __ *96% 
 
 Meigs (Ga.) Wtr. & Lt., 5s, 1934-37 __ __ __ *100 
 
 Ocilla (Ga.) Sewer, 6s, 1931-43 __ __ *4.85% basis 
 
 Reidsville (Ga.) 5s, 1916 __ __ __ *98i/2 
 
 Rockmart (Ga.) 5s, 1920-31 __ __ __ *99 
 
 Rome (Ga.) 41/38, 1926 __ __ 97 98 
 
 Savannah (Ga.) 5s, 1913 __ __ 100 101 
 
 Savannah (Ga.) Ref., 41/28, 1959 __ __ 108 110 
 
 Statesboro (Ga.) Sewer, 5s, 30 yrs. __ __ *100.138 __ 
 
 Washington (Ga.) 5s, 391/3 yrs __ __ *100 
 
 Waycross (Ga.) 5s, 1938 __ __ __ *103 
 
 Waycross (Ga.) 5s, 1918-42 __ __ *4.70% basis 
 
 Wilcox C. (Ga.) 5s, 1933 1. __ ._ __ *97i/2 
 
 IDAHO 
 
 Idaho, 5s, 1915 __ __ 100 
 
 Idaho, 41/2S, 1931 __ __ 4.30-.20% basis 
 
 Bannock Co. (Id.) 6s, 1914-16 __ __ 4%% basis 
 
 Blaine Co. (Id) 5s, 1922-31 __ __ 4.70% basis 
 
 Shoshone Co. (Id.) 5s, 1915-24 __ __ 43/4% basis 
 
 Boise City (Id.) 5s, 1922 __ __ 100 
 
 Boise City (Id.) S. D., 5s, 1925 — — 4%%, basis 
 
 Boise City (Id.) 7s, 1 to 10 yrs __ __ 6.00-5.50% basis 
 
 Nezperce (Id.) 51/38, 1933 __ __ __ *102.90 
 
 Idaho Co. (Id.) Sch., 51/2S, 1923-33 __ __ __ *104.70 
 
 Orofino (Id.) 68, 1922 __ __ — *104.23 
 
 Rupert (Id.) Sch., 51/2S, 20 yrs __ _. __ *103 
 
 ILLINOIS 
 
 Altamont (111.) Wtr. & Sewer, 5s, 1921-32— „ — *4.60% basis 
 
 Aurora (111.) 41/3S, 1917-32 __ __ *4l^% basis 
 
 Bridgeport (111.) 5s, 1914-24 __ __ *4i/3% basis 
 
 ♦Quotation nearest March I, 1913. No quotation on that date. 
 
 1159 
 
ILLINOIS (Continued). 
 
 Brookfield (111.) Water, 5s, 1920-21 
 
 Bumham (111.) 5s, 1921-31 
 
 Carbondale (111.) Rd., 5s, 1918 
 
 Cass Co. (111.) Sch., 5s, due serially 
 
 Chicago Hghts. (111.) Water, 6s, 1914 
 
 Chicago (111.) 4s, 1915-22 
 
 Chicago (111.) 4s, 1913-28 
 
 Chicago (111.) Park, 4s, 1919-29 
 
 Chicago (111.) 4s, 1929 
 
 Chicago (111.) River, 4s, 1915 
 
 Chicago (111.) Imp., 4s, 1914-24 
 
 Chicago (111.) Wrlds Fair, 4s, 1921 
 
 Chicago (111.) 4s, 1914-25 
 
 Chicago (111.) Judg., 4s, 1914-24 
 
 Chicago (111.) Gen. Corp., 4s, 1914-25 
 
 Chicago (111.) 43, 1914-31 
 
 Chicago (111.) So. Pk., 4s, 1913-24 
 
 Chicago (111.) Line Pk., 43, 1923 
 
 Chicago (111.) W. Chic. Pk., 1913-31 
 
 Chicago (111.) Sou. Dis., 53, 1913-14 
 
 Chicago (111.) 'Sou. Dis., 41/2S, 1914-15 
 
 Chicago (111.) Sou. Dis., 4s, 1913-23 
 
 Chicago (111.) Sou. Dis., 4s, 1913-31 
 
 Chicago (111.) 4s, due Serially 1 to 20 yrs 
 
 Chicago (111.) 4s, 1918 
 
 Chicago (111.) Sy^a, 1918-19 
 
 Chicago (111.) 4s, 1920 
 
 China (111.) Rd., 5s, 5% yrs 
 
 Colfax (111.) Water, SVgS, 1918-31 
 
 Cook Co. (111.) 4s, 1913-23 
 
 Cook Co. (111.) Ct. H., 4s, 1913-25 
 
 Cook Co. (111.) 31/33, 1914-23 
 
 Cook Co. (111.) Sch., 41/28 
 
 Cook Co. (111.) 4s, Serially 
 
 Cook Co. (111.) 4s, 1928 
 
 Decatur (111.) 4s, 1923-24 
 
 Edgar Co. (111.) Rd., 5s, 1915-21 
 
 Evanston (111.) 41/33, 1915-21 
 
 Ford Co. (111.) Sch., 5s, 1919-27 
 
 Hamilton (111.) Water, 5s, 1914-23 
 
 Hamilton (111.) Water, 53, 1922-31 
 
 Hamilton (111.) 53, Ser. 1924-31 
 
 Hamilton & Saline Cos. (111.) 5s, 1915-17 
 
 Hancock (111.) Co. Sch., 5s, Serially 
 
 Kenilworth (111.) Sch., 5s, 1929 
 
 Lake Bluff (111.) 5s, Ser. 1914-32 
 
 Lyons (111.) 5s, 1912-18 
 
 Marion (111.) Sch., 4s, 1915-29 
 
 Moline (111.) 41/33, 1917-32 
 
 Monticello (111.) 5s, 1918-22 
 
 Normal (111.) St., 53, 1917 
 
 Pekin (111.) 5s, 1914-22 
 
 Peoria (111.) 43, 1917 
 
 Quincy (111.) Ref., 43, 1913-17 
 
 Rock Island (111.) Ref., 41/2S, 1913-17 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1160 
 
 High Low 
 
 Bid Asked 
 __ *100 
 *4.40% basis 
 *43/4% basis 
 *4i/2% basis 
 
 _- *102% 
 *4.15% basis 
 *4.05% basis 
 *4i/8% basis 
 
 - *99i/2 
 995/8 99% 
 99y8 99% 
 99% 997/8 
 99% 99% 
 99% 99% 
 99% 99% 
 991/2 9934 
 99 991/2 
 99 991/2 
 99 991/2 
 
 1001/4 _- 
 4.15% basis 
 991A 99% 
 991/4 991/2 
 __ *96.074 
 __ *98.60 
 *4i/8% basis 
 ♦9914 — 
 
 *100.67 _- 
 __ *104l^ 
 991/2 100 
 991/2 100 
 991/2 100 
 *4.40% basis 
 4.04% basis 
 __ *100 
 
 - *97% 
 *4.60% basis 
 *4.30% basis 
 
 ♦41/3% basis 
 
 *5% basis 
 
 ♦41/2% basis 
 
 *4i/2% basis 
 
 *100 
 
 *4ya% basis 
 
 *4y2% 
 •4.60% 
 *5i/2% 
 *4.20% 
 41/4% 
 *4i/2% 
 •4.40% 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 4.13% 
 41/4% 
 
 basis 
 ♦100 
 *99 
 basis 
 basis 
 
ILLINOIS (Continued). 
 
 St. Clair Co. (111.) Sch., 5s, 1918-23 
 
 St. Clair Co. (111.) Sch., 5s, 1933-27 
 
 Savanna (111.) Water, 5s, 1923-29 
 
 Shelby Co. (111.) Sch., 5s 
 
 Springfield (111.) Ref., 31/38, 1920 
 
 Springfield (111.) SVgS, 1921 
 
 Springfield (111.) "Sch., 41/4S, 1915-32 
 
 INDIANA 
 
 Indiana Fund, 31/28, 1915 (M. & N.) 
 
 Indiana Fund, 31/2S, 1915 (A. & 0.) 
 
 Blackford Co. (Ind.) 41/2S, 1 to 10 yrs 
 
 Boone Co. (Ind.) Ct. H., 4s, 1913-20 
 
 Crawfordsville (Ind.) 4s, 1913-20 
 
 Evansville (Ind.) Ref., 4s, 1932 
 
 Evansville (Ind.) Ref., 4s, 1942 
 
 Evansville (Ind.) S. Cy., 31/2S, 1913-17 
 
 Floyd Co. (Ind.) 4s, 1914-30 
 
 Ft. Wawne (Ind.) 41/3S, 1913 
 
 Ft. Wayne (Ind.) 31/38, 1918-20 
 
 Ft. Wayne (Ind.) S. D. 4s, 1914-23 
 
 Franklin Co. (Ind.) 4s, 1913-20 
 
 Gary (Ind.) 6s, 1918-21 
 
 Hendricks Co. (Ind.) Ct. H., 4s, 1923-32 
 
 Huntington Co. (Ind.) 31/38, 1914-24 
 
 La Porto (Ind.) Sewer, 5s, 1913-21 
 
 Perry Co. (Ind.) 41/3S, 10 to 34 yrs 
 
 Indianapolis (Ind.) 4s, 1924 
 
 Indianapolis (Ind.) Pk. Imp., 4s, 1927 
 
 Indianapolis (Ind.) Fire Dept., 4s, 1941 
 
 Indianapolis (Ind.) Hosp., 31/2S, 1936 
 
 Indianapolis (Ind.) C. H., 31/38, 1939 
 
 Indianapolis (Ind.) S. D., 48, 1913-26 
 
 Indianapolis (Ind.) Bldg., 4s, 1946 
 
 Jeffersonville (Ind.) Ref., 31/38, 1925 
 
 Knox Co. (Ind.) 4s, 1913-20 
 
 Kokoma (Ind.) 4s, 1916-31 - 
 
 Lafayette (Ind.) 41/38, 1920 
 
 La Porte Co. (Ind. 5s, 1913-28 
 
 Logansport (Ind.) 31/38, 1926 
 
 Marion Co. (Ind.) Ref., 4s, 1921 
 
 Marion Co. (Ind.) Bridge, 31/3S, 1924 
 
 Marion Co. (Ind.) Ref., 31/38, 1925 
 
 New Albany (Ind.) 5s, 1915 
 
 Richmond (Ind.) 4s, 1927 
 
 Richmond (Ind.) Sch. Cy., 4s, 1919 
 
 St. Joseph Co. (Ind.) 31/3S, 1922-24 
 
 St. Joseph Co. (Ind.) 31/3S, 1914-26 
 
 South Bend (Ind.) 4s, 1925 
 
 South Bend (Ind.) 31/38, 1918 
 
 South Bend (Ind.) Sch. D., 48, 1917-27 
 
 Terre Haute (Ind.) 6s, 1913-18 
 
 Terre Haute (Ind.) 4s, 1915 - 
 
 Terre Haute (Ind.) 48, 1927 
 
 Terre Haute (Tnd.) Sewer, 4s, 1930 
 
 Terre Haute (Ind.) Sch. Cy., 48, 1931 
 
 Vigo Co. (Ind.) 41/38, 1912-27 
 
 'Quotation nearest March 1, 1913. No Quotation on that date. 
 
 1161 
 
 High Low 
 
 Bid Asked 
 *4.40% basis 
 *4i/3% basis 
 *4.40% basis 
 *4.40% basis 
 4.30% basis 
 - *9378 
 *4.20% basis 
 
 B%% basis 
 
 B%% basis 
 
 *100.92 __ 
 
 3%% basis 
 
 4% basis 
 
 99 
 
 99 
 
 4% basis 
 
 4% basis 
 
 41/3% basis 
 
 4% basis 
 
 4% basis 
 
 3%% basis 
 
 __ *100 
 
 3%% basis 
 
 3%% basis 
 
 -_ *100 
 
 *100.407 — 
 
 414% basis 
 
 4iA% basis 
 
 3.70% basis 
 
 3.80% basis 
 
 3%% basis 
 
 3%% basis 
 
 3.70% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 4l^% basis 
 
 4l^% basis 
 
 3%% basis 
 
 3%% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 3.85% basis 
 
 3.85% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 41/3% basis 
 
 4% basis 
 
 4% basis 
 
 4% basis 
 
 4% batis 
 
 3%% baiii 
 
High Low Bid Asked 
 IOWA 
 
 Atlantic (la.) SVgS, 1920 __ __ __ *94 
 
 Bedford (la.) 5s, 1921-33 __ __ *4i/2% basis 
 
 Belle Plaine (la.) Sch., 41/28, 1921 __ __ __ *100 
 
 Belle Plaine (la.) Wtr. & Sewer 5s, 1918-28__ __ __ *4yo% basis 
 
 Boone (la.) 41/38, 1917-31 __ __ 4.30% basis 
 
 Boone (la.) 31/2S, 1919 ._ ._ >_ *94% 
 
 Boone (la.) 41/2S, 1917-22 __ — __ *100 
 
 Boone (la.) 41/2S, 1928 __ __ __ *100 
 
 Burlington (la.) 4s, 1924 — __ 4.20% basis 
 
 Cedar Rapids (la.) 41/2S, 1913-18 __ __ 4.10% basis 
 
 Cedar Rapids (la.) 4s, 1913-19 __ __ 4.10% basis 
 
 Cedar Rapids (la.) Sch. D., 4l^s, 1921 __ „ 4.50% basis 
 
 Central City (la.) Wtr., 5s, 1932 — __ __ *104% 
 
 Council Bluffs (la.) Wtr., 41/2S, 1916-30 __ __ 414% basis 
 
 Council Bluffs (la.) Fire, 41/2S, 1920 __ __ 41/4% basis 
 
 Council Bluffs (la.) Sch. D., 4s, 1920 __ __ 41/2% basis 
 
 Council Bluffs (la.) 41/2S, 1915 __ __ __ *100 
 
 Davenport (la.) 4s, 1913-29 — „ 4% basis 
 
 Davenport (la.) S. D., 4s, 1916 __ — 4% basis 
 
 Davenport (la.) Sch., 41/2S, 1921 __ __ — *101s/8 
 
 Davenport (la.) 4s, 1922 — — *4 1/2% basis 
 
 Davenport (la.) 4s, 1921-25 — — *4i4% basis 
 
 Des Moines (la.) 41/2S, 1913-31 __ — 4.15-.10% basis 
 
 Des Moines (la.) Fdg., 4s, 1916 — — 4.15-.10% basis 
 
 Des Moines (la.) City HI., 4s, 1926 — __ 4%-i4% basis 
 
 Dubuque (la.) 4s, 1917 — __ 4l^% basis 
 
 Dubuque Co. (la.) 4l^s, 1921-31 — — 4%% basis 
 
 Dubuque (la.) 1925 __ — *4.40% basis 
 
 Iowa City (la.) Fund 5s __ __4.70-.50% basis 
 
 Jackson Co. (la.) 5s, Ser. 1919-23 __ __ *4i/2% basis 
 
 Jackson Co. (la.) 5s, 1913-30 __ __4.70- .50% basis 
 
 Keokuk Co. (la.) 4s, 1919 __ __ *4i/2% basis 
 
 Ottumwa (la.) 41/2S, 1917 — — 4l^% basis 
 
 Ottumwa (la.) Sch. 41/2S, 1922 — __ — *101.55 
 
 Page Co. (la.) 6s, 1918-22 __ „ *5i/8% basis 
 
 Polk Co. (la.) 41/2S, 1922-32 __ __ 414% basis 
 
 Polk Co. (la.) Ct. Hse. 4s, 1924 __ __ 4.10% basis 
 
 Polk Co. (la.) Ct. Hse. 31/28, 1917 — — 4.10% basis 
 
 Polk Co. (la.) Ct. Hse. 41/2 s, 1920-24 __ __ *4.30% basis 
 
 Seymour (la.) 5s, 1932 __ __ — *106.55 
 
 Waterloo (la.) Wtr. 41/2S, 1930 __ „ 414% basis 
 
 Webster City (la.) Lt. 41/08, 1931-31 __ __ __ *100 
 
 Winnebago Co. (la.) 6s, 1914-24 __ — *5i/8% basis 
 
 KANSAS 
 
 Atchison (Kans.) 4s, 1915 — — — •9878 
 
 Atchison Co. (Kan.) Ref. 5s, 1916 — __ 104 IO41/2 
 
 Atchison Co. (Kan.) Ref. 4s, 1914 __ __ 90 94 
 
 Belle Plaine (Kans.) 5s, 1933-43 __ — *4.80% basis 
 
 Caney (Kans.) 5s, 1928-29 , __ — — *102% 
 
 Emporia (Kan.) 414s, 1929 __ — 100 
 
 Emporia (Kan.) S. D. 41/2S, 1922 — — 41/2% basis 
 
 Ft. Scott (Kan.) 41/2^, 1935 „ __ 99 100 
 
 Ft. Scott (Kan.) V/^^, 1932-42 — — *^Vz% basis 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1162 
 
KANSAS (Continued). 
 
 High 
 
 Independence (Kans.) Water 4%s, 1936-40 
 
 Independence (Kans.) Water 4%s, 1942^ 
 
 Hutchison (Kan.) 5s, 1913-15 
 
 Kansas City (Kan.) Ref. 6s, 1915 
 
 Kansas City (Kan.) 5s, 1917 
 
 Kansas City (Kan.) Sch. 41/28, 1939 
 
 Kansas City (Kan.) Wtr. Pit. Pur. 41/28 
 
 Kansas City (Kan.) Ref. 41/3S, 1939 
 
 Kansas City (Kan.) Ser. 5s, 1915-23 
 
 Kansas City (Kan.) 5s, 1918-33 
 
 Kansas City (Kan.) 5s, 1914-33 
 
 Kansas City (Kans.) 41/38, 1933-33 
 
 Kingman (Kans.) Elec. Lt. 5s, 1923-43 
 
 Mulberry (Kans.) Wtr. & Elec. Lt. 5s, 1923-43 
 
 Norton (Kans.) 5s, 1917-33 
 
 Norton (Kans.) 41/2S, 1933 
 
 Rosedale (Kans.) Wtr. 5s, 1932 
 
 Leavenworth (Kan.) 5s, 1915 
 
 Leavemvorth (Kan.) Fund 4s, 1914 
 
 Leavenworth (Kan.) Bd. Ed. 41/2S, 1921 
 
 Leavenworth Co. (Kan.) Ref. 5s, 1915 
 
 Sedgwick Co. (Kan.) Fund 5s, 1925 
 
 Shawnee Co. (Kan.) 4s, 1924 
 
 Topeka (Kan.) Wtr. 5s, 1926 
 
 Topeka (Kan.) El. Lt. 41/38, 1929 
 
 Topeka (Kan.) Wtr. 4s, 1924 
 
 Topeka (Kan.) Ref. 3%s, 1919 
 
 Topeka (Kan.) Sch. Dis. 48, 1925 
 
 Wichita (Kan.) 6s, 1915 
 
 Wichita (Kan.) 41/38, 1923 
 
 Wichita (Kan.) Sch. Dis. 41/3S, 1923 
 
 Wyandotte Co. (Kan.) Edge. 41/3S, 1932-41 
 
 KENTUCKY 
 
 Corydon (Ky.) Elec. Lt. 6s, 1915-32 
 
 Fulton (Ky.) 68, Ser. 1913-33 
 
 Horse Cave (Ky.) Sch. 5s 
 
 Lexington (Ky.) 6s, 1-10 yrs 
 
 Lexington (Ky.) 68, 1917-33 
 
 Louisville (Ky.) Hosp. 41/3S, 1951 
 
 Louisville (Ky.) Imp. 4s, 1933 
 
 Louisville (Ky.) Imp. 4s, 1928 
 
 Louisville (Ky.) Park 4s, 1930 
 
 Louisville (Ky.) Ref. 48, 1937 
 
 Louisville (Ky.) Sewer 4s, 1947 
 
 Louisville (Ky.) Ref. 31/08, 1940 
 
 Louisville (Ky.) Ref. 31/38, 1943 
 
 Louisville (Ky.) Sr. & Pk. 3s, 1941 
 
 Nicholasville (Ky.) Sch. 58, 5-20 yrs 
 
 McCracken Co. (Ky.) Rf. 5s, 1933, op. 1913___ 
 McCracken Co. (Ky.) Rf. 58, 19133, op. 1923— _ 
 Shelby Co. (Ky.) 5s 
 
 LOUISIANA 
 
 Louisiana 4s, 1914 
 
 Louisiana Pt. Com. 5s, 1924-59 
 
 Louisiana Port. Comm. 5s, 1928 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1163 
 
 Low Bid Asked 
 
 — *4.60% basis 
 
 __ *4.60% basis 
 
 100 
 
 — 4.30-.20% basis 
 
 __4.30-.20% basis 
 
 __4.30-.20% basis 
 
 -4.45-4.35% basis 
 
 -4.45-4.35% basis 
 
 _- *4.35% basis 
 
 __ *4.40% basis 
 
 __ *4.40% basis 
 
 4.35% basis 
 
 __ *103.63 
 
 *5% basis 
 
 __ *100 
 
 __ *100 
 
 __ *104.78 
 
 98 
 
 93 95 
 
 __ 100 
 
 100 103 
 
 414% basis 
 
 97 100 
 
 __4.35-.25% basis 
 
 __4.35-.25% basis 
 
 __4.35-.25% basis 
 
 __4.35-.35% basis 
 
 100 
 
 100 
 
 100 
 
 100 
 
 4.40% basis 
 
 __ *5i/8% basis 
 
 *5% basis 
 
 *100 
 
 *100 
 
 __ *5.40% basis 
 
 108 
 
 100 101 
 
 1001/4 1011/3 
 
 10014 1011/3 
 
 1001/4 1011/3 
 
 1001/3 1011/3 
 
 90 911/3 
 
 90 91 
 
 80 
 
 __ *101.356 
 
 41/3% basis 
 
 41/3% basis 
 
 *101.61 -_ 
 
 983/4 .- 
 
 4.40% basis 
 
 __ *106 
 
LOUISIANA (Continued). 
 
 High Low Bid Asked 
 
 Louisiana Port Comm. 5s, 1943-58 •4.40% basis 
 
 Acadia (La.) 5s, Serially __ _- *100 
 
 Acadia (La.) 5s, 1920-40 „ __ __ *100 
 
 Atchafalaya Dist. (La.) Ref. & Imp. 5s, 1949— ♦llO 
 
 Bossier Dist. (La.) Lev. 6s, 1923 — __ 991/2 __ 
 
 Caddo Dist. (La.) (40-50) 5s, 1951 __ __ __ 971/2 
 
 Fifth District (La.) 5s, 1950 __ — 100 110 
 
 Fifth District (La.) 5s, 1952 MOS 
 
 Fifth District (La.) 5s, 1954 *108 
 
 Fifth District (La.) 58, 1962 „ __ 110 
 
 Lake Borgne (La.) Dis. Lev. 5s, 1952 >_ „ HOi^ — 
 
 Kentwood (La.) Wtr. & Sewer 5s, 1926-31 __ __ — *100 
 
 Madison Co. (La.) 5s, 1921-28 __ __ __ '100 
 
 Morehouse Co. (^La.) 5s, 1921-27 — ._ __ *100 
 
 Maryland SVgS, 1923-28 ._ ._ — *93y8 
 
 Maryland 4s, 1927-28 __ „ __ *99 
 
 Lewiston (Me.) 4s, 1913 __ __ *5% basis 
 
 New Orl. (La.) Fltg. Debt 4s, 1948 __ ._ 85 95 
 
 New Orl. (La.) Constitutional 4s, 1942 __ __ 96 961/2 
 
 New Orl. (La.) 7s, 1922 *120i4 __ 
 
 New Orl. (La.) Premium 5s 254 
 
 New Orl. (La.) Premium 5s, (dr'n. nos.) __ — 320 
 
 New Orl. (La.) Pub. Impvt. old 4s, 1950 __ __ 931/2 94% 
 
 New Orl. (La.) Pub. Impvt. new 4s, 1942 >- __ 92 
 
 New Orl. (La.) Sch. Tchrs. Sal. 4s, 1927 — — 85 95 
 
 New Orleans (La.) 5s, 1916-25 — __ '4.90% basis 
 
 New Orleans (La.) 5s, 1922-25 __ __ *4%% basis 
 
 New Orleans (La.) 5s, 1915-27 _> ._ — •lOl 
 
 Plaquemine Parish East Bank (La.) 5s, 1952 *102i/2 — 
 
 Pontchartrain District (La.) D. 6s, 1944 *121 
 
 Red River (La.) A & B B Dis., 5s, 1950 ._ __ 102 
 
 Red River (La.) A & B B Dis., 5s, 1953 __ ._ IO21/2 106i/a 
 
 St. Mary (La.) Sch., 5s, 1919-33 _> __ •4.90% basis 
 
 Sabine (La.) Sch., 5s, 1913-22 __ __ ._ '100 
 
 Vermillion Co. (La.) 5s, 1920-27 — __. __ '100 
 
 MAINE 
 
 Maine, 5s, 1919 __ __ 105 106 
 
 Maine, 5s, 1917 __ __ 99 
 
 Maine, 3s, 1913-29 __ __ 91 92 
 
 Aroostook Co. (Me.) 41/2S, 1915 __ __ 100 
 
 Aroostook Co. (Me.) C. H. 4s, 1925 98 
 
 Auburn (Me.) 31/2S, 1925 __ __ 90 
 
 Augusta (Me.) Ref., 4s, 1913-19 __ __ 98 101 
 
 Bangor (Me.) 4s, 1914 __ __ 99 
 
 Bangor (Me.) Ref., Wtr., 4s, 1935 98 
 
 Bath (Me.) Ref., 4s, 1941 __ __ 100 101 
 
 Belfast (Me.) 4s, 1918 __ __ 98 
 
 Cumberland Co. (Me.) 3y2S, 1921 __ __ __ 96 
 
 Gardiner (Me.) Wtr., Dis., 4s, 1934 __ __ 97 
 
 Kennebec (Me.) Wtr. Dis., 31/2S, 1925 __ __ 90 
 
 Lewiston (Me.) 5s, 1917 __ __ 102 103 
 
 Lewiston (Me.) 4s, 1927 __ __ 98 
 
 Portland (Me.) 4s, 1929 __ __ 971/, 98% 
 
 Portland (Me.) Cy. HI., 4s, 1926-45 _- .. 3.80-75% basis 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1164 
 
MAINE (Continued). 
 
 Portland (Me.) Ref., Si/gS, 1922 
 
 Portland (Me.) Bridge Dis., Si/gS, 1939. 
 
 Portland (Me.) Wtr. Dis., 4s, 1928 
 
 Rockland (Me.) SVaS, 1917 
 
 Washington Co. (Me.) 4s, 1928 
 
 Waterville (Me.) 4s, 1927 
 
 Waterville (Me.) Si/gS, 1935 
 
 Westbrooke (Me.) 4s, 1915 
 
 MARYLAND 
 
 Maryland 4s, 1927 
 
 Maryland Sy^s, 1919 
 
 Maryland State Rds., Sy^s, 1924 
 
 Maryland State Rds., SVaS, 1926 
 
 Maryland State Rds., Si/gS, 1927 
 
 Maryland 3s, 1914 
 
 Annapolis (Md.) 41/28, 1942 
 
 Attleborough (Md.) 4s, 1924 
 
 Attleborough (Md.) 31/2*, 1935 
 
 Arlington (Md.) Wtr., 4s, 1922 - 
 
 Baltimore (Md.) 5s, 1916 
 
 Baltimore (Md.) Parks, 4s, 1955 
 
 Baltimore (Md.) Annex, 4s, 1954 
 
 Baltimore (Md.) 4s, 1920 
 
 Baltimore (Md.) Wtr., 4s, 1926 
 
 Baltimore (Md.) 4s, 1961 
 
 Baltimore (Md.) sy^s, 1930 
 
 Baltimore (Md.) Corp. stock 4s, 1961 
 
 Baltimore (Md.) Impvt., 31/285 1940 
 
 Baltimore (Md.) 31/2S, 1945 
 
 Baltimore (Md.) Ref., 31/2S, 1952 
 
 Baltimore (Md.) 3l^s, 1927 
 
 Beverly (Md.) Water, 4s, 1917 
 
 Beverly (Md.) Sewer, 4s, 1936 
 
 Cumberland (Md.) Wtr., 41/2S, 1941 
 
 Frederick (Md.) 48, 1918 
 
 Talbot Co. (Md.) 5s, 1-15 yrs 
 
 Worcester Co. (Md.) 5s, 1914 
 
 MASSACHUSETTS 
 
 Massachusetts 31/2S, 1918 
 
 Massachusetts 3l^s, 1923 
 
 Massachusetts 31/2S, 1935 
 
 Massachusetts Wtr., 31/2S, 1942 
 
 Massachusetts Wtr., 31/2S, 1944 
 
 Massachusetts 3s, 1915 
 
 Massachusetts 3s, Apr. 1929 
 
 Massachusetts 3s, May 1929 
 
 Massachusetts Met Swge., 3s, 1936 
 
 Massachusetts 3s, 1939 
 
 Massachusetts Wtr., 3s, 1941 
 
 Massachusetts 4s, 1916 
 
 Massachusetts 4s, 1916-17 
 
 Massachusetts 4s, 1916-18 
 
 Massachusetts 4s, 1920 
 
 "Quotation nearest March 1, 1913. No quotation on that date. 
 
 1165 
 
 High Low 
 
 Bid Asked 
 94 951/3 
 4% basis 
 __ 102l^ 
 95 
 98 
 98 
 90 
 98 
 
 99 
 93 
 93 
 93 
 93 
 
 98 
 90 
 
 991/2 
 
 933/8 
 
 93% 
 93% 
 93% 
 99 
 *102.06 
 
 102 
 
 961/2 97 
 
 961/2 97 
 
 98 100 
 
 98 100 
 
 961/4 _- 
 92 
 
 92 
 91 
 90 
 83 
 99 
 4.10% basis 
 
 100 1011/2 
 
 96 98 
 *102.27 — 
 __ *100.58 
 
 4% basis 
 4% basis 
 91 92 
 893/4 __ 
 4% basis 
 4% basis 
 4% basis 
 4% basis 
 4% basis 
 4% basis 
 8II/2 821/2 
 __ *100.67 
 *3 3/4% basis 
 *3%% basis 
 __ *101.51 
 
MASSACHUSETTS (Continued). 
 
 Massachusetts SVgS, 1920 
 
 Massachusetts SVgS, 1922 
 
 Massachusetts 48, 1923 
 
 Massachusetts sy^a, 1922-25 
 
 Massachusetts 4s, 1916-26 
 
 Massachusetts 43, 1918-26 
 
 Massachusetts 4s, 1916-27 
 
 Massachusetts 4s, 1928 
 
 Massachusetts 4s, 1916-30 
 
 Massachusetts 3s, 1930 
 
 Massachusetts 31/28) 1931 
 
 Massachusetts 4s, 1933 
 
 •Massachusetts 3i/^s, 1933 
 
 Massachusetts 31/38, 1937 
 
 Massachusetts 3s, 1938 
 
 Massachusetts 31/28, 1938-39 
 
 Massachusetts 31/2S, 1931-40 
 
 Massachusetts 31/2S, 1940 
 
 Massachusetts 31/28, 1935-45 
 
 Massachusetts 4s, 1945 
 
 Massachusetts 31/2S, 1947 
 
 Massachusetts 31/2S, 1918-48 
 
 Massachusetts 31/2S, 1948 
 
 Massachusetts 31/2S, 1949 
 
 Massachusetts 4s, 1949-50 
 
 Massachusetts 48, 1913-52 
 
 Amesbury (Mass.) 4s, 1918 
 
 Arlington (Mass.) 4s, 1916 
 
 Attleborough (Mass.) 31/38, 1920 
 
 Attleborough (Mass.) 31/2S, 1935 
 
 Belmont (Mass.) 4s, 1943 
 
 Beverly (Mass.) 4s, 1921-23 
 
 Boston (Mass.) 3s, 1921 
 
 Boston (Mass.) 31/38, 1923 
 
 Boston (Mass.) 31/38, 1924 
 
 Boston (Mass.) 31/28, 1932 
 
 Boston (Mass.) 31/38, 1934 
 
 Boston (Mass.) 31/3S, 1935 
 
 Boston (Mass.) 31/38, 1943 
 
 Boston (Mass.) 31/3S, 1944 
 
 Boston (Mass.) 31/3S, 1945 
 
 Boston (Mass.) 4s, 1936 
 
 Boston (Mass.) 4s, 1913-37 
 
 Boston (Mass.) Wtr. 4s, 1919 
 
 Boston (Mass.) Park 4s, 1920 
 
 Boston (Mass.) Tun. & Sub. 4s, 1948 
 
 Boston (Mass.) Sub. 4s, 1957 
 
 Boston (Mass.) Wtr. 31/38, 1917 
 
 Boston (Mass.) Swge. 31/3S, 1919 
 
 Boston (Mass) 31/38, 1920 
 
 Boston (Mass.) 31/3S, 1919-36 
 
 Boston (Mass.) 31/38, 1936 
 
 Boston (Mass.) sy^s, 1922-44 
 
 Boston (Mass.) 4s, 1917-33 
 
 Boston (Mass.) 4s, 1923-33 
 
 Boston (Mass.) 48, 1933 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1166 
 
 High Low 
 
 Bid 
 
 *33/4% 
 *33/4% 
 
 *3.75% 
 
 Asked 
 
 *98.45 
 *983/s 
 *103.49 
 basis 
 basis 
 
 basis 
 
 basis 
 
 __ *103.93 
 
 *3%% basis 
 _- *87.32 
 basis 
 basis 
 
 — *963/4 
 
 *33/4% basis 
 __ *88 
 
 *4% 
 '3.75% 
 
 *33/4% 
 *3.90% 
 *4.00% 
 
 *4.05% 
 *4.00% 
 
 *33A% 
 *3.75% 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 __ *94i/4 
 *33A% basis 
 
 - *953/8 
 *953/3 
 basis 
 basis 
 
 *99i/i 
 *100.33 
 
 *96i/8 
 *90% 
 
 *102% 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 102 
 basis 
 basis 
 basis 
 
 *96% 
 basis 
 *90i/2 
 *88% 
 basis 
 basis 
 *101.40 
 
 *33/4% 
 
 4.15-4% 
 4.15-4%, 
 4.15-4% 
 4.15-4% 
 4.15-4%, 
 4.15-4% 
 4.15-4% 
 4.15-4% 
 4.15-4% 
 4.15-4% 
 4.15-4%o 
 4.15-4% 
 4.15-4% 
 
 101 
 4.15-4%, 
 4.15-4%, 
 4.15-4%o 
 
 4.10% 
 
 *3.85% 
 ♦3.85%, 
 
MASSACHUSETTS (Continued). 
 
 High Low Bid Asked 
 
 Boston (Mass.) 4s, 1933-41 — — *3.90% basis 
 
 Boston (Mass.) 4s, 1927-46 — — *4.10% basis 
 
 Boston (Mass.) 4s, 1950 — — — *101.95 
 
 Boston (Mass.) 4s, 1917-58 — — *3.85% basis 
 
 Brocton (Mass.) 4s, 1927 — — 98 
 
 Brocton (Mass.) Wtr., 31/28, 1932 — — 91 
 
 Brocton (Mass.) 31/38, 1916 — — — *98 
 
 Brocton (Mass.) 414s, 1920 — — — *101% 
 
 Brocton (Mass.) 31/2S, 1934 __ — — *90% 
 
 Brocton (Mass.) 4l^s, 1921-43 — — *4% basis 
 
 Brookline (Mass.) 4s, 1913-23 — — 99 
 
 Brookline (Mass.) 31/2S, 1915 — — — *99 
 
 Cambridge (Mass.) Wtr., 4s, 1917 — — 99 
 
 Cambridge (Mass.) 31/2S, 1925 __ __4.12i/2-.05% basis 
 
 Cambridge (Mass.) Bdge, 3s, 1941 __ — 81 
 
 Cambridge (Mass.) 31/2S, 1930 __ — — *95 
 
 Cambridge (Mass.) 4s, 1923-33 __ — *3%% basis 
 
 Cambridge (Mass.) 31/2S, 1939 — — — *90y2 
 
 Cambridge (Mass.) 31/2S, 1942___ — — — *90i/8 
 
 Cambridge (Mass.) 31/2S, 1944 __ — — *90% 
 
 Canton (Mass.) 4s, 1922-24 __ — *4.20% basis 
 
 Chelsea (Mass.) Park, 4s, 1936 — — 98 
 
 Chelsea (Mass.) 4s, 1958 __ „ — *100 
 
 Chelsea (Mass.) Si/gS, 1959 __ __ — *89y3 
 
 Chicopee (Mass.) 4s, 1918-19 — — *4l^% basis 
 
 Chicopee (Mass.) 4s, 1913-21 — — *3.70% basis 
 
 Chicopee (Mass.) 4s, 1916-21 — — *3.85% basis 
 
 Chicopee (Mass.) 4s, 1921-35 __ — *3.80% basis 
 
 Concord (Mass.) 31/2S, 1929 — — — *96y8 
 
 Concord (Mass.) 4s, 1937-42 — — *3.90% basis 
 
 Concord (Mass.) 4s, 1940-42 — — *3.90% basis 
 
 Danvers (Mass.) Elec. Lt., 4s, 1915 __ __ „ *99% 
 
 East Bridgewater (Mass.) Wtr, 41/2S, 1-30 yrs. __ __ *101i/2 — 
 
 East Bridgewater (Mass.) 4i/4s, 1924-41 __ *4% basis 
 
 Essex Co. (Mass.) 31/2S, 1916 __ — — *98 
 
 Everett (Mass.) Swr. 4s, 1929 __ __ 98 
 
 Everett (Mass.) 4s, 1921 — __ __ *99iA 
 
 Everett (Mass.) 4s, 1924 __ __ __ *99 
 
 Fall River (Mass.) 4s, 1942 __ __ __ *102 
 
 Fall River (Mass.) Sch., 414s, 1913 __ __ 991/2 — 
 
 Fall River (Mass.) Mun., 4s, 1922 __ __ __ 102y2 
 
 Fall River (Mass.) Wtr., 31/2S, 1920 __ __ 92 
 
 Fall River (Mass.) 31/38, 1924 __ __ __ *95% 
 
 Fall River (Mass.) 4s, 1922-23 __ __ __ *100y8 
 
 Fall River (Mass.) 31/38, 1925 __ __ __ *94l^ 
 
 Fall River (Mass.) 31/38, 1934 __ __ __ 931/3 
 
 Fall River (Mass.) 31/38, 1930 __ __ „ *92y^ 
 
 Fall River (Mass.) 4s, 1938 __ __ __ *98 
 
 Fall River (Mass.) 31/38, 1939 __ __ __ *93i/2 
 
 Fitchburg (Mass.) Reg., 4s, 1922 __ __ 99 
 
 Fitchburg (Mass.) Wtr., 31/3S, 1926 __ __ 92 
 
 Franklin (Mass.) Wtr., 4s, 1922-25 __ __ *4.15% basis 
 
 Gardner (Mass.) Wtr., 48, 1913-34 __ __ 97 
 
 Gardner (Mass.), Wtr., 4s, 1931-32 __ __ *4.15% basis 
 
 Gloucester (Mass.) Wtr., 31/38, 1913-31 __ __ 4.15-.10% basis 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1167 
 
MASSACHUSETTS (Continued). 
 
 High Low 
 
 Gloucester (Mass.) SVgS, 1921 
 
 Haverhill (Mass.) 48, 1927 
 
 Haverhill (Mass.) 4s, 1917-22 
 
 Heverhill (Mass.) 4s, 1922 
 
 Holyoke (Mass.) 4s, 1927 
 
 Holyoke (Mass.) SVzS, 1913-32 
 
 Holyoke (Mass.) 3yaS, 1928 
 
 Holyoke (Mass.) BYzS, 1932 
 
 Hudson (Mass.) 4s, 1921 
 
 Indianola (Mass.) Sch. 5s, 5-20 yrs 
 
 Ipswich (Mass.) 43, 1924 
 
 Lawrence (Mass.) 4s, 1924 
 
 Lawrence (Mass.) 4s, 1014-22 
 
 Lawrence (Mass.) 4s, 1919 
 
 Lawrence (Mass.) 4s, 1923 
 
 Leominster (Mass.) 43, 1926 
 
 Lowell (Mass.) Wtr., 4s, 1920 
 
 Lowell (Mass.) 4s, 1919-22 
 
 Lynn (Mass.) 4s, 1927 
 
 Lynn (Mass.) sy^s, 1932 : 
 
 Lynn (Mass.) 4s, 1917 
 
 Lynn (Mass.) 43, 1919 
 
 Lynn (Mass.) 31/28, 1932 
 
 Lynn (Mass.) 4s, 1917-42 
 
 Maiden (Mass.) 4s, 1924 
 
 Maiden (Mass.) Wtr., SVgS, 1924 
 
 Maiden (Mass.) 4s, 1926 
 
 Maiden (Mass.) 3y2S, 1935 
 
 Maiden (Mass.) 4s, 1942 
 
 Mansfield (Mass.) 4s, 1918 
 
 Mansfield (Mass.) 4s, 1933 
 
 Marblehead (Mass.) 4s, 1919 
 
 Marlborough (Mass.) 4s, 1915 
 
 Marlborough (Mass.) 4s, 1926 
 
 Marlborough (Mass.) 4s, 1918 
 
 Medford (Mass.) 4s, 1917 
 
 Medford (Mass.) 4s, 1930 
 
 Melrose (Mass.) 4s, 1924 
 
 Methuen (Mass.) 43, 1928 
 
 Middleboro (Mass.) 4s, 1921 
 
 Middlesex Co. (Mass.) 4s, 1916-21 
 
 Milton (Mass.) 3sy2, 1913-32 
 
 Milton (Mass.) sygS, 1919 
 
 Natick (Mass.) 31/28, 1924-25 
 
 Natick (Mass.) 31/28, 1925 
 
 ■NTatick (Mass.) 31/28, 1026-28 
 
 Needham (Mass.) 31/33, 1931 
 
 New Bedford (Mass.) 4s, 1957 
 
 New Bedford (Mass.) 41/2S, 1917 
 
 New Bedford (Mass.) Wtr., 4s, 1926 
 
 New Bedford (Mass.) Swr. 4s, 1913-41 
 
 New Bedford (Mass. 31/2S, 1918 
 
 New Bedford (Mass.) 4s, 1916-22 
 
 New Bedford (Mass.) 31/28, 1922 
 
 New Bedford (Mass.) 4s, 1928 
 
 New Bedford (Mass.) 4s, 1935 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1168 
 
 Bid 
 
 Asked 
 
 
 
 *955/3 
 
 98 
 
 99 
 
 *3.90% basis 
 
 
 
 *iooy4 
 
 98 
 
 99 
 
 3.85% 
 
 basis 
 
 __ 
 
 *938/8 
 
 
 
 *98i/8 
 
 
 
 *99i/2 
 
 100 
 
 __ 
 
 
 
 *98 
 
 96 
 
 
 4.15% basis 
 
 
 
 *100.53 
 
 
 
 *99 
 
 971/2 -- 
 
 98 
 
 __ 
 
 •33/4%, basis 
 
 98 
 
 
 
 91 
 
 
 
 
 *993/4 
 
 
 *100 
 
 
 
 *913/4 
 
 
 
 *100 
 
 98 
 
 
 
 93 
 
 _ 
 
 
 
 *983/4 
 
 
 
 •91% 
 
 — 
 
 ♦1031/3 
 
 
 
 *993/8 
 
 __ 
 
 •981/4 
 
 
 
 •1001/2 
 
 99 
 
 
 
 98 
 
 
 
 
 
 •1001/2 
 
 99 
 
 
 
 98 
 
 
 
 98 
 
 
 
 98 
 
 
 
 
 •98% 
 
 99 
 
 
 
 92 
 
 __ 
 
 
 
 •97 
 
 *4.10% basis 
 
 
 
 •94 
 
 *4.20% basis 
 
 
 
 ♦90% 
 
 
 
 •97y4 
 
 102 
 
 
 98 
 
 
 
 3.85% basis 
 
 •41/8% basis 
 
 
 
 •100 
 
 
 
 •951/2 
 
 
 
 •100 
 
 
 
 •98% 
 
MASSACHUSETTS (Continued). 
 High 
 
 New Bedford (Mass.) 31/38, 1951 
 
 Newburyport (Mass.) Wtr., 31/2S, 1913-34 
 
 Newburyport (Mass.) 4s, 1914-23 
 
 Newton (Mass.) Wtr., 4s, 1935 
 
 Newton (Mass.) Wtr., 31/28, 1926 
 
 Newton (Mass.) 31/2S, 1922 
 
 Newton (Mass.) 31/2S, 1931 
 
 Newton (Mass.) 4s, 1936 
 
 Newton (Mass.) 4s, 1939 
 
 No. Andover (Mass.) 48, 1923 
 
 No. Attleboro (Mass.) 4s, 1913-18 
 
 No. Attleboro (Mass.) 4s, 1918 
 
 No. Attleboro (Mass.) 4s, 1922 
 
 Northampton (Mass.) 31/2S, 1913-26 
 
 Palmer (Mass.) 414s, 1913-19 
 
 Peabody (Mass.) 4s, 1917-21 
 
 Peabody (Mass.) 4s, 1925 
 
 Pittsfield (Mass.) Sch., 4s, 1913-17 
 
 Pittsfield (Mass.) 31/2S, 1915 
 
 Pittsfield (Mass.) 4s, 1923 
 
 Quincy (Mass.) 4s, 1913-22 
 
 Quiney (Mass.) 4s, 1918 
 
 Quincy (Mass.) 4s, 1915 
 
 Quincy (Mass.) 31/2S, 1924-26 
 
 Quincy (Mass.) 31/2S, 1926 
 
 Quincy (Mass.) 4s, 1926 
 
 Quincy (Mass.) 4s, 1928-37 
 
 Quincy (Mass.) 31/2S, 1931-38 
 
 Salem (Mass.) 4s, 1921 
 
 Salem (Mass.) 4s, 1926 
 
 Salem (Mass.) 31/oS, 1940 
 
 Sharon (Mass.) 4s, 1921 
 
 Shelburne Falls (Mass.) 41/38 
 
 Somerville (Mass.) 4s, 1913-19 
 
 Somerville (Mass.) 4s, 1927-38 
 
 So. Hadley (Mass.) 4s, 1917-28 
 
 Springfield (Mass.) Wtr., 4s, 1913__ 
 
 Springfield (Mass.) Sch., 4s, 1917 
 
 Springfield (Mass.) 31/2S, 1913-18 
 
 Springfield (Mass.) Sch. 31/38, 1925 
 
 Springfield (Mass.) Swr., 3s, 1930J 
 
 Springfield (Mass.) 31/38, 1929 
 
 Stockbridge (Mass.) 4s, 1923-32 
 
 Swampscott (Mass.) 31/38, 1925 
 
 Swampscott (Mass.) 314s, 1926 
 
 Swampscott (Mass.) 3l^s, 1928 
 
 Taunton (Mass.) 4s, 1927 .__ 
 
 Taunton (Mass.) Swr., 31/38, 1930 
 
 Taunton (Mass.) 31/3S, 1932 
 
 Wakefield (Mass.) Wtr., 4s, 1913-33 
 
 Wakefield (Mass.) Sch., 4s, 1-10 yrs 
 
 Wakefield (Mass.) 31/38, 1923-30 
 
 Wakefield (Mass.) 4s, 1930 
 
 Waltham (Mass.) Wtr., 4s, 1913 
 
 Waltham (Mass.) 31/38, 1920 
 
 Waltham (Mass.) 48, 1928-31 
 
 Watertown (Mass.) 4s, 1913-34 
 
 •Quotation nearest March 1, 1913. No quotation on that date, 
 
 1169 
 
 Low Bid Asked 
 
 -_ *873/4 
 
 4.10% basis 
 __ *4i^% basis 
 98 
 93 
 
 - "95% 
 
 - *923/8 
 
 - *98 
 __ *99i/2 
 
 - *99 
 __ *3.85% basis 
 
 __ '99% 
 
 __ *100% 
 
 95 
 __ *3.80% basis 
 __ *4i4% basis 
 
 __ *97% 
 3.85% basis 
 
 __ *983/4 
 
 __ *100% 
 — 4.15-.10% basis 
 
 - *99% 
 __ *100i/4 
 
 __ 4.10% basis 
 __ *938^ 
 „ *98i/4 
 __ *3.80% basis 
 __ *4.10% basis 
 __ '101.69 
 __ *102.57 
 _. *90i/8 
 99 
 
 :: " *io4i/2 
 99 
 
 __ noii/a 
 
 „ *100 
 
 993/4 „ 
 
 99 
 
 981/3 - 
 941/4 -- 
 86I/2 - 
 
 - *95% 
 __ *3%% basis 
 
 __ *92% 
 
 __ *94 
 
 __ *94i/a 
 
 98 
 
 92 
 
 _- *92iA 
 
 971/2 - 
 
 *100.14 __ 
 
 __ *4.10% basis 
 
 __ *99 
 
 991/3 -_ 
 
 95 
 
 3.90% basis 
 
 971A - 
 
MASSACHUSETTS (Continued). 
 
 High Low Bid Asked 
 
 Westfield (Mass.) SVgS, 1927 — — — *93% 
 
 Weymouth (Mass.) 4s, 1919 — __ -_ *99iA 
 
 Whitman (Mass.) 1916 — __ — *99% 
 
 Winchester (Mass.) Swr., 4s, 1918-24 __ __ 99 
 
 Winchester (Mass.) Sch., Zy^s, 1917-18 __ — *4.15% basis 
 
 Worcester (Mass.) 4s, 1922 — — 99 
 
 Worcester (Mass.) SVgS, 1922 __ — 951/2 __ 
 
 Worcester (Mass.) 4s, 1922 __ — — *101.19 
 
 Worcester (Mass.) 4s, 1917-23 __ „ *3.85% basis 
 
 Worcester (Mass.) 4s, 1920-29 __ — *3.85% basis. 
 
 Worcester (Mass.) 4s, 1917-33 __ — *3.85% basis 
 
 Worthington (Mass.) 4s, 1936-40 __ __ — *100 
 
 Wrentham (Mass.) 4s, 1934-36 __ >_ *4.15% basis 
 
 MICHIGAN 
 
 Alger Co. (Mich.) Road, 5s, 1922 „ __ To net 4.40% 
 
 Ann Arbor (Mich.) Sch. Dis., 4s, 1935 „ __ To net 4.10% 
 
 Ann Arbor (Mich.) 4s, 1920 — — — *983/8 
 
 Battle Creek (Mich.) Wtr., 5, 1915-17 — — To net 41/2% 
 
 Bay City (Mich.) 8s, 1913 — __ 41/2% basis 
 
 Bay City (Mich.) 5s, 1920 __ __ 41/2% basis 
 
 Bay City (Mich.) 4s. 1934 __ __ 41/2% basis 
 
 Bay Co. (Mich.) 5s, 1919 __ — 41^% basis 
 
 Bay Co. (Mich.) Ref., 4s, 1923 __ __ 4.30% basis 
 
 Benton Harbor (Mich.) Pk., 4s, 1933 __ __ 41/2% basis 
 
 Brown City (Mich.) 4s, 1928-34 __ __ •4.35% basis 
 
 Carson City (Mich.) 4y2S, 1917-20 __ — *4.20% basis 
 
 Crystal Falls (Mich.) Sch., 5s „ __ *4.30% basis 
 
 Delta Co. (Mich.) Rd., 4y2S, 9^4 yrs __ __ *101.155 — 
 
 Detroit (Mich.) Swr., 4s, 1922 __ — 4% basis 
 
 Detroit (Mich.) Pub. Imp., 3.65s, 1918 __ __ 4% basis 
 
 Detroit (Mich.) Park, 31/2S, 1930 __ __ 4% basis 
 
 East Towas (Mich.) 1921 __ __ __ *97 
 
 Flint (Mich.) Sch., 41/28, 12l^ yrs __ __ *102.527 — 
 
 Flint (Mich.) 41/2S, 1914-37 — _. *4.10% basis 
 
 Gladstone (Mich.) 41/2S, 1919 __ __ 41/2% basis 
 
 Grand Haven (Mich.) Sch., 4s, 1932 __ __ *4i4% basis 
 
 Grand Rapids (Mich.) Flood Prot., 41/2S, 1933 — __ 4.20-.10% basis 
 
 Grand Rapids (Mich.) Mkt., 4s, 1916 __ __ 4.20-10% basis 
 
 Grand Rapids (Mich.) Wtr., 4s, 1929 __ __ 4.20-.10% basis 
 
 Grand Rapids (Mich.) 4s, 1931 __ __ «_ "lOO 
 
 Hamtramck (Mich.) 5s, 1938 __ __ __ •110.78 
 
 Hancock (Mich.) 5s, 1914-18 __ __ ♦414% basis 
 
 Hancock (Mich.) 41/2S, 1919 __ __ __ *101i/2 
 
 Highland Park (Mich.) Sch., 41/2S __ __ •4.20% basis 
 
 Holland (Mich.) Ref., 4s, 1914-23 __ __ 41/2% basis 
 
 Holland (Mich.) 41/4 s, 1914-22 __ __ ^4.08% basis 
 
 Jackson (Mich.) 4s, 1930 __ __ __ •99.40 
 
 Lake Odessa (Mich.) Wtr., 5s, 1922-27 __ __ *4.15% basis 
 
 Lansing (Mich.) 5s, 1913-23 __ __ 41/2-4% basis 
 
 Lansing (Mich.) Wtr., 4s, 1920 __ __ 41/2-4% basis 
 
 Marquette (Mich.) 4s, 1916 . __ __ 41/2% basis 
 
 Muskegon (Mich.) Sch., 41/2S, 1915-20 __ __ •4.10% basis 
 
 Muskegon (Mich.) 41/2S, 1926 __ __ __ ^1041/8 
 
 Muskegon (Mich.) Wtr., 5s, 1913-25 __ __ 4.60% basis 
 
 Muskegon (Mich.) Wtr. Wks., 41/2S, 1915-44- _ __ __ 4.60% basis 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1170 
 
MICHIGAN (Continued). 
 
 High Low Bid Asked 
 
 Muskegon (Mich.) 4s, 1934 __ __ 4.50% basis 
 
 Muskegon (Mich.) Sch. Dis., 5s, 1943— — __ 4.50% basis 
 
 Muskegon Co. (Mich.) 41/28, 1933 __ __ 4.50% basis 
 
 Owosso (Mich.) Ref., 4s, 1930 __ __ 41/3% basis 
 
 New Baltimore (Mich.) 4y2S, 1933 __ __ — *100 
 
 Oceana Co. (Mich.) 53, 1918-37 __ — *4.40% basis 
 
 Oscoda (Mich.) 5s, 1914-38 __ __ *4.30% basis 
 
 Petoskey (Mich.) 4l^s, 1930 >. __ __ *101 
 
 Pigeon (Mich.) 1917-37 „ __ __ *106 
 
 Pontiac (Mich.) Sch., 41/28, 14 yrs __ __ *103.571 — 
 
 Port Huron (Mich.) Ref., 4s, 1919 __ __ 4.60% basis 
 
 Port Huron (Mich.) 4s, 1933 __ __ 4.60% basis 
 
 Port Huron (Mich.) Pk., 31/2S, 1930 __ __ 4.60% basis 
 
 Port Huron (Mich.) 41/3S, 1914-38 __ __ *4.10% basis 
 
 Riverton (Mich.) Rd., 5s, 1917-31 __ __ *4l^%, basis 
 
 St. Joseph (Mich.) 41/2S, 1937 __ __ __ *101 
 
 St. Johns (Mich.) 5s, 1914 __ __ 4.30-.S0% basis 
 
 Saginaw (Mich.) Wtr., 41/2 s, 1935 __ __4.30-.30% basis 
 
 Saginaw (Mich.) "Swr., 4s, 1918 __ __ 4.30-.30% basis 
 
 Saginaw (Mich.) Wtr., 31/2S, 1930 __ __ 4.30-.30%, basis 
 
 Sault Ste. Marie (Mich.) Wtr., 6s, 1913 __ __ 4.60% basis 
 
 Sault Ste. Marie (Mich.) Ref., 5s, 1917 __ __ 4.50% basis 
 
 Sault Ste. Marine (Mich.) Bdge., 41/2S, 1930— __ __ 4.50% basis 
 
 Sault Ste. Marie (Mich.) 4s, 1933 __ __ 4.50% basis 
 
 South Haven (Mich.) 5s, 1918-33 __ __ *4i4% basis 
 
 Travers City (Mich.) El. Lt. & Pr., 4l^s, 1933 __ __ *4.10%, basis 
 
 Wayne Co. (Mich.) 31/2S, 1914 __ __ 4.10-.39% basis 
 
 Wyandotte (Mich.) 41/2S, 1934 __ __ 4.40% basis 
 
 MINNESOTA 
 
 Otter Tail Co. (Minn.) Ditch, 5s, 1918-33 __ __ 4.45%, basis 
 
 Beltrami Co. (Minn.) 41/2S, 1913-34 __ __ 4%% basis 
 
 Clay Co. (Minn.) 41/2S, 1915-16 __ __ 41/2%, basis 
 
 Crookston (Minn.) Ind. 5 D, 41/oS, 1937 __ __ __ 100 
 
 Cass Co. (Minn.) Sch., 5s, 1934_''_ __ __ __ *103.37 
 
 Duluth (Minn.) Wtr. & St., 5s, 1936 __ __ 4.35%, basis 
 
 Duluth (Minn.) 41/2S, 1936 __ __ 4.35%, basis 
 
 Duluth (Minn.) Wtr., 4s, 1938 __ __ 4.35% basis 
 
 Duluth (Minn.) Wtr. & Lt., 4s, 1936 __ __ 4.35%, basis 
 
 Duluth (Minn.) Ind. S. D. 5s, 1913 __ __ 100 
 
 Duluth (Minn.) Ind. S. D. 5s, 1933 __ __ 41/2% basis 
 
 Duluth (Minn.) Ind. S. D. 41/2S, 1940 __ __ IOII/2 IO31/3 
 
 Duluth (Minn.) Ind. S. D. 4s, 1934 __ __ 41/2% basis 
 
 Duluth (Minn.) Wtr. & Lt., 41/pS, 38 yrs __ __ *100 
 
 Duluth (Minn.) Sch., 41/2S, 1931 __ __ __ *101 
 
 Duluth (Minn.) Sch., 5s, 1933 __ __ __ *105 
 
 Duluth (Minn.) Wtr., 4s, 1938-36 __ __ *4.40% basis 
 
 Duluth (Minn.) 41/2S, 1941 __ __ __ *10314 
 
 Grand Rapids (Minn.) Rd., 5s, 1937 __ __ __ *103.54 
 
 Greenbush (Minn.) 6s, 1933 __ __ __ *107.18 
 
 Hennepin Co. (Minn.) 41/2S, 1934 __ __ __ *103 
 
 Jackson Co. (Minn.) 5s, 1913-31 __ __ 4.55% basis 
 
 Koochiching Co. (Minn.) 4s, 1935-31 __ __ *4i/2% basis 
 
 Lac Qui Parle Co. (Minn.) 5s, 1930-30 __ __ 4.55% basis 
 
 Marshall Co. (Minn.) 51/2S, 1918-33 __ __ *4%% basis 
 
 Marshall Co. (Minn.) Ser., 51/3S, 1918-38 _. __ *4.60% basis 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 117X 
 
MINNESOTA (Continued). 
 
 Marshall Co. (Minn.) Ditch 5s, 1913-29 
 
 Polk Co. (Minn.) Sch. Dis., 58, 1927 
 
 Ramsey Co. (Minn.) 5s, 1915 
 
 Ramsey Co. (Minn.) Ct. Hse., 41/28, 1916 
 
 Ramsey Co. (Minn.) Si/gS, 1921 
 
 Red Lake Co. (Minn.) SVjjS, 1920. 
 
 High Low 
 
 s (Minn.) Park, 41/2S, 1913 
 
 3 (Minn.) 41/28, 1920 
 
 s (Minn.) Sch., 4s, 1927 
 
 s (Minn.) Sch., 4s, 1935 
 
 s (Minn.) Imp., 4s, 1937 
 
 s (Minn.) Imp., 4s, 1942 
 
 8 (Minn.) Sch., 31/2S, 1929 
 
 8 (Minn.) Wtr. Wks., 31/2S, 1932. 
 s (Minn.) Wtr. Wks., 41/2S, 1914_. 
 
 s (Minn.) 4s, 1917 
 
 s (Minn.) 43, 1918 
 
 3 (Minn.) 4s, 1922 
 
 8 (Minn.) 4s, 1941 
 
 8 (Minn.) 43, 1942 
 
 Minneapol: 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapol 
 Minneapoli 
 
 Rosean Co. (Minn.) 6s, 1919-33 
 
 Rosean Co. (Minn.) 63, 1925-33 
 
 St. Paul (Minn.) Wtr., 5s, 1915 
 
 St. Paul (Minn.) 41/38, 1917 
 
 St. Paul (Minn.) Wtr., 41/38, 1918 
 
 St. Paul (Minn.) Ref., 48, 1939 
 
 St. Paul (Minn.) Sw'ge, 4s, 1939 
 
 St. Paul (Minn.) 43, 1940 
 
 St. Paul (Minn.) 31/2S, 1922 
 
 Osakis (Minn.) Sch., 41/2S, 1917 
 
 Skakopee (Minn.) Wtr., 5s, 31/2 yrs 
 
 Virginia (Minn.) Wtr. & Lt., 5s, 15 yrs.. 
 
 Bid Asked 
 
 4.65% basis 
 
 __ 1021/3 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.60% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 -_ *100 
 
 - *99% 
 
 - '99 
 
 - •988/8 
 _- *973/4 
 
 *4.125% basis 
 *5% basis 
 *5% basis 
 4.15 %basi3 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 
 - *^W» 
 •100 
 •lOli/a - 
 
 MISSISSIPPI 
 
 Mississippi 31/38, 1934 
 
 Adams Co. (Miss.) Rd., 5s, 1952 
 
 Bolivar Co. (Miss.) 6s, 1914-31 
 
 Chickasaw Co. (Miss.) Rd., 5s, 1925-27 
 
 Covington Co. (Miss.) Rd., 6s, 1927 
 
 Reene Co. (Miss.) 6s, 1923 
 
 Greenwood (Miss.) 58, 1926 
 
 Hancock Co. (Miss.) Rd., 6s, 1933 
 
 Itawamba Co. (Miss.) 6s, 1913-32 
 
 Jackson (Miss.) Wtr., 58, 1928 
 
 Jackson (Miss.) 5s, 1932 
 
 Jackson (Miss.) 5s, 1930 
 
 Lauderdale Co. (Miss.) 51/28 
 
 Lauderdale Co. (Miss.) 51/38, I714 yrs 
 
 Le Flore Co. (Miss.) 6s, 1921-30 
 
 Lincoln Co. (Miss.) 51/38, 1923-37 
 
 Marks (Miss.) Wtr. & Sewer, 6s, 1931 
 
 Miss. Levee Dist., 58, 1944 
 
 Miss. Levee Dist., 41/33, 1934 
 
 Mize (Miss.) Sch., 68, Ser. 1913-26 
 
 Monroe Co. (Miss.) Rd., 5s, 1927-37 
 
 Noxubee Co. (Miss.) Rd. 51/38, 1928-37 
 
 ^Quotation nearest llarcb 1, 1913. No quotation on tliat date. 
 
 1173 
 
 _- *90 
 
 *4.65% basis 
 
 •5.40% basis 
 
 *5% basis 
 
 __ *109.64 
 
 •4.70% basis 
 
 •4.80% basis 
 
 •5% basis 
 
 •51/3% basis 
 
 4%% basis 
 
 103 105 
 •4.50% basis 
 
 5% basis 
 
 •100.11 _- 
 
 •53/4% basis 
 
 ♦5% basis 
 
 __ •104.70 
 
 104 105 
 100 101 
 
 •51/2% basis 
 
 •5% basis 
 
 •5%% basis 
 
MISSISSIPPI (Continued). 
 
 Prentiss Co. (Miss.) 6s, 1913-33 
 
 Richton (Miss.) 6s, 1932 
 
 Sunflower Co. (Miss.) 6s, 1921-30 
 
 Tallahatchie Co. (Miss.) Rd., 6s, 1926-34 
 
 Tallahatchie Co. (Miss.) Rd., 6s, 1922-36 
 
 Tutwiler (Miss.) Wtr., 6s, 20 yrs 
 
 Vicksburg (Miss.) St. Imp., 5s, 1913-32 
 
 Vicksburg (Miss.) Swr., 41/23, 1928 
 
 Yazoo (Miss.) Delta Lev. Dis., 6s, 1947 
 
 Yazoo (Miss.) Delta Lev. Dis., 41/33, 1949 
 
 Yazoo (Miss.) Delta Lev. Dis., 1952 
 
 Yazoo (Miss.) Delta Lev. Dis., 5s, 1924 
 
 Yalobusha Co. (Miss.) Rd., 5s, 1934-37 
 
 High Low Bid Asked 
 
 *5 1/2% basis 
 
 *5i4% basis 
 
 51/2% basis 
 
 __ *5.30 %basis 
 
 _- *5i/4% basis 
 
 *100 
 
 — 4.80-.65% basis 
 
 4%% basis 
 
 103 106 
 
 102 104 
 
 92 94 
 
 __ *4.80% basis 
 
 _- *100 
 
 MISSOURI 
 
 Bates Co. (Mo.) 6s, 1922-30 — __ *5l^% basis 
 
 Bertrand (Mo.) Sch., 5s, 1932 — — — *102l^ 
 
 Crooked River (Mo.) 6s, 1914-23 — -_ *5l^% basis 
 
 Duenweg (Mo.) Sch., 5s, 1922-32 — — — "102.80 
 
 Dunklin Co. (Mo.) 6s, 20 yrs — — $100,385 __ 
 
 Dunklin Co. (Mo.) 6s, 1917-19 — — — *101 
 
 Excelsior Springs (Mo.) 'Sewer, 5s, 1932 — — — *104.86 
 
 Farmington (Mo.) Elec. Lt., 5s, 1928 __ — — *100i4 
 
 Ferguson (Mo.) 5s, (various maturities) __ __ *4%% basis 
 
 Hannibal (Mo.) Sch., 4s, 1915 — __ — *99 
 
 Higginsville (Mo.) Wtr. & Lt., 5s, 1923-33 __ __ *4.70% basis 
 
 Huntsvillc (Mo.) Wtr. & Lt., 5s, 1921-30 __ — — *101.88 
 
 Kansas City (Mo.) Westpt., 5s, 1916 __ __ 102 
 
 Kansas City (Mo.) Wtr., 41/2S, 1915 __ __ IOOI/2 lOiy, 
 
 Kansas City (Mo.)Mkt. Hse., s4, 1924 __ __ 99 100 
 
 Kansas City (Mo.) Wtr., 43, 1924 __ __ 99 100 
 
 Kansas City (Mo.) Pk. & Blvd., 4s, 1924 __ __ 99 100 
 
 Kansas City (Mo.) 6s, Ser. 1 to 10 yrs __ — *100i/2 — 
 
 Kansas City (Mo.) Sewer, 41/2S, 1930 __ __ __ *104i4 
 
 Kansas City (Mo.) Park Dist., 7s, 1913-21 __ __ 41/3% basis 
 
 Kansas City (Mo.) Sch. Dist., 4s, 1914 __ __ 991/2 __ 
 
 Kansas City (Mo.) Sch. Dist., 4s, 1927 — __ 99 
 
 Kansas City (Mo.) Sch. Dist., 4s, 1930 __ ._ 99 
 
 Kansas City (Mo.) Sch. Dist., 31/2S, 1923 __ __ 93 94 
 
 Kansas City (Mo.) Sch. Dist., 31/2S, 1925 __ ._ 92 94 
 
 Jefferson Co. (Mo.) Ref., 41/2S, 1914-19 __ __ 4%% basis 
 
 Jefferson (Mo.) 41/2S, 1922-32 _- __ __ __ *102 • 
 
 Lewis & Clark Co. (Mo.) C. H., 51/28, 1913-19-_ __ __ 4.70% basis 
 
 Lincoln Co. (Mo.) 5s, 1932 __ __ 4%% basis 
 
 Lincoln Co. (Mo.) Fund, 5s, 1931 __ __ 4%% basis 
 
 Maryville (Mo.) Wtr., 4%s, 1917-32 __ __ __ "lOLS? 
 
 Mexico (Mo.) Sch., 41/2S, Ser. 6-20 yrs __ __ *100 
 
 Mountain Grove (Mo.) Wtr., 53, 1922-32 __ __ __ *101.89 
 
 Missoula (Mo.) 41/2S, 1924 __ __ 4%% basis 
 
 Missoula Co. (Mo.) Ref., 4s, 1921 __ __ 4.70% basis 
 
 New Madrid Co. (Mo.) 6s, 1915-16 __ __ *5i4% basis 
 
 Pemiscot Co. (Mo.) 6s, 1918-32 __ _. *5i4% basis 
 
 Poplar Bluff (Mo.) Sch., 5s, 1923-33 __ __ *4.70% basis 
 
 Pettis Co. (Mo.) 4s, 1918 __ __ 41/3% basis 
 
 Richmond (Mo.) "Sewer, 5s, 1917-32 __ __ *4.80% basis 
 
 St. Louis (Mo.) Ren'l, 3.65s, 1927 ._ __ 95% 9614 
 
 •QuoUtion nearest March 1, 1913. No quotation on that date. 
 
 1173 
 
MISSOURI (Continued). 
 
 High 
 
 St. Louis (Mo.) Ren'l, 3.65s, 1915 
 
 St. Louis (Mo.) Ren'l, SVgS, 1918 
 
 St. Louis (Mo.) 31/28, 1925 
 
 St. Louis (Mo.) 3y4S, 1922 
 
 St. Louis (Mo.) 31/2S, 1919 
 
 St. Louis (Mo.) 31/2S, 1920 
 
 St. Louis (Mo.) Ren'l, 4s, 1913 
 
 St. Louis (Mo.) Ren'l, 4s, 1914 
 
 St. Louis (Mo.) Ren'l. 4s, 1918 lOOVs 
 
 St. Louis (Mo.) Ins. Asylum, 4s, 1928 
 
 St. Louis (Mo.) Pub. Imp., 4s, 1928 
 
 St. Louis (Mo.) Pub. Bldg., 4s, 1929 
 
 St. Louis (Mo.) Wtr. Wks., 4s, 1931 
 
 Scotland Co. (Mo.) 41/2S, 1917 
 
 Scotland Co. (Mo.) 41/2S, 1917 
 
 Sedalia (Mo.) Rd., 5s, Ser. 1914-24 
 
 Sedalia (Mo.) Rd., 5s, Ser. 1914-27 
 
 Sheldon (Mo.) Sch., 5s, 1919-20 
 
 Silver Bow Co. ( Mo.) Fund, 53, 1917 
 
 Springfield (Mo.) 5s, 1932 
 
 Yellowstone Co. (Mo.) Ref., 5s, 1918 
 
 MONTANA 
 
 Bozeman (Mont.) 5s, 1919 
 
 Beaverhead Co. (Mont.) Sch., 5s, 10-20 yrs.__ 
 
 Butte (Mont.) 4%^, 1925 
 
 Butte (Mont.) Sch. Dis., 41/23, 1924 
 
 Cascade Co. (Mont.) 4s, 1921 
 
 Chinook (Mont.) 6s, 8 yrs 
 
 Custer Co. (Mont.) 6s, 1925 
 
 Deer Lodge Co. (Mont.) 5s, 1919 
 
 Glasglow (Mont.) 51/2S, 1924-29 
 
 Glasglow (Mont.) Wtr., 51/2S, 1929 
 
 Great Falls (Mont.) Wtr., 5s, 1913 
 
 Great Falls (Mont.) Wtr., 5s, 1918 
 
 Great Falls (Mont.) 4s, 1923 
 
 Great Falls (Mont.) 6s, 8 yrs 
 
 Great Falls (Mont.) Sch. Dis., 4s, 1925 
 
 Harlem (Mont.) Wtr., 6s, 1921-31 
 
 Helena (Mont.) Ref., 4s, 1916 
 
 Helena (Mont.) Wtr. Wks., 5s, 1931 
 
 Helena (Mont.) Sch. Dis., 41/2S, 1922 
 
 Kalispell (Mont.) 6s, 1921 
 
 Lincoln Co. (Mont.) Rd., 5s, 1927-32 
 
 NEBRASKA 
 
 Beatrice (Neb.) 4s, 1914 
 
 Dodge Co. (Neb.) Ref., 4s, 1919 
 
 Dodge Co. (Neb.) Frem't Prct., 4s, 1919 
 
 Douglas Co. (Neb.) 4s, 1918 
 
 Douglas Co. (Neb.) 3^/43, 1922 
 
 Grand Island (Neb.) 4l^3, 1925 
 
 Johnson (Neb.) 6s, Ser. 1917-27 
 
 Lincoln (Neb.) 5s, 1913-14 
 
 Lincoln (Neb.) 41/28, 1913-19 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1174 
 
 Low 
 
 Bid Asked 
 
 98 99 
 
 96 
 96 
 
 971/4 
 9SVz 
 
 lOOi/s 
 
 93 3^ 94 
 
 96 971/2 
 
 96 97 
 
 99% 103 
 
 1001/2 1001/2 
 
 10014 1001/2 
 1001/4 1001/3 
 1001/4 1021/2 
 10014 1001/2 
 41/8% basis 
 41/8% basis 
 __ *100 
 *4.70% basis 
 __ *101% 
 100 
 
 — 1031/2 
 100 
 
 100 
 *102 
 
 4.70% basis 
 
 4.70% basis 
 
 4%% basis 
 
 __ *100 
 
 4.70% basis 
 
 100 
 
 __ *104.22 
 
 __ *104.22 
 
 4.70% basis 
 
 4.70% basis 
 
 4.70% basis 
 
 __ *100 
 
 4.65% basis 
 
 *5i/2% basis 
 
 99 100 
 
 4%% basis 
 
 4.70% basis 
 
 __ *100 
 
 *4.70% basis 
 
 4.90% basis 
 414% basis 
 4.70% basis 
 4.40% basis 
 4.40% basis 
 4.80% basis 
 •514% basis 
 4%% basis 
 41/3% basis 
 
NEBRASKA (Continued). 
 
 Lincoln (Neb.) Ref., 41/28, 1920-29 
 
 Lincoln (Neb.) Ref., 4s, 1919 
 
 Lincoln (Neb.) Sch. Dis., 41/28, 1924 
 
 Omaha (Neb.) 41/2-8, 1914-21 
 
 Omaha (Neb.) Ren'l, 41/38, 1924 
 
 Omaha (Neb.) 41/38, 1932 
 
 Omaha (Neb.) Ref., 41/38, 1934 
 
 Omaha (Neb.) Wtr. Wks., 41/38, 1941 
 
 Omaha (Neb.) Funding, 4s, 1918 
 
 Omaha (Neb.) Sch. Dis., 41/28, 1928 
 
 Omaha (Neb.) Sch. Dis., 4s, 1931 
 
 Omaha (Neb.) Sch. Dis., 4s, 1919 
 
 Omaha (Neb.) Sch. Dis., 41/2S, 1929-31 
 
 Omaha (Neb.) Sch. Dis., 41/38, 1933 
 
 Omaha (Neb.) Sch. Dis., 41/28, 1941 
 
 South Omaha (Neb.) 5s, 1915 
 
 South Omaha (Neb.) 41/38, 1924 
 
 South Omaha (Neb.) Sch. Dis., 5s, 1929 
 
 South Omaha (Neb.) Sch. Dis., 5s, 1923 
 
 Winnebago (Neb.) Wtr. 58, 1917-32 
 
 Wymore (Neb.) 58, 1931 
 
 NEVADA. 
 Reno (Nev.) 5s, 1924 
 
 Yerington (Nev.) 'Sewer, 6s, 1922-27 
 
 NEW HAMPSHIRE 
 
 New Hampshire, Hosp., 31/oS, 1913-25 
 
 Bethlehem (N. H.) 48, 1923 
 
 Berlin (N. H.) 48, 1917 
 
 Concord (N. H.) 4s, 1923 
 
 Concord (N. H.) 31/38, 1924-29 
 
 Dover (N. H.) 31/38, 1928-31 
 
 Dover (N. H.) 4s, 1913-16 
 
 Keene (N. H.) 4s, 1914-17 
 
 Keene (N. H.) Wtr., 31/3S, 1913 
 
 Laconia (N. H.) 4s, 1924 
 
 Laconia (N. H.) 4s, 1932 
 
 Laconia (N. H.) 43, 1934 
 
 Laconia (N. H.) 4s, 1937 
 
 Manchester (N. H.) 5s, 1913 
 
 Manchester (N. H.) 41/28, 1913 
 
 Manchester (N. H.) Wtr., 4s, 1917 
 
 Manchester (N. H.) Fund, 31/38, 1919 
 
 Manchester (N. H.) 48, 1914 
 
 Nashua (N. H.) 4s, 1913-15 
 
 Nashua (N. H.) 3s, 1923 
 
 Portsmouth (N. H.) 4s, 1914 
 
 Portsmouth (N. H.) Sch., 4s, 1923 
 
 Portsmouth (N. H.) Wtr., 4s, 1932 
 
 Rochester (N. H.) 4s, 1922 
 
 Somersworth (N. H.) 4s, 1913-18 
 
 NEW JERSEY 
 
 Asbury Park (N. J.) 58, 1924 
 
 Atlantic City (N. J.) 5s, 1925 
 
 Atlantic City (N. J.) Wtr., 41/3S, 1926 
 
 *Quotation nearest March 1, 1913. No quotation on that date. 
 
 1175 
 
 High Low 
 
 Bid 
 
 4%% 
 
 - 4%% 
 
 - 41/3% 
 __ 4i/3-.40% 
 __ 4i/2-.40% 
 __ 4i/3-.40% 
 __ 4i/2-.40% 
 __ 4i/2-.40% 
 __ 4i/2-.40% 
 
 4.40% 
 
 4.40% 
 
 4.40%, 
 
 _- *4.40% 
 
 4.65%, 
 4.65% 
 4.65%, 
 4.65% 
 
 Asked 
 basis 
 basis 
 basis 
 basis 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 *100 
 *100 
 basis 
 basis 
 basis 
 
 ^100 
 1011/3 
 
 100 
 __ *103.81 
 
 97 
 
 98 
 100 
 95 
 92 
 99 
 99 
 98 
 100 
 
 99 
 
 *98% 
 
 98 
 93 
 
 *99 
 *99i/3 
 
 ^973/4 
 
 101 
 1001/3 _. 
 
 99 
 
 94 
 
 100 
 
 99 
 
 89 
 
 99 
 
 99 
 
 981/3 
 
 98 
 
 98 
 
 4.35% basis 
 4.30% basis 
 4.30% basis 
 
NEW JERSEY (Continued). 
 
 Atlantic City (N. J.) 41/28, 1945 
 
 Atlantic City (N. J.) Wtr., 4s, 1930 
 
 Atlantic Highlands (N. J.) Swr., 4s, 1928 
 
 Bayonne (N. J.) Fund, 5s, 1928 
 
 Bayonne (N. J.) Fund, 41/28, 1931 
 
 Bayonne (N. J.) Fltg. Dbt., 4s, 1928 
 
 Belleville (N. J.) 41/2S, 1927-42 
 
 Belleville (N. J.) 41/2S, Ser. 1927-42 
 
 Belleville (N. J.) 41/2S, 1942 
 
 Belmar (N. J.) Wtr., 5s, 1942 
 
 Bergen Co. (N. J.) 41/38, 1915-39 ._._ 
 
 Bergen Co. (N. J.) 41/38, 1917-88 
 
 Bergen Co. (N. J.) Bdge., 4s, 1913-24. 
 
 Bergen CO. (N. J.) Ct. Hse., 4s, 1914-38 
 
 Bergen Co. (N. J.) 41/2S, 1915 
 
 Bergen Co. (N. J.) 41/2S, 1932 
 
 Bergenfield (N. J.) 58, 1913-24 
 
 Bernards (N. J.) 5s, 1929-30 
 
 Bridgeton (N. J.) Wtr. 41/2S, 1943 
 
 Camden (N. J.) Wtr., 41/28, 1923_ 
 
 Camden (N. J.) Dock, 41/28, 1930 
 
 Camden (N. J.) Paving, 48, 1929 
 
 Camden (N. J.) 31/2S, 1913-34 
 
 Camden Co. (N. J.) 4s, 1944 
 
 Camden (N. J.) Sch., 41/28, 1943 
 
 Cape May (N. J.) 5s, 1934 
 
 Cap May Co. (N. J.) Rd., 58, 1943 
 
 East Orange (N. J.) 48, 1934 
 
 East Orange (N. J.) Wtr., 4s, 1933 
 
 East Orange (N. J.) Wtr., 31/2S, 1933 
 
 Edgewater (N. J.) 41/2S, 1915 
 
 Edgewater (N. J.) 5s, 1914-36 
 
 Elizabeth (N. J.) 48, 1922 
 
 Englewood (N. J.) 4s, 1935 
 
 Essex Co. (N. J.) 48, 1926 
 
 Essex Co. (N. J.) Pk., 4s, 1938 
 
 Essex Co. (N. J.) Hosp., 4s, 1946 
 
 Essex Co. (N. J.) Pk., 3.65s, 1935 
 
 Essex Co. (N. J.) 3.658, 1915 
 
 Ft. Lee (N. J.) 5s, 1917-25 
 
 Guttenberg (N. J.) Ref., 58, 1913-18 
 
 Hackensack (N. J.) 41/2S, 1942 
 
 Harrison (N. J.) 48, 1930 
 
 Harrison (N. J.) 41/2S, 1936 
 
 Hoboken (N. J.) 4s, 1919 
 
 Hoboken (N. J.) 41/38, 1940 
 
 Hoboken (N. J.) 31/28, 1931 
 
 Hoboken (N. J.) Wtr., 4s, 1939 
 
 Hoboken (N. J.) 4s, 1918 
 
 Hudson Co. (N. J.) Rd., 41/28, 1953-63 
 
 Hudson Co. (N. J.) 41/38, 1948 
 
 Hudson Co. (N. J.) Rd., 41/2S, 1923 
 
 Hudson Co. (N. J.) Pk., 41/28, 1950 
 
 Hudson Co. (N. J.) Pk., 4s, 1954 
 
 Hudson Co. (N. J.) Pk. 48, 1959 
 
 Hudson Co. (N. J.) Co. Bldgs., 4s, 1946 
 
 Hudson Co. (N. J.) Ref., 4s, 1935 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1176 
 
 High Low 
 
 Bid 
 
 4.30% 
 
 4.30% 
 
 4.40% 
 
 4.30-.20% 
 
 4.30-.20% 
 
 4.30-.20% 
 
 *4.30% 
 
 Asked 
 basis 
 basis 
 basis 
 
 - 41/4% 
 
 - 4.35-.25% 
 
 - 41/4% 
 
 - 41/4% 
 
 •4.60% 
 *4.38% 
 
 basis 
 basis 
 * 102% 
 basis 
 *102i/3 
 *10Gi/3 
 basis 
 basis 
 basis 
 basis 
 *101 
 *104 
 basis 
 basis 
 __ *102 
 
 4*A% basis 
 414% basis 
 4l^% basis 
 4iA% basis 
 4iA% basis 
 
 — *104% 
 4.60% basis 
 
 ._ n02i/4 
 4.30% basis 
 4.30 %ba8i8 
 4.30% basis 
 
 — *10134 
 *4.45% basis 
 
 971/2 991/2 
 
 4.30% basis 
 
 4l^%basis 
 
 41/8% basis 
 
 414% basis 
 
 4%% basis 
 
 __ *99 
 
 ♦41/3% basis 
 
 5% basis 
 
 4.40% basis 
 
 4.30% basis 
 
 — •1031/g 
 414% basis 
 414% basis 
 414% basis 
 
 — *98y4 
 *4.30% basis 
 •4.30% basis 
 
 4:20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 
NEW JERSEY (Continuea). 
 
 Hudson Co. (N. J.) Bridge, Sy^s, 1920 
 
 Jersey City (N. J.) Wtr., 7s, 1913 
 
 Jersey City (N. J.) 7s, 1913 
 
 Jersey City (N. J.) Assess., 5s, 1924 
 
 Jersey City (N. J.) Wtr., 5s, 1921 
 
 Jersey City (N. J.) Assess., 5s, 1916 
 
 Jersey City (N. J.) Wtr., 5s, 1916 
 
 Jersey City (N. J.) Ref., 41/38, 1928 
 
 Jersey City (N. J.) Sch., 41/28, 50 yrs 
 
 Jersey City (N. J.) Wtr., 41/2S, 1961 
 
 Jersey City (N. J.) Sch., 41/4S, 1961 
 
 Jersey City (N. J.) Pk., 41/4S, 1961 
 
 Jersey City (N. J.) Wtr., 4s, 1932 
 
 Jersey City (N. J.) 4s, 1935 
 
 Jersey City (N. J.) Ref., 4s, 1949 
 
 Jersey City (N. J.) Ref., 31/aS, 1920 
 
 Kearny (N. J.) 41/28, 1936 
 
 Kearny (N. J.) 41/2S, 1962 
 
 Lodi (N. J.) Wtr., 5s, 1939 
 
 Long Branch (N. J.) 4s, 1935 
 
 Mercer Co. (N. J.) 41/38, 1933 
 
 Mercer Co. (N. J.) Rd., 48, 1933 
 
 Mercer Co. (N. J.) 31/38, 1941 
 
 Middlesex Co. (N. J.) Bridge, 1922-31 
 
 Montclair (N. J.) Sch., 41/3S, 1941 
 
 Montclair (N. J.) Sch., 31/3S, 1932 
 
 Morris Co. (N. J.) 4s, 1935 
 
 Morris Co. (N. J.) 41/38, 1942 
 
 Newark (N. J.) 4s, 1941 
 
 Newark (N. J.) Wtr. 41/38, 1915 
 
 Newark (N. J.) Ref. 4s, 1923 
 
 Newark (N. J.) Sch. 48, 1959 
 
 Newark (N. J.) Pas. Vy. Sr. 4s, 1961 
 
 Newark (N. J.) 31/3S, 1929 
 
 Newark (N. J.) Trk. El. 31/3S, 1954___ 
 
 Newark (N. J.) Sch. 3.35s, 1917 
 
 New Brunswick (N. J.) 4s, 1922 
 
 North Bergen (N. J.) 53, 1941 
 
 Nutley (Neb.) 41/3S, 1922-32 
 
 Nutley (Neb.) 41/3S, 1942 
 
 Orange (N. J.) 5s, 1923-32 
 
 Orange ( N. J.) Wtr. 5s, 1938 
 
 Orange (N. J.) Swr. 41/38, 1915-21 
 
 Orange (N. J.) Sch. 43, 1934 
 
 Orange (N. J.) 41/38, 1931 
 
 Passaic (N. J.) 41/3S, 1914-40____ 
 
 Passaic (N. J.) Sch. 41/38, 1942 
 
 Passaic (N. J.) 31/3S, 1913-20 
 
 Passaic Co. (N. J.) 4s, 1920-24 
 
 Paterson (N. J.) 58, 1913-22 
 
 Paterson (N. J.) 41/3S, 1933-44 
 
 Paterson (N. J.) N. C. H'l. 43, 1923-32 
 
 Paterson (N. J.) 41/3S, 1914 
 
 Paterson (N. J.) 41/38, 1939 
 
 Paterson (N. J.) 41/3S, 1942 
 
 Perth Amboy (N. J.) 41/38, 1922 
 
 Perth Amboy (N. J.) Sch., 41/3S, 1938 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1177 
 
 High Low 
 
 Bid Asked 
 
 4.20% basis 
 414% basis 
 4iA% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 *102.531 __ 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.20% basis 
 4.30% basis 
 4.30% basis 
 
 _. *107% 
 4.30% basis 
 
 __ 102.65 
 414% basis 
 414% basis 
 4V4% basis 
 4l^% basis 
 4.20% basis 
 4.15% basis 
 4.15% basis 
 
 - *99i/3 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.15% basis 
 4.30% basis 
 41/3% basis 
 *4.40% basis 
 
 __ *102i/4 
 4.30% basis 
 4.30% basis 
 4.30% basis 
 4.30% basis 
 ♦414% basis 
 41/4% basis 
 414% basis 
 4i/t% basis 
 4l^% basis 
 414% basis 
 4iA% basis 
 414% basis 
 *4.40% basis 
 
 __ *103.15 
 *4i^% basis 
 414% basis 
 4l^% basis 
 
NEW JERSEY (Continuea). 
 
 High Low Bid Asked 
 
 Plainfield (N. J.) 4s, 1913-34 __ __ 41/4% basis 
 
 Plainfield (N. J.) Sch., 4s, 1959 __ __ 41/4% basis 
 
 Rahway (N. J.) Adj, 4s, 1922 __ __ 90 95 
 
 Red Bank (N. J.) Wtr., 5s, 1914 __ __ *4.40% basis 
 
 Ridgewood (N. J.) 5s, 1013-26 __ __ 4.35% basis 
 
 South Amboy (N. J.) Sewer, 5s, 1928-32 __ __ *4.55% basis 
 
 South Orange (N. J.) 4s, 1913-44 __ __ 4.30% basis 
 
 Summit (N. J.) Sch., 41/2S, 1941 __ __ 414% basis 
 
 Summit (N. J.) 4s, 1933 __ __ 414% basis 
 
 Trenton (N. J.) 4y2S, 1941 __ __ 4l^% basis 
 
 Trenton (N. J.) Fund., 4s, 1934 __ __ 414% basis ■ 
 
 Trenton (N. J.) City HI., 4s, 1939 __ __ 4^4% basis 
 
 Trenton (N. J.) Sch., 31/28, 1929 __ __ 4l^% basis 
 
 Trenton (N. J.) 4s, 1917 __ __ __ *99 
 
 Trenton (N. J.) 41/2S, 1943 __ __ 4^4% basis 
 
 Union Co. (N. J.) 41/28, 1937 __ __ 1031/3 103% 
 
 Union Co. (N. J.) 41/38, 1942 __ __ 1033/3 104l^ 
 
 Union Co. (N. J.) 4s, 1942 __ __ 4.20% basis 
 
 Vailsburg (N. J.) Swr., 41/2S, 1934 __ __ 4.15% basis 
 
 Weehawken (N. J.) Fdg., 41/2S, 1920 __ __ 4.30% basis 
 
 Weehawken (K J.) Fdg., 41/2S, 1913-28 __ __ 4.30% basis 
 
 West New York (N. J.) Sch., 68, 1945-59 __ __ __ *106 
 
 Wildwood (N. J.) 5s, 1943 __ __ __ *106.125 
 
 NEW MEXICO 
 
 New Mexico Ref., 6s, 1923 __ — 41/2% basis 
 
 New Mexico 6s, 1913-17 __ __ 5-41/2 %j basis 
 
 New Mexico 41/2S, 1916-52 __ __ 101 101.60 
 
 New Mexico Ref., 4s, 1937 — — 4.40% basis 
 
 New Mexico Bldg., 4s, 1929 __ __ 41/2% basis 
 
 New Mexico Fund., 4s, 1939 __ __ 4.40% basis 
 
 Alburquerque (N. M.) 41/2S, 1929 _» __ 4.60% basis 
 
 Alburquerque (N. M.) 5s, 1933-43 __ __ __ *104.35 
 
 Bernalills Co. (N. M.) Fund., 6s, 1922 __ __ 100 
 
 Bemalills Co. (N. M.) 5s, 1931 __ „ 4%% basis 
 
 Portales (N. M.) Wtr. & Sewer, 6s, 1927-39— — — *4.80% basis 
 
 Socorro Co. (N. M.) 5s, 1931 __ __ 4.80% basis 
 
 NEW YORK 
 
 New York Can. Term., 4s, 1942 __ __ 1001/2 lOlVa 
 
 New York High. Imp., 48, Mar. 1958 __ __ lOli/g __ 
 
 New York High. Imp., 4s, Sept. 1958 __ __ lOli/g — 
 
 New York High. Imp., 4s, 1960 __ __ 101 
 
 New York Can. Imp., 4s, 1960 ._ >_ lOli/g — 
 
 New York Can. Imp., 4s, Jan. 1961 __ — lOlVs 1021/3 
 
 New York Can. Imp., 4s, July 1961 __ __ IOI1/2 — 
 
 New York Can. Imp., 48, 1962 — — lOiy^ __ 
 
 New York High. Imp., 4s, 1961 __ __ lOlVs _- 
 
 New York High. Imp. 4s, 1962 __ __ IOI1/2 — 
 
 New York 3s, 1923 __ __ 97i/a — 
 
 New York 3s, 1956 ,_ __ 971/2 __ 
 
 New York 3s, 1958 __ __ 971/2 — 
 
 New York Canal, 3s, 1959 __ __ 971/2 __ 
 
 New York Canal, 4s, 30 yrs __ __ *100.026 __ 
 
 Albany (N. Y.) 6s, 1915-19 __ __ 4l^-.15% basis 
 
 *QuotatiOD nearest March 1, 1913. No quotaUon on that date. 
 
 1178 
 
NEW YORK (Continued). 
 
 Albany (K Y.) Wtr., 41/48, 1932 
 
 Albany (N. Y.) Pk., 4s, 1920-30 ■- 
 
 Albany (N. Y.) Sch., 4s, 1914-31 
 
 Albany (N. Y.) Imp., 31/28, 1914-24 
 
 Albany (N. Y.) 4s, 1922 
 
 Albany Co. (N. Y.) 31/38, 1913-25 
 
 Albany Co. (N. Y.) 31/3S, 1925 
 
 Albion (N. Y.) Sewer, 4.65s, 5-29 yrs 
 
 Altamount (N". Y.) 5s, 1913-15 
 
 Argyle (N. Y.) 4.40s, 1929-41 
 
 Auburn (N. Y.) 41/2S, 1913-31 
 
 Auburn (N. Y.) Wtr., 4s, 1914-25 
 
 Bloomingdale (N. Y.) 4.65s, 1930-42 
 
 Binghampton (N. Y.) 4s, 1928-29 
 
 Binghampton (N. Y.) Bdge., 31/3S, 1935 
 
 Brooklyn (N. Y.) 31/38, 1934 
 
 Brooklyn (N. Y.) 31/08, 1936 
 
 Brooklyn (N. Y.) Bdge., 3s, 1925 
 
 Brooklyn (N. Y.) 7s, 1915 
 
 Brooklyn (N. Y.) 6s, 1924 
 
 Brooklyn (N. Y.) Bdge., 5s, 1919 
 
 Brooklyn (N. Y.) Bdge., 4s, 1926 
 
 Brooklyn (N. Y.) Sch., 4s, 1920 
 
 Brooklyn (N. Y.) Wtr., 4s, 1914 
 
 Brooklyn (N. Y.) 31/38, 1914-37 
 
 Brooklyn (N. Y.) 31/38, 1925 
 
 Brooklyn (N. Y.) 31/38, 1927 
 
 Buffalo (N. Y.) 4s, 1960 
 
 Buffalo (K Y.) 31/38, 1917 
 
 Buffalo (N. Y.) Pk., 31/38, 1927 
 
 Buffalo (N. Y.) 31/3S, 1913-19 
 
 Buffalo (N. Y.) Wtr., 31/38, 1913-35 
 
 Buffalo (N. Y.) Road, 3s, 1913 
 
 Buffalo (N. Y.) 41/48, 1932 
 
 Buffalo (N. Y.) 7s, 1924-35 
 
 Buffalo (N. Y.) Pk., 6s, 1924 
 
 Buffalo (N. Y.) 41/48, 1962 
 
 Buffalo (N. Y.) Swr., 4s, 1913 
 
 Buffalo (N. Y.) Sch., 4s, 1929 
 
 Buffalo (N. Y.) 4s, 1913-29 
 
 Buffalo (N. Y.) 4s, 1913-30 
 
 Buffalo (N. Y.) 48, 1931-61 
 
 Cheektowaga (N. Y.) 58, 1914-42 
 
 Cohoes (N. Y.) 7s, 1913 
 
 Cohoes (N. Y.) 4s, 1920 
 
 Cortlandt (N". Y.) 4.10s, Ser. 1914-45 
 
 East Syracuse (N. Y.) 41/38, 1917-18 
 
 Elmira (N. Y.) 4s, 1935 
 
 Elmira (N. Y.) 31/38, 1913-21 
 
 Elmira (N. Y.) 41/38, 18% yrs 
 
 Elmira (N. Y.) 41/38, Ser. 1 to 3 yrs 
 
 Erie Co. (N. Y.) Road 41/4 s, 1915-36 
 
 Evans (N. Y.) Sch., 4.608, 1918-47 
 
 Fallsburg (N. Y.) 58, 1925-31 
 
 Far Rockaway (N. Y.) Imp., Ss, 1913-21 
 
 Franklin Co. (N. Y.) 41/33, 1931-40 
 
 Fulton (N. Y.) 3.40s, 1913-29 
 
 *QuotatioD nearest March 1, 1913. No quotation on that date. 
 
 1179 
 
 High 
 
 Low Bid Asked 
 __ 4 1^ -.15% basis 
 __ 4i/4-.15% basis 
 __ 4l^-.15% basis 
 __ 4l^.20% basis 
 
 — *9834 
 
 __ 4l^-.15% basis 
 
 __ 4i4-.15% basis 
 
 *100.10 — 
 
 _- *4i/3% basis 
 
 __ *100 
 
 — 4.30-1/4% basis 
 __ 4.30-14% basis 
 __ *4.40% basis 
 __ 4.20-.15% basis 
 __ 4.20-.15% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ *4.35% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 _- 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4.35-.30% basis 
 __ 4l^-.15% basis 
 __ 4l^-.15% basis 
 __ 4l^ -.15% basis 
 -_ 41/41.15% basis 
 
 — 4l^-.15% basis 
 __ 4iA-.15% basis 
 
 _- *100% 
 __ 41/4 -.15% basis 
 
 — 4i/4-.15% basis 
 -_ 4l^-.15% basis 
 __ 4V4-.15% basis 
 __ 4i4-.51% basis 
 __ 414 -.15% basis 
 __ 4l^-.15% basis 
 
 __ *993/4 
 
 __ *4.38% basis 
 __ 4i/i-.20% basis 
 __ 4l^-.20% basis 
 __ *100 
 -_ *4.35% basis 
 _- 4i4-.20% basis 
 __ 4l^-.20% basis 
 
 *102.80 _- 
 
 *100 
 
 4i4-.15% basis 
 
 __ *4.375% basis 
 __ *4i/3% basis 
 __ 4.35-14% basis 
 __ 4.35-.20% basis 
 __ 4.30-.20% basis • 
 
NEW YORK (Continued). 
 
 High Low Bid Asked 
 
 Geneva (N. Y.) Wtr., 4g, 1926 — — 4.30-.20% basis 
 
 Glens Falls (N. Y.) Swr., 41/28, 1917-28 ._ _- 41/4% basis 
 
 Gloversville (N. Y.) 31/28, 1917 — — 4l^-.20% basis 
 
 Haverstraw (N. Y.) 4.12s, 1913-27 — — 4.35-.20% basis 
 
 Harrison (N. Y.) 41/2S, 1914-65 — — *4.30% basis 
 
 Hempstead (N. Y.) 4s, 1923 __ — 4.35-1/4% basis 
 
 Hempstead (N. Y.) 41/38, 1918-20 _- — — *100% 
 
 Herkimer (N. Y.) 41/2 8, 1912-27 — __ 4.35-.20% basis 
 
 Hornellsville (N. Y.) 31/38,1921 — — 4.30-.20% basis 
 
 Honeoye Falls (N. Y.) Wtr., 4.90s, I71/4 yrs-_ ._ __ __ *100.44 
 
 Interlaken (N. Y.) 4.60s, 91/2 yrs __ — — *100.17 
 
 Hudson (N. Y.) Wtr., 48, 1913-22 — 4.35-.20% basis 
 
 Ithaca (N. Y.) 4.30s, 1927 — __ 4.30-.20% basis 
 
 Ithaca (N. Y.) Wtr., 41/4S, 1942 — — 99 100 
 
 Jamaica (N. Y.) 4s, 1917 — — 4.30-1/4% basis 
 
 Jamestown (N. Y.) 48, 1943 — __ 4.35-.20% basis 
 
 Kings Co. (N. Y.) Pk., 4s, 1913-44 — — 4.30- .20% basis 
 
 Kingston (N. Y.) 31/2S, 1913-36 _ 4i4-.15% basis 
 
 Kingston (N. Y.) Ref., 38, 1914 __ — ^y^-,15% basis 
 
 La Salle (N. Y.) 4.70s, 1924-41 __ __ *4.40% basis 
 
 Lackawanna (N. Y.) 41/2S, 1927-29 __ — •4.30%; basis 
 
 Larchmont (N. Y.) 4.75s, 5 to 18 yrs __ — *100.20 — 
 
 Larchmont (N. Y.) 4.75s, 1918-31 „ — *4.40% basis 
 
 Locke (N. Y.) 4.80s, 1914-33 — __ *4.40%j basis 
 
 Long Island City (N. Y.) 6s, 1914-19 __ _-4.30-.20%, basis 
 
 Long Island City (N. Y.) 41/28, 1913-23 __ — 4.30-.20%, basis 
 
 Long Island City (N. Y.) Wtr., 4s, 1920 __ „ 4.30-.20% basis 
 
 Long Island City (N. Y.) Wtr., 31/28, 1920__ — >_ 4.30- .20% basis 
 
 Lysander (N. Y.) 41/28, 1914-35 __ __ *4.40% basis 
 
 Malone (N. Y.) 4.30s, 1913 __ — *100 
 
 Mayville (N. Y.) 4.60s, 1932-42 — __ •4.40%) basis 
 
 Middleport (N. Y.) 4.35s, 1915-42 __ __ 4.30-.20% basis 
 
 Middleport (N. Y.) Swr., 4.35s, 1913-39 __ __ 4.30-.20% basis 
 
 Middletown (N. Y.) 31/2S, 1931 __ __ 4.30-.20% basis 
 
 Middletown (N. Y.) 41/3S, 1933 _. __ __ ^104 
 
 Mt. Vernon (N. Y.) 41/oS, 1931-43 __ __ 4.30-.20%, basis 
 
 Mt. Vernon (N. Y.) Swr., 4s, 1950-55 __ __ 4.30-.20% basis 
 
 Mt. Vernon (N. Y.) Sch., 41^8, 1962-73 __ __ 99 100 
 
 Mt. Vernon (N. Y.) 41/38, 1933 __ __ __ ^102% 
 
 Mt. Vernon (N. Y.) 41/38, 1952 „ „ •41^%, basis 
 
 Mt. Vernon (N. Y.) 41/38, 1960-61 __ — __ •104l^ 
 
 Mt. Vernon (N. Y.) 41/38, 1964-65 __ __ __ •99iA 
 
 Nassau Co. (N. Y.) 41/3S, 1920-29 _. __ 4.30-.20% basis 
 
 Nassau Co. (N. Y.) Ct. Hse., 31/38, 1930 „ __ 4.30-.20% basis 
 
 New Berlin (N. Y.) 4s, 1939-44 __ __ __ •lOO 
 
 Newburgh (N. Y.) 41/2S, 1914-34 -_ «_ 4l^% basis 
 
 Newburgh (N. Y.) 3.85s, 1929 __ __ __ *96 
 
 New Rochelle (N. Y.) 41/2S, 1915-22 ._ __ 4.30-iA%, basis 
 
 New Rochelle (N. Y.) 4s, 1913-30 __ __ 4.35-l^% basis 
 
 New Rochelle (N. Y.) 31/2S, 1913-33 »_ __ 4.35-1/4% basis 
 
 N. Y. City Stk., 31/38, 1953 __ __ 831/3 84% 
 
 N. Y. City Stk., 31/2S, May 1954 .. _. 841/4 86 
 
 N. Y. City Wtr., 31/28, 1954 __ __ 83% 84% 
 
 N. Y. City Stk., 31/38, Apr. 1954 .. __ 83% 84% 
 
 N. Y. City Stk., 31/38, 1955 __ __ 833/4 84% 
 
 N. Y. City 31/2S, 1929 __ __ 4.40-.30% basis 
 
 N. Y. City Co., 3.30s, 1917-21 __ ' ._ 4.40- .30% basis 
 
 'Quotation nearest March 1, 1913. No quotation on tliat date. 
 
 1180 
 
NEW YORK (Continued). 
 
 High 
 
 N. Y. City Sch., 3s, 1913 
 
 N. Y. City 41/28, (old) May, 1957 
 
 N. Y. City 41/28, (new) Nov. 1957 104 
 
 N. Y. City 41/2S, (old) May 1917 101 
 
 N. Y. City iVoS, (new) Nov. 1917 
 
 N. Y. City 41/48, Mar. 1960 99% 
 
 N. Y. City 4l^s, Sept. 1960 
 
 N. Y. City 414s, Mar. 1962 
 
 N. Y. City 48, 1913 
 
 N. Y. City 31/2S, 1915 
 
 N. Y. City 31/2S, 1932 
 
 N. Y. City Bklyn., 31/38, 1927 
 
 N. Y. City Dk., 3148, 1927 
 
 N. Y. City 31/28, 1941 
 
 N. Y. City 31/2S, 1942 - 
 
 N. Y. City E. T., 31/2S, 1948-50 
 
 N. Y. City 31/2S, 1952 
 
 N. Y. City 4s, 1913-36 
 
 N. Y. City 48, 1955 
 
 N. Y. City 4s, 1913-56 
 
 N. Y. City Stk., 4s, 1957 
 
 N. Y. City Stk., 4s, 1958 
 
 N. Y. Citv Stk., 4s, 1959 — 96i/8 
 
 N. Y. City 31/2S, 1914 
 
 N. Y. City Pk., 31/2S, 1916 
 
 N. Y. City Str., 3s, 1916 
 
 N. Y. City Dk., 3s, 1924 
 
 N. Y. City R. T., 3s, 1950 
 
 N. Y. City Pk. 21/2S, 1929 
 
 N. Y. City 31/28, 1914 
 
 N. Y. City 31/2S, 1940 
 
 Niagara Falls (N. Y.) 4s, 1921 
 
 Niagara Falls (N. Y.) 31/2S, 1942-45 
 
 No. Daneaville (N. Y.) S. D., 58, 1913-28 
 
 North Elba (N. Y.) Sewer, 5s, 5 to 24 yrs 
 
 No. Hempstead (N. Y.) 4.60s, 1913-33 
 
 Ossining (N. Y.) 4.40s, 171/2 yrs 
 
 North Tonawanda (N. Y.) 4s, 1924 
 
 Pelham (N. Y.) 41/2S, 1917-30 
 
 Pelham (N. Y.) Sch., 41/2S, 1919-52 
 
 Oneida Co. (N. Y.) 31/2S, 1914-28 
 
 Onandago Co. (N. Y.) 3s, 1913-29 
 
 Orange Co. (N. Y.) 31/2S, 1915-24 
 
 Oswego (N. Y.) 31/2S, 1913-23 
 
 Penn Yan (N. Y.) 4.35s, 1913-31 
 
 Poughkeepsie (N. Y.) 7s, 1913 
 
 Poughkeepsie (N. Y.) Sch., 41/28, 1922 
 
 Poughkeepsie (N. Y.) 31/38, 1913-30 
 
 Poughkeepsie (N. Y.) 41/2S, 10 yrs 
 
 Port Chester (N. Y.) 5s, 1-3 yrs 
 
 Port Chester (N. Y.) 5s, 1918 
 
 Port Chester (N. Y.) 41/2S, 1915-29 
 
 Port Chester (N. Y.) 5s, 1929-40 
 
 Portville (N. Y.) 5s, 1914-18 
 
 Putnam Co. (N. Y.) 41/2S, 1918-29 
 
 Queens Co. (N. Y.) 48, 1917 
 
 Queens Co. (N. Y.) 4s, 1927 
 
 *Quotatioo nearest March 1, 1913. No quotation on that date. 
 
 1181 
 
 Low Bid Asked 
 __ 4.40-.30% basis 
 1031/2 104 
 104 
 101 
 
 101 102 
 
 99% _- - 
 
 99% 100 
 
 98% 98% 
 
 __ 4.35-14% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 851/2 86% 
 
 851/2 86% 
 
 831/2 - 
 
 831/2 
 
 94 
 94 
 96 
 96 
 
 8434 
 
 84% 
 
 96 
 
 96 
 
 96 
 
 961/4 
 
 961/4 
 
 96% - - 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 __ 4.40-.30% basis 
 
 4.45% basis 
 
 __ *4.30% basis 
 
 __ *4.35% basis 
 
 4.30% basis 
 
 4.30% basis 
 
 __ 4.35-14% basis 
 
 *100i/2 - 
 
 __ *4.30% basis 
 
 *100.315 __ 
 
 4.40% basis 
 
 __ *4.40% basis 
 
 _- *4.35% basis 
 
 __ 4.30-.20% basis 
 
 4.30% basis 
 
 __ 4.30-.20% basis 
 
 __ 4.30-.20% basis 
 
 __4.30-.20% basis 
 
 __ 4i4-.20% basis 
 
 — 4i4-.20% basis 
 
 __ 4i4-.20% basis 
 
 *101.73 — 
 
 *100.07 — 
 
 *4.45% basis 
 
 _- *4.35% basis 
 
 __ *4.35% basis 
 
 __ *4.40% basis 
 
 _. 4i4-.20% basis 
 
 __ 4 1/4 -.15% basis 
 
 __ 4i4-.15% basis 
 
NEW YORK (Continuea). 
 
 Richmond Co. (N. Y.) Fund., 4s, 1914 
 
 Richmond Co. (N. Y.) 4s, 1921 
 
 Rochester (N. Y.) 4s, 1922-27 
 
 Rochester (N. Y.) Ref., sy^s, 1914 
 
 Rochester (N. Y.) Imp., SVgS, 1919 
 
 Rochester (N. Y.) Imp., 3i/oS, 1924 
 
 Rochester (N. Y.) Ref., sy^s, 1933 
 
 Rochester (N. Y.) Edge., 3l^s, 1921 
 
 Rockland Co. (N. Y.) 4s, 1913-34 
 
 Rockland Co. (N. Y.) Fd., 31/2S, 1914-24 
 
 Rome (N. Y.) 414s, 1931 — - 
 
 Rye (N. Y.) 5s, 1913-38 
 
 Saranac Lake (N. Y.) 4y2S, 1917-26 
 
 Saranac Lake (N. Y.) 4.45s, 1915-30 
 
 Saratoga Co. (N. Y.) Rd., 5s, 1914-18 
 
 Saratoga Spgs. (K Y.) Pk., 4y4S, 1916-40 
 
 Schenectady Co. (N. Y.) 4y2S, 1943-45 
 
 Schenectady (N. Y.) 4y28, 1913-31 
 
 Schenectady (N. Y.) Mkt., 4y4S, 1913-31 
 
 Schroeppel (N. Y.) 4y2S, 1923-27 
 
 Schuyler (N. Y.) 3s, 1916-40 
 
 Silver Springs (N. Y.) 4.80s, 1917-30 
 
 Southampton (N. Y.) 4y2S, 1914-20 
 
 Solvay (N. Y.) 4y2S, 1916-40 
 
 Syracuse (N. Y.) Wtr., 4s, 1920 
 
 Syracuse (N. Y.) Ref., 4s, 1929 
 
 Syracuse (N. Y.) Wtr., 3y2S, 1928 
 
 Syracuse (N. Y.) Wtr., 38, 1920 
 
 Troy (N. Y.) 4y2S, 1913-25 
 
 Troy (N. Y.) Sch., 4y2S, 1913-31 
 
 Troy (N. Y.) Wtr., 3y2S, 1916-36 
 
 Troy (N. Y.) Wtr., 4s, 1915-25 
 
 Troy (N. Y.) 4y2S, 1937-42 
 
 Utica (N. Y.) 4s, 1914-19 
 
 Utica (N. Y.) 31/38, 1913-35 
 
 Watertown (N. Y.) 4y2S, 1942 
 
 Watertown (N. Y.) 4s, 1938 
 
 Watertown (N. Y.) Swr., 3y2S, 1913-27 
 
 Westchester Co. (N. Y.) 3y2S, 1927-28 
 
 Westchester Co. (N. Y.) 4s, 1930-35 
 
 Westchester Co. (N. Y.) Swr., 4y2S, 1933-38__ 
 
 Westchester Co. (N. Y.) 3.10s, 1913-14 
 
 West Seneca (N. Y.) 5s, 1913-38 
 
 West Seneca (N. Y.) 5s, 1929-31 
 
 White Plains (N. Y.) 4s, 1914-28 
 
 White Plains (N. Y.) 3y2S, 1931 
 
 White Plains (N. Y.) 31/28, 1913-14 
 
 Whitehall (N. Y.) 5s, 1913-27 
 
 Wolcott (N. Y.) 41/28, 1931 
 
 Yonkers (N. Y.) 4s, 1914-25 
 
 Yonkers (N. Y.) Wtr., 4s, 1913-22 
 
 High 
 
 Low Bid Asked 
 __ 414 -.20% basis 
 __ 414 -.20% basis 
 __ 4.30-14% basis 
 __ 4.30-14% basis 
 __ 4.30-14% basis 
 __ 4.30-14% basis 
 __ 4.30-14% basis 
 __ 4.30-14% basis 
 __ 4.35-.20% basis 
 __ 4.35-.20% basis 
 __ 4.35-.20% basis 
 __ 4.30-.20% basis 
 __ 4.35-20% basis 
 __ 4.35-.20% basis 
 __ 4.35-.20% basis 
 __ 4.35-.20% basis 
 __ *4i4% basis 
 __ 4.30-.20% basis 
 __ 414 -.20% basis 
 __ *4.375% basis 
 __ *4.40% basis 
 __ *4i/2% basis 
 __ •1001/2 -- 
 414% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.40-.30% basis 
 __ 4i4-.30% basis 
 __ 4i4-.30% basis 
 __ 4i4-.30% basis 
 __ *4.20% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 102 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 414 -.20% basis 
 *98% _- 
 __ 4.35-14% basis 
 
 __ *109.84 
 __ 4.35-.20% basis 
 __ 4.35-.20% basis 
 __ *4.40% basis 
 __ *4.40% basis 
 __ 4.30-.20% basis 
 __ 4.30-.20% basis 
 __ 4.35-.20% basis 
 
 NORTH CAROLINA 
 
 North Carolina Constr., 6s, 1919 
 
 North Carolina Ref., 4s, 1950 
 
 North Carolina Bldg., 4s, 1951 
 
 *QuotatioD nearest March 1, 1913. No quotation on that date. 
 
 1182 
 
 109 
 
 99 
 
 100 
 
 111 
 101 
 101 
 
NORTH CAROLINA (Continued). 
 
 High Low Bid Asked 
 
 Albemarle (N. C.) 5s, 1943 , — — — *104 
 
 Asheville (N. C.) Swr. & Wtr., 6s, 1918 __ __ 4.60% basis 
 
 Asheville (N. C.) Ref., 5s, 1941 — __ 4.70% basis 
 
 Asheville (N. C.) 1943 — — *4.73% basis 
 
 Beaufort Co. (N. C.) 5s, 1937 — — — *105 
 
 Buncombe Co. (N. C.) 5s, 1931 — __ 4.60% basis 
 
 Buncombe Co. (K C.) Fdg., 4y2S, 1939 — — — 100 
 
 Burlington (K C.) Wtr., 5s, 1938 __ — — *105i4 
 
 Carthage (K C.) Wtr. & Sewer, 51/38, 1943 __ __ __ *107.73 
 
 Cleveland Co. (N. C.) Rd., 5s, 1933-37 — — — *100 
 
 Charlotte (N. C.) St. & 'Swr., 5s, 1939 __ __ 4%-y2% basis 
 
 Charlotte (N. C.) Wtr., 4%s, 1935 __ __ 4%-.40% basis 
 
 Charlotte (N. C.) Wtr., 41/38, 1941 __ __ 4%-.40% basis 
 
 Charlotte (N. C.) Sch., 41/38, 1941 __ __ 4%-.40% basis 
 
 Charlotte (N. C.) 41/38, 1943 __ __ 99 101 
 
 Durham (N. C.) Swr. & St., 41/38, 1941 __ __ 98 101 
 
 Durham (N. C.) Sch., 5s, 1933 __ __ *4i/3% basis 
 
 Gastonia (N. C.) 5s, 30 yrs __ __ *101.61 __ 
 
 Granville Co. (N. C.) 41/3S, 1939 __ __ 98 
 
 Greensboro (N. C.) Wtr., 5s, 1930 __ __ IO31/0 __ 
 
 Greensboro (N. C.) Wtr., 4s, 1954 __ __ 85 "^ 90 
 
 Greenville (N. Y.) 5s, 1937 __ __ 103 105 
 
 Guilford Co. (N. C.) 5s, 1^33 __ __ __ 110 
 
 Iredell Co. (N. C.) 5s, 1943 __ __ 4.90-%% basis 
 
 Iredell Co. (N. C.) 51/38, 3 to 11 yrs __ __ *103.135 __ 
 
 La winburg (N. C.) 51/38, 1933 __ __ *5%, basis 
 
 Lee Co. (N. C.) Road, 5s, 1953 __ __ 4.70% basis 
 
 Mecklenberg (N. C.) 6s, 1930 __ __ 106 108 
 
 New Hanover Co. (N. C.) 41/3S, 1936 __ __ 4.30% basis 
 
 Raleigh (N. C.) 58, 1937 __ __ 104 106V4 
 
 Raleigh (N. C.) 4s, 1939 __ __ 90 
 
 Rich Square (N. C.) 51/38, 1933-36 __ __ *5% basis 
 
 Scotland Co. (N. C.) Rd., 6s, 1934-39 __ __ *5i4%, basis 
 
 Tarboro (N. C.) Wtr., 5s, 1946 __ __ __ *103 
 
 Thomasville (N. C.) 5s, 1943 __ __ __ *104 
 
 Wilmington (N. C.) Fd., 5s, 1933 __ __ 4%-i/2% basis 
 
 Wilmington (N. C.) Wtr. & Swr., 41/38, 1948„ __ __ 43/4-.40% basis 
 
 Wilmington (N. C.) Wtr. & Swr., 41/38, 1953— __ __ 4%-.40% basis 
 
 Wilmington (K C.) Ref., 4s, 1939 __ __ 90 
 
 Winston (N. C.) Imp., 41/38, 1951 __ __ 99 101 
 
 Winston (N. C.) 41/38, 1953 __ __ 99 101 
 
 NORTH DAKOTA 
 
 North Dakota Fdg., 4s, 1930-31 __ __ 100 
 
 Cavalier Co. (No. Dak.) 6s, 1915-35 __ __ *5i/3% basis 
 
 OHIO 
 
 Adams Co. (Ohio) 41^8, 1947 __ __ *3.85% basis 
 
 Akron (Ohio) Wtr., 4s, 1943 __ __ 3.90% basis 
 
 Akron (Ohio) 41/3S, 13 yrs __ __ *100.846 „ 
 
 Akron (Ohio) 41/38, I31/3 yrs __ __ *100.65 — 
 
 Alliance (Ohio) Elec. Lt. 41/38, 17%-18i/2 yrs. — __ *100.66-100.92 
 
 Alliance (Ohio) 41/38, 1937-33 __ __ 3.90% basis 
 
 Archbold (Ohio) St., 41/2S, 1-10 yrs. »_ __ *100 
 
 Ashtabula (Ohio) 48, 1936 __ __ __ *103i4 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1183 
 
OHIO (Continued). 
 
 Auglaize Co. (Ohio) Bldg., 5s, 1913 
 
 Avondale (Ohio) 5s, 1916 
 
 Barberton (Ohio) Sch., 41/28, 1923-37 
 
 Barnesville (Ohio) 5s, 1913-15 - 
 
 Bellaire (Ohio) Sch., 48, 1923-31 
 
 Bellefontaine (Ohio) Sch., 41/38, 1921-34 
 
 Bratenahl (Ohio) 41/38, 1919-22 
 
 Bowling Green (Ohio) Ref., 58, 1914-17 
 
 Butler Co. (Ohio) Bdg., 41/38, 1921-24 
 
 Butler Co. (Ohio) 4s, 1914-16 
 
 Burton (Ohio) St., 58, 1-4 yrs 
 
 Cambridge (Ohio) 41/38, 1914-34 
 
 Cambridge (Ohio) 48, 1923 
 
 Canton (Ohio) 58, 1915-17 
 
 Canton (Ohio) Wtr., 41/38, 1930 
 
 Canton (Ohio) 48, 1921-27 
 
 Canton (Ohio) S. D. 4s, 1917-18 
 
 Canton (Ohio) St. & Swr., 41/38, 1916-23 
 
 Canton (Ohio) Sewer, 41/38, 1922 
 
 Canton (Ohio) Wtr. Swr. & St., 41/38, 1916-32 
 
 Carthage (Ohio) 31/38, 1925 
 
 Cincinnati (Ohio) 48, 1949-52 
 
 Cincinnati (Ohio) Wtr., 31/38, 1945 
 
 Cincinnati (Ohio) Ref., 31/3S, 1953 
 
 Cincinnati (Ohio) Wtr., 38, 1939 
 
 Cincinnati (Ohio) Sch. Dis., 4s, 1936 
 
 Cincinnati (Ohio) Sch. Dis., 31/38, 1940 
 
 Cincinnati (Ohio) 31/38, 1935-36 
 
 Cincinnati (Ohio) 3.658, 1937 
 
 Cincinnati (Ohio) 31/28, 1943-65 
 
 Cincinnati (Ohio) 58, 1930 
 
 Cincinnati (Ohio) 4s, 1934 
 
 Cincinnati (Ohio) S. F. 48, 1941 
 
 Cincinnati (Ohio) 4s, 1949 
 
 Cincinnati (Ohio) 3.65s, 1937 
 
 Cincinnati (Ohio) Ref., 31/28, 1956 
 
 Cincinnati (Ohio) 31/3S, 1938 
 
 Cleveland (Ohio) Libr., 58, 1918 
 
 Cleveland (Ohio) Bdge., 4148, 1943 
 
 Cleveland (Ohio) Bdge., 4148, 1931 
 
 Cleveland (Ohio) Pk., 4l^s, 1938 
 
 Cleveland (Ohio) Pvg., 4.108, 1930 
 
 Cleveland (Ohio) Swr., 4.108, 1930 
 
 Cleveland (Ohio) Ref., 4s, 1918 
 
 Cleveland (Ohio) Infirm., 4a, 1930 
 
 Cleveland (Ohio) Wtr., 4s, 1930 
 
 Cleveland (Ohio) Swr., 4s, 1935 
 
 Cleveland (Ohio) Ref., 4s, 1937 
 
 Cleveland (Ohio) Pk., 4s, 1939 
 
 Cleveland (Ohio) Pk., 48, 1931 
 
 Cleveland (Ohio) Swr., 4s, 1919 
 
 Cleveland (Ohio) Pk., 43, 1934 
 
 Cleveland (Ohio) Gde. Cr., 4s, 1930 
 
 Cleveland (Ohio) Sch. Dis., 43, 1933 
 
 Cleveland (Ohio) Sch. Dis., 48, 1933 
 
 Cleveland (Ohio) Sch. Dis., 41/08, 1930 
 
 Cleveland (Ohio) Sch. Dis., 58, 14 5/6 yrs 
 
 ""Quotaticm nearest March 1, 1013. No quotation on that date. 
 
 1184 
 
 High Low 
 
 Bid 
 
 3.90% 
 3.80% 
 
 *3.90% 
 
 *4% 
 
 *3.80% 
 
 *3.90% 
 
 *3.90% 
 
 4% 
 
 3.90% 
 
 3.90% 
 
 *100 
 
 4% 
 
 4% 
 
 3.80% 
 
 3.80% 
 
 3.80% 
 
 3.90% 
 
 *3.85% 
 
 *3.90% 
 
 *3.90% 
 
 *96i/2% 
 
 3.80% 
 3.80% 
 3.80% 
 3.80% 
 3.80% 
 
 Asked 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 basis 
 basis 
 basis 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 *105 
 basis 
 basis 
 basis 
 basis 
 basis 
 *96y4 
 
 - •941/3 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 •103.30 — 
 
OHIO (Continued). 
 
 Cleveland (Ohio) Sch. Dis., 4s, 1915 
 
 Cleveland (Ohio) Wtr., 4s, 1917 
 
 Cleveland (Ohio) 5s, 1919 
 
 Cleveland (Ohio) St., 4s, 1937-37 
 
 Cleveland (Ohio) 4s, 1942 
 
 Clifton (Ohio) Wtr., 41/28, 1913-22 
 
 College Hill (Ohio) Wtr., 31/38, 1929 
 
 Columbiana Co. (Ohio) Rd. 41/2S, 1913-22 
 
 Columbus (Ohio) Swr., 41/2S, 1921 
 
 Columbus (Ohio) F. D., 4s, 1916 
 
 Columbus (Ohio) 4s, 1927 
 
 Columbus (Ohio) Swr., 4s, 1933 
 
 Columbus (Ohio) Wtr., 4s, 1945 
 
 Columbus (Ohio) 31/2S, 1932 
 
 Columbus (Ohio) Sch. Dis., 4s, 1926 
 
 Columbus (Ohio) Sch. Dis., Si/gS, 1923 
 
 Columbus (Ohio) 4s, 1922 
 
 Cuyahoga Co. (Ohio) 5s, 1913-20 
 
 Cuyahoga Co. (Ohio) Eef. 4s, 1913-26 
 
 (^yahoga Co. (Ohio) 4s, 1913-41 
 
 Cuyahoga Co. (Ohio) 41/2S, 7^-71/2 yrs 
 
 Cuyahoga Co. (Ohio) 41/38, 1920 
 
 Cuyahoga Co. (Ohio) Rd. 41/2S, 1914-22 
 
 Cuyahoga Co. (Ohio) 4s, 1924-27 
 
 Cuyahoga Co. (Ohio) Ser. 1914-43 
 
 Dayton (Ohio) 5s, 1915 
 
 Dayton (Ohio) 4s, 1913-18 
 
 Dayton (Ohio) Wtr., 31/2S, 1913-15 
 
 Dayton (Ohio) Sch. Dis., 4s, 1920 
 
 Dayton (Ohio) 5s, 514 to 6 yrs 
 
 Defiance (Ohio) 5s, 1914-15 
 
 Defiance (Ohio) 41/2S, 1913-16 
 
 Delphos (Ohio) Sch., 41/4S, 1917-45 
 
 Dover (Ohio) Sch., 5s, I61/4 yrs 
 
 East Cleveland (Ohio) "Sch., 4s, 1932 
 
 East Liverpool (Ohio) Ref., 4s, 1940 
 
 East Palestine (Ohio) Sewer, 5s, 4 yrs 
 
 Elyria (Ohio) Wtr. 4s, 1913-23 
 
 Elyria (Ohio) Wtr. 4s, 1924-28 
 
 Elyria (Ohio) Sch. 41/38, 1917-20 
 
 Elyria (Ohio) Sch. 4s, 1924-40 
 
 Elyria (Ohio) 4s, 1925-50 
 
 Fostoria (Ohio) 4s, 1925 
 
 Franklin Co. (Ohio) Def. & Bdg. 5s, 1913 
 
 Franklin Co. (Ohio) Fund 4s, 1914-19 
 
 Franklin Co. (Ohio) Bldg. 4s, 1914-25 
 
 Gallipolis (Ohio) Wtr. 5s, 1914 
 
 Gallipoli (Ohio) Red. 4s, 1920 
 
 Glendale (Ohio) Wtr. 41/2S, 1-4 yrs 
 
 Glenville (now Cleveland) Sewer 41/2S, 1917-32 
 
 Grafton (Ohio) Rd. 5s, 1927-28 
 
 Hamilton (Ohio) 4s, 1940 
 
 Hamilton (Ohio) Gas 5s, 1914-18 
 
 Hamilton (Ohio) 41/38, 1919 
 
 Hamilton Co. (Ohio) 58, 1934 
 
 Hamilton Co. (Ohio) C. H. 4s, 1921-39 
 
 Hardin (Ohio) 58, 1915-18 
 
 •Quotation nearest March 1, 1913. No quotation on that date 
 
 1185 
 
 High Low Bid Asked 
 
 __ *100 
 
 _- *3.90% basis 
 
 — *3.90% basis 
 
 __ *3.80% basis 
 
 __ *103.62 
 3.80% basis 
 _. _- _- *96i/2 
 
 __ *3.85% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 __ *100 
 3.80% basis 
 3.80% basis 
 3.80% basis 
 *100 
 
 3.85% basis 
 
 __ *3.85% basis 
 
 __ *3.80% basis 
 
 __ *3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 ♦102.53 _- 
 
 4% basis 
 
 4% basis 
 
 _- *3.95% basis 
 
 *105V4 — 
 
 ._ *3.85%, basis 
 
 3.90% basis 
 
 *100.10 — 
 
 4% 
 
 4% 
 
 *3.90% 
 
 *3.85%, 
 
 *378% 
 
 4% 
 3.80% 
 3.80% 
 3.80%, 
 3.90%) 
 3.90% 
 
 *3.90% 
 
 *4% 
 
 3.90% 
 3.90% 
 3.70%? 
 3.70% 
 *4y4% 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 100.431 
 
 basis 
 
 ♦10314 
 basis 
 basis 
 
 basis 
 basis 
 
OHIO (Continiiea). 
 
 High Low Bid Asked 
 
 Hardin (Ohio) 4s, 1915-22 __ __ •3.80% basis 
 
 Harris (Ohio) Rd. 5s, 26%yrs __ __ *103.02 „ 
 
 Kennedy Hghts. (Ohio) Sch. 4s, 1952 __ „ __ *104y2 
 
 Knox Co. (Ohio) 5s, Ser. 1 to 5 yrs __ __ *101.52 __ 
 
 Lake Co. (Ohio) Rd. 41/2S, 12 yrs __ __ *100.80 __ 
 
 Lake Co. (Ohio 4y2S, 12y6 __ __ *100.61 — 
 
 Lake Co. (Ohio) 4s, 1921 __ __ *3.85% basis 
 
 Lake Co. (Ohio) 4y33, 1923-29 „ __ *4.30% basis 
 
 Lakewood (Ohio) 4y2S, 1921-39 — „ 4% basis 
 
 Lakewood (Ohio) 5s, 3y2 to 6 yrs __ __ *100.80 „ 
 
 Lakewood (Ohio) 5s, 5% to 13l^ yrs __ __ *101.53 _. 
 
 Lakewood (Ohio) 5s, 22y2 yrs __ __ *107.40 __ 
 
 Lakewood (Ohio) Sch. 4y2S, 1913 __ __ *4% basis 
 
 Lakewood (Ohio) St. 5s, 1914-31 __ „ *4y2% basis 
 
 Lakewood (Ohio) Sch. 4y2S, 1928-34 __ __ *3.90% basis 
 
 Lima (Ohio) 5s, 1916 __ __ 3.90% basis 
 
 Lima (Ohio )Swr. 4s, 1913-25 __ __ 3.90% basis 
 
 Lima (Ohio) Ref. 3y2S, 1930 __ __ 3.90% basis 
 
 Lockland (Ohio) Sch. 4s, 1952 __ __ __ *104^ 
 
 Lorain (Ohio) Riv. Imp. 58, 1918-32 __ __ 4% basis 
 
 Lorain (Ohio) 4y2S, 10 yrs __ __ *100.875 __ 
 
 Louisville (Ohio) St. 5s, Ser. 3 to 6 yrs __ __ *100.403 __ 
 
 Lucas Co. (Ohio) Ct. Hse. 4s, 1944 __ __ 3.80% basis 
 
 Lucas Co. (Ohio) 5s, 1917 __ __ *4% basis 
 
 Lucas Co. (Ohio) Rd. 4y2S, 1915-21 __ __ *3.80% basis 
 
 Lyme Co. (Ohio) 5s, 9% yrs __ __ *101.81% basis 
 
 Madison Co. (Ohio) 58, 1914-15 __ __ *4% basis 
 
 Madisonville (Ohio) 5s, 1932 __ __ 3.80% basis 
 
 Marietta (Ohio) 3y2S, 1931 __ __ 3.90% basis 
 
 Marion (Ohio) Swr. 5s, 1914-23 __ __ 3.90% basis 
 
 Martin's Ferry (Ohio) Sch. 5s, 1926-44 >_ __ 3.90% basis 
 
 Matamoras (Ohio) St. 4s __ __ *100 
 
 Mercer Co. (Ohio) 5s, 1914-24 __ __ 3.90% basis 
 
 Middletown (Ohio) Pk. 4s, 1930 __ — 3.90% basis 
 
 Middletown (Ohio) St. 4y2S, 1-10 yrs __ __ *100.102 __ 
 
 Norwood (Ohio) 5s, 1915 __ __ 3.85% basis 
 
 Norwood (Ohio) 4y2S, 1925 __ „ 3.85% basis 
 
 Norwood (Ohio) 4s, 1930 __ — 3.85% basis 
 
 Montgomery Co. (Ohio) 5s, 2 yrs __ __ *100i4 __ 
 
 Montgomery Co. (Ohio) 5s, 414 yrs __ — *101.13 — 
 
 Monroeville (Ohio) St. 5s, 1920 — __ *4% basis 
 
 Portsmouth (Ohio) 4s, 1913-24 __ __ 3.80% basis 
 
 Portsmouth (Ohio) Sch. D. 3y2S, 1917-22 „ — 3.80% basis 
 
 Navarre (Ohio) 4y2S, Ser __ __ *3.85% basis 
 
 Newburg (now Cleveland) Sewer 4y2S, 1913— __ __ *4% basis 
 
 Newburgh Hghts. (Ohio) Wtr. 4y2S, 1932 __ — *3.90% basis 
 
 Niles (Ohio) Wtr. & -Elec. Lt. 5s, 16 to 17 yrs __ __ 105.69 to 106.03 
 
 Norwalk (Ohio) 5s, 9% yrs — __ *102.056 „ 
 
 Oak Run (Ohio) Sch. 5y2S, 5% __ _. *103.536 — 
 
 Oakley (Ohio) St. 5s, 1913-22 — — *3.85% basis 
 
 Palestine (Ohio) Sch. 6s, 5% yrs __ — *104.904 __ 
 
 Paulding Co. (Ohio) 5s, 4 yrs __ __ *101.08 __ 
 
 Pemberville (Ohio) Sch. 5s, 914 - __ — *101 1/5 __ 
 
 Pike (Ohio) Sch. 5y2S, Ser. 2-7 — — *100y2 — 
 
 Piqua (Ohio) 'Sch. 4s, 1942-48 __ __ *3.80% basis 
 
 Portage Co. (Ohio) 4y2S, 1914-27 „ — *3.85% basis 
 
 Pleasant Ridge (Ohio) Sch. 4y2S, 1936-42 __ __ "S.SS^) basis 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1186 
 
OHIO (Continued). 
 
 Pultney (Ohio) Rd. 5s, Ser. 10 to 19 yrs 
 
 Salem (Ohio) 43, 1925 
 
 Sandusky (Ohio) Wrf. 5s, 1914-26 
 
 Sandusky (Ohio) St. Imp. 4s, 1914-18 
 
 Sandusky (Ohio) 4s, 9% yrs 
 
 Sandusky (Ohio) 4s, 1922 
 
 Sandusky (Ohio) 4s, 1917-24 
 
 Sandusky (Ohio) Sch. 4s, 1915-51 
 
 Steubenville (Ohio) 4s, 1924 
 
 Tiffin (Ohio) 4s, 1915 
 
 Shaker Heights (Ohio) Sewer & Wtr. 5s, 
 
 1914-22 
 
 Stark Co. (Ohio) Rd. 5s, 4 yrs 
 
 Struthers (Ohio) Sch. 41/33, 1926-45 
 
 Sullivan (Ohio) Rd. 5s, 10 yrs 
 
 Toledo (Ohio) 5s, 1913 
 
 Toledo (Ohio) 41/38, 1919 
 
 Toledo (Ohio) 41/2S, 1914 
 
 Toledo (Ohio) Bdge., 4l^s, 1928-38 
 
 Toledo (Ohio) 4s, 1926 
 
 Toledo (Ohio) Pk. 4s, 1942 
 
 Toledo (Ohio) Ref. 31/2S, 1930 
 
 Toledo (Ohio) Sch. D. 4s, 1923-29 
 
 Springfield (Ohio) Fire 5s, 1915-21 
 
 Springfield (Ohio) Bldg. 41/3S, 1913-21 
 
 Springfield (Ohio) 4s, 1921-25 
 
 Springfield (Ohio) 41/2S, 1913-14 
 
 Springfield (Ohio) 41/38, 1934 
 
 Troy (Ohio) St. 48, 1925-32 
 
 Tuscarawas (Ohio) 5s, 5% yrs 
 
 Union Co. (Ohio) 5s, 1% yrs 
 
 Urbana (Ohio) Sewer 4i/4s, 1928-29 
 
 Van Wert Co. (Ohio) Rd. 6s, 1913-19 
 
 Warren (Ohio) 4s, 8l^ yrs 
 
 Warren (Ohio) 4s, 1932-33 
 
 Willoughby (Ohio) 41/38, 1932 
 
 Wooster (Ohio) 4i^s, 1932 
 
 Youngstown (Ohio) Pk. 58, 1914 
 
 Youngstown (Ohio) Fire 5s, 1913 
 
 Youngstown (Ohio) II/3 to 3l^ yrs 
 
 Zanesville (Ohio) 4s, 1915 
 
 OKLAHOMA 
 
 Oklahoma, Funding 4s, 1918-27 
 
 Allen (Okla.) 6s, 1937 
 
 Anadarko (Okla.) Elec. Lt. 51/3S, 1929 
 
 Canadian Co. (Okla.) Ct. H. 48, 1922-31 
 
 Ardmore (Okla.) 5s, 1922 
 
 Ardmore (Okla.) 58, 1937 
 
 Atoka Co. (Okla.) 5s, Serially 
 
 Bartlesville (Okla.) 1913-22 
 
 Blackwell (Okla.) 6s, 1937 
 
 Bokchito (Okla.) 6s, 1937 
 
 Checotah (Okla.) Wtr. 6s, 1926 
 
 Clinton (Okla.) 6s, 1933 
 
 Clinton (Okla.) 6s, 1938 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 Wt 1187 
 
 High Low 
 
 Bid Asked 
 ♦103.069 __ 
 *3.90% basis 
 3.80% basis 
 3.80% basis 
 *100 
 
 - *100i/8 
 
 *3.80% basis 
 
 *3.85% basis 
 
 3.90% basis 
 
 4% basis 
 
 *4i/2% basis 
 
 *101.81 _- 
 
 *4.30% basis 
 
 101.64 __ 
 
 __ *100i/8 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 *4% basis 
 
 •*3.80% basis 
 
 *3.80% basis 
 
 *101.51 __ 
 
 *100.18 __ 
 
 *3.85% basis 
 
 3.80% basis 
 
 *100.40 „ 
 
 *3.90% basis 
 
 *4% basis 
 
 *3.90% basis 
 
 3.80% basis 
 
 3.80% basis 
 
 ^100.04 to 101.04 
 
 3.80% basis 
 
 993/4 100 
 __ *103.29 
 __ *104.17 
 98 
 4^8% basis 
 __ *102.89 
 *4.70% basis 
 
 *106%% basis 
 
 *103.29 „ 
 
 __ *106 
 
 *5.40% basis 
 
 __ *108.18 
 
OKLAHOMA (Continued). 
 
 CoUinsville Wtr. & Sewer 6s, 1938 
 
 Dewey (Okla.) Sch. 6s, 1929 
 
 Durant (Okla.) Sewer &. Wtr. 6s, 1933 
 
 Enid (Okla.) Sewer 53, 1919-34 
 
 Enid (Okla.) 5s, 1937 
 
 Erick (Okla.) Sch. 6s, 1933 
 
 Enfaula (Okla.) 68, 1937 
 
 Francis (Okla.) Wtr. 6s, 1936 
 
 Frederick (Okla.) 6s, 1928 
 
 Garvin Co. (Okla.) Sch. 5s, 1928 
 
 Gaymon (Okla.) 6s, 1923-32 
 
 Guthrie (Okla.) 5s, 1933 
 
 Hastings (Okla.) 6s, 1937 
 
 Heavener (Okla.) 6s, 1*932 
 
 Hughes Co. (Okla.) Sch. 6s, 1932 
 
 Idabeir(Okla.) 6s, 1937 
 
 Lincoln Co. (Okla.) 6s, 1917-24 
 
 Love Co. (Okla.) 51/28, 1937 
 
 McAlester (Okla.) Sch. 5s, 1937 
 
 Mcintosh Co. (Okla.) Sch. 6s, 1932. 
 
 Miami (Okla.) Wtr. & Lt. 53, 1920-35 
 
 Mounds (Okla.) 5s, 1929 
 
 Mounds (Okla.) 6s, 1933 
 
 Muskogee (Okla.) 41/28, 1925 
 
 Muskogee (Okla.) 5s, 1924 
 
 Muskogee (Okla.) Fdg. 5s, 1929 __ 
 
 Muskogee (Okla.) 41/2S, 1929 
 
 Muskogee (Okla.) Sch. 5s, 1936 
 
 Muskogee (Okla.) 5s, 1937 
 
 Muskogee Co. (Okla.) Sch. 6s, 1929 
 
 Payne Co. (Okla.) Ref. 41/oS, 1920-29 
 
 Payne Co. (Okla.) Sch. 6s, 1924 
 
 Osage Co. (Okla.) Sch. 6s, 1932 
 
 Osage Co. (Okla.) Sch. 6s, 1932 
 
 Osage Co. (Okla.) 6s, 1938 
 
 Oklahoma City (Okla.) Sch. D. 6s, 1914 
 
 Oklahoma City (Okla.) 4s, 1933 
 
 Oklahoma Co. (Okla.) 41/28, 1924-33 ^..^ 
 
 Oklahoma City (Okla.) 6s, 1915 
 
 Oklahoma City (Okla.) 5s, 1937 
 
 Oklahoma City (Okla.) Wtr. 5s, 1936 
 
 Oklahoma City (Okla.) Fdg. 5s, 1936 
 
 Oklahoma City (Okla.) Fire 53, 1934 
 
 Oklahoma City (Okla.) Swr. 41/2S, 1936 
 
 Oklahoma City (Okla.) 5s, 1935 
 
 Ponca City (Okla.) 58, 1932 
 
 Pond Creek (Okla.) 5s, 1931 
 
 Porum (Okla.) Wtr. & Elec. Lt. 68, 1937 
 
 Shawnee (Okla.) 5s, Serially 
 
 Shawnee (Okla.) 6s, 1918 
 
 Sapulpa (Okla.) Sch. 5s, 1928 
 
 'Sapulpa (Okla.) Wtr. & Sewer 5s, 1933 
 
 Skiatook (Okla.) 6s, 1937 
 
 Stillwater (Okla.) Wtr. 5s, 1933 
 
 Strike Axe (Okla.) 6s, 1921-36 
 
 Tonkawa (Okla.) Wtr. 6s, 1937 
 
 Tulsa (Okla.) 5s, 12 to I41/2 yrs 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1188 
 
 High Low Bid Asked 
 
 — *110.38 
 „ '107.72 
 -_ *109.22 
 
 *4%% basis 
 
 — *102.89 
 -_ *106 
 
 __ *5%% basis 
 __ *106i/2 
 
 __ *1133/8 
 
 __ *100 
 
 __ *5i/2% basis 
 
 -_ *103l^ 
 
 __ *103.29 
 
 *6% basis 
 
 _- •514% basis 
 
 __ *108.18 
 *6% basis 
 __ *108.59 
 __ "4.80% basis 
 -_ *5i/4% basis 
 *5% basis 
 __ *100 
 __ 109.23 
 414% basis 
 478% basis 
 4y8% basis 
 ._ _. __ *98i/2 
 
 __ *4.80% basis 
 
 __ *104.36 
 
 *5l^% basis 
 
 41/4% basis 
 
 *5i/8% basis 
 
 •51/8% basis 
 
 •514% basis 
 
 *4.90% basis 
 
 101 
 
 98.26 — 
 
 414% basis 
 
 101 
 
 4%% basis 
 
 478% basis 
 
 434% basis 
 
 4%% basis 
 
 41/0% basis 
 
 I- '10478 
 
 *5% basis 
 
 *5% basis 
 
 __ '106 
 
 •4.80% basis 
 
 __ "100 
 
 *5% basis 
 
 -_ *98.60 
 
 __ *103.29 
 
 *5 %basis 
 
 •514% basis 
 
 *5i/2% basis 
 
 •100 
 
 I 
 
OKLAHOMA (Continued). 
 
 High 
 
 Tulsa (Okla.) 5s, 1930 
 
 Tulsa (Okla.) Sch. 1932 
 
 Coatesville (Pa.) 4s, 1926-41 
 
 Tulsa (Okla.) 58, 1932 
 
 Tulsa (Okla.) 5s, 1931-36 
 
 Wagoner (Okla.) 5s, 1937 
 
 Willow (Okla.) 6s, 1932 
 
 Wellston (Okla.) Wtr. 68, 1936 
 
 Wellston (Okla.) 6s, 1936 
 
 OREGON 
 
 Dallas City (Ore.) 5s, 1917-26 
 
 Dallas City (Ore.) Sewer 5s, 1932-37 
 
 Albany (Ore.) 5s, 1931 
 
 Butte Falls (Ore.) Wtr. 6s, 1932 
 
 Coos Bay (Ore.) Port 58, 1933-44 
 
 Glendale (Ore.) 6s 
 
 Eugene (Ore.) 58, 1942 
 
 Portland (Ore.) C. H., 5s, 1922 
 
 Portland (Ore.) Wtr., 5s, 1923 
 
 Portland (Ore.) Bdge., 5s, 1925 
 
 Portland (Ore.) Bdge., 4s, 1934 
 
 Portland (Ore.) Wtr., 48, 1937 
 
 Portland (Ore.) S. D., 5s, 1914 
 
 Hermiston (Ore.) Sch., 5s, 10 to 20 yrs 
 
 La Grande (Ore.) 6s, 1 to 10 yrs 
 
 La Grande (Ore.) 6s, 1913-22 
 
 Medford (Ore.) 5s, 1921 
 
 Milwaukee (Ore.) 6s, 1921 
 
 Pendleton (Ore.) 6s, 1923 
 
 Pilot Rock (Ore.) Wtr., 6s, 1932 
 
 Port of Portland (Ore.) 5s, 1922 
 
 Port of Portland (Ore.) Dry Dk., 4s, 1934 
 
 St. Johns (Ore.) St., 6s, 1 to 10 yrs 
 
 St. Johns (Ore.) 6s, 1922 
 
 Union Co. (Ore.) Sch., 6s, 1923-33 
 
 Low 
 
 Bid Asked 
 __ *101.12 
 
 *4.70% basis 
 *4% basis 
 __ *103.86 
 
 *4%% basis 
 _- *100 
 __ *103.29 
 __ *106 
 __ *103.29 
 
 4.60% basis 
 
 *4%% basis 
 
 4.70% basis 
 
 *5.75% basis 
 
 *4.90% basis 
 
 *95 
 
 __ 104 
 
 4y2-.35% basis 
 
 4y2-.35% basis 
 
 4y2-.35% basis 
 
 4y2-.35% basis 
 
 94 9514 
 4i4-.35% basis 
 *99 
 
 *100.802 — 
 
 ♦514% basis 
 
 __ *102ya 
 
 __ *101 
 
 *5% basis 
 
 __ *102.90 
 
 4y2-y4% basis 
 
 4y2-y4% basis 
 
 ♦100.972 __ 
 
 •514% basis 
 
 _- *102 
 
 PENNSYLVANIA 
 
 Pennsylvania Agr. College 5s, 1922 
 
 Allegheny (Pa.) 4s, 1913-19 
 
 Allegheny (Pa.) 4s, 1917-27 
 
 Allegheny (Pa.) St. Imp., 4s, 1937 
 
 Allegheny (Pa.) 3y2S, 1913-31 
 
 Allegheny Co. (Pa.) 4s, 1934 
 
 Allegheny Co. (Pa.) Rd., 4s, 1937 
 
 Allegheny Co. (Pa.) Rd., 4s, 1938 
 
 Allegheny (Pa.) Bdge., 4s, 1942 
 
 Allegheny Co. (Pa.) 3y2S, 1932 
 
 Allegheny Co. (Pa.) Rd., 4s, 1936 
 
 Allegheny Co. (Pa.) Rd., 48, 1936 
 
 Allegheny Co. (Pa.) 4s, 1941 
 
 Altoona (Pa.) 48, 1934 
 
 Altoona (Pa.) Ref., 4s,1936 
 
 Altoona (Pa.) Highw., 48, 1937 
 
 Altoona (Pa.) S. D. 48, 1913-35 
 
 Braddock (Pa.) 48, 1913-35 
 
 'Quotation nearest March 1, 1913. No quotation on that date. 
 
 1189 
 
 4% 
 
 4.10% 
 
 4.20% 
 
 4% 
 
 4% 
 
 4.10-.05% 
 
 4.10-.05% 
 
 4.10-.05% 
 
 4-3,95% 
 
 3.95% 
 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 __ *98y, 
 
 *4.10% basis 
 _- *101 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 4% 
 
 4% 
 
 4% 
 
 4.20% 
 
 4.30% 
 
PENNSYLVANIA (Continued). 
 
 High 
 
 Bridgeville (Pa.) Sch., 41/28, 1933 
 
 Canoasburg (Pa.) 4s, 12 yrs 
 
 Chester (Pa.) SVgS, 1939 
 
 Chester (Pa.) 4s, 1937 
 
 Chester (Pa.) S. D., SVzS, 1931 
 
 Coatesville (Pa.) 4s, 1926-41 
 
 College Hill (Pa.) 41/38, 1919-42 
 
 East McKeesport (Pa.) Sch., 41/2S, 1934-41 
 
 Easton (Pa.) 31/38, 1938 
 
 Easton (Pa.) S. D., 4s, 1924 
 
 Erie (Pa.) Ref., 4s, 1914 
 
 Erie (Pa.) St., 4s, 1921 
 
 Edgewood (Pa.) 41/38, 1928-34 
 
 Exeter (Pa.) Sewer, 5s, 1913-17 
 
 Freedom (Pa.) 41/38, 1935-42 
 
 Harrisburg (Pa.) 4s, 1920 
 
 Harrisburg (Pa.) 48, 1921 
 
 Hazleton (Pa.) 4s, 1936 
 
 Homestead (Pa.) 5.40s, 1915 
 
 Houston (Pa.) 41/3S, 1930-40 
 
 Houston (Pa.) 41/38, 1938 
 
 Ingram (Pa.) St. & Sewer, 41/38, 1940-42 
 
 Johnstown (Pa.) 5s, 1921 
 
 Johnstown (Pa.) 41/38, 1923 
 
 Johnstown (Pa.) Bldg., 48, 1930 
 
 Knoxville (Pa.) St., 4iA8, 1936 
 
 Lancaster (Pa.) Wtr., 4s, 1913-20 
 
 Lancaster (Pa.) St., 48, 1938 
 
 Lancaster (Pa.) 4s, 1925 
 
 Lansdowne (Pa.) 4l^8, Ser. 1 to 30 yrs 
 
 Ligonier (Pa.) 41/38, 1927-42 
 
 McDonald (Pa.) 41/38, 1922-2^ 
 
 Midland (Pa.) 41/38, 1913-32 
 
 Monongahela (Pa.) 41/3S, 1937-38 
 
 New Castle (Pa.) 414s, 1927-33 
 
 Norwood (Pa.) Sch., 41/38, 1933-43 
 
 Old Forge (Pa.) 5s, 1938-43 
 
 Parnassus (Pa.) Sch., 41/38, 1933-43 
 
 Patton (Pa.) 41/38, 1931-31 
 
 Philadelphia (Pa.) 31/3S, 1919 
 
 Philadelphia (Pa.) 31/3S, 1930 
 
 Philadelphia (Pa.) 31/oS, 1931 
 
 Philadelphia (Pa.) 31/38, 1932 
 
 Philadelphia (Pa.) 31/3S, 1925 
 
 Philadelphia (Pa.) 31/3S, 1926 
 
 Philadelphia (Pa.) 31/38, 1937 
 
 Philadelphia (Pa.) 38, 1931__^ 
 
 Philadelphia (Pa.) 38, 1930 
 
 Philadelphia (Pa.) 4s, 1937 
 
 Philadelphia (Pa.) 4s, Jan. 1938 
 
 Philadelphia (Pa.) 48, July 1938 
 
 Philadelphia (Pa.) 48, 1940 
 
 Philadelphia (Pa.) 4s, 1941 
 
 Philadelphia (Pa.) 4s, 1943 
 
 Philadelphia (Pa.) Wtr., 31/38, 1931 
 
 Philadelphia (Pa.) 31/3S, 1933 
 
 Philadelphia (Pa.) 31/38, 1934 
 
 'Quotation nearest March 1, 1913. No quotation on tliat date. 
 
 1190 
 
 Low Bid Asked 
 
 __ *4.15% basis 
 *100.55 -_ 
 4.05% basis 
 4.10% basis 
 
 __ 4.10-4% basis 
 *4% basis 
 
 -_ *4.30% basis 
 
 — *4l^% basis 
 
 4% basis 
 
 4% basis 
 
 4.10% basis 
 
 4.10 %basi3 
 
 __ *4i/8% basis 
 
 __ *101i/i 
 
 __ *4.30% basis 
 
 4% basis 
 
 __ *97i/4 
 
 4.40% basis 
 
 4.10% basis 
 
 *4% basis 
 
 *104.73 — 
 
 __ *4.10% basis 
 
 4.10% basis 
 
 4% basis 
 
 4.10% basis 
 
 — ,*103.i4 
 
 3.90% basis 
 
 3.90% basis 
 
 _- *99 
 
 *101.60 _- 
 
 __ *4.30% basis 
 
 *4i/8% basis 
 
 __ *4.30% basis 
 
 *4.15% basis 
 
 — *4.10% basis 
 -_ *4i/4% basis 
 __ *4.35% basis 
 __ *4.15% basis 
 
 — *4.30% basis 
 
 951/0 ._ 
 
 95 
 
 943/4 „ 
 
 941/2 __ 
 
 94 
 
 94 
 
 .- 931/3 , 
 
 901/3 -_ 
 
 871/2 - 
 __ 3.96-.94% basis 
 __ 3.96-.94% basis 
 __ 3.96-.94% basis 
 __ 3.96-.94% basis 
 
 -_ 101 
 
 10034 101 
 
 __ 4-3.95% basis 
 
 __ 4-3.95% basis 
 
 4-3.95% basis 
 
PENNSYLVANIA (Continued). 
 
 High Low Bid Asked 
 
 Philadelphia (Pa.) S. D., 4s, 1923-42 __ __ 3.98% basis 
 
 Philadelphia (Pa.) 31/2S, & 3s ^ __ __ *4.10% basis 
 
 Philadelphia (Pa.) Sch., 4s, Ser. 1924 __ __ *3.95% basis 
 
 Pittsburgh (Pa.) 41/4 s, 1913-40 __ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 4s, 1925 „ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 4s, 1913-27 __ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 4s, 1914-39 __ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 4s, 1913-36 __ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 41/28, 1913-38 __ __ 4.10-4% basis 
 
 Pittsburgh (Pa.) 414s, 1913-30 __ __ 4.05% basis 
 
 Pittsburgh (Pa.) 4l^s, Ser. 1913-42 __ __ *4.05% basis 
 
 Pittsburgh (Pa.) Sch., 4s, 1922-42 __ __ *4.10% basis 
 
 Plymouth (Pa.) Sch., 58, 1934-36 _> __ *4i^% basis 
 
 Reading (Pa.) 4s, Apr. 1913-28 __ __ 4-3.90% basis 
 
 Reading (Pa.) 4s, Sep. 1913-28 __ __ 4-3.90% basis 
 
 Reading (Pa.) 4s, 1918 __ — 4-3.90% basis 
 
 Schylkill Co. (Pa.) 4s, 1916 __ __ 4% basis 
 
 Schylkill Co. (Pa.) 3s, 1921 __ __ 4% basis 
 
 Scranton (Pa.) 41/4S, 1914-41 __ __ 4.05% basis 
 
 Scranton (Pa.) 4s, 1914-37 __ — 4.05% basis 
 
 Scranton (Pa.) 4s, 1915-35 __ __ 4.05% basis 
 
 Scranton (Pa.) 31/28, 1915 __ — 41/2% basis 
 
 Scranton (Pa.) S. D., 4s, 1915-33 __ __ 4.10% basis 
 
 Scranton (Pa.) S. D., 31/2S, 1914-32 __ __ 4.10% basis 
 
 Turtle Creek (Pa.) 41/2S, 1941 __ __ *4.20% basis 
 
 Uniontown (Pa.) Imp., 4s, 1928 __ __ 4.40% basis 
 
 Washington Co. (Pa.) Rd., 41/2S, Ser. 1913-27— __ — *4.20% basis 
 
 Waynesboro (Pa.) Sch., 41/2S, 1927-42 __ __ *4i/i% basis 
 
 Williamsport (Pa.) 31/2S, 1929 __ __ 41/2% basis 
 
 Wilkesbarre (Pa.) 31/2S, 1914-29 _. __ 4.10% basis 
 
 Wilkesbarre (Pa.) 4s, 1914-35 _*— __ __ 4.10% basis 
 
 Wilkesbarre (Pa.) 4s, 1931 __ __ — *100 
 
 Woodlawn (Pa.) Sch., 41/2S, 1941 >_ __ *4.30% basis 
 
 RHODE ISLAND 
 
 Rhode Island S. H., 31/2S, 1934 __ »_ 99 
 
 Rhode Island S. H., 3s, 1938 __ __ 89 
 
 Bristol (R. L) 31/2S, 1930 __ __ 90 
 
 Burrillville (R. L) 3i/.s, 1939 __ __ 90 
 
 Burrillville (R. L) 31/38, 1942 „ — — *90% 
 
 Cranston (R. L) 4s, 1939 __ __ 98 
 
 East Prov. (R. I.) Fdg., 4s, 1947 — — 98 
 
 East Prov.(R. L) 41/38, 1917 — — — *100 
 
 East Prov (R. I.) 41/38, 1932 — — — *100 
 
 East Prov. (R. L) 4s, 1933 __ — — *95 
 
 East Prov. (R. L) 4s, 1948 __ — — *94 
 
 Jamestown (R. L) 41/38, 1931 __ >_ — *103.83 
 
 Johnstown (R. L) Sch., 48, 1915-33 _- ♦4.35 to 41/2% basis 
 
 Johnstown (R. L) 4s, 1925-33 __ «_ ♦4.40%, basis 
 
 Lincoln (R. L) 4s, 1928 -_ __ 97 
 
 Newport (R. L) 4s, 1927 __ __ 98 
 
 Newport (R. L) 48, 1948 >_ __ 99 
 
 Newport (R. L) Sch., 31/38, 1954 __ __ 88 
 
 Newport (R. L) 48, 1915-18 __ __ *4.15% basis 
 
 Newport (R. L) 4s, 1918 __ — — *99% 
 
 Pawtucket (R. L) Wtr., 4s, 1937 98 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1191 
 
RHODE ISLAND (Continued). 
 
 Pawtucket (R. I.) Si/jS, 1922 
 
 Pawtucket (R. I.) 48, 1944 
 
 Providence (R. I.) 48, 1921 
 
 Providence (R. I.) 4s, 1927 
 
 Providence (R. I.) Wtr., SVgS, 1916 
 
 Providence (R. I.) Sch., SVgS, 1929 
 
 Providence (R. I.) Swr., 3s, 1929 
 
 Providence (R. I.) SVgS, 1933 
 
 Tiverton (R. I.) 4s, 1924-29 
 
 Warren (R. I.) 4s, 1913-22 
 
 Westerly (R. I.) 4s, 1927 
 
 Westerly (R. I.) Wtr., 31/28, 1929 
 
 Woonsocket (R. I.) Fdg., 41/28, 1941 
 
 Woonsocket (R. I.) Fdg., 48, 1941 
 
 Woonsocket (R. I.) Wtr., 31/28, 1931 
 
 SOUTH CAROLINA 
 
 South Carolina Blue, 41/28, 1928 
 
 South Carolina Ref., 41/2S, 1933 
 
 Anderson (So. Car.) 5s, 1933 
 
 Barnwell Co. (So. Car.) Sch., 6s, 1932 
 
 Barnwell (So. Car.) 5s, 1932-52-_-. 
 
 Charleston (So. Car.) 5s, 1922 
 
 Charleston (So. Car.) 4i/s«, 1928 
 
 Charleston (Co. Car.) Swr., 4s, 1929 
 
 Charleston (So. Car.) 4a, 1937 
 
 Charleston (So. Car.) Ref., 4s, 1938 
 
 Cheran (S. C.) 6s, 1952 
 
 Columbia (So. Car.) 6s, 1921 
 
 Columbia (So. Car.) Ref., 58, 1941 
 
 Columbia (So. Car.) Wtr., 41/28, 1945 
 
 Darlington (So. Car.) 5s, 1932 
 
 Edgefield (So. Car.) 58, 1932-52 
 
 Greenville (So. Car.) 5s, 1940 
 
 Greenville (So. Car.) St., 58, 1942 
 
 Lawrence (So. Car.) 5s, 1942 
 
 Marion Co. (So. Car.) Sch., 5s, 1931-51 
 
 Orangeburg Co. (So. Car.) Sch., 51/2 s, 1932 
 
 Rock Hill (So. Car.) 58, 1951 
 
 Spartanburg (So. Car.) 41/2S, 1935 
 
 Sumter Co. (So. Car.) 41/2S, 1932 
 
 High Low 
 
 Bid Asked 
 
 414% basis 
 
 __ *96 
 
 98 
 
 98 
 
 97 
 
 93 
 
 87 
 
 - *92% 
 ^4.30% basis 
 
 99 
 
 98 
 
 90 
 4.35% basis 
 4.30% basis 
 
 91 92 
 
 105 107 
 99 
 
 __ *105 
 
 ^5.20% basis 
 
 __ *101 
 
 104 
 
 102 
 
 96 
 
 97 
 
 97 
 
 100 
 
 108 
 
 107 
 
 101 
 
 106 
 106 
 
 105 
 
 104 
 
 97 
 
 98 
 
 98 
 
 102 
 
 109 
 
 108 
 
 102 
 
 *105 
 
 »101 
 
 108 
 
 108 
 
 -_ *105i/a 
 »4.65%) basis 
 •51/4% basis 
 1021/2 1031/a 
 100 102 
 
 __ noiy. 
 
 SOUTH DAKOTA 
 
 Aberdeen (S. D.) Cs, 1915 
 
 Aberdeen (S. D.) 5s, 1913-21 
 
 Aberdeen (S. D.) Swr., 41/38, 1932 
 
 Aberdeen (S. D.) Swr., 41/2S, 1926 
 
 Fall River Co. (S. D.) 58, 1932 
 
 Faulk Co. (S. D.) 68, 1915 
 
 Marshall Co. (S. D.) 68, 1915 
 
 Garretson (S. D.) Elec. Lt., 5s, 1922 
 
 Lisseton (S. D.) Ss, 1926-31 
 
 Lyman Co. (S. D.) Sch., 6s, 1928 
 
 Madison (S. D.) Sewer, 6s, 1921-31 
 
 Mitchell (S. D.) 5s, 1924 
 
 ^Quotation nearest March 1, 1913. No quotatiou od that date. 
 
 1193 
 
 4%% 
 4%% 
 48/4% 
 43/4% 
 
 4.60% 
 4.60% 
 
 •43/1% 
 •51/4% 
 
 basis 
 
 basis 
 
 basis 
 
 basis 
 
 ♦104.45 
 
 basis 
 
 basis 
 
 •100 
 basis 
 basis 
 
 •101 
 
 4%% basis 
 
SOUTH DAKOTA (Continued). 
 
 High 
 Pierre (S. D.) 3s, 1922 
 
 Redfield (S. D.) Sewer, 5s, 1933 
 
 Selby (S. D.) Wtr., Ss, 1924-29 
 
 Sioux Falls (S. D.) 5s, 1931 _' 
 
 Watertown (S. D.) 5s, 1918-24 
 
 Yankton Co. (S. D.) 4s, 1919 
 
 TENNESSEE 
 
 Tennessee Penitentiary, 4y^s, 1913 
 
 Tennessee Redemption 4l^s, 1913 
 
 Tennessee Settlement 3s, 1913 
 
 Blount Co. (Tenn.) 5s, 1921-51 
 
 Chattannoga (Tenn.) 5s, 1920 
 
 Chattanooga (Tenn.) Pub. Imp., 41/28, 1937— 
 
 Chattanooga (Tenn.) Ref., 41/28, 1939 
 
 Chattanooga (Tenn.) Sr. & Fd., 41/28, 1941 
 
 Chattanooga (Tenn.) Park, 41/2S, 1942 
 
 Cock Co. (Tenn.) Rd. & Edge., 1919-39 
 
 Davidson Co. (Tenn.) 5s, 1913 
 
 Davidson Co. (Tenn.) Edge., 41/38, 1937— 
 
 Davidson Co. (Tenn.) Trnpk., 4s, 1922 
 
 Dickson (Tenn.) Sch., 5s, 1943 
 
 Grainger Co. (Tenn.) 5s, 1940 
 
 Greene Co. (Tenn.) 5s, 1920 
 
 Hamblen Co. (Tenn.) 5s, 1939 
 
 Hamilton Co. (Tenn.) 41/38, 1941 
 
 Hamilton Co. (Tenn.) 41/38, 1942 
 
 Hamilton Co. (Tenn.) Rd., 5s, 1917-22 
 
 Jackson Co. (Tenn.) 5s, 1942 
 
 Knoxville (Tenn.) 6s, 1917 
 
 Knoxville (Tenn.) Imp., 5s, 1921 
 
 Knoxville (Tenn.) Ref., 58, 1940 
 
 Knoxville (Tenn.) Fd., 41/2*, 1937 
 
 Knoxville (Tenn.) Wtr., 41/28, 1949 
 
 Knoxville (Tenn.) 48, 1929 
 
 Lenoir (Tenn.) Wtr., 6s, 30 yrs 
 
 London Co. (Tenn.) 53, 1942 
 
 Memphis (Tenn.) Comp., 6s, 1915 
 
 Memphis (Tenn.) Ref., 41/2S, 1926 
 
 Memphis (Tenn.) Ref., 41/38, 1939 
 
 Memphis (Tenn.) Str., 41/2S, 1946 
 
 Memphis (Tenn.) Pk., 41/3S, 1947 
 
 Memphis (Tenn.) 41/08, 1950 
 
 Memphis (Tenn.) Pk., 41/2S, 1959 
 
 Memphis (Tenn.) Wtr., 4s, 1933 
 
 Memphis (Tenn.) St., 6s, 1916 
 
 Memphis (Tenn.) 4s, 1929 
 
 Nashville (Tenn.) 'Sewer, 48, 1929 
 
 Nashville (Tenn.) Swr., 41/28, 1923 
 
 Nashville (Tenn.) Str., 41/38, 1935 
 
 Nashville (Tenn.) Swr., 41/3S, 1940 
 
 Nashville (Tenn.) Sch., 41/28, 1940 
 
 Nashville (Tenn.) Wtr., 4s, 1919 
 
 Nashville (Tenn.) T. C. R. R., 4s, 1924 
 
 Nashville (Tenn.) Swr., 4s, 1927 
 
 Nashville (Tenn.) Wtr., 4s, 1928 
 
 •Quotation nearest March 1, 1913. No quotation on that date. 
 
 1193 
 
 Low Bid Asked 
 
 *88 
 
 II II •103.20 
 
 — *100 
 
 4.70% basis 
 
 __ *4.70% basis 
 
 4.60% basis 
 
 991/2 lOOi/g 
 991/2 1001/3 
 981/2 991/3 
 4.70% basis 
 
 — 48/4-1/2% basis 
 
 — 48/4-1/2% basis 
 
 — 48/4-1/2% basis 
 
 99 101 
 
 99 101 
 
 41/2% basis 
 
 4.40% basis 
 
 4.40% basis 
 
 4.40% basis 
 
 __ *100 
 
 4.70% basis 
 
 4.65% basis 
 
 4.70% basis 
 
 4.40% basis 
 
 __ 4.60-.40% basis 
 
 _- *4i/2%, basis 
 
 __ *103i/4 
 ~ 48^-1/2% basis 
 __ 4%-i/3% basis 
 
 — 43/4.1/2% basis 
 __ 4.60-.40% basis 
 -- 434.1/2% basis 
 __ 4.60-.45% basis 
 
 __ ^106.275 
 __ •1038/4 
 
 102 104 
 
 __ 4.60.1/0% basis 
 __ 4.60-1/0%, basis 
 __ 4.60-1/2% basis 
 99 101 
 __ 4.60-1/2% basis 
 __ 4.60-1/2% basis 
 __ 4.60-1/2% basis 
 __ •41/2% basis 
 
 — •41/2%) basis 
 
 _. ^95 
 __ 4.60-1/2% basis 
 __ 4.60-1/2% basis 
 __ 4.60-1/2% basis 
 __ 4.60-1/2% basis 
 __ 4.60-1/3% basis 
 __ 4.60-1/3% basis 
 _- 4.60-1/2% basis 
 >- 4.60-1/3% basis 
 
TENNESSEE (Continued). 
 
 High 
 
 Putnam Co. (Tenn.) 41/28, 1939 
 
 Putnam Co. (Tenn.) Rd., 41/28, 1941 
 
 Robertson Co. (Tenn.) 4s, 1941 
 
 Shelby Co. (Tenn.) Sch., 41/28, 1941 
 
 Shelby Co. (T^nn.) C. H., 4s, 1955 
 
 Sumner Co. (Tenn.) 4s, 1917-42 
 
 Low 
 
 Bid Asked 
 
 99 100 
 
 99 100 
 
 4.40% basis 
 
 4.40% basis 
 
 4.40% basis 
 
 - 4%-.60% basis 
 
 TEXAS 
 
 Amarillo (Tex.) Sewer & Rd., 5s, 1951 
 
 Austin (Tex.) 6s, 1913-42 
 
 Austin (Tex.) 5s, 1932 
 
 Austin (Tex.) Ref., 4-5s, 1931 
 
 Austin (Tex.) St., 5s, 1913-42 
 
 Austin (Tex.) 5s, 1930-42 
 
 Austin (Tex.) Sewer, 5s, 1933-42 
 
 Austin (Tex.) 5s, 1921-52 \ 
 
 Austin (Tex.) 58, 1924-32-52 
 
 Austin (Eex.) 5s,-4s, 1931 
 
 Beaumont (Tex.) 5s, 1952 
 
 Beaumont (Tex.) 48, 1942 
 
 Beeville (Tex.) Sewer, 5s, 1920-30 
 
 Bosque Co. (Tex.) 58, 1952 
 
 Bryan (Tex.) 4s, 1929-49 
 
 Bryan (Tex.) 5s, 1951 
 
 Calhoun Co. (Tex.) Rd. Dis., No. 2, 5s, 40 yra. 
 
 Calhoun Co. (Tex.) 5s, 1922-52 
 
 Calvert (Tex.) Sewer, 5s, 1953 
 
 Cameron Co. (Tex.) 5s, 1922-38 
 
 Cleburne (Tex.) Wtr., 5s, 1952 
 
 Corpus Christi (Tex.) 5s, 1922-52 
 
 Corpus Christi (Tex.) 41/28 
 
 Corpus Christi (Tex.) Sewer, 5s, 1920 
 
 Corpus Christi (Tex.) Sch., 41/3S, 1921-22 
 
 Corpus Christi (Tex.) Wtr., 4s, 1919-26 
 
 Corpus Christi (Tex.) Sh. & Sr., 41/2S, 1916-45 
 
 Corpus Christi (Tex.) 414s, 1950 
 
 Corpus Christi (Tex.) Sch., 41/2S, 1913-52 
 
 Dallas (Tex.) Fd., 6s, 1917 
 
 Dallas (Tex.) Wtr., 5s, 1917 
 
 Dallas (Tex.) 5s, 1931 
 
 Dallas (Tex.) 5s, 1928 
 
 Dallas (Tex.) Wtr., 4s, 1940 
 
 Dallas (Tex.) Wtr., 4s, 1913-49 
 
 Dallas (Tex.) Sch., 5s, 1913-51 
 
 Dallas Co. (Tex.) 41/2S, 1951 
 
 Dallas Co. (Tex.) 41/2S, 1921-31 
 
 Dallas Co. (Tex.) 41/38, 1951 
 
 El Paso (Tex.) Wtr. Purch.. 1950 
 
 El Paso (Tex.) Fund., 5s, 1951 
 
 El Paso (Tex. 1932-52 
 
 El Paso (Tex.) Wtr., Swr. & Lt., 5s, 1932-52 
 
 Fort Bend Co. (Tex.) Rd., 58, 10 to 40 yrs 
 
 Fort Worth (Tex.) 6s, 1922 
 
 Fort Worth (Tex.) Ref., 5s, 1920 
 
 Fort Worth (Tex.) 58, 1951 
 
 Fort Worth (Tex.) Str., 41/2S, 1948 
 
 *QuotatiOD nearest March 1, 1913. No quotation on that date. 
 
 1194 
 
 __ "loa.os 
 
 __ 4.85-.70% basis 
 
 __ 4.85-.70% basis 
 
 951/2 98 
 
 — *4.70% basis 
 __ *4.70% basis 
 __ *4.70% basis 
 __ *4.70% basis 
 __ *4.70% basis 
 
 *98 
 II 1031/4 103% 
 
 94 96V« 
 __ *101.56 
 __ *103.06 
 -_ *89 
 *4%% basis 
 __ *100 
 *5% basis 
 *5% basis 
 __ *5.20% basis 
 4.70% basis 
 __ *102.28 
 __ *4.40% basis 
 „ *103i4 
 __ *100 
 __ *4.35% basis 
 __ *4%% basis 
 __ *99 
 __ *4.38% basis 
 __ 4%-.40% basis 
 ~ 43^-l/4% basis 
 
 — 43/4-14% basis 
 ~ 43^-l^% basis 
 
 961/2 981/3 
 93 95 
 __ 4i/2-.40% basis 
 
 100 1011/3 
 
 __ MOI1/3 
 __ *100 
 
 100 1021/3 
 
 102 104 
 __ *103.85 
 -_ ♦103.85 
 
 *100.08 „ 
 
 1041/2 107 
 
 99 101 
 
 103 105 
 98 100 
 
TEXAS (Continued). 
 
 Fort Worth (Tex.) Sch., 4i/oS, 1948 
 
 Fort Worth (Tex.) Sch., 41/2S, 1949 , 
 
 Fort Worth (Tex.) Ref., 4s, 1941 
 
 Fort Worth (Tex.) 5s, 1921 
 
 Frio Co. (Tex.) Rd., 5s, 40 yrs 
 
 Harris Co. (Tex.) 5s, Serially 
 
 Harris Co. (Tex.) 5s, 1939-39 
 
 Hidalgo Co. (Tex.) 5s, 1948 
 
 Galveston (Tex.) 5s, 1915 
 
 Galveston (Tex. Wtr., 5s, 1928 
 
 Galveston (Tex.) 5s, 1921 
 
 Galveston (Tex.) 5s, 1923 
 
 Galveston (Tex.) 5s, 1927 
 
 Galveston (Tex.) 5s, 1944 
 
 Galveston (Tex.) 41/33, 1948 
 
 Galveston (Tex.) 41/28, 1949 
 
 Galveston Co. (Tex.) 5s, 1951 
 
 Harris Co. (Tex.) 4s, 1947 
 
 Houston (Tex.) Comp., 5s, 1918 
 
 Houston (Tex.) Swr., 5s, 1939 
 
 Houston (Tex.) Ref., 5s, 1941 
 
 Houston (Tex.) 4i/oS, 1938 
 
 Houston (Tex.) 41/2S, 1931-41 
 
 Houston (Tex.) 43^3, 1913-52 
 
 Humboldt (Tex.) 41/2S, 1931 
 
 Johnson (Tex.) Wtr., 5s, 1940 
 
 Liberty Co. (Tex.) Rd., 5s, Serially 
 
 Liberty Co. (Tex.) Rd., 5s, 1921-51 
 
 Longview (Tex.) Sewer, 5s, 1932-52 
 
 Longview (Tex.) Sch., 5s, 1932-52 
 
 Medina Co. (Tex.) Rd., 5s, 1917-52 
 
 New Braunfels (Tex.) Wtr., 41/2S, 1917-52 
 
 Orange Co. (Tex.) Rd., 5s, 1932-52 
 
 Port Arthur (T,ex.) 53, 1952 
 
 Reagan Co. (Tex.) 4s, 1950 
 
 Rockwall Co. Sch., 5s, 1929-49 
 
 San Angelo (Tex.) 5s, 1930-50 
 
 San Antonio (Tex.) 6s, 1917 
 
 San Antonio (Tex.) 5s, 1917 
 
 San Antonio (Tex.) 41/2S, 1920 
 
 San Benito (Tex.) St. & Swr., 6s, 1927-52___ 
 
 Shonian (Tex.) 41/2S, 1917 
 
 Sweetwater (Tex.) 5s, 1932-52 
 
 Tarrant Co. (Tex.) 5s, 1952 
 
 Victoria (Tex.) Rd., 5s, 1917-52 
 
 Waco (Tex.) 5s, 1920 
 
 Waco (Tex.) 5s, 1934 
 
 Waco (Tex.) Swr., 5s, 1937 
 
 Waco (Tex.) 4s, 1931 
 
 Waco (Tex.) Wtr., 5s, 1942 
 
 Washington Co. (Tex.) 5s, Serially 
 
 Yoakum (Tex.) Sewer, 5s, 1932-52 
 
 High Low 
 
 971/2 
 
 Bid Asked 
 95 
 
 98 100 
 91 921/3 
 __ *102.52 
 
 *100 
 
 __ *100 
 __ *100 
 __ *100 
 95 98 
 95 98 
 95 98 
 95 98 
 95 98 
 95 100 
 91 95 
 921/2 951/3 
 __ 4.90-.70% basis 
 95 96 
 
 101 1021/3 
 
 99 102 
 IO6I/3 
 100 
 
 __ ■'*101i/3 
 4.55% basis 
 
 ._ *4.90% basis 
 __ *102 
 __ *100 
 
 ._ *4y8% hasis 
 
 — *103.20 
 __ *103.20 
 
 *4% to 5% basis 
 
 __ *95.58 
 __ *102i/3 
 *4%% basis 
 
 — *92 
 __ *102.87 
 __ *103i/3 
 
 _ 4.70-1/2% basis 
 - 4.70-1/2% basis 
 _ 4.70-1/2% basis 
 .- *5i/4% basis 
 
 __ *99.15 
 
 .- *4%% basis 
 
 4.55% basis 
 
 *434% basis 
 
 100 101 
 
 100 101 
 
 -_ 101 
 
 90 93 
 
 1021/2 106 
 
 *5.15% basis 
 
 __ *103.20 
 
 UTAH 
 
 Utah State, 4s, 1916. 
 Utah Ref., 31/38, 1918. 
 
 "Quotation nearest March 1, 1913. No Quotation on that date. 
 
 1195 
 
 4iA% basis 
 414% basil 
 
UTAH (Continued). 
 
 Utah Ref., 314s, 1920 
 
 Green River (Utah) Irr., 68, 11 to 20 yrs 
 
 Logan (Utah) 5s, 1933 
 
 Box Elder Co, (Utah) 41/33, 1932 
 
 Ogden (Utah) 5s, 1913 
 
 Ogden (Utah) Wtr., 5s, 1914-15 
 
 Ogden (Utah) Wtr., 41/2S, 1929 
 
 Ogden (Utah) Ref., 41/28, 1932 
 
 Ogden (Utah) Ref., 4s, 1911 
 
 Ogden (Utah) S. D., 4s, 1922 
 
 Ogden (Utah) Seh., 41/3S, 10 to 20 yrs 
 
 Ogden (Utah) 41/2S, 1933 
 
 Salt Lake City (Utah) 5s, 1914 
 
 Salt Lake City (Utah) Ref., 5s, 1924 
 
 Salt Lake City (Utah) Ref., 4s, 1921 
 
 Salt Lake City (Utah) Wtr., 4s, 1920 
 
 Salt Lake City (Utah) S. & W., 4s, 1925 
 
 Salt Lake City (Utah) S. D., 4s, 1930 
 
 Salt Lake City (Utah) S. D., 41/2S, 1932 
 
 Salt Lake Co. (Utah) 41/2S, 1926 
 
 Sevier Co. (Utah) Sch., 5s, 1922-32 
 
 High Low 
 
 Bid Asked 
 414% basis 
 
 " *102i/2 
 -_ 100 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 __ ♦99 
 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.60% basis 
 4.55% basis 
 __ *102.18 
 
 VERMONT 
 
 Barre (Vt.) Wtr., 4s, 1914 
 
 Barre (Vt.) 31/2S, 1922 
 
 Bennington (Vt.) 4s, 1917 
 
 Brattleboro (Vt.) 4s, 1918 
 
 Burlington (Vt.) 4s, 1919 
 
 Middlebury (Vt.) 4s, 1941 
 
 Montpelier (Vt.) 4s, 1919 
 
 Rutland (Vt.) 4s, 1924 
 
 Rutland (Vt.) 4s, 1937 
 
 VIRGINIA 
 
 Virginia, Deferred 6% Ctfs., 1871 
 
 Virginia, Brown Bros., 6% Ctfs 58 
 
 Virginia, Riddleberger, 5s, 1932 
 
 Virginia, Fund. Debt, 3s, 1991 
 
 Alexandria (Va.) 4s, 1938 
 
 Chase City (Va.) Wtr., 5s, 1942 
 
 Chatham (Va.) Wtr. Swr. & Lt., 51/38, 1927-42 
 
 Cheyenne (Wis.) 5s, 1931 
 
 Colonial Beach (Va.) Wtr. & Swr., 6s, 1937— 
 
 Danville (Va.) Ref., 4s, 1931 
 
 Danville (Va.) 5s, 1910 
 
 Danville (Va.) 41/2S, 1942 
 
 Hampton (Va.) 58, 1949 
 
 Lee Co. (Va.) 5s, 1916-41 
 
 Lunenburg Co. (Va.) Rd., 6s, 20 yrs 
 
 Lynchburg (Va.) Perm. Imp., 5s, 1926 
 
 Lynchburg (Va.) Ref., 41/28, 1927 
 
 Lynchburg (Va.) Pub. Imp., 41/38, 1939 
 
 Lynchburg (Va.) Ref., 43, 1934 
 
 Lynchburg (Va.) 4s, 1935 
 
 Lynchburg (Va.) 4s, 1936 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1196 
 
 58 
 
 99 
 
 95 
 99 
 99 
 99 
 99 
 99 
 99 
 
 47 
 
 100 
 
 - 43/4 
 
 85 851/2 
 848/8 843/4 
 __ *92.46 
 ._ *101.26 
 __ *105.11 
 
 4.60% basis 
 __ *106.62 
 
 4.60% basis 
 __ *101.60 
 __ *100i/o 
 __ *106.6i 
 
 4.70% basis 
 
 *108.60 — 
 102 
 98 
 
 -.60% basis 
 911/0 .- 
 
 - " *94i/2 
 
 - •941/2 
 
VIRGINIA (Continued). 
 
 Newport News (Va.) 41/28, 1948 
 
 Newport News (Va.) St., 4s, 1941 
 
 Newport News (Va.) 41/38, 1918-28 
 
 Newport News (Va.) 41/38, 1943 
 
 Newport News (Va.) 41/38, 1953 
 
 Norfolk (Va.) Renw., 6s, 1914 
 
 Norfolk (Va.) Renw., 6s, 1923 
 
 Norfolk (Va.) Imp., 41/38, 1942 
 
 Norfolk (Va.) Renw., 41/3S, 1941 
 
 Norfolk (Va.) Imp., 41/3S, 1940 
 
 Norfolk (Va.) 4s, 1963 
 
 Norfolk (Va.) Wtr., 4s, 1934 
 
 Norfolk (Va.) Imp., 4s, 1936 
 
 Norfolk (Va.) 5s, 1915 
 
 Norfolk (Va.) 5s, 1924 
 
 Norfolk (Va.) 4s, 1929 
 
 Norton (Va.) Sewer 5s, 1940 
 
 Portsmouth (Va.) 41/38, 1940 
 
 Portsmouth (Va.) Imp., 41/38, 1942 
 
 Richmond (Va.) 5s, 1920-22 
 
 Richmond (Va.) 4s, 1920-30 
 
 Richmond (Va.) 4s, 1938-43 
 
 Richmond (Va.) 4s, 1926 
 
 Richmond (Va.) 48, 1938 
 
 Richmond (Va.) 4s, 1941 
 
 Richmond (Va.) 4s, 1942 
 
 Richmond (Va.) 4s, 1943 
 
 Roanoke (Va.) Ref., 41/3S, 1936 
 
 Roanoke (Va.) St., 41/38, 1940 
 
 Roanoke (Va.) Imp., 4s, 1936 
 
 Tazewell Co. (Va.) 5s, 1923-46 
 
 Smyth Co. (Va.) Rd., 5s, 30 yrs 
 
 Suffolk (Va.) 41/2S, 1936 
 
 Suffolk (Va.) 5s, 1942 
 
 WASHINGTON 
 
 Washington 7s, 5 to 10 yrs 
 
 Washington 6s, 10 yrs 
 
 Washington Sch., 38, 5 to 15 yrs 
 
 Aberdeen (Wash.) 51/3S, 1922-31 
 
 Bellingham (Wash.) 5s, 1926 
 
 Clallam Co. (Wash.) 41/38, 1921 
 
 Everett (Wash.) 5s, 1931 
 
 Everett (Wash.) 7s, 1 to 10 yrs 
 
 Ferndale (Wash.) Wtr., 51/38, 1926-32 
 
 Franklin Co. (Wash.) 58, 1932 
 
 Kennewich (Wash.) Sewer, 51/3S, 1921-31 
 
 King Co. (Wash.) 5s, 1928 
 
 King Co. (Wash.) 41/38, 1931 
 
 Lewis Co. (Wash.) 5s, 1923-32 
 
 Mansfield (Wash.) Wtr., 6s, 1922-32 
 
 North Yakima (Wash.) 6s, 10 yrs 
 
 Olympia (Wash.) 3%s, 1926 
 
 Pasco (Wash.) 7s, 1 to 10 yrs 
 
 Pend Orielle Co. (Wash.) 41/3S, 1922-32 
 
 Pierce Co. (Wash.) Ref., 5s, 1925 
 
 Pierce Co. (Wash.) Ref., 4s, 1926 
 
 ♦Quotation nearest March 1, 1913. No quotation on that date. 
 
 1197 
 
 High Low 
 
 Bid Asked 
 97 100 
 93 96I/3 
 _- *101i4 
 - *101i/3 
 __ *100 
 
 101 
 
 100 
 98 
 98 
 
 90 
 90 
 90 
 
 101 
 
 100 
 
 100 
 
 100 
 
 92 
 
 92 
 
 92 
 
 -_ *100i/3 
 
 - *103i/3 
 
 - *94i/8 
 __ *100 
 
 41/3% basis 
 
 100 
 41/0% basis 
 96 97 
 
 97 
 97 
 97 
 97 
 97 
 97 
 100 
 100 
 
 /2 -- 
 
 96 
 
 96 
 
 96 
 
 96 
 
 96 
 
 96 
 
 98 
 
 98 
 
 921/3 
 4.70% basis 
 
 __ *100.05 
 
 __ *98 
 ^4.70% basis 
 
 *102 to 103 
 
 - *100i/3 
 
 __ *95 
 
 4%%ba8ia 
 
 4.60% basis 
 
 4.80% basis 
 
 4^8% basis 
 
 *103.837 — 
 
 __ *10O 
 
 __ *104.30 
 
 __ *104i/3 
 
 41/3% basis 
 
 41/2% basis 
 
 4.60% basis 
 
 __ •103.66 
 
 __ *100 
 
 4%% basis 
 
 *6i/8% basis 
 
 *4.40% basis 
 
 4.55% basis 
 
 4.55% basii 
 
WASHINGTON (Continued). 
 
 Seattle (Wash.) 5s, 1913-20 
 
 Seattle (Wash.) Swr., 41/28, 1927 
 
 Seattle (Wash.) Wtr., 41/28, 1931 
 
 Seattle (Wash.) Pk., 41/oS, 1931 
 
 Seattle (Wash.) St., 41/2S, 1932 
 
 Seattle (Wash.) 4s, 1929 
 
 Seattle (Wash.) Lib., 4s, 1922 
 
 Seattle (Wash.) S. D., No. 1, 41/2S, 1924 
 
 Seattle (Wash.) S. D., No. 1, 41/2S, 1931 
 
 Seattle (Wash.) Sch., 41/2S, 1918 
 
 Seattle (Wash.) 41/2S, 1932 
 
 Seattle (Wash.) Port, 41/2S, 1945 
 
 Seattle (Wash.) Port, 41/2S, 1926-48 
 
 Seattle (Wash.) Port, 41/2S, 1948-51 
 
 Skagit Co. (Wash.) 41/2S, 1921-31 
 
 Snohomish Co. (Wash.) 5s, 1931 
 
 Spokane (Wash.) Fd., 51/2S, 1918 
 
 Spokane (Wash.) Pk., 5s, 1927 
 
 Spokane (Wash.) Edge., 41/2S, 1931 
 
 Spokane (Wash.) Wtr., 41/28, 1935 
 
 Spokane (Wash.) Pk., 41/2S, 1962 
 
 Spokane (Wash.) Wtr., 4s, 1925 
 
 Spokane (Wash.) S. D., No. 81 41/2S, 1929 
 
 Spokane (Wash.) S. D. No. 81 41/2S, 1931 
 
 Spokane (Wash.) S. D. No. 81 4s, 1922 
 
 Spokane Co. (Wash.) 4s, 1921 
 
 Spokane (Wash.) 6s, 10 yrs 
 
 Spokane (Wash.) Wtr. 5s, 1910-31 
 
 Sprague (Wash.) Wtr. & Lt. 51/2S, 1932 
 
 Sumas (Wash.) 7s, 1914-23 
 
 Stevens Co. (Wash.) 41/oS, 1929 
 
 Tacoma (Wash.) 41/2S 
 
 Tacoma (Wash.) 73, 1914-18 
 
 Tacoma (Wash.) Wtr. 41/28, 1930-32 
 
 Tacoma (Wash.) 41/2S, 1932 
 
 Tacoma (Wash.) Wtr. 5s, 1933 
 
 Tacoma (Wash.) 5s, 1920 
 
 Tacoma (Wash.) Lt. & Pr. 41/2S, 1929 
 
 Tacoma (Wash.) Ref. 41/2S, 1931 L 
 
 Tacoma (Wash.) S. D. No. 10, 41/38, 1920 
 
 Whatcom Co. (Wash.) 41/2S, 1922 
 
 WEST VIRGINIA 
 
 Oiarleston (W. Va.) 41/2S, 1941 
 
 Clarksburg (W. Va.) S. D. 5s, 1941 
 
 Fairmont (W. Va.) Sch. 5s, 1927-42 
 
 Grafton (W. Va.) Wtr. 5s, 1934-45 
 
 Hancock (W. Va.) Grt. Rd. Dis. 5s, 1946 
 
 Hancock Co. (W. Va.) Rd. 5s, 20 to 34 yrs___ 
 
 Kenova (W. Va.) 5s, 1939 
 
 Martensburg (W. Va.) 5s, 1943 
 
 McDowell Co. (W. Va.) Sch. 5s, 1933-43 
 
 Wheeling (W. Va.) 6s, 1924 
 
 Wheeling (W. Va.) City 5s, 1919 
 
 Wheeling (W. Va.) Edge. 41/2S, 1924 
 
 Wheeling (W. Va.) Ref. 4s, 1936 
 
 Union (W. Va.) 5s, 1923-34 
 
 'Quotation nearest March 1, 1913. No quotAtlon on that date. 
 
 1198 
 
 High Low 
 
 Bid Asked 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 4.55% basis 
 __ *99.83 
 ._ *100V4 
 
 *4.70% 
 *97.33 to 
 
 4.70% 
 
 4%% 
 
 4y8% 
 
 4.55%j 
 4.55% 
 4.55% 
 4.55% 
 4.55% 
 4.55% 
 4.55% 
 4%% 
 
 *4%% 
 
 *5i/4% 
 
 *6%% 
 
 100 
 
 *4.40% 
 *6i/8% 
 
 *4.40% 
 *4i/2% 
 
 41/2% 
 41/2% 
 41/2% 
 41/2% 
 4.70%> 
 
 basis 
 97.41 
 *100.90 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 basis 
 *100 
 basis 
 basis 
 basis 
 
 basis 
 basis 
 basis 
 basis 
 *101% 
 basis 
 basis 
 basis 
 basis 
 basis 
 
 ._ 4.60-1/2% basis 
 __ 103.80 
 *4i/2% basis 
 _- *4.60% basis 
 -_ 103 
 -_ *100 
 __ *4%%, basis 
 4.60% basis 
 __ *4.70% basis 
 103 
 101 
 100 
 98 101 
 — *4.70% basis 
 
 I 
 
WISCONSIN 
 
 Appleton (Wis.) 41/28, 1914-32 __ __ 4.30% basis 
 
 Bayfield Co. (Wis.) 5s, 1918 — __ 4.35% basis 
 
 Eagle River (Wis.) 5s, 1916-18 __ — *5% basis 
 
 Green Bay (Wis.) 5s, 1914-17 — — 4.30% basis 
 
 Green Bay (Wis.) Ref. 4s, 1913-20 __ __ 4.30% basis 
 
 Junean Co. (Wis.) 6s, Ser. 1917-31 __ __ *5l^% basis 
 
 Kenosha (Wis.) SVaS, 1919 „ — 4^4% basis 
 
 La Crosse (Wis.) 5s, 1915 „ _. 4l^% basis 
 
 La Crosse (Wis.) Wtr. 41/28, 1932 — — 4.30% basis 
 
 La Crosse (Wis.) Wtr. 4s, 1931 __ __ 97 98 
 
 La Crosse (Wis.) Ref. 31/38, 1919 __ — 4.30% basis 
 
 Langlade Co. (Wis.) 4s, 1914-23 __ „ 4.30% basis 
 
 Madison (Wis.) 4s, 1925 „ __ 4l^% basis 
 
 Marshfield (Wis.) 41/3S, 1922-32 __ __ 4.35% basis 
 
 Milwaukee (Wis.) Lib. & Mun. 5s, 1917 — — 4.15% basis 
 
 Milwaukee (Wis.) Wtr. 41/2S, 1932 — — 4.20% basis 
 
 Milwaukee (Wis.) Viad. 4s, 1926 — __ 4.15% basis 
 
 Milwaukee (Wis.) 31/38, 1921 — — 4.15% basis 
 
 Milwaukee Co. (Wis.) 4s, 1925 __ — 4.15% basis 
 
 Milwaukee Co. (Wis.) St. 4s, 1927 — — — *97% 
 
 Monticello (Wis.) Wtr. 53, 1922-31 __ „ *4.75% basis 
 
 New London (Wis.) 41/2S, 1917-27 — __ *4i/2% basis 
 
 Oakfield (Wis.) 4s, 1914-32 __ __ *4.40% basis 
 
 Owen (Wis.) Sewer 6s, 1917-21 __ — *5% basis 
 
 Racine (Wis.) Ref. 41/2S, 1930 „ — 4l^% basis 
 
 Racine (Wis.) Sch. 4s, 1923 >_ — 4i/4% basis 
 
 Racine (Wis.) Sch. 31/2S, 1919 __ — 4.30% basis 
 
 Racine Co. (Wis.) 4s, 1923 __ — 4.15% basis 
 
 Racine Co. (Wis.) 41/3S, 1913-26 — — *4i4% basis 
 
 Racine Co. (Wis.) 41/38, 1913-27 — __ *4.30% basis 
 
 Racine Co. (Wis.) 41/38, 1924-27 — — *4.20% basis 
 
 Rhinelander (Wis.) 1913-19 __ — 4%% basis 
 
 Richland Center (Wis.) Elec. Lt. 4s, 1914-24__ __ __ *4.30% basis 
 
 So. Milwaukee (Wis.) 6s, 1913 __ — 4.40% basis 
 
 Stoughton (Wis.) Sch. 5s, 1916 — — — *102.10 
 
 Wausan (Wis.) 4s, 1913-25 __ — 4.35% basis 
 
 Uinta Co. (Wis.) 41/3S, 1913-18 __ — 4.70% basis 
 
 West AUis (Wis.) Sch. 6s -_ — *4.40% basis 
 
 WYOMING 
 
 GreybuU (Wyo.) Wtr. 6s, 1926-41 
 
 Guernsey (Wyo.) Wtr. 6s, 1925-40 
 
 Riverton (Wyo.) Wtr. 6s, 1925-40 
 
 Worland (Wyo.) Wtr. 6s, 1925-40 
 
 101 
 1011/2 
 101 
 101 
 
 FOREIGN COUNTRIES, CITIES, ETC. 
 
 Amsterdam (Holland) 4s of 1900-01 __ __ 100 101 
 
 Amsterdam (Holland) 48 of 1904 __ __ 100 101 
 
 Argentine Republic Interm. 5s of 1909 „ __ 98 991/3 
 
 Augsburg (Ger.) 4s __ — 96 97iA 
 
 Austrian Government, Perpet. 4s __ __ 107 108 
 
 Austrian Government Treas. 41/2S, 1914-15 __ „ 971/2 98 
 
 Baden (Grd. Duchy) 48, 1909 __ — 99 100 
 
 Bavaria (Ger.) 4s __ — 981/3 99% 
 
 Berlin (Ger.) 31/2S __ — 89l^ 901/3 
 
 Brazil (U. S. of) 5s of 1903 — — 99 101 
 
 Chinese Government 5s — 100 101 
 
 ^Quotation nearest March 1, 1913. No quotation on that date. 
 
 1199 
 
FOREIGN COUNTRIES, CITIES, ETC. (Continuea). 
 
 High Low Bid Asked 
 
 Chinese Government Hukuang Ry. 5s, 1951 — __ __ __ 88 
 
 Cologne (Ger.) 4s „ __ 99 100 
 
 Copenhagen (Denmark) 4s of 1901 — — 96 971/2 
 
 Copenhagen (Denmark) SVgS __ — 881/2 891/2 
 
 Cuba (Republic of) Extern 5s, 1944 lOli/g __ 
 
 Cuba (Republic of) Intern. 5s, 1913 „ __ 96 97 
 
 Cuba (Republic of) Extern. 41/2S, 1949 — __ __ 97 
 
 Dominican Republic Cus. Adm. 5s, 1958 __ __ 100l^ 
 
 France (Republic of) Perpet. 3s __ „ 88% 89% 
 
 Frankfort (Ger.) 31/28 of 1901 __ __ 89 90iA 
 
 Galisco (Mex.) 6s 1918-28 __ __ 95 100 
 
 Galisco (Mex.) 6s, 1921-30 __ __ 95 100 
 
 Galisco (Mex.) Sil. 6s, 1933 __ __ __ 45 
 
 German Government 31/2S __ »_ 86 87 
 
 German Government Perpet. 31/2S __ __ 86 87 
 
 German Government Perpet. 3s __ __ 75% 76% 
 
 German Government New 4s 98 100 
 
 Great Britain Cons. 21/2S, op. 1923 „ __ 731/2 74% 
 
 Hamburg (Ger.) 4s __ __ 981/2 98% 
 
 Hamburg (Ger.) 3s of 1902 __ __ 7778 79 
 
 Havana (Cuba) 1st 6s, 1939 — — 106 108 
 
 Havana (Cuba) 2d 6s __ __ 103 105 
 
 Hawaii (Terr, of) Imp. 41/2S, 1921 __ __ 10014 __ 
 
 Hawaii (Terr, of) Imp. 4%s, 1920 __ __ IOO1/4 »_ 
 
 Hawaii (Terr, of) Imp., 4s, 1941 __ _. 1021/9 — 
 
 Hawaii (Terr, of) Imp. 48, 1942 __ — 1021/3 — 
 
 Hawaii (Terr, of) Imp. 31/2S, 1921 __ __ 95% „ 
 
 Italian Government Perpet. 31/2S __ __ 97 98 
 
 Japanese Government 41/2S, 1925 __ 87% 89 
 
 Japanese Government Second Series 1925 __ __ 86% 871/3 
 
 Japanese Government 4s, 1931 __ __ 80% 8O1/3 
 
 Japanese Government 41/2S, 1925 8778 89 
 
 Japanese Government 2d 41/2S, 1925 __ __ 86% 871/2 
 
 Japanese Government 4s, 1931 80% 8O1/2 
 
 Mexico (U. 'S. of) Ref. 5s, 1944 __ __ __ 96% 
 
 Mexico (U. S. of) Cons. 5s of 1894 __ __ 40 45 
 
 Mexico (U. S. of) 4s, 1954 _. __ __ 84 
 
 Mexico (U. S. of) Internal 3s __ __ 25 35 
 
 Munich (Switz.) 4s __ __ 97% 981/2 
 
 Philippine Islands Ld. Pur. 4s, 1934 >_ __ 1021/3 103% 
 
 Philippine Islands Wtr. & Imp. 4s, 1935 _. __ 101% 103 
 
 Philippine Islands Man. R. R. So. L. 4s, 1939 — __ — 86 
 
 Philippine Islands Phil. Ry. 4s, 1937 — __ — 80% 
 
 Porto Rico 4s, 1914-33 __ __ 3.80% basis 
 
 Porto Rico, 4s, 1937 _. _. 103% __ 
 
 Prussian Government Perpetual 38 75% 
 
 Prussian (Ger.) 3s, 1902 „ „ 76 77 
 
 Prussian (Ger.) New 4s __ _. 98 991/3 
 
 Russian Government 4s of 1903 __ __ 891/2 91 
 
 Sao Paulo (Brazil) Treas. 5s, 1919 __ __ 961/3 97 
 
 Saxony (Ger.) 3s __ __ 77% 79 
 
 Stockholm (Switz.) 4s, 1941 __ __ 98 99 
 
 Swedish Government 4-31/2S, 1920 __ __ 85 88 
 
 Tokyo (Jap.) 5s of 1912 __ __ 86 
 
 Vera Cruz. (Mex.) 5s, 1930 __ __ 80 90 
 
 Vienna (Aus.) 4s _» __ 85 87 
 
 Wladikawkas (Russia) 4s, 1957 — __ 84 87 
 
 *Quotatlon nearest March 1, 1913. No quotation on that date. 
 
 1200 
 
Treasury Decisions, etc. 
 
 The following Treasury Decisions, Court De- 
 cisions and other Income and Excess Profits Tax 
 data promulgated under the Act of September 8th, 
 1916, as amended, and the Act of October 3rd, 1917, 
 have been issued since the publication of the Stand- 
 ard Manual of Income Tax for 1917, and although 
 some of these Decisions have no direct bearing on 
 the Revenue Bill of 1918, they are published for the 
 guidance and benefit of those who may be required to 
 file amended returns for the year 1917 and also for 
 information where the subject matter pertains to 
 the Revenue Act of 1918. 
 
 1201 
 
(T. D. 2649.) 
 
 Returns made by Dealers in Merchandise or Securities on the 
 Basis of Inventories taken at "Cost or Market Value, 
 which is Lower" will, Pending a Decision as to the Legality 
 of this Basis, be Accepted Subject to Amendment. "A 
 Dealer" Defined. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, January 30, 1918. 
 
 To Collectors of Internal Revenue: 
 
 T. D. 2609, issued under date of December 19, 1917, author- 
 izes dealers in merchandise and dealers in securities to make 
 their income-tax and excess -profits tax returns upon the basis 
 of inventories taken "at cost or at market price, whichever 
 is lower." 
 
 The legality of this authorization having been questioned, 
 the matter was referred to the Attorney General, who advises 
 that the general principle at issue is involved in cases pending 
 in the Supreme Court of the United States and that an 
 early decision may be reasonably expected. Pending this deci- 
 sion returns macie upon the basis of T. D. 2609 will be tenta- 
 tively accepted. 
 
 If the ruling of the Attorney General should be adverse to 
 the principle enunciated in the Treasury decision referred to, 
 dealers in merchandise or in securities who shall have made 
 returns on the basis of inventories taken at a value other 
 than cost will be required to make amended returns upon the 
 basis of inventories taken at cost. In making their returns 
 in the first instance, for the taxable year 1917, dealers in mer- 
 chandise or in securities will be required to indorse upon or 
 attach to such returns a statement specifying the basis upon 
 which the inventories were taken, whether at cost or market 
 price. 
 
 For the purposes of T. D. 2609 and this decision, a dealer in 
 securities is a merchant of securities, whether an individual, 
 partnership, or corporation, with an established place of busi- 
 ness and whose principal business is the purchase of securities 
 and their resale to customers, that is, one who, as a merchant, 
 buy* securities and sells them to customers with a Adew to the 
 gains and profits that may be derived therefrom. Taxpayers 
 who buy and sell or hold securities for investment or specu- 
 lation, and not in the course of an established business, officers 
 of corporations or members of partnerships who in their 
 individual capacities buy and sell securities are not "dealers 
 in securities" within the meaning and purpose of T. D. 2609 
 or this decision, and in all such latter cases inventories, if 
 taken, must be taken at cost and the gain or loss will be 
 determined and taken into account as the securities are sold 
 and the transactions closed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 1203 
 
(T. D. 2652.) 
 
 Interest on Bank Deposits Paid to Non-Resident Alien Indi- 
 viduals Is Subject to Withholding Provisions of Act of 
 October 3, 1917. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, February 6, 1918. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Interest received from deposits in banks located within the 
 United States constitutes income received from sources within 
 the United States and is subject to the withholding provisions 
 of the Act of September 8, 1916, as amended by the Act of 
 October 3, 1917, as to non-resident alien individuals. Banks 
 are, therefore, required to withhold the normal tax of two per 
 cent on such interest paid to non-resident alien individuals. 
 
 Though non-resident alien corporations are liable to income 
 tax on interest received from deposits in banks located within 
 the United States, that portion of Treasury Decision 2623 
 authorizing withholding of such tax against such corporations 
 is hereby revoked. 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved : 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2654.) 
 
 Internal Revenue Claims. 
 Modified Procedure for Claims for Refund and Abatement. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C, February 19, 1918. 
 
 To Collectors of Internal Revenue: 
 
 The following modifications in the procedure with regard t« 
 claims on Forms 46, 47, 53 and 488 is prescribed. 
 
 1. Claims on Form 46 and Form 47 will not hereafter be 
 referred to division deputies for investigation, and the divi- 
 sion deputy's certificate on page 2 of the claims need not be 
 executed. Where an investigation is necessary it will be 
 directed by the commissioner to be made. 
 
 2. All claims on Forms 46 and 47 are to be stamped with 
 the date of receipt immediately on presentation to the collec- 
 tor or division deputy, and thereafter are to be forwarded, 
 without further recording or certification, immediately to the 
 commissioner. 
 
 Two Exceptions to this Rule Are to be Especially Noted. 
 
 (a) The certificate on page 2 of the claim is to be executed 
 in the case of claims for taxes paid by special tax stamp, since 
 there is no data in the commissioner's office which will per- 
 mit the verification of these claims without the collector's 
 certificate. 
 
 (b) When a claim is filed for abatement such notation is to 
 be made on the collector's assessment list on Form 23, as will 
 
 1204 
 
the issuance of collection notices until after the abatement 
 claim has been acted upon, unless of course the collector 
 deems the interests of the Government insufficiently protected 
 to justify suspension of the collection. 
 
 3. The use of Record No. 22 is to be abandoned. Record 
 No. 23 will continue to be used, as at present. 
 
 4. Form No. 7213, notification of allowance of refunding 
 claim, will not longer be forwarded to collectors. 
 
 5. Hereafter where an abatement claim is acted upon, the 
 collector will receive an original letter addressed to the claim- 
 ant and a carbon copy for the collector's files. The original 
 is to be mailed the claimant immediately with notice and 
 demand for the payment of any tax shown by the letter and 
 the assessment list to be due. 
 
 6. Where the claim is allowed in full, credit for the abated 
 tax is not to be taken by the collector until the receipt of 
 schedule on Form 3220. This schedule will be prepared and 
 mailed to the collector monthly, as heretofore. 
 
 7. Because of the distribution of the claims work to the 
 various divisions of the bureau, it is no longer practicable to 
 consider a claim on Form 46 or 47, 5^ or 488, covering taxes 
 assessed upon more than one of the lists of the various classi- 
 fications. In presenting their own claims on Forms 53 and 
 488, therefore, collectors will hereafter group in their claims 
 the items which are upon the list, or lists, of a given class, 
 and if a claimant makes claim on Form 46 or 47 for the re- 
 mission or refund of taxes assessed upon more than one kind 
 of list, the collector will assist the claimant in formulating 
 new claims correctly prepared. 
 
 Regulations Nos. 2, 14 and 33 (Art. 247-273) are modified 
 accordingly. 
 
 The purposes of the modification of the former procedure 
 with regard to claims are to eliminate a duplication of detail 
 in the collector's and the commissioner's office, and the accom- 
 modation of the taxpayer by making it possible for him to 
 secure a much more prompt consideration of his claims than 
 has been possible heretofore. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 
 W. G. McADOO, 
 
 Secretary. 
 
 (T. D. 2659.) 
 Basis of taxation of dividends. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, February 28, 1918. 
 
 To Collectors, Internal Revenue Agents and others concerned: 
 From inquiries reaching this office, it is apparent that there 
 is confusion in the minds of the public as to the effect and 
 application of the provisions of Section 31 of the Act of Sep- 
 tember 8, 1916, added by the Act of October 3, 1917, Section 
 1211, relative to the basis of taxation of certain dividends. 
 That section, after defining dividends, provided that "any dis- 
 tribution made to the shareholders or members of a corpora- 
 
 1205 
 
tion * * * in the year 1917, or subsequent tax years, shall 
 be deemed to have been made from the most recently accumu- 
 lated undivided profits or surplus, and shall constitute a part 
 of the annual income of the distributee for the year in which 
 received, and shall be taxed to the distributee at the rates 
 prescribed by law for the years in which such profits or sur- 
 plus were accumulated * * *." 
 
 Regulations No. 33 (Revised), Article 107, paragraph 375, 
 provide as follows: 
 
 "Thus, if a corporation distributed dividends in 1917, such 
 dividends will be deemed to have been paid from the earnings 
 of 1917, and the recipient, if an individual, will be liable to 
 additional tax, if any, and if a corporation, to income tax, at 
 the rates for the year 1917, unless it is shown to the satis- 
 faction of the Commissioner of Internal Revenue that at the 
 time such dividends were paid, the earnings up to that time 
 were not sufficient to cover the distribution, in which case the 
 excess over the earnings of the taxable year will be deemed 
 to have been paid from the most recently accumulated surplus 
 of prior years, and will be taxed at the rate or rates for the 
 year or years in which earned." 
 
 The rule may be applied as follows: Assume that a cor- 
 poration with a capital stock of $10,000,000 had surplus earn- 
 ings of $500,000 a year in excess of the amount of dividends 
 paid, making its total surplus on 
 
 December 31, 1915, $500,000, and on 
 December 31, 1916, $1,000,000. 
 
 On December 31, 1916, it declared a dividend of 2% payable 
 February 15, 1917. Unless it is shown to the satisfaction of 
 the Commissioner of Internal Revenue that its earnings from 
 January 1 to February 15 were insufficient for the payment of 
 the $200,000 distributed as a dividend on February 15, the 
 entire amount so distributed will be deemed to have been paid 
 from earnings of 1917, and will be taxable in the hands of the 
 stockholders at the 1917 rate. If, however, it is established 
 to the satisfaction of the Commissioner of Internal Revenue 
 that its earnings up to February 15 were but $100,000, then 
 $100,000 or half of the total dividend paid by the corporation 
 on February 15th would be taxable in the hands of the stock- 
 holders at the 1917 rates, and the other half would be deemed 
 to have been paid from the surplus of the corporation of 1916 
 and would be taxable to the stockholders at the 1916 rate. If 
 the dividend paid on February 15 were of such amount as to 
 exceed the ascertained 1917 earnings up to the date of pay- 
 ment and also the 1916 surplus of the corporation, the amount 
 of such excess would be deemed to have been paid from the 
 surplus of 1915 and would be taxable in the nands of the 
 stockholders at the 1915 rate. 
 
 All dividends received in 1917, even though paid by corpora- 
 tions from earnings of previous years, constitute income to 
 the recipients for 1917. The method of ascertaining the pre- 
 cise rate applicable to such portions of dividends received in 
 1917, as within the above rules, are to be taxable at rates pre- 
 vailing for previous years, is as follows:. The amoimt of the 
 income of the recipient to which the 1917 rates are applicable 
 is first ascertained. To such amount is then added the amount 
 of income of the recipient liable to tax at the 1916 rates and 
 the table of 1916 rates applied to see in which brackets such 
 income falls; the income liable to 1915 rates then added and 
 the table of 1915 rates applied to it. For instance, an indi- 
 
 1800 
 
vidual has $20,000 of income liable to 1917 rates and $25,000 
 of dividends liable to 1916 rates. The total would be $45,000, 
 of which $20,000 would be taxable at the 1917 rates, $20,000 
 to $40,000 at the 1% additional tax rate under the 1916 table 
 and $5,000 at the 2% additional tax rate under the same table. 
 If he had another $25,000 dividend liable at 1915 rates, the 
 first $5,000 would fall in the bracket between $20,000 and 
 $50,000 at the 1% additional tax rate, and the other $20,000 
 in the second bracket of $50,000 to $75,000 at the 2% addi- 
 tional tax rate under the 1915 table. 
 
 In order that this office may verify the correctness of the 
 rates, taxpayers reporting dividends received at other than 
 1917 rates, under the various columns in Block F of Form 
 1040, will be required to render a statement at the time of 
 filing the return, or at a subsequent date, showing the cor- 
 porations from which dividends taking other than 1917 rates 
 were received, with the amount of dividend received from each. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2660.) 
 
 Corporations, partnerships, or individuals paying officers or 
 business employees a portion or all of their salaries and 
 wages during the war period in which they are in the 
 service of the United States may deduct the amounts so 
 paid as ordinary and necessary expenses of doing business. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 1, 1918. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 Many corporations, partnerships and also individuals who 
 are engaged in business continue to pay all or portions of the 
 regular compensation of officers or employees who have for all 
 or part of the period of the war joined the naval or military 
 forces of the United States or have undertaken service for 
 the Government at Washington or elsewhere at reduced or 
 nominal compensation. The business purpose of the continu- 
 ance of such compensation, under such circumstances, is to 
 preserve the organization and secure the return after the war 
 of such officers or employees. You are advised that amounts 
 so expended by corporations, partnerships or individuals en- 
 gaged in business constitute during the continuance of the war, 
 ordinary and necessary expenses of doing business and are 
 allowable as deductions in computing net income for purposes 
 of the income, war income and excess profits taxes. 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved : 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 1807 
 
(T. D. 2661.) 
 CORPORATION TAX— DECISION OF COURT. 
 
 1. Section 3225, Revised Statutes. 
 
 The plaintiff having understated in its original return 
 the amount for which it was subject to tax is not entitled 
 to recover any part of a second assessment paid, although 
 the original return was made in good faith and without 
 any intention to escape lawful tax. 
 
 2. Amendment to Section 3225, Revised Statutes. 
 
 The amendment to Section 3225, Revised Statutes (Sec. 
 14, Act of September 8, 1916), providing that it shall not 
 apply to statements or returns made or to be made in 
 good faith regarding annual depreciation of oil or gas wells 
 and mines, does not purport to be retroactive in its opera- 
 tion. 
 
 3. Judgment Aflfirmed. 
 
 The judgment of the United States District Court (T. D. 
 2366) is affirmed. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 5, 1918. 
 
 The appended decision of the United States Circuit Court 
 of Appeals for the Eighth Circuit, in the case of Camp Bird 
 (Ltd.) V. Frank W. Howbert, collector of internal revenue, is 
 published for the information of internal revenue officers and 
 others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 United States Circuit Court of Appeals, Eigrhth Circuit. 
 
 No. 4939— December Term, 1917. 
 Camp Bird (Ltd.), a corporation, plaintiff in error, v. 
 
 Frank W. Howbert, as collector of internal revenue 
 
 within and for the district of Colorado, defendant in 
 
 error. 
 In error to the District Court of the United States for the 
 
 district of Colorado. 
 Before Garland, Circuit Judge, and Amidon and Munger, 
 
 District Judges. 
 
 Munger, District Judge, delivered the opinion of th» 
 court : 
 
 This action was brought by plaintiff In error, hereafter 
 called plaintiff, against defendant In error, as collector of 
 Internal revenue of the United States for the district of 
 Colorado, hereafter called defendant. The object of the 
 action was to recover sums of money that plaintiff had 
 paid to defendant as an internal revenue tax. A jury was 
 waived and the trial court entered judgment upon special 
 findings of facts, dismissing plaintiff's action. 
 
 Briefly stated, the court found that the plaintiff was the 
 owner of valuable and productive mining property In Col- 
 ado, after the year 1902, and that it made a return for each 
 of the years 1909, 1910 and 1911 to the collector of internal 
 revenue, purporting to set forth its income for each of 
 those years, under the provisions of the act of Congress 
 approved August 5, 1909 (36 Stat., 112), relating to an 
 excise tax on corporations. In these returns the plaintiff 
 stated the items of charge and credit and the net annual 
 Income which it considered subject to tax. The Commia- 
 sioner of Internal Revenue found that deductions claimed 
 In each of these returns had been overstated, and that th« 
 
 1208 
 
amount subject to tax had been understated, and made 
 additional assessments against the plaintiff and notified 
 it of his action. The plaintiff, under protest, paid the 
 additional taxes levied. An application to the Commis- 
 sioner of Internal Revenue for an abatement of the addi- 
 tional tax was denied by the commissioner, and this action 
 waa then begun. While the court found that the plaintiff 
 had understated its net income upon which it was re- 
 quired to pay the excise tax, it was further found that the 
 understatement was not made fradulently, knowingly, 
 wilfully, nor for the purpose of defrauding the United 
 States, but was made in good faith and with the belief 
 that the figures presented stated the facts. The only 
 question in the case is whether the Judgment is supported 
 by these findings. 
 
 Section 3225 of the Revised Statutes as it existed at the 
 time these taxes were levied and collected was as follows: 
 
 When a second assessment is made in case of 
 any list, statement, or return, which in the opinion 
 of the collector or deputy collector was false and 
 fraudulent, or contained any understatement or 
 undervaluation, no taxes collected under such as- 
 sessment shall be recovered by any suit, unless it 
 is proved that the said list, statement, or return 
 was not false nor fraudulent, and did not contain 
 any understatement or undervaluation. 
 
 It is contended that this section was meant to be ap- 
 plied only to those who intentionally made false state- 
 ments or undervaluations, because when this act was 
 passed an accurate statement of the facts required in 
 returns by taxpayers could be made, whereas returns 
 under the corporation tax law necessarily must be esti- 
 mates. 
 
 By the acts of Congress approved June 30, 1864 (13 Stat., 
 223), as amended and supplemented by the acts of Con- 
 gress of March 3, 1865 (13 Stat., 469), of July 13, 1866 (14 
 Stat., 98), and March 2, 1867 (14 Stat., 471), a general 
 system of internal revenue was provided to meet the 
 financial burdens imposed by the Civil War. Taxes were 
 imposed generally upon property, occupations, industries 
 and incomes. Many classes of persons subject to taxation 
 were required to make sworn lists or returns of property 
 subject to tax. The values of property were to be re- 
 ported and amounts of net income, and the accurate state- 
 ment of many of the items required were quite as difficult 
 as the ascertainment of the required items under the 
 present corporation tax. Section 14 gave the assessor 
 power to summon a declarant and to examine him and hi« 
 books, if in his opinion the return was either false or 
 fraudulent or contained any understatement or under- 
 valuation. If the return was false or fraudulent, the 
 assessor was required to increase the tax by 100 per cent. 
 An unexcused neglect or refusal to make or to verify 
 a list was penalized by the addition of 50 per cent to the 
 tax. By Section 20 the assessor was empowered to fix the 
 amount of additional tax to be paid, when there had been 
 an omission, understatement, undervaluation or false oi 
 fraudulent statement. Section 44 authorized the Commis^ 
 sioner of Internal Revenue to refund excessive taxes col- 
 lected and to repay to collectors amounts recovered in court 
 against them for taxes collected by them, but provided 
 that no taxes should be recovered, refunded or paid back, 
 where a second assessment had been made because the 
 first list had been, in the opinion of the assessor, either 
 false, fraudulent, or contained any understatement or 
 undervaluation, unless it was proved that the return was 
 not false or fraudulent, or did not contain any understate- 
 ment or undervaluation. The substance of these enact- 
 ments has continued in force ever since. (See Rev. Stats., 
 Sees. 3173, 3176, 3182, 3220, 8225; U. S. Comp. Stats. Ann., 
 Sees. 5896, 5899, 5904, 5944, 5048). They evince a discrimi- 
 nating use of terms as between false and fraudulent re- 
 turns and those that contain only an understatement or 
 valuation, and provide remedies and penalties apportioned 
 to the several delinquencies. The mere undervaluation or 
 understatement in a return is made a basis for sum- 
 moning the delinquent to appear and be examined 
 and a basis also for imposing an additional- as- 
 sessment, and prevents the Commissioner of Internal 
 
 1209 
 
Revenue from making a refund or remission of taxes. The 
 further provision found In Section 3225 of the Revised 
 Statutes, denying recovery by suit of any tax imposed 
 under a second assessment, because In the opinion of the 
 collector or his deputy, the former return was false or 
 fraudulent or contained an understatement or undervalua- 
 tion, unless It is proved that the prior list was not false 
 nor fraudulent nor contained any understatement nor 
 undervaluation, Is in harmony with these provisions, and 
 manifest the intention of Congress that no recovery may 
 be had although the undervaluation or understatement was 
 made unintentionally. See Bergdoll r. Pollock (95 U. S., 
 837). 
 
 The proposition Is advanced that this construction of Sec- 
 tion 3225 renders It violative of the Constitution, as it 
 would result in the confiscation of plaintiff's property. 
 It is well settled that "this corporation tax act imposed 
 an excise tax and the only limitation on the power of 
 Congress in the imposition of excise taxejs is that they 
 shall be uniform throughout the United States." United 
 States V. Singer (15 Wall., Ill, 121) : Pacific Insurance Co. 
 V. Soule (7 Wall., 433, 446). By this a geographical uni- 
 formity is meant. Flint v. Stone Tracy Co. (220 U. S., 107). 
 The provisions laying an additional tax proportionate to 
 the pi-operty omitted from the list on all who make any 
 understatement or undervaluation operates uniformly 
 on all of that class of persons wherever found 
 and hence was within the power of Congress. The re- 
 fusal of a right of action to recover such taxes, unlesi 
 proof is made that there was no understatement or under- 
 valuation is likewise within the scope of the legislative 
 power. It is claimed that "Section 3225, Revised Statutes, 
 does not apply to the suit for the recovery of taxes col- 
 lected under the corporation tax of 1909. This section ap- 
 plies to internal revenue taxes generally" and the corpora- 
 tion tax is one embraced in that class. In addition the 
 corporation tax law contained a clause as follows (p. 951 
 Bupp. to U. S. Comp. Stats., 1911): 
 
 All laws relating to the collection, remission, and 
 refund of internal revenue taxes, so far as ap- 
 plicable to and not inconsistent with the provisions 
 of this section, are hereby extended and made ap- 
 plicable to the tax imposed by this section. 
 
 We think that Section 3225, Revised Statutes, Is a part 
 of the laws relating to the refund of internal revenue 
 taxes, as Section 3220, Revised Statutes, provides that the 
 Commissioner of Internal Revenue is authorized to refimd 
 to the collector any amount that may be recovered against 
 him in any court for any internal taxes collected by him. 
 
 Plaintiff also contends that the Judgment is erroneous, 
 because after final Judgment was entered in this case Con- 
 gress enacted an amendment to Section 3225, Revised Stat- 
 utes, which reads (p. 6984, 6 U. 3. Comp. Stats., Ann.) : 
 "♦ ♦ • But this section shall not apply to statements or 
 returns made or to be made in good faith under the laws 
 of the United States regarding annual depreciation of oil 
 or gas wells and mines." 
 
 This statute does not purport to be retroactive in Its 
 operation and hence can not affect the Judgment in this 
 case. This disposes of all questions that require con- 
 sideration. 
 
 The Judgment will be affirmed. 
 
 (T. D. 2662.) 
 
 When consolidated returns are to be made for purposes of the 
 excess profits tax. 
 
 Treasury . Department, 
 Washington, D. C, March 6, 1918. 
 
 To Collectors of Internal Revenue, Rerenue Agents and Others 
 Concerned : 
 Pursuant to Article 78 of Regulations 41 relative to war 
 excess profits tax, afi'iliated corporations as limited and de- 
 
 1810 
 
fined in paragraphs C and D below are hereby directed to make 
 consolidated returns for the purpose of excess profits tax. 
 Affiliated corporations other than those falling within the 
 provisions of paragraphs C and D may make a consolidated 
 return only after having secured permission in writing from 
 the Commissioner of Internal Revenue. Affiliated corporations 
 are defined in Article 77 of the Regulations as follows: 
 
 For the purpose of this regulation two or more cor- 
 porations will be deemed to be afRliated (1) when one 
 such corporation owns directly or controls through 
 closely affiliated interests or by a nominee or nom- 
 inees, all or substantially all of the stock of the other 
 or others, or when substantially all of the stock of 
 two or more corporations is owned by the same indi- 
 dividual or partnership, and both or all of such cor- 
 porations are engaged in the same or a closely re- 
 lated business; or (2) when one such corporation 
 (a) buys from or sells to another products or serv- 
 ices at prices above or below the current market, thus 
 effecting an artificial distribution of profits, or (b) in 
 any way so arranges its financial relationships with 
 another corporation as to assign to it a disproportion- 
 ate share of net income or invested capital. 
 
 A. Two or more corporations are not "affiliated" merely be- 
 cause all or substantially all of the stock therein is owned by 
 the same corporation, individual or partnership; they must 
 also be engaged in the same or a closely-related business. 
 
 B. For purposes of regulation by public service commissions 
 or similar authorities the identity of public service corpora- 
 tions, when not grouped into one operating unit, must be main- 
 tained, even though they are owned by the same corporation 
 or taxpayer; and under such regulation the accounts of such 
 public service corporations are deemed to reflect the true in- 
 vested capital and income of each operating unit. Accordingly 
 railroads, gas, electric, water and other public service corpora- 
 tions when operated independently and not physically con- 
 nected or merged — particularly when situated in different juris- 
 dictions and subject to regulation by public service commis- 
 sions — will not be required or permitted without special per- 
 mission obtained in advance to make a consolidated return. 
 When, however, a railroad or other public utility is owned by 
 an industrial corporation and is operated as a plant facility or 
 as an integral part of a group organization of affiliated cor- 
 porations, and such affiliated corporations are required to file a 
 consolidated return,. the return of such railroad or other public 
 utility shall be included therein. 
 
 C. The words "all or substantially all of the stock" as used 
 in the above definition (Article 77) will until further notice 
 be interpreted as meaning an ownership of 95 per cent or more 
 of such stock by the same taxpayer during the taxable year. 
 
 D. In case of affiliated corporations among which there 
 exist contracts or trade or financial practices which arbitrarily 
 or artificially influence or determine the amount of the invested 
 capital or net income of one or more of the corporations so 
 affiliated and where 95 per cent or more of the stock of the 
 subsidiary afliliated corporations is owned by a parent or con- 
 trolling corporation or by an individual or partnership, a con- 
 solidated return will be required. 
 
 E. A consolidated return shall be filed by the parent or 
 principal corporation in the office of the collector of the district 
 in which it has its principal office. Each of the other affiliated 
 corporations shall file in the office of the collector of its re- 
 
 12X1 
 
spective district a return, entering thereon its name and 
 address and replying to the questions in Schedule I, and to 
 questions 1, 2, 3, 4 and 11 on page 4 of Form 1103; and stating 
 also (1) that the corporation is affiliated with a designated 
 parent or principal corporation, (2) that its return is included 
 in the consolidated return of such parent or principal corpora- 
 tion, and (3) the district in which the consolidated return is 
 filed. 
 
 F. Assets of affiliated or subsidiary corporations which have 
 to be adjusted to meet the statutory limitation prescribed by 
 Section 207 shall be valued as of conditions existing at the 
 dates when such assets were acquired by the respective affi- 
 liated or subsidiary corporations and not as of the date when 
 the stock in such affiliated or subsidiary corporations was 
 acquired by the parent or controlling corporation. 
 
 G. Affiliated corporations filing a consolidated return shad 
 include in such return (1) a specific statement of the number 
 or proportion of the shares in the affiliated corporations held 
 by the parent or controlling corporation during the taxable 
 year, and (2) a schedule showing the proportionate amount of 
 the total tax which it is agreed among them is to be assessed 
 upon each affiliated corporation. 
 
 H. If the Commissioner of Internal Revenue upon examina- 
 tion of any consolidated return finds that the tax can not in hii 
 judgment be properly assessed upon the basis of such return, 
 the affiliated corporations covered by such consolidated return 
 shall, upon notice from the Commissioner of Internal Revenue, 
 file separate returns. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue, 
 
 (T. D. 2663.) 
 
 Method to be followed in crediting an overpayment of the two 
 per cent income tax by a corporation filing supplemental 
 return for a fiscal year ended on the last day of some 
 month during the year 1917, or a "fiscal" return for a 
 period ended during such year. 
 
 Treasury J)epartment, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 8, 1918. 
 
 To Collectors of Internal Revenue: 
 
 Under the Act of September 8, 1916, as originally passed, 
 corporations were entitled to take as a deduction all taxes 
 paid. Under the same Act as amended by the Act of October 
 3, 1917, they are not entitled to any deduction for income tax 
 paid, but are entitled to a credit of the amount of excess 
 profits tax for which they are liable. They are also liable 
 for the war income tax of 4% imposed by the Act of October 
 3, 1917. 
 
 It follows, therefore, that a corporation which has filed re- 
 turn for a fiscal year ended on the last day of some month 
 during the year 1917, or a "final" return for a period ended 
 during such year showing its liability computed under the Act 
 of September 8, 1916, as originally passed, must make an 
 amended return showing additional net income (in an amount 
 
 1213 
 
 I 
 
equal at least to the amount of income tax deducted in its 
 original return). It will also take credit for the amount of 
 excess profits tax, if any, for which it is liable. This will 
 ordinarily result in showing an overpayment of income tax 
 at the 2% rate, and the amount of such overpayment may be 
 credited against the war income tax of 4% for which liable, 
 to ascertain the total amount of income tax due. In no case 
 will a credit for overpayment of income tax be taken against 
 the excess profits tax due. 
 
 The adjustment should be made under items 13 to 15, in- 
 elusive, and the exact amount of tax due from the corpora- 
 tion must be shown under item 16 of return, Form 1031, re- 
 vised. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2665.) 
 Amending T. D. 2153. 
 
 Instructions governing the preparation of income tax returns 
 by farmers. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 8, 1918. 
 
 To Collectors of Internal Revenue: 
 
 The term "farm" as herein used embraces the farm in the 
 ordinarily accepted sense and includes plantations, ranches, 
 stock farms, dairy farms, poultry farms, fruit farms, truck 
 farms, and all land used for similar purposes; and for the 
 purposes of this decision all corporations, partnerships, or in- 
 dividuals who cultivate, operate, or manage such farms for 
 gain or profit, either as owners or tenants, are designated as 
 "farmers." 
 
 All gains, profits and income derived from the sale or ex- 
 change of farm products, whether produced on the farm or 
 purchased and resold by the farmer, shall be included in the 
 return of income for the year in which the products were 
 actually marketed and sold. 
 
 All items of expense connected with the planting, cultivat- 
 ing, harvesting and marketing of a crop, or the care, feeding 
 and marketing of live stock may be claimed as deductions 
 only in the return rendered for the year during which such 
 expenditures were made. This ruling applies even though the 
 crops or stock in connection with which the expenses were in- 
 curred may not have been sold or exchanged for money or a 
 money equivalent during the year for which the return is 
 rendered. 
 
 That portion of Treasury Decision 2153 and paragraph 32 
 of Regulations No. 33 (Revised) which provides "cost of stock 
 purchased for resale is an allowable deduction under the item 
 of expense," is hereby annulled. It is held that the amount 
 expended in purchasing stock for resale is an investment of 
 capital and is not to be taken as an item of expense for the 
 year in which the stock was purchased, or for any subsequent 
 
 1213 
 
year; but when the stock so purchased is sold its cost it to 
 be deducted from the sales price in ascertaining the amount 
 of gain or profit returnable for tax purposes. 
 
 Where the cost of stock or farm products purchased in 1916, 
 or any previous year, for resale, or the expense of producing 
 stock or products on the farm, has been claimed as a de- 
 duction or taken into consideration in ascertaining the farmer's 
 liability to income tax for some year prior to 1917, and the 
 stock or farm products so purchased or produced were sold 
 during the latter year, the entire proceeds of the sale are to 
 be returned as income for the year in which the sale was 
 made, for the reason that the farmer, having once received 
 the benefit of the deduction, is not again entitled to it. If, 
 however, such cost or expense had not been claimed as a de- 
 duction, or had not been taken into consideration in ascertain- 
 ing the farmer's liability to income tax for a previous year, 
 the amount of such cost or expense may be deducted from the 
 selling price of the stock or farm products and the difference 
 only returned as income. 
 
 Farmers who keep books according to some approved method 
 of accounting which clearly show the net income, and take 
 annual inventories, may, if the same method is consistently 
 followed from year to year, prepare their returns in accordance 
 with the showing made by the books and inventories. If the 
 inventory method is adopted the farmer should, in order to 
 ascertain gross income, add to the amount received from sales 
 made during the year the inventory of the live stock and 
 products on hand at the close of the year and from this sum 
 deduct the amount expended in purchasing live stock and 
 products plus the inventory of the live stock and products 
 at the beginning of the year. 
 
 The inventory at the beginning of a tax year must be the 
 same figure as at the close of the next preceding year and must 
 include the cost price of live stock or products purchased for 
 resale, and may include the live stock and products produced 
 on the farm and still on hand. Where gross income is ascer- 
 tained by inventories, no deduction can be made for live stock 
 or products lost during the year, whether purchased for resale 
 or produced on the farm, as such losses will be reflected in the 
 inventory by reducing the amount of live stock or products 
 on hand at the close of the year. 
 
 Live stock purchased for draft, breeding or dairy purposes, 
 or for any purpose other than resale, may be included in the 
 inventory for each year at a figure which will reflect the 
 reduction in value estimated to have occurred during the year 
 through increase of age or other causes. Such a reduction in 
 value should be based on the cost and estimated life of the 
 live stock. In the case of the loss of such live stock no 
 deduction can be made, as this loss will be reflected in the in- 
 ventory at the end of the year. "Wliere the inventory method 
 is used, the cost price of the article sold must not be taken 
 as an additional deduction in the return of income as it is 
 reflected in the inventory. 
 
 In view of the foregoing, all corporations, partnerships, and 
 individuals engaged in the live stock or farming business, which 
 do not keep books of account and ascertain their gross income 
 by inventory, should prepare their returns of annual net in- 
 come on the basis of actual receipts and disbursements in 
 order that their returns of income may be susceptible of audit 
 for purposes of verification. Treasury Decision 2433 contains 
 additional information relative to the rendering of returns 
 
 1214 
 
of income by corporations keeping books in accordance with 
 standard systems of accounting, or in conformity with the 
 requirements of some Federal, State or municipal authority, 
 having supervision over such corporations. 
 
 The foregoing relates only to income derived from the opera- 
 tion of a farm and has no relation to the gain or profit which 
 may result from the sale of the farm. 
 
 Where a farmer exchanges farm produce for merchandise, 
 groceries, or mill products, the market value of the article or 
 product received in exchange is to be returned as income. 
 
 A farmer is not required to include in his income tax return 
 the value of farm produce consumed by himself and family. 
 
 DANIEL (J. ROPER, 
 Commissioner of Internal Revenue. 
 Approved : 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2666.) 
 
 Handling remittances received in payment of income and excess 
 profits taxes. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 8, 1918. 
 
 To Collectors of Internal Revenue: 
 
 Instructions to public: 
 
 1. Collectors should give the widest possible publicity, 
 through newspapers and by all other available means, to the 
 fact that all checks in payment of income and excess profits 
 taxes must be collectible at par (without any deduction). 
 Taxpayers who are not sure that their checks will be paid at 
 par should be advised to write beneath the amount "without 
 deduction for exchange," or "with exchange." 
 
 Indorsement of checks: 
 
 2. The collector need not, however, examine all checks to see 
 whether or not they are collectible at par, but should stamp 
 on the face of each the words "This check is in payment of an 
 obligation to the United States and must be paid at par. No 
 protest," with his name and title. If the bank on which a 
 check is drawn should refuse to pay it at par, it will be re- 
 turned through the depositary bank and should be treated in 
 the same manner as a bad check (see paragraphs 4 and 5). 
 
 Obtaining certificates of deposit for out-of-town checks. 
 
 3. All out-of-town checks for which the depositary bank is 
 unwilling to issue an immediate certificate of deposit to the 
 credit of the Treasurer of the United States should be de- 
 posited separately in a collection account as provided in T. D. 
 2627, dated December 28, 1917. The collection account will be 
 charged and the Treasurer's general account credited by the 
 issuance of a certificate of deposit on Form 15, either (a) as 
 the checks are collected or (b) after a number of days as 
 agreed upon with the depositary, subject to the Secretary's 
 approval, not exceeding five days, depending upon the average 
 time of collection. 
 
 1215 
 
Redeeming bad checks deposited to the credit of the Treasurer. 
 
 4. If any check for which a certificate of deposit to the 
 credit of the Treasurer of the United States has been issued 
 should be returned to the depositary bank unpaid, the col- 
 lector will be promptly notified and the check will be held 
 in suspense for a few days, during which the collector should 
 make an effort to recover the amount from the taxpayer. If 
 the amount of the check is recovered* from the taxpayer, the 
 collector should immediately turn it over to the depositary 
 in exchange for the bad check, which should be returned to 
 the drawer. If he fails to obtain the amount from the tax- 
 payer within a reasonable time, the depositary will return 
 the check with a letter of transmittal and ask a receipt from 
 the collector. The collector should give such a receipt in dupli- 
 cate, retaining one copy. The depositary will charge the 
 amount to the Treasurer's account in its next daily transcript. 
 
 Redeeming bad check deposited in collection account. 
 
 5. If a check deposited in the collection account should be 
 returned unpaid, and no certificate of deposit on Form 15 cov- 
 ering the amount thereof has been issued, the amount of the 
 check will be charged by the depositary to the collection ac- 
 count, after being held in a suspense account for a few days 
 while an effort is made to recover the amount from the tax- 
 payer. 
 
 Collecting taxes for which bad checks have been tendered. 
 
 6. Taxpayers whose checks have been returned uncollected 
 by the depositary bank should be immediately notified, as in- 
 dicated in paragraph 4, to make the checks good. If any tax- 
 payer should fail to do so, the collector should proceed to col- 
 lect the taxes by the usual methods, as though no check had 
 been given. 
 
 Correcting assessment list. 
 
 7. If the recapitulation of the assessment list for the month 
 has not yet been sent to the Commissioner, cancel the original 
 entry of the payment, at the same time noting in the "Re- 
 marks" column "Check returned unpaid ; transferred to p. , 
 
 1 ," with the date, and re-enter the item in the unpaid 
 
 section of the list, with the notation "Transferred from p. , 
 
 1 ." Submit in support of a new entry a copy of the 
 
 collector's letter to the taxpayer with regard to the non-pay- 
 ment of the check. Be careful not to duplicate the charge in 
 the monthly recapitulation of the list. 
 
 8. If the monthly recapitulation has gone forward make a 
 note in the *Tlemarks" column, opposite the original entry, 
 "Check returned unpaid," with the date, and let the item stand 
 as an unpaid item to be cleared by an entry of the date on 
 which the amount is finally paid. 
 
 Posting Records 1 and 9. 
 
 9. Record 1 for income tax collections should be posted m 
 accordance with previous instructions and the daily totals 
 should be transferred to line 1 of Record 9. As the daily total 
 in Record 9 will not agree with the total deposit for the day 
 in the Treasurer's general account, the certificate of deposit 
 numbers should not be entered on line 48 of Record 9. 
 
 10. The balance in the collection accoimt at the close of 
 each month should be subtracted from the balance at the 
 close of the preceding month (or vice versa). If the balance in 
 
 1216 
 
the collection account shows an increase for the month, such 
 increase should be added to the amount of returned checks 
 (if any) charged back to the Treasurer's general account dur- 
 ing the month and the total should be entered on line 8 in the 
 total column of Record 9 in red ink, to be deducted from the 
 other entries in the same column. 
 
 11. If the balance in the collection account shows a decrease 
 for the month, and the amount of returned checks charged 
 back to the Treasurer's general account for the month is less 
 than the decrease in the balance, the amount of such returned 
 cheeks should be subtracted from the decrease in the balance 
 and the difference entered in black ink on line 8 in the total 
 column of Record 9, to be added to the other entries in the 
 same column. 
 
 12. If the amount of returned checks charged back to the 
 Treasurer's general account for the month should exceed the 
 decrease in the balance for the month, such decrease should 
 be subtracted from the amount of such returned checks and 
 the difference entered in red ink on line 8 in the total column 
 of Record 9. 
 
 13. The net total for each month entered on line 9 of 
 Record 9 will thus agree with the amount deposited that 
 month on accountof collections on lists. 
 
 Monthly accounts. 
 
 14. Form 325 should be prepared from Record 1 in accord- 
 ance with previous instructions. 
 
 At the close of the month the entry on line 8 in the total 
 column of Record 9 (black or red ink) should be entered in 
 column 8 of the second table on Form 51B, on the blank line 
 following the line for "Old regular" lists. If the amount en- 
 tered in column 8 is in black ink the same amount should be 
 entered in red ink on the same line in column 11. If the 
 amount entered in column 8 is in red ink the same amount 
 should be entered in black ink on the same line in column 11. 
 
 15. The amount of returned checks charged to the Treas- 
 urer's general account each month should be deducted on Form 
 49 from the total of the certificates of deposit for the month 
 in which the checks are returned. The entry making the de- 
 duction should be supported by the banks' letters returning 
 the checks. 
 
 16. The collector should submit with his monthly account 
 on Form 5113 a monthly statement signed by the cashier of 
 the depositary bank in the following form: 
 
 Total Amount trans- Checks 
 
 amount ferred each day charged 
 
 deposited to Treasurer's back each 
 
 Day each day. general account. day. Balance 
 
 Balance from last month's account 
 
 1 
 
 2 
 
 Etc. 
 
 Quarterly account. 
 
 17. On Form 79 the balance in the collection account should 
 be included in item 9 as part of the balance due the United 
 
 1217 
 
states and interlined in the analysis of the balance (at the 
 foot of the account) as "Uncollected checks." 
 
 DANIEL C. ROPER, 
 Approved : Commissioner. 
 
 W. G. McADOO, 
 
 Secretary. 
 
 (T. D. 2668.) 
 
 Salaries received under funds of Smith-Lever Act of May 8, 
 1914, as taxable income. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 9, 1918. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 1200 of the Act of October 3, 1917, amending Section 
 4 of the Act of September 8, 1916, provides, in part, that the 
 following income shall be exempt from tax: 
 
 "The compensation of all officers and employes of a 
 State, or any political subdivision thereof, except when 
 such compensation is paid by the United States Govern- 
 ment." 
 
 The Smith-Lever Act of May 8, 1914, makes provision for 
 extending the benefits of the Act of Congress approved July 
 2, 1862 (12 Stat. 503), and the Act approved August 30, 1890 
 (26 Stat. 417). Under the aforesaid Act certain colleges were 
 established in the several States and supported by the income 
 from lands deeded to the States for that purpose. The colleges 
 receiving the benefits of the two earlier Acts and of the Smith- 
 Lever Act are controlled by States. The funds available under 
 the Smith-Lever Act are appropriated by State legislatures to 
 the colleges to be benefited thereby. The funds appropriated 
 by the Federal Government are paid directly into the State 
 treasuries as any other subventions by the Federal Govern- 
 ment. They lose their identity as funds of the United States 
 by being paid to the States. 
 
 There may be considerable difference between the different 
 States in the control and government of the colleges receiving 
 the benefits of the Act. If the organization of the college is one 
 which belongs to the State and which the State governs, the 
 legislature may vacate offices, elect new professors and do 
 whatever it thinks necessary in the management of the college. 
 (Head vs. Univ., 19 Wall. 526). If, however, the colleges are 
 governed by trustees who are not directly responsible to the 
 State legislatures, the employes of the college receiving sal- 
 aries paid in part from Smith-Lever funds are not employes 
 of the State, and accordingly are not exempt from tax on the 
 ground that they are employes of the State. 
 
 Where the employes of universities receiving salaries paid in 
 part or in whole from Smith Lever funds are officers or em- 
 ployes of a State, they are not required to include in their 
 income tax returns as taxable income the salaries so received. 
 
 DANIEL C. ROPER, 
 Approved : Commissioner. 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 1218 
 
(T. D. 2669.) 
 
 Revision of T. D. 2386 requiring Dutch Administration Offices 
 as the registered but not the actual owners of stock of 
 domestic or other resident corporations in the United 
 States to disclose the identity of the actual owners of 
 said stock for the purposes of the withholding provisions 
 of Section 13 (f), Act of September 8, 1916, as amended 
 by the Act of October 3, 1917. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 9, 1918. 
 
 To Collectors of Internal Revenue: 
 
 Dutch Administration Offices, being nonresident alien cor- 
 porations not engagged in business or trade in the United States 
 and not having an office or place of business therein, and be- 
 ing the registered owners of stock of domestic or resident 
 corporations in the United States, are prima facie liable for 
 the normal income tax on income derived from dividends upon 
 the capital stock or from the net earnings of the aforesaid 
 domestic or other resident corporations in the United States 
 and to having the tax reducted and withheld from such income 
 under Section 13 (f). Act of September 8, 1916, as amended 
 by the Act* of October 3, 1917. 
 
 It appearing that the Dutch Administration Offices, while 
 the registered owners of stock as aforesaid, are not the actual 
 owners thereof, but that they have issued their oearer cer- 
 tificates, with coupons attached, against said stock and that 
 the dividends on said stock are collected for the account of 
 the holders of said bearer certificates and that the relation sus- 
 tained by said Dutch Administration Offices to the said bearer 
 certificate holders is that of fiduciary; for the purposes of 
 administration under the withholding provisions of Section 
 13 (f). Act of September 8, 1916, as amended by the Act of 
 October 3, 1917, the respective Dutch Administration Offices 
 may each appoint an agent or agents in the United States and 
 give notice of that fact by filing, in duplicate, with each cor- 
 poration issuing the stock so held by said Dutch Administra- 
 tion Office, a notice in substantially the following form, to be 
 signed by the proper executive officer: 
 
 You are hereby advised that 
 
 (Name and address of the Dutch Administration Office) 
 
 the registered owner of stock in has appointed 
 
 (Issuing corporation) 
 
 whose 
 
 (Name of agent) 
 
 address is , as its 
 
 agent in the United States; and that the undersigned and said 
 agent will not pay any of the dividends received by them to 
 or for the benefit of any enemy or ally of enemy of tne United 
 States of America as defined in the Trading with the Enemy 
 Act of October 6, 1917. 
 
 Upon receipt of notice as aforesaid, the debtor or issuing 
 corporation in the United States shall pay over to said Dutch 
 
 1219 
 
Administration Office or its agent in the United States all 
 taxes previously withheld from dividends and all subsequent 
 dividends without withholding any tax, and shall forward to 
 the Commissioner of Interhal Revenue one copy of the said 
 notice of the appointment of the agent in the United States. 
 It will be necessary to file this notice but once, unless there 
 shall be a change of agent, when a similar notification should 
 be given. 
 
 When it shall appear that a Dutch Administration Office 
 has an agent in the United States and when, because of that 
 showing, dividends of domestic or other resident corporations 
 in the United States shall have been paid to it or its agent 
 without withholding of tax, said Dutch Administration Oltice 
 through its agent in the United States will be required to make 
 annual return thereof in duplicate and pay the normal tax 
 found by such return to be due, as follows: (1) Where it shall 
 be disclosed by ownership certificates, as hereinafter provided, 
 that the actual owner of any said stock on which such divi- 
 dends are paid is a nonresident alien corporation, and (2) 
 Where there is no disclosure of the actual owners of any of 
 said stock by such ownership certificates. No return need be 
 made nor tax withheld and paid for any nonresident alien 
 individual, firm or partnership unless and until the agent in 
 the United States shall be so instructed by the Commissioner 
 of Internal Revenue. 
 
 Required returns shall be made in duplicate and filed with 
 the Collector of Internal Revenue for the district in which the 
 agent has its office or principal place of business, and shall be 
 in the following form: 
 
 Form — , United States Internal Revenue. 
 
 Dutch Administration Offices — Income tax return on dividends 
 
 received from domestic and resident alien corporations. 
 
 For the year ended December 31, 19 — . 
 
 Filed by 
 
 (Name and adaress of Dutch Administration Office.) 
 
 I (We) of 
 
 (Name of Agent). (Address). 
 
 duly appointed agent in the United States of said 
 
 do hereby declare that herewith are 
 
 (Name of Dutch Administration Office). 
 
 enclosed all ownership certificates received during the year 
 above mentioned, disclosing the actual owners of the stock 
 registered in its name in the following domestic and resident 
 alien corporations and covering dividends received and paid 
 during said year: 
 
 Name of Corporation Address in full Dividends Received 
 
 Balance from 
 last return 
 
 Total 
 
 1220 
 
That the following is a true and complete return of all pay- 
 ments so disclosed of said dividends, and the normal tax with- 
 held and to be paid thereon: 
 
 Dividends received and balance from last return as above $ 
 
 Dividends paid as per enclosed certificates Tax 
 
 To nonresident alien individuals and firms $ 
 
 (On which no tax is due from Dutch Admin. Office) 
 
 To nonresident alien corporations $ $ 
 
 (On which tax at 2% is to be paid). 
 
 To owners not disclosed $ $ 
 
 (On which tax at 2% is to be paid). 
 
 Balance unpaid to be accounted for in next return 
 
 Total tax to be paid $ 
 
 I certify that no part of the dividends shown in the above 
 statement was paid to or for the benefit of any enemy or ally 
 of enemy of the United States of America as defined in the 
 Trading with the Enemy Act of October 6, 1917. 
 
 Agent. 
 
 To 
 
 (Collector). 
 
 District of 
 
 This item refers to amount of dividends received but not 
 paid over to actual owners at time last return, if any, was 
 rendered. 
 
 Said returns shall be printed on yellow colored paper cor- 
 responding in weight and texture to white writing paper 21x32, 
 about 40 pounds to the ream of 500 sheets, and shall be 8Va 
 inches wide and 14 inches from top to bottom. 
 
 The ownership certificates for disclosing the actual owners 
 of stock shall be in Form 1087 Revised, prescribed by T. D. 
 2401; provided, however, that the ownership certificates form- 
 erly permitted to be used by the several Dutch Administra- 
 tion Offices, and executed prior to the date of this decision, 
 may be filed with their above provided returns and made the 
 basis thereof. This certificate shall be filed with the Dutch 
 Administration Office by the person, firm or corporation, etc., 
 or their agent, for whom and in whose behalf it acts. A cer- 
 tificate once filed, disclosing said actual owner, will be held to 
 answer for all the requirements under this Regulation until 
 the ownership shall change, when it will be necessary to dis- 
 close the actual owner as in the first instance. All such cer- 
 tificates filed with the several Dutch Administration Offices 
 shall be forwarded to their respective agents in the United 
 States to be filed with their return. 
 
 T. D. 2386 is revised accordingly and all Treasury Decisions 
 in conflict herewith are hereby superseded and repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved: 
 W. G. McADOO, 
 Secretary of the Treasury. 
 
 1221 
 
(T. D. 2670.) 
 Information at source. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, March 11, 1918. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 1211 of the War Revenue Act amends the Act of 
 September 8, 1916, by adding to Part III, Section No. 28, which 
 provides : 
 
 "That all persons, corporations, partnerships, associa- 
 tions, and insurance companies, in whatever capacity act- 
 ing, including lessees or mortgagors of real or personal 
 property, trustees acting in any trust capacity, executors, 
 administrators, receivers, conservators, and employers, 
 makihg payment to another person, corporation, partner- 
 ship, association, or insurance company, of interest, rent, 
 salaries, wages, premiums, annuities, compensation, re- • 
 muneration, emoluments, or other fixed or determinable 
 gains, profits, and income * * * of $800 or more in 
 any taxable year, or, in the case of such payments made 
 by the United States, the officers or employes of the 
 United States having information as to such payments 
 and required to make returns in regard thereto by the 
 regulations hereinafter provided for, are hereby authorized 
 and required to render a true and accurate return to the 
 Commissioner of Internal Revenue, under such rules and 
 regulations and in such form and manner as may be pre- 
 scribed by him, with the approval of the Secretary of the 
 Treasury, setting forth the amount of such gains, profits, 
 and income, and the name and address of the recipient of 
 such payment: * * *" 
 
 This section makes it mandatory for all persons, corpora- 
 tions, partnerships, and associations or insurance companies, 
 in whatever capacity acting, including lessees or mortgagors 
 of real or personal property, trustees acting in any trust 
 capacity, executors, administrators, receivers, conservators, 
 and employers, making payments of $800 or more of income 
 to another person, corporation, partnership, association, or in- 
 surance company, in the calendar year 1917, to file information 
 return of such payments in accordance with rules and regula- 
 tions prescribed by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, or become 
 liable for a penalty of not less than $20 or more than $1,000. 
 To this end certificate, form No. 1099, and letter of transmittal, 
 form No. 1096, have been provided for use in reporting such 
 payments. 
 
 Under the above authority the following instructions are 
 issued for the guidance of all concerned: 
 
 PAYMENTS MADE WHICH DO NOT REQUIRE REPORTS 
 OF INFORMATION. 
 
 Payments made to corporations, associations, or insurance 
 companies for the year 1917. 
 
 Bills paid for merchandise, telegrams, telephone, freight, 
 storage, and similar charges. 
 
 Bills paid to employes for board and lodging while traveling 
 xinder orders or when employe is employed on a salary basis. 
 
Payments of premiums made to insurance companies for 
 annual protection. 
 
 Annuities representing return of corpus or capital. 
 
 Fees to lawyers, doctors, and similar payments, aggregating 
 less than $800 for the year. 
 
 Interest accrued on bank deposits, before it has been passed 
 to the credit of the individual depositor. 
 
 Salary, wages, and other compensations for services rendered 
 in December, 1917, but paid in 1918, unless the amount was 
 fully due and passed to the credit of the individual in Decem- 
 ber, 1917. 
 
 Payments of rent made to real estate agents. (But agent 
 must report payments to landlord, if the same amounts to 
 $800 or more during 1917.) 
 
 . Payments made to employes in factories where the brass 
 check or number system was in use during 1917, and a record 
 of sufficient detail does not exist and cannot be obtained be- 
 cause employes are not longer in the employ of the company. 
 However, in all such cases an accounting system must be in- 
 stalled that will enable such employers to keep an accurate 
 check so that full information can be given in the future. 
 
 "Living quarters" referred to in paragraph 235, Regulations 
 No. 33 (revised) are quarters furnished for the benefit and con- 
 venience of employes only. When living quarters, such as 
 camps, are furnished for the convenience of the employer only, 
 the cost need not be added to the compensation of the em- 
 ploye. 
 
 In the case of an employer having a large number of em- 
 ployes who are moved from place to place as the exigencies 
 of the service require, and who consequently has no complete 
 record of annual payments to them at any one place, the salary 
 of two representative months may be taken to establish a fair 
 monthly wage, and unless yearly payment based on this esti- 
 mate in the case of an employe amounts to $800 or more no 
 return of payments to such employe is required for 1917. 
 
 Payments made by branches of business houses located in 
 foreign countries to alien employes serving in forgein countries 
 need not be reported. 
 
 Returns of information will not be required from disbursing 
 officers of payments made to sailors, soldiers, or civilian em- 
 ployes of the United States Government, the records in these 
 cases being available to the Treasury Department at any time. 
 
 GENERAL INSTRUCTIONS. 
 
 Heads of branch offices and sub -contractors employing labor 
 and keeping the only complete record of payments snould file 
 the returns of information in regard to such pa-yments direct 
 with the Commissioner of Internal Revenue, Sorting Division, 
 Washington, D. C. When the record is kept of payments at 
 both the main office and the branch office the return should be 
 filed by the main office. 
 
 Where no address is available, the last known post office 
 address must be given. Street and number should be given 
 when possible. 
 
 Information in regard to whether an employe is single, head 
 of a family, or married, should be given when possible. 
 
 DANIEL C. ROPER, 
 Approved : Commissioner. 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
(T. D. 2671.) 
 
 Corporation Tax Act of August 5, 1909 — Decision of United 
 States Circuit Court of Appeals — 
 
 1. Interest on Bonds — 
 
 Interest on bonds or other indebtedness is an allowable de- 
 duction from gross income only to an amount paid upon 
 bonded or other indebtedness not exceeding the corporation's 
 paid-up capital gtock. 
 
 2. Organized for Profit — 
 
 The plaintiff was incorporated to provide and operate a 
 terminal for certain railroads; profit was one of the sub- 
 stantial objects of its organization and that is enough to 
 bring it within the statute. 
 
 3. Judgment of District Court, District of Massachusetts 
 
 (T. D. 2428), is afiirmed. 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 The appended opinion of the United States Circuit Court of 
 Appeals for the First Circuit in the case of the Boston Termi- 
 nal Company vs. James D. Gill, Collector, is published for the 
 information of internal revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 (T. D. 2672.) 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 The provisions of T. D. 2581, dated November 10, 1917, 
 shall apply to returns by American citizens residing or travel- 
 ing abroad, including persons in the military or naval estab- 
 lishments of the United States stationed or on duty beyond 
 the limits of the States and the Territories of Hawaii and 
 Alaska. 
 
 Any such person filing his return after April 1, 1918, but on 
 or before October 1, 1918, embodying therein or attaching 
 thereto a written statement showing that he comes within the 
 classes designated by T. D. 2581, is relieved of the necessity of 
 filing the supporting affidavit required by that decision. 
 
 The above ruling also applies to War Excess I^rofits Tax 
 returns. 
 
 DANIEL C. KOPER, 
 Commissioner of Internal Revenue. 
 
 Approved March 16, 1918. 
 
 1224 
 
(T. D. 2673.) 
 
 Extending time for filing returns of income by or for enemies 
 and allies of enemies as defined in the Trading with the 
 Enemy Act. 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C, March 18, 1918. 
 
 To Collectors of Internal Revenue, Internal Revenue Agents 
 and Others Concerned: 
 An extension of time is hereby granted for such period as 
 may be necessary, not exceeding ninety days after proclama- 
 tion by the President of the United States of the end of the 
 war with Germany, for filing returns of income for 1917 and 
 subsequent years under Section 6(c), 8(b) (c) and 13(b) (c) 
 of the Income Tax Act of September 8, 1916, as amended, and 
 under the War Income Tax Act of October 3, 1917, by or for 
 enemies or allies of enemies, as defined by Section 2 of the 
 Trading with the Enemy Act of October 6, 1917, not holding 
 a license granted under the provisions of said Act; provided, 
 however, (1) that return of information shall be made in 
 compliance with Section 28 of the Income Tax Act, and (2) 
 that all persons required to withhold the normal tax pur- 
 suant to Sections 9 (b) and 13 (e) (f) of the Income Tax 
 Act shall make due return and payment thereof for the period 
 ending October 6, 1917, in respect of income paid over before 
 such date to or for any such enemies or allies of enemies, and 
 further (3) that, except for such payment, all persons who 
 on October 6, 1917, had, or since have had, or may hereafter 
 have, control of any money or other property for any such 
 enemy or ally of enemy, or who on October 6, 1917, were, or 
 since have been, or may hereafter be, indebted to any such 
 enemy or ally of enemy, (a) shall hold and deliver all said 
 money and property in all respects subject to said Trading 
 with the Enemy Act and to the orders of the President of the 
 United States and of the alien property custodian thereunder, 
 and (b) shall in due course file returns of income in respect 
 of all said money and property for such period as may elapse 
 or have elapsed prior to the actual delivery of said money and 
 property to said alien property custodian. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 (T. D. 2674.) 
 
 AMENDED INSTRUCTIONS RELATIVE TO THE REPORT- 
 ING OF INTEREST ALLOWED ON PAYMENTS OF 
 INCOME AND EXCESS PROFITS TAXES. 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C. 
 To Collectors of Internal Revenue: 
 
 T. D. No. 2622 is amended as follows: 
 
 The amount of interest allowed on income and excess profits 
 taxes paid in advance should not be entered on the receipt 
 form, but only ou the face of the return. The date from 
 
 1225 
 
which interest is allowed should also be entered on the re- 
 turn, if different from the date of deposit of the remittance. 
 The amount of interest allowed must be entered on the orig- 
 inal notice of assessment when it is paid, and also on the 
 filing the supporting aflSdavit by that decision. 
 
 Interest allowed on advance payments should not be entered 
 on the assessment list. Interest allowed on assessed taxes 
 should be entered in the "remarks" column of the list. A 
 schedule of interest allowances should be submitted for as- 
 sessed taxes only. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved March 18, 1918. 
 
 (T. D. 2677.) 
 
 Cases in which partnerships may file returns on basis of fiscal 
 
 year. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Revenue Agents and Others 
 Concerned: 
 
 In any case where a partnership keeps its books upon the 
 basis of a fiscal year ending on the last day of any month, 
 other than December 31, and where as a result it is imprac- 
 ticable to make a satisfactory return for purposes of the 
 excess profits tax upon the basis of the calendar year, the 
 Collector of Internal Revenue may accept a return upon the 
 basis of its fiscal year even though notice was not given 
 within the time prescribed in T. D. 2632, dated January 21, 
 1918. 
 
 If in any such case a partnership has already filed a return 
 upon the basis of the calendar year the collector may accept 
 an amended return upon the basis of its fiscal year. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: March 23, 1918. 
 WM. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2678.) 
 
 Corporations may distribute earnings for an accounting period 
 ratably over the period for the purpose of ascertaining 
 earnings to date of dividend payment within such period. 
 
 Treasury Department, 
 Office of Commissioner' of Internal Revenue, 
 Washington, D. C. 
 To Collectors of Internal Revenue: 
 
 In view of the difficulty which many corporations are hav- 
 ing in determining whether earnings in 1917 up to the date 
 of a dividend payment in that year were sufficient to cover 
 
 1226 
 
the dividend paid, it is held that in any case where there 
 is doubt upon the point, corporations may distribute the 
 earnings for the accounting period within which the dividend, 
 or dividends, in question were paid, ratably over the period, 
 for the purpose of determining the amount of the earnings 
 during the period up to the date of payment. This should 
 be read in connection with instructions set forth in T. D. 2659. 
 
 DANIEL C. ROPER, 
 Commissioner. 
 Approved: March 23, 1918. 
 WM. G. McADOO, 
 Secretary of the Treasury. 
 
 (T. D. 2679.) 
 
 Income Tax Payments: Five Per Cent Penalty and Interest. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 To Collectors of Internal Revenue: 
 
 By Section 9(a) of the Act of September 8, 1916, it is pro- 
 vided with respect to the income taxes of individuals, as 
 follows : 
 
 "and to any sum or sums due and unpaid after the 
 fifteenth day of June in any year, and for ten days 
 after notice and demand thereof by the collector, 
 there shall be added the sum of five per centum on 
 the amount of tax unpaid, and interest at the rate of 
 one per centum per month upon said tax from the 
 time the same became due, except from the estates of 
 insane, deceased, or insolvent persons." 
 
 By Section 14(a) of said Act it is provided with respect to 
 the income taxes of corporations, joint stock companies, 
 associations and insurance companies, as follows: 
 
 "and to any sum or sums due and unpaid after the 
 fifteenth day of June in any year, or after one hun- 
 dred and five days from the date on which the return 
 of income is required to be made by the taxpayer, and 
 after ten days' notice and demand thereof by the col- 
 lector, there shall be added the sum of five per centum 
 on the amount of tax unpaid and interest at the rate 
 of one per centum per month upon said tax from the 
 time the same becomes due." 
 
 By Section 212 of the Act of October 3, 1917, it is provided 
 with respect to excess profits taxes that 
 
 "all provisions of Title I of such Act of September 
 eighth, nineteen hundred and sixteen, as amended by 
 this Act, relating to returns and payment of the tax 
 herein imposed, including penalties, are hereby made 
 applicable to the tax imposed by this title." 
 
 By reason of absence in foreign countries or on account of 
 traveling abroad, or of absence from their homes or places of 
 business in the military or other service of the country, and 
 
 1227 
 
the consequent delay in receiving mail, it is impossible foi 
 many individuals to receive notice and demand on Form 17 
 and make payment of the taxes assessed thereon so that such 
 taxes can be received by the collector within the ten-day 
 period following June fifteenth, or within the ten-day period 
 following the service of notice. 
 
 You are requested therefore to enter on Form 17, as the 
 date on which such assessed tax becomes due and payable, as 
 near as possible, a date ten days subsequent to the time that 
 said notice should be received in the ordinary course of the 
 mails by the taxpayer, and where it appears that the full 
 amount of tax assessed was placed in the mails within the 
 ten-day period after the receipt of Form 17, or in case notice 
 so sent is not delivered in due time by reason of delay in the 
 mail and satisfactory evidence of that fact is furnished the 
 penalty and interest in such cases will not be collected. This 
 ruling applies to excess profits taxes as well as to income 
 taxes. 
 
 Where the office of a corporation, joint stock company, 
 association or insurance company to which the collector ad- 
 dresses the notice and demand for income taxes or income and 
 excess profits taxes is situated so far from the collector's 
 office that normal conditions render it impossible for pay- 
 ment to reach the collector within ten days of the mailing of 
 notice and demand, the procedure herein outlined with respect 
 to individuals will govern with respect to corporations, joint 
 stock companies, associations and insurance companies. 
 
 Except as herein indicated the five per cent penalty will be 
 imposed where there is a failure of the tax payment to reach 
 the collector within ten days of the day of mailing by the 
 collector of the notice and demand. 
 
 Treasury Decision 2028 is hereby repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: March 23, 1918. 
 WM. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2683.) 
 Application of Articles 18, 23 and 24 of Regulations No. 41. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Revenue Agents and Others 
 Concerned : 
 
 1. Article 18 of Regulations No. 41 (which provides for a 
 constructive capital for the purpose of applying the graduated 
 rates prescribed by Section 201 of the Act of October 3, 1917, 
 in cases in which the deduction is determined under Section 
 210) applies only to cases in which the Secretary of the Treas- 
 ury is unable satisfactorily to determine the invested capital 
 for the taxable year (including cases arising under Article 62 
 of Regulations No. 41). 
 
 If the deduction is so determined only upon the ground that 
 the Secretary of the Treasury is unable satisfactorily to deter- 
 
 1228 
 
mine the amount of invested capital for the pre-war period, 
 but the invested capital for the taxable year can be satisfac- 
 torily determined, the graduated rates prescribed by Section 
 201 will be applied upon the basis of such actual invested 
 capital for the taxable year and not upon the basis of a con- 
 structive capital. 
 
 2. If neither the income nor the invested capital for the 
 pre-war period can be satisfactorily determined by the Secre- 
 tary of the Treasury, the deduction will be computed under 
 Section 205 (Article 23 of Regulations No. 41) if the invested 
 capital for the taxable year can be satisfactorily determined, 
 but if such invested capital for the taxable year cannot be 
 satisfactorily determined the deduction will be computed as 
 provided by Section 210 (Article 24 of Regulations No. 41). 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: March 26, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2686.) 
 
 Corporation Excise Tax— Decision of Court — 
 
 1. Gross Income. 
 
 A corporation which did a brokerage business and bought 
 securities for its customers, who paid only a part of the 
 purchase price, paying interest on balances, the corporation 
 also paying for the securities purchased only part of the 
 purchase price and owing balances on which it paid interest, 
 including in return of gross income the difference between 
 the interest received and the interest paid, made incorrect 
 return. 
 
 2. Interest. 
 
 The interest received by plaintiff from its customers 
 should be included in gross income. In determining net in- 
 come, interest can be deducted only to an amount not 
 exceeding the paid-up capital stock outstanding at the close 
 of the year. 
 
 3. Judgment affirmed. 
 
 The judgment of the United States District Court (246 
 Fed., 270; T. D. 2441) is affirmed. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 The appended decision of the United States Circuit Court of 
 Appeals, in the case of Altheimer and Rawlings Invesraent 
 Company v. Allen, collector, is published for the information 
 of internal revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved April 1, 1918: 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 1229 
 
United States Circuit Court of Appeals, Elgrhth Circuit. 
 4918. 
 
 December term, 1917. 
 In error to the District Court of the United States for the 
 
 Eastern District of Missouri. 
 Altheimer and Rawlings Investment Company, plaintiff in 
 error, v. B. B. Allen, United States Collector of In- 
 ternal Revenue for the First District of Missouri, 
 defendant in error. 
 Before Hook and Smith, Circuit Judges, and Trieber, 
 District Judge. 
 Hook, Circuit Judge, delivered the opinion of the court: 
 
 This is an action by the Investment company to recover 
 from the collector of internal revenue an alleged excess of 
 taxes assessed for the years 1909, 1910 and 1911 under the 
 corporation tax act of August 5, 1909 (36 Stat., 11, sec. 38), 
 and paid under protest. The trial court decided against 
 the plaintiff. 
 
 The facts were stipulated. The plaintiff is a Missouri 
 corporation engaged in a stock and bond brokerage busi- 
 ness, with a paid-up capital of $300,000. The tax imposed 
 by the statute was an annual excise tax equivalent to 
 1 per cent upon the entire net income of the corporation 
 in excess of $5,000 received by it from all sources durinjf 
 the year. See Anderson v. Forty-two Broadway Co. (2^ 
 U. S., 60). The statute provides that the net income shall 
 be ascertained by deducting from the gross income from 
 all sources (1) expenses, (2) losses, and (3) Interest ac- 
 tually paid on indebtedness not exceeding the amount of 
 paid-up capital outstanding at the close of the year. The 
 controversy is over the deduction under the third clause 
 for interest paid on indebtedness. 
 
 The stipulation recites that plaintiff's business consisted 
 In part of the purchase for customers of bonds and other 
 securities which it carried for them on margin or part 
 payment. It charged and received from them interest on 
 the unpaid balances. In buying the securities for its cus- 
 tomers plaintiff itself paid but part of the price "on said 
 purchases" and paid interest on the balances it owed. In 
 these transactions the interest received by plaintiff from 
 its customers exceeded the interest it paid. In making its 
 tax returns plaintiff deducted from the interest it received 
 the entire amount of the interest it paid and listed the 
 balance as gross income. The Commissioner of Internal 
 Revenue in reforming the returns listed all interest re- 
 ceived as gross income and limited the amount of deduc- 
 tion for interest paid according to the statutory restric- 
 tion in respect of the amount of plaintiff's capital stock. 
 
 The plaintiff contends that when it borrowed money to 
 carry the securities for its customers the indebtedness it 
 incurred was theirs and that the interest it received from 
 them on their own unpaid balances was, so far as re- 
 quired, paid for them on such indebtedness. In other 
 words, it is urged in effect that plaintiff was a mere con- 
 duit for the transmission of sufficient of the interest re- 
 ceived from Its customers to discharge the Interest accru- 
 ing on the sums it borrowed, and hence only the excess 
 remaining in its hands was Income. It is recited In the 
 stipulation that plaintiff owed and paid interest on part 
 of the purchase price "on said purchases" so carried by 
 it for its customers. The recital is ingeniously framed, 
 but it does not justify the assumption that plaintiff's 
 extensive business was conducted otherwise than accord- 
 ing to the familiar customs of stock and bond brokers. 
 The suggestion upon which plaintiff's contention rests 
 that it bought the stocks and bonds on time and that the 
 sellers extended credit to plaintiff as agent for its cus- 
 tomers and received interest from them indirectly is quite 
 Inadmissible. In the usual course of the business which It 
 should be assumed the plaintiff followed, the seller of 
 securities Is paid in full by the broker and is not there- 
 after Interested in the relation between the latter and his 
 customer. Doubtless if the broker's capital is insufficient 
 to carry his customers he borrows money from time to 
 time for the purpose, and in that sense he may be said 
 to borrow "on the purchases." But the borrowing is from 
 any available financial source and is not for the customer 
 personally but is In the broker's own behalf. A recog- 
 nized source of profit to the broker is In the difference 
 between the interest rate he charges his customers and 
 
 31330 
 
that which he pays on moneys borrowed to carry them. 
 He deals In debits and credits for a profit. The borrowing 
 by the broker supplements the capital employed in his 
 business, and in the case of a corporation subject to the 
 excise tax the deduction from gross income for interest 
 paid on its indebtedness is limited to interest on an 
 amount of indebtedness not exceeding its paid-up capital 
 stock outstanding at the close of the year. In this par- 
 ticular the plaintiff's borrowing to carry its customers 
 was not unlike that of a mercantile corporation whose 
 capital is insufficient for the volume of its business. It 
 should be noted that this case arose before the amend- 
 ment of October 3, 1913 (38 Stat., 166. Sec. II., G. b). 
 The judgment is affirmed. 
 
 (T. D. 2687.) 
 
 Providing for the Transmittal of Ownership Certificates in 
 Which Exemption is Claimed by Means of Information 
 Return, Form 1096. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 Where a debtor corporation, or its duly authorized withhold- 
 ing agent, has made no payments of interest to nonresident 
 alien individuals, or foreign corporations, having no office or 
 place of business in the United States, or has withheld no tax 
 from citizens or residents of the United States, whether or not 
 the bonds upon which such interest accrued contain a tax-free 
 covenant clause, the exemption certificates filed in connection 
 with such interest payments, shall not hereafter be forwarded 
 to Collectors of Internal Revenue, accompanied by a return on 
 Form 1012, Revised, but shall be transmtited direct to the Com- 
 missioner of Internal Revenue (Sorting Division), Washington, 
 D. C, accompanied by a return on Form 1096. When used in 
 this connection. Form 1096 shall be filed monthly, and in such 
 cases, this office will not require that the return be sworn to. 
 The number of exemption certificates thus transmitted, and 
 the total amount of interest paid shall be entered on line 1 of 
 the return. 
 
 In all cases, however, where a debtor corporation or its duly 
 authorized withholding agent has withheld the tax and is there- 
 fore required to render a return on Form 1013, Revised, all 
 certificates received shall be accounted for on such monthly 
 leturn, as directed by the instructions thereon. 
 
 All instructions issued by this office in conflict herewith, are 
 hereby superseded and repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 1, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 1231 
 
(T. D. 2688.) 
 
 Procedure under which Collectors are authorized to refund 
 excessive payments of Internal Revenue tax — 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue: 
 
 Beginning April 1, 1918, there will be advanced to each Col- 
 lector of Internal Revenue, at the beginning of each quarter 
 of the fiscal year, out of the appropriation for the refundment 
 of internal revenue taxes, a sum estimated to be sufficient for 
 the repayment to taxpayers of certain excessive collections, as 
 follows : 
 
 1. Collections exceeding the tax shown by the return of the 
 taxpayer to be due. 
 
 2. Collections exceeding the amount of tax shown by the 
 assessment list to be due. 
 
 3. Duplicate payments where: 
 
 (a) Both are made in advance of assessment; 
 
 (b) Both are made after assessment; 
 
 (c) One is made before, and one after assessment. 
 
 1. Procedure where a collection has exceeded the tax shown 
 in the taxpayer's return as due. 
 
 The Collector will enter on the assessment list the full 
 amount paid, and in the ''Remarks" column of the list will 
 note the amount of the excess. 
 
 The complete data regarding the excessive collection Is then 
 to be entered on the schedule of Claims for Authority to Re- 
 fund, Form 751. The "Paid," "Due," and "Refundable Ex- 
 cess" columns on the Form will be totaled. 
 
 Form 751 is to be made in triplicate, one copy to be retained 
 by the Collector, and two to be forwarded securely attached to 
 the proper assessment list. A single Form 751 cannot be used 
 for items on lists of the separate classes. 
 
 In the Provirg Division of the Bureau the amount shown on 
 Form 751 as due will be checked against the taxpayer's return, 
 and the amount shown on the assessment list as paid will be 
 checked against the similar item on Form 751. 
 
 The original Form 751 will remain attached to the assess- 
 ment list and will form an integral part thereof, so that the 
 Commissioner's signature of approval of the assessment list 
 will be, to the Collector, sufficient evidence of the Commis- 
 sioner's approval of the claim. To effectuate this, there should 
 be typewritten on the first page of Form 1110, below the line 
 reading, "Total Chargeable to Collector," the words, "Amount 
 Refundable on Form 751." 
 
 Upon receipt of the returned claim, thus determined as 
 approved by the Commissioner, the Collector will immediately 
 make refund to the taxpayer, clearly designating upon the 
 draft the nature of the refund, as, for instance, "Refund 
 under claim on Form 751, March list, 1918." The list to be 
 designated is the list on which the claim was approved, 
 rather than the list on which the assessed or overpayment was 
 leported. 
 
 1332 
 
2. Procedure where a collection has exceeded the tax. 
 
 The procedure will be identical with that outlined under 
 subheading (1), above, except that in the "Remarks" column 
 on the assessment list the exact amount paid is to be noted. 
 
 3. Procedure where a tax has been paid wholly or in part 
 in duplicate. 
 
 (a) Where both payments are in advance, there shall be en- 
 tered on Form 751 a notation showing both lines of the ad- 
 vance payment list or lists on which payments appear. If the 
 amounts of the two payments differ, the Collector shall claim 
 aiithority for refund of the lesser payment. 
 
 (b) Where the assessment has been made, entries will be 
 m.ade on the assessment list to show both dates of payment. 
 
 A similar notation should be made under the item claimed 
 on Form 751 as refundable. 
 
 The total amount collected is to be reported on Forms 325 
 and 51-B. 
 
 (c) Where one payment has been made before and one 
 after the entry of assessment, notations will be made on 
 Form 751 showing the line of the list on which the advance 
 payment was reported and the line on which the assessment 
 was entered. 
 
 Except as indicated, the balance of procedure under sub- 
 heading (3) will correspond to the procedure fully outlined 
 under subheading (1). 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 1, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2689.) 
 
 Computation of Excess-Profits Tax for a Period of Less Than 
 a Full Year (Supplementing Article 20 of Regulations 
 No. 41); Filing of Excess-Profits Tax Return for Such a 
 Period (Supplementing Articles 10, 11 and 12 of Regula- 
 tions Wo. 41). 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Revenue Agents, and Others 
 Concerned : 
 1. If a taxpayer who is engaged in a trade or business the 
 Article 43 of Regulations No. 41 provides that the average in- 
 net income from which is subject to taxation at the graduated 
 rates imposed by Section 201 of the Act of October 3, 1917, 
 makes a return for a period of less than twelve months, 
 vested capital shall be determined by monthly average based 
 upon the number ^f months in the period, and Article 20 pro- 
 vides that the deduction will be an amount which bears the 
 same ratio to the deduction allowable for a full year as the 
 number of months in such period bears to twelve months. In 
 applying the rates of tax, however, the invested capital used 
 will be an amount which bears the same ratio to such full 
 
 1333 
 
average invested capital as the number of months in the 
 period for which the return is made bears to twelve months. 
 
 ILLUSTRATION: — A corporation makin-g its return on 
 
 a calendar year basis started business August 16, 1917, 
 
 with a capital of $100,000. which remained unchanged for 
 
 . the balance of the year 1917. Its net Income for that period 
 
 was $8,000. . . . ., , 
 
 The deduction computed under the provisions of Articles 
 20 and 21 would, as this corporation was not in existence 
 during the whole of at least one calendar year during the 
 pre-war period, be 8 per cent of the invested capital, or 
 $8,000, plus $3,000, a total of $11,000. But, inasmuch as 
 the return is being made only for a period of four and one- 
 half months, the deduction would be reduced to an amount 
 which bears the same ratio to $11,000 as four and one- 
 half months bears to a full year of twelve months, or, in 
 other words, the deduction would be reduced to $4,125. 
 
 For the purpose of applying the rates of taxation the 
 invested capital of $100,000 would likewise be reduced to 
 an amount which bears the same ratio to the full invested 
 capital as the number of months in the period for which 
 the return is made bears to twelve months, or, in other 
 words, would be reduced to $37,500. 
 
 The amount of the net income taxable at each rate 
 would be as follows: 
 
 In excess of the deduction and not in excess of 15 
 
 per cent of the capital (rate 20%) $1,500.00 
 
 In excess of 15 per cent of the capital and not in 
 
 excess of 20 per cent thereof (rate 25%) 1,875.00 
 
 In excess of 20 per cent of the capital and not in 
 
 excess of 25 per cent thereof (rate 35%) 500.00 
 
 The Tax would then be computed as follows: 
 
 20% of $1,500 $300.00 
 
 25% of $1,875 468.75 
 
 35% of $500 175.00 
 
 Total tax $943.75 
 
 The same result would be reached by computing both 
 the deduction and the tax on the basis of an invested 
 capital averaged over twelve months (that is, by dividing 
 the sum of the average capital for each month by twelve 
 instead of by four and one-half, the number of months 
 in the period), and by reducing the specific deduction to 
 an amount which bears the same ratio to $3,000 as the 
 number of months in the period bears to twelve months. 
 Thus, in this case, the invested capital upon this basis 
 would be $37,500, 8% of which would be $3,000, to which 
 would be added four and one-half twelfths of the $3,000 
 specific deduction, making a total deduction of $4,125, the 
 • same result as reached by the method used in the illus- 
 tration. 
 
 2. If a taxpayer who is engaged in a trade or business the 
 net income from which is subject to taxation at the rate of 8 
 per cent imposed by Section 209 of the Act of October 3, 1917, 
 makes a return for a period of less than twelve months, the 
 deduction of $3,000 or $6,000 allowed under that section will 
 be reduced to an amount which bears the same ratio to such 
 full deduction as the number of months in the period bears to 
 twelve months. 
 
 ILLUSTRATION :— A Corporation engaged in the busi- 
 ness of real estate agents taxable under Section 209 of the 
 Excess Profits Tax Law has, up to and Including the year 
 1916. made its income tax returns upon a calendar year 
 basis. It has since given notice, however, in accordance 
 with the provisions of the Income Tax Regulations (article 
 211) and changed to the basis of a fiscal year ending April 
 30th. As a result its first excess-profits tax return would 
 be made for a period of four months ending April 30, 1917. 
 
 Its net income for such period was $25,000. In com- 
 puting the excess-profits tax upon this amount, however, 
 the deduction of $3,000 would be allowed to it for a full 
 year would be reduced to an amount which bears the same 
 ratio to $3,000 as the number of months for which the re- 
 
 1234 
 
turn Is made bears to twelve months; In other words, It 
 would be reduced to $1,000. 
 
 The excess-profits tax in this case would be 8 per cent 
 on the amount of net income in excess of $1,000; in other 
 words, 8 per cent of $24,000, or $1,920. 
 
 3. The above rulings apply only in the case of a taxpayer 
 who (because of having just established a fiscal year or of 
 having just organized or engaged in business, or for other like 
 reasons) is entitled to make a return for a period of less than 
 a full year, and are not to be construed as authorizing a cor- 
 poration or partnership which has already established a fiscal 
 year ending in 1917, but part of which falls within 1916 to 
 compute its tax in any other manner than as prescribed in 
 Article 19 of Regulations No. 41. 
 
 4. A domestic corporation or partnership or a citizen or 
 resident of the United States, entitled to make a return for a 
 period of less than a full year, will be required to make such 
 return if the net income for such period is at the rate of $3,000 
 per year or more in the case of a corporation, or of $6,000 
 per year or more in the case of a partnership or individual. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 1, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2691.) 
 
 Returns on Form 706 for the estates of nonresident decedents 
 to be forwarded direct to the Commissioner of Internal 
 Revenue for transmittal to the Collector. 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Hereafter returns on Form 706 for the estates of nonresi- 
 dent decedents shall be forwarded (in duplicate) by the 
 executor direct to the Commissioner of Internal Revenue, 
 Treasury Department, Washington, D. C, who will, after 
 reviewing the returns, transmit them to the proper Collector. 
 The date on which the return is received by the Commissioner 
 of Internal Revenue will be considered the date of original 
 filing with the Collector for the purpose of determining 
 whether the return is filed within the period prescribed by 
 law. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 8, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 1235 
 
(T. D. 2692.) 
 
 Heads of familities and married men with wives living with 
 them include only persons whose families or wives actually 
 reside with them. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 7 of the Income Tax Act of September 8, 1916, as 
 amended by the Act of October 3, 1917, provides that for the 
 purpose of the normal tax only there shall be allowed as an 
 exemption in the nature of a deduction from the amount of 
 the net income of each citizen or resident of the United States 
 the sum of $3,000, plus $1,000 additional if the person making 
 the return be a head of a family or a married man or woman 
 with a wife or husband living with him or her, except that 
 only one deduction of $4,000 shall be made from the aggregate 
 income of both husband and wife when living together, and 
 plus $200 additional, if the person making the return be the 
 head of a family, for each child dependent upon such person 
 if under eighteen years of age or if incapable of self-support 
 because mentally or physically defective. Section 3 of the 
 War Income Tax Act of October 3, 1917, provides that in the 
 case of the tax imposed by the later Act the exemptions of 
 $3,000 and $4,000 provided in Section 7 of the former Act shall 
 be respectively $1,000 and $2,000. 
 Paragraph 153 of the Income Tax Regulations provides: 
 
 "A head of a family is a person who actually sup- 
 ports and maintains one or more individuals who are 
 closely connected with him by blood relationship, 
 relationship by marriage, or by adoption, and whose 
 right to exercise family control and provide for these 
 dependent individuals is based upon some moral or 
 legal obligation.'* 
 
 Applying only to citizens and residents of the United States, 
 there is accordingly an individual exemption of $3,000, except 
 that if husband and wife live together a joint exemption of 
 $4,000 under the earlier Act and $2,000 under the later Act is 
 substituted for the several exemption of $3,000 each under the 
 earlier Act and $1,000 each under the later Act, and that if the 
 taxpayer be a head of a family, consisting of a person or 
 persons other than a wife or husband alone, his exemption 
 is $4,000 under the earlier Act and $2,000 under the later Act, 
 plus $200 for each dependent child. 
 
 In the case of a married man or married woman, the joint 
 exemption replaces the individual exemptions only if his wife 
 lives with him or her husband lives with her. In the absence 
 of continuous actual residence together, whether or not a man 
 or woman has a wife or husband living with him or her within 
 the meaning of the statute must depend on the character of 
 the separation. If merely occasionally and temporarily a wife 
 is away on a visit or a husband is away on business, the 
 joint home being maintained, the additional exemption applies. 
 The unavoidable absence of a wire or husband at a sanatorium 
 or asylum on account of illness does not preclude claiming the 
 exemption. If, however, the husband voluntarily and continu- 
 ously makes his home at one place and the wife hers at 
 
 1236 
 
another, they are not living together for the purpose of the 
 statute, irrespective of their personal relations. 
 
 A head of a family is a person who actually supports and 
 maintains one or more of the individuals described in para- 
 graph 153 of the Regulations in one household. In the absence 
 of continuous actual residence together, whether or not a 
 person with dependents is a head of a family within the 
 meaning of the statute must depend on the character of the 
 separation. If a child or other dependent is away only tem- 
 porarily at school or on a visit, the common home being still 
 maintained, the additional exemption applies. If, however, 
 the dependent continuously makes his home elsewhere, his 
 benefactor is not the head of a family, irrespective of the 
 question of support. 
 
 Resident aliens claiming exemption because of families or 
 wives residing abroad are not heads of families or married 
 men or women with wives or husbands living with them within 
 the meaning of the statute, and they are in no case entitled 
 to more than their individual exemptions of $3,000 under the 
 earlier Act and $1,000 under the later Act. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue, 
 
 Approved April 8, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2693.) 
 
 Proof necessary to be filed by certain organizations to establish 
 the fact that they are exempt from filing income tax 
 returns or paying an income tax. 
 
 Treasury Department, 
 Office of the Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 The exemption from filing returns and paying income tax 
 of corporations or associations organized and operated ex- 
 clusively for religious, charitable, scientific or educational 
 purposes, business leagues, chambers of commerce, boards of 
 trade, civic leagues, cemetery companies, and pleasure and 
 recreation clubs, under the Act of September 8, 1916, as 
 amended by the Act of October 3, 1917, is conditional. 
 
 In order to establish exemption and thus be relieved of the 
 duty of filing returns and paying income tax, it is necessary 
 that such organizations as are specified hereinbefore file an 
 affidavit with the Collector of Internal Revenue of the District 
 in which they are located, which will show the character of 
 the organization, the purpose for which organized, the source 
 of income and disposition of the same, and whether or not 
 any of its income is credited to surplus or inures or may inure 
 to the benefit of any private stockholder or individual. To 
 such affidavit should be attached a copy of the charter or 
 articles of incorporation and by-laws of the organization. 
 
 Upon receipt of the affidavit accompanied by the copies of 
 the charter, or articles of incorporation and copy of the by- 
 laws by the Collector he will advise the organization whether 
 
 1237 
 
or not it is exempt. If, however, the Collector is in doubt as 
 to the taxable status of the organization he will refer the 
 affidavit and accompanying papers to the Commissioner of 
 Internal Revenue for decision. 
 
 If it is held that the corporation itself is exempt from 
 the income and excess profits taxes, it is not, however, exempt 
 from the withholding requirements nor from furnishing in- 
 formation in accordance with the provisions of the Act of 
 October 3, 1917. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 8, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2695.) 
 
 Amending Treasury Decision 2622, relative to advance 
 payments of income and excess profits tax. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Treasury Decision 2622, dated December 26, 1917, is amended 
 by the revocation of the following paragraph: 
 
 "The interest at the rate of 3 per cent per annum 
 (365 days), allowed to a taxpayer on advance payments 
 on income and excess profits taxes, must be considered 
 income and accounted for as income by the taxpayer in 
 his return for the year in which said interest is allowed." 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 11, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2696.) 
 
 Treatment for taxation purposes of amounts ostensibly paid 
 as compensation for services of officers and employes of 
 business enterprises. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 5(a) of the Income Tax Act of September 8, 1916, 
 as amended, provides, as to the income of individuals and 
 partnerships, that for the purpose of the tax there shall be 
 allowed as deductions, among others, "the necessary expenses 
 actually paid in carrying on any business or trade," and Sec- 
 tion 12(a) provides that the net income of a corporation shall 
 
 1238 
 
be ascertained by deducting from the gross amount of its in- 
 come received within tlie year, among other tilings, "all the 
 ordinary and necessary expenses paid within the year in the 
 maintenance and operation of its business and properties." 
 
 Payments for. services by business enterprises (including 
 individuals in business, partnerships and corporations may oi 
 course be deducted under this general language. The Govern- 
 ment, entitled to taxes based on the net income of each enter- 
 prise, is interested and authorized, however, to see that each 
 specific expenditure sought to be deducted is in itself "neces- 
 sary." The question is by what examination and what test 
 this shall be determined. The subject is not dealt with in 
 any general way in the Income Tax Regulations, although 
 Article 138 bears on special payments to employes of cor- 
 porations. 
 
 The test of deductibility in the case of compensation pay- 
 ments is whether they are in fact payments purely for services 
 or include some other element. But in the case of any com- 
 pensation, however determined, which exceeds amounts ordi- 
 narily paid for like services in like enterprises under like cir- 
 cumstances, the burden is upon the enterprise to show that the 
 amount paid was solely the purchase price of services. This 
 test and its practical application may be further stated and 
 illustrated as follows: 
 
 1. Any amount paid in the form of compensation, but not 
 in fact as the purchase price of services, is not deductible. 
 
 (a) An ostensible salary may be a distribution of a divi- 
 dend on stock. This is likely to occur in the case of a cor- 
 poration having few stockholders, practically all of whom 
 draw salaries. If in such a case the salaries are based upon 
 or bear a close relationship to the stockholdings of the officers 
 or employes, it would seem likely that the salaries, if in 
 excess of those ordinarily paid for similar services, are not 
 paid wholly for services rendered, but in part as a distribu- 
 tion of earnings upon the stock. 
 
 (b) An ostensible salary paid by a corporation may be in 
 part a waste or appropriation of assets of the corporation. 
 This may occur where salaried employes are in control of the 
 corporation through holding directly or indirectly a majority 
 of its stock or, in the case of a large corporation with many 
 stockholders, o\^Tiing a substantial minority of its stock, and 
 the tendency of the officers unduly to inflate their salaries 
 must be taken into account. If a compensation contract with 
 the majority stockholder or stockholders is approved by all 
 the stockholders as well as by the directors, it might, how- 
 ever, be dealt with like any other contract. 
 
 (c) An ostensible salary may be in part payment for prop- 
 erty. This may occur, for example, where a partnership sells 
 out to a corporation, the former partners agreeing to con- 
 tinue in the service of the corporation. In such a case it may 
 be found that the salaries of the former partners are not 
 merely for services, but in part constitute payment for the 
 transfer of their business. 
 
 2. The form or method of fixing compensation is not de- 
 cisive as to deductiblity. 
 
 While any form of contingent compensation invites scrutiny 
 as a possible distribution of earnings of the enterprise, it does 
 not follow that payments on a contingent basis are to be 
 treated fundamentally on any basis different from that apply- 
 ing to compensation at a flat rate. Generally speaking, if 
 
 1239 
 
contingent compensation is paid pursuant to a free bargain 
 between the enterprise and the individual made before the 
 services are rendered, not influenced by any consideration on 
 the part of the employer other than that of securing on fair 
 and advantageous terms the services of the individual, it 
 should be allowed as a deduction even though in the actual 
 working out of the contract it may prove to be greater than 
 the amount which would ordinarily be paid. 
 
 3. As to compensation determined after services have been 
 rendered, reasonableness is ordinarily the controlling test of 
 deductibility. 
 
 In certain instances apparently of this sort it may be 
 shown that the compensation is fixed according to a custom 
 or practice having virtually the force of a contract. Where, 
 however, such is not the case and it is for the management 
 to fix compensation such as is deemed fair, it is just to 
 assume that true compensation is only such amoimt as would 
 ordinarily be paid in like circumstances by -other similar enter- 
 prises. 
 
 4. In connection with the questions discussed above, the fol- 
 lowing rulings as to the treatment of amounts ostensibly paid 
 as compensation, but not allowed to be deducted as such, 
 appear to be warranted. 
 
 (a) In the case of excessive payments by corporations, if 
 such payments correspond to or bear a close relationship to 
 stockholdings, the amount of the excess should be treated as 
 dividends and would thus be exempt from the normal tax 
 and from the excess profits tax in the hands of the recipients; 
 or if such payments represent an appropriation of assets of 
 the corporation by officers who control it and fix their com- 
 pensation in violation of the rights of the corporation, the 
 amount of the excess, while disallowed as a deduction by the 
 corporation, should be treated as compensation of the in- 
 dividuals subject to the normal and the excess profits taxes, 
 compensation illegally secured being none the less subject to 
 tax in all respects; or if such payments constitute in part 
 payment for property, the amount of the excess should be 
 treated by the corporation as a capital expenditure and by the 
 rtcipient as part of the purchase price. 
 
 (b) In the case of excessive payments by individuals or 
 partnerships, the amounts disallowed should ordinarily be 
 treated as partnership shares and would thus be free from 
 the excess profits tax to the recipient, but, of course, still 
 subject to the income tax, except that payments for property 
 should be treated by the individual or partnership as a capital 
 expenditure and by the recipient as part of the purchase price. 
 
 The foregoing rules naturally do not permit a ready deter- 
 mination of every question arising as to compensation pay- 
 ments, but applied in the light of full knowledge of the facts 
 In the particular case they do, however, indicate a basis 
 of solution. They may be smnmed up as follows: 
 
 Compensation on whatever basis fixed, representing only the 
 price paid for services pursuant to a fair bargain made in 
 advance between the individual and tjtie business enterprise, 
 is deductible in determing the taxable net income of the enter- 
 prise. Payments nominally as compensation for services, 
 which in fact include amounts paid as dividends, waste of 
 corporate assets, payments for property or for anything other 
 than services, are deductible only to an amount not in excess 
 of compensation for like services in similar enterprises. 
 
 1240 
 
Compensation greater than that ordinarily paid for like 
 service* in similar enterprises must be shown to represent 
 payment for services only. In the case of compensation fixed 
 after services are rendered and not in accordance with any 
 contract or any custom or practice amounting virtually to a 
 contract, reasonableness is ordinarily the controlling test of 
 deductibility. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 10, 1918, 
 R. C. LEFFINGWELL, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2697.) 
 
 Suit for Recovery of Taxes by the Government — 
 United States Circuit Court of Appeals, Sixth District. 
 
 United 'States, plaintiff in error, vs. Nashville, Chattanooga 
 and St. Louis Railway, defendant in error. 
 
 Error to' the District Court of the United States for the 
 
 Middle District of Tennessee. 
 
 (Decided April 3, 1918.) 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Reevnue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Circuit Court 
 of Appeals for the Sixth Circuit, in the case of the United 
 States V. Nashville, Chattanooga and St. Louis Railway, is 
 published for the information of internal revenue officers and 
 others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved April 16, 1918: 
 J. H. MOYLE, 
 Acting Secretary of the Treasury. 
 
 1. False or Incorrect Returns. — The w^ord "false," as used 
 in the fifth subdivision of Section 38, of the Act of August 5, 
 4.909, providing that in case of any return made with false 
 or fraudulent intent the Commissioner of Internal Revenue 
 shall add 100 per centum of the tax, means "untrue" or 
 "incorrect," and does not necessarily mean intentionally or 
 fraudulently false. 
 
 2. Common-Law Action of Debt for Taxes. — A common-law 
 action of debt lies in favor of the Government whenever by 
 accident, mistake, or fraud, taxes have not been paid; thus 
 the Government may recover a personal judgment for a tax 
 whenever there exists a duty to pay, provided another remedy 
 has not been made exclusive by clear and specific declaration. 
 
 3. Reassessment as Prerequisite to Suit. — Act of August 5, 
 1909, Section 38, does not make the remedy by way of a re- 
 assessment by the Commissioner of Internal Revenue exclusive 
 of all other remedies for collection of excise tax imposed on 
 corporations, and suit may be brought under Revised Statutes, 
 
 1241 
 
Section 3213, providing that taxes may be sued for and re- 
 covered in the name of the United States, in any proper form 
 of action, before any Circuit or District Court of the United 
 States for the district within which liability to such tax is 
 incurred, or where the party from whom such tax is due 
 resides at the time of the commencement of the action, with- 
 out any such reassessment. 
 
 4. Operating Expenses and Depreciation. — Though what is a 
 necessary expense of operation and what is a reasonable al- 
 lowance for property depreciation are ultimately questions of 
 fact, so far as they involve legal questions they are absolutely 
 judicial questions, and the declaration in a suit to recover 
 excise tax imposed on corporations by the Act of August 5, 
 1909, which fails to show the making of a new assessment by 
 the Commissioner of Internal Revenue, is therefore not de- 
 murrable. 
 
 5. Declaration in Suit to Recover Tax— Evidence.— Evidence 
 sustaining allegations of incorrectness in returns by corpora- 
 tion subject to excise tax imposed by Act of August 5, 1909, 
 need not be set out in the declaration in a suit to recover 
 such tax; declaration here sufficiently averred erroneous or 
 untrue return of operating expenses and deductions for de- 
 preciation. 
 
 6. Declaration in Suit to Recover Tax— Bill of Particulars. — 
 Where declaration in action to recover of a corporation the 
 excise tax imposed by Act of August 5, 1909, expressly avers 
 that alleged deductions were not reasonable allowances for 
 depreciation within the meaning of such act, if more definite 
 or detailed information is needed to enable defendant to plead 
 or prepare for trial, remedy is by bill of particulars. 
 
 7. Judgment Reversed. — Judgment of the District Court is 
 reversed. 
 
 [DECISION OF COURT.] 
 (November 7, 1917.) 
 
 Northwestern Mutual Life Insurance Company v. Fink, 
 
 collector. 
 
 (District Court, E. D. Wisconsin.) (248 Fed., 568.) 
 
 Recovery of excess taxes paid on erroneous second assessment. 
 Section 3225, Revised Statutes. 
 (Extracted from Judge Geiger's opinion in the above case 
 In which judgment was rendered for plaintiff.) 
 
 A final question, one not suggested in the pleadings, briefly 
 referred to in oral arguments, but later elaborately discussed 
 in briefs, arises on these facts: In making its return for the 
 year 1910, plaintiff omitted an item of $77,000 from the 
 income side. It is an aggregate of receipts from agencies, 
 omitted because information respecting the accounts to which 
 individual items were distributable was not at hand at the 
 time of making the return, and, apparently, was in good faith 
 treated as a "suspense" item which would naturally, upon 
 later ascertainment, go into the return for the ensuing year. 
 There is no suggestion that the facts are not consisteiit with 
 perfect good faith. The record attests fully that the omission, 
 if it involved delinquency at all, arose as stated— it was an 
 erroneous failure to include the items. 
 
 1242 
 
The Government urges that such failure bars the right to 
 maintain the action, and bases its contention upon Section 
 3225, R. S. U. S. (Comp. St. 1916, Sec. 5948), which is as- 
 serted to be incorporated into the excise law in question: 
 
 "When a second assessment is made in case of any list, 
 statement, or return, which in the opinion of the collector or 
 any deputy collector was false or fraudulent, or contained any 
 understatement or undervaluation, no tax collected under such 
 assessment shall be recovered by any suit unless it is proved 
 that the said list, statement, or return was not false nor 
 fraudulent, and did not contain any understatement or under- 
 valuation." 
 
 The broad proposition is that any and every error of under- 
 statement or undervaluation, howsoever innocently made, bars 
 relief against a reassessment, howsoever inaccurate, or unjust 
 it may be. It may be said confidently that so drastic a rule 
 should not be accepted unless unmistakably clear language, 
 disclosing a legislative purpose and intent viewed in the light 
 of history and results to be achieved, leaves no alternative. 
 
 I shall assume that Section 3225 is brought into the tax 
 law in question; and it necessitates consideration of that 
 section as part of a chapter, dealing generally with practice, 
 procedure, rights and remedies awarded to both Government 
 and taxpayer or citizen, in the matter of assessment, collec- 
 tion, remission and refund of public dues. These laws are not 
 of recent enactment. The times and conditions at and under 
 which they came into being to further the raising of revenue 
 to meet a situation of great national stress, the administra- 
 tive recognition and application accorded them for over fifty 
 years, may safely aid in throwing light upon the just inter- 
 pretation to be given. Without narrating historically the ad- 
 vent and amendment of this particular Section 3225 and 
 allied provisos, it suffices to say that they had their begin- 
 nings in the Civil War Revenue Act of June 30, 1864 (13 
 U. S. Stat., p. 223, c. 173), as amended by the Act of July 
 13, 1866 (14 U. S., Stat., 98, c. 184). They exhibit the early 
 recognition by the Government of the necessity of ways and 
 means for revising, both in the interest of the Government 
 and the taxpayer, the returns or assessments made or levied, 
 and for refunding or recovery of taxes actually paid; and 
 from the earliest occasions when interpretation of these stat- 
 utes was called for the courts here have uniformly given to 
 the results accomplished by legislation on the general subject, 
 this broad characterization: 
 
 "The revenue measures of every civilized government consti- 
 tute a system which provides for its enforcement by officers 
 commissioned for that purpose. In this country, the system 
 for each State, or for the Federal Government, provides safe- 
 guards of its own against mistake, injustice, or oppression, in 
 the administration of its revenue laws. Such appeals are al- 
 lowed to specified tribunals as the lawmakers deem expedient. 
 Such remedies also for recovering back taxes illegally exacted 
 as may seem wise are provided. In these respects the United 
 States have, as was said by the court in Nichols v. United 
 States, 7 Wall., 122 (19 L. Ed. 125), enacted a system of 
 corrective justice, as well as a system of taxation in both 
 its customs and internal revenue branches. That system is 
 intended to be complete. * * * So also in the internal 
 revenue department, the statute allows appeals to the asses- 
 sor to the Commissioner of Internal Revenue; and, if dis- 
 satisfied with his decision, on paying the tax the party can 
 
 1243 
 
•lie the collector; and if the money was wrongfully exacted, 
 the courts will give him relief by a judgment, which the 
 United States pledges herself to pay," Per Miller, Justice, 
 Cheatham v. U. S., 92 U. S. 88, 23 L. Ed. 561. 
 
 A careful reading of adjudicated cases — indeed, all legisla- 
 tion upon the varied phases of public revenues — suggests that 
 at no time has there been a purpose to cut off or to impair, 
 either as against the Government or the citizen, this "system 
 of corrective justice" attending the administration of revenue 
 laws. 
 
 At the outset, the proposition advanced by the defence is 
 repugnant, utterly, to this view, and the broad purpose dis- 
 closed. If it is not obviously, it is easily demonstrably so. 
 A few considerations of a practical nature — which a court 
 may entertain — will be helpful. When property is assessed 
 for taxation upon an ad valorem basis, the taxing officers 
 frequently must, initially, determine values. Even in such 
 cases the taxpayer is not left wholly remediless to review or 
 revise the finding of the assessing or taxing officer. In very 
 rare situations is it possible justly to ascribe to any individual 
 whether he be the interested taxpayer or the public assessor, 
 the power or the duty to make an initial valuation to be 
 accepted by the one adversely interested as indubitably fair; 
 and, as indicated, there have arisen of necessity in the interest 
 of just dealing the varying methods of revision and correc- 
 tion. Coming to the particular case before us, where assess- 
 ments are based upon retiims exhibiting great magnitude and 
 complexity of business operations, the possibility and the 
 probability of errors — without a suggestion of attendant bad 
 faith — is increasingly present. It may safely be said that 
 the great majority of returns under these excise and income 
 tax laws contain items involving for their fixing and determi- 
 nation, judgment, honestly and conscientiously exercised; and 
 it is equally true that, no matter how conscientiously one 
 man may fix and determine an item, another, with equal 
 probity and integrity/ may fix it at a substantially higher or 
 lower figure. The very purpose is to enable revision, to cor- 
 rect the mistake, of omission, or commission, or to prevent 
 frauds; and it would be anomalous to assume infallibility on 
 the part of the Government in its efforts at revision, where- 
 fore mistakes of the citizens only are to be corrected. Tliis 
 is said because, in my judgment, the drastic construction of 
 Section 3225 now insisted upon will, if adopted, lead to that 
 result as a matter of practical administration and application. 
 It means that the taxpayer cannot prevail imless he succeeds 
 in reinstating his own return, item for item, against the 
 revision or reassessment. Naturally suits to recover can 
 rarely be brought when the reassessment is more favorable 
 than the original return, though even such result can con- 
 ceivably come through an entire rearrangement of the return 
 through the exclusion of items admitted and the inclusion of 
 items contested by the taxpayer. But this is true as a prac- 
 tical matter: Every reassessment which results in an in- 
 creased tax must involve expressly or by necessary implica- 
 tion the opinion or conviction of the i^eviewing officer that the 
 original return contained, somewhere or somehow, an under- 
 statement or undervaluation, a false (erroneous, or fraudu- 
 lent) item or items. Therefore unless the taxpayer can es- 
 tablish that his original return was right, and hence that the 
 reassessment, in its attempted revision or additions, is wrong, 
 in every particular, he must fail in his action. If this is pos- 
 
 1244 
 
sible, and it must follow so strict an interpretation of the 
 statute (Section 3225), then there is little left that can com- 
 mend itself — to the citizen or taxpayer — of any so-called sys- 
 tem of "corrective justice." 
 
 The present case furnishes a good illustration: Assuming 
 that the exaction of 1 per cent on the millions of dividends 
 treated as income is illegal and unjust, a remedy would have 
 to be denied because of an honest error respecting an item, by 
 comparison, trifling. I am unwilling to give to the section in 
 question any such interpretation; and no matter how drastic 
 an application may be compelled in cases of actual fraud — 
 whether the items fraudulently withhold or misstated be large 
 or small — the view that the section aims to furnish a rule of 
 proof, to give to the finding of executive officers a status or 
 dignity prima facie good, to cast upon the citizen the burden 
 of overthrowing it, thereby giving the section a distinct place 
 and function in the corrective and revisory "system" of the 
 revenue laws, is far more reasonable and commendable. It 
 furthers the accomplishment, by the Government or by the 
 taxpayer, of the general purpose of enabling just revision or 
 •ecovery; whereas, the view urged by the defendant makes 
 he statute highly penal, and, in its application, one-sided, 
 •esulting, as indicated, in foreclosure of recovery in every case 
 Adhere the original return cannot be established, item for item, 
 n opposition to the Government revision. 
 
 (T. D. 
 
 Authorizing collectors in certain cases of erroneous assessment 
 to present blanket claims monthly on Form Wo. 47. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. 0. 
 To Collectors of Internal Revenue: 
 
 Hereafter collectors will present once a month a blanket 
 claim on Form 47 for the abatement of taxes coming within 
 the following classes of taxes erroneously assessed: 
 
 1. Duplicate assessments. 
 
 2. Cases where specific exemption has not been taken 
 
 on the taxpayer's return and the assessment has ac- 
 cordingly been excessive to the extent of the tax 
 assessed bcause of failure to take exemption. 
 
 3. Cases of excessive assessment caused by mathemat- 
 
 ically erroneous calculations of tax by the taxpayer 
 upon his return. 
 
 4. Fifty per cent additional taxes where a tentative re- 
 
 turn has been filed within the time required by law, 
 but where the fact of such filing has been overlooked 
 in the collector's oflace and an assessment of 50% 
 additional tax has accordingly been made, and is 
 unquestionably erroneous. In all other cases of 50% 
 additional tax assessments, a claim must be presented 
 by the taxpayer, as at present. 
 
 In preparing these claims, the collector will paste upon 
 the blank space on Form 47 a schedule showing the name and 
 address of the taxpayers; the month, page, and line of the 
 assessment list; amount assessed, amount due, amount abate- 
 able; the nature of the erroneous assessment, as classified 
 above; and a brief and clear statement of the ground for 
 abatement. 
 
 These claims should be forwarded so as to be received 
 
 1245 
 
in the Commissioner's office by the 5th of each month, in 
 order that tlie allowance may be scheduled on the Form 7220 
 for the same month. 
 
 Where amounts abateable have been assessed upon lists 
 of the different classes, separate claims must, of course, be 
 presented, each to cover the items upon the list, or lists, of 
 a given class. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 16, 1918. 
 J. H. MOYLE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2700.) 
 
 Additional tax on undistributed earnings of corporations — Sec- 
 tion 10(b) and Section 31(b), Act of September 8, 1916, as 
 amended; Investment of such earnings. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 ' Inquiries have been received from corporations confronted 
 with liability to additional tax under Section 10(b) of the 
 Act of September 8, 1916, as amended, upon undistributed net 
 earnings of the previous taxable year, as to what restrictions 
 apply to investment of such earnings in obligations of the 
 United States issued after September 1, 1917. 
 
 Section 10(b) added by Section 1206 of the Act of October 
 3, 1917, provides as follows: 
 
 In addition to the Income tax imposed by subdivision 
 (a) of this section, tliere shall be levied, assessed, collected, 
 and paid annually an additional tax of 10 per centum upon 
 the amount, remaining undistributed six months after the 
 end of each calendar or fiscal year, of the total net In- 
 come of every corporation, Joint-stock company or associa- 
 tion, or insurance company, received during the year. • • • 
 
 The tax imposed by this subdivision shall not apply 
 to that portion of such undistributed net income which 
 is actually Invested and employed in the business or is 
 retained for employment in the reasonable requirements 
 of the business or is invested in obligations of the 
 United States issued after September first, nineteen hun- 
 dred and seventeen. ♦ • • ." 
 
 Section 31(b) added by Section 1211 of the Act of October 
 3, 1917, provides in part as follows: 
 
 Any distribution made to the shareholders, or members 
 of a corporation, Joint-stock company, or association, or 
 insurance company. In the year nineteen hundred and sev- 
 eteen, or subsequent tax years, shall be deemed to have 
 been made from the most recently accumulated undi- 
 vided profits or surplus." * * • 
 
 The effect of this section is dealt with under Regulations 
 No. 33 Revised, Article 107, in Treasury Decision 2659 and 
 Treasury Decision 2678. Under these rulings the burden is 
 upon the corporation seeking to establish a distribution in the 
 current year of profits of the preceding taxable year to show 
 that all the earnings of the current year have been first dis- 
 tributed. 
 
 1246 
 
In determining the source of earnings from which a particu- 
 lar distribution is made a corporation is, however, permitted 
 to treat the undivided profits and surplus of the current year 
 as reduced by payments for income and excess profits taxes or 
 if keeping its accounts upon an accrual basis by proper re- 
 serves for such taxes, although such payments or reserves are 
 not deductible in computing the income of the corporation for 
 income and excess profits taxes. 
 
 The restrictions as to the distribution of earnings of prev- 
 ious taxable years resulting from the presumption that all 
 current distributions are from current earnings do not apply 
 to the use of earnings for investments by corporations. There 
 is in the statutes no limitation or restriction as to the source 
 from which may be taken earnings used for this purpose. 
 Amounts invested in obligations of the United States issued 
 after September 1, 1917, may thus be treated as made from 
 such earnings as the corporation may designate. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 16, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2702.) 
 
 Authorizing debtor corporations and withholding agents to 
 accept, until June 1, 1918, certificates of ownership, on 
 the old forms, when properly executed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 1. This office has received since the issue of the revised 
 forms of ownership certificates and monthly returns, a number 
 of certificates and returns executed on the old forms. It 
 appears that there is a misunderstanding among banks, col- 
 lecting agents, debtor corporations and withholding agents as 
 to whether the old forms of certificates may be used in lieu 
 of the revised forms. 
 
 2. In view of the fact that the revised forms were placed 
 at the disposal of the public over three months ago, this office 
 is of the opinion that a reasonable period of time has elapsed 
 in which to permit the public to have become familiar with 
 them. In order, however, to prevent inconvenience to individ- 
 uals and organizations required to use such forms, this office 
 grants an extension of time until June 1, 1918, during which 
 time OAvnership certificates, properly executed on the old forms, 
 presented by individuals or organizations, either resident or 
 foreign may be accepted by debtor corporations and withhold- 
 ing agents. 
 
 3. On and after June 1, 1918, the use of the old forms of 
 certificates will be discontinued in connection with coupons 
 and interest orders, whether owned by citizens or residents, 
 etc., of the United States, or non-resident alien individuals, 
 firms, or foreign corporations. Banks and collecting agents, 
 debtor corporations, and withholding agents shall refuse to 
 
 1247 
 
accept the old forms after that date, and collectors of internal 
 revenue hereafter receiving monthly returns accompanied by 
 certificates on the old forms, when it shall appear that such 
 certificates were filed with debtor corporations or withholding 
 agents subsequent to June 1, 1918, shall require the debtor 
 corporation or withholding agent concerned to file certificates 
 on the revised forms, as herein provided. 
 
 4. Collectors are further advised that monthly returns ren- 
 dered on the old forms are no longer acceptable to this office, 
 and when so received cause a needless expenditure of time in 
 auditing. All monthly returns reporting payments of interest 
 on bonds, or payments of dividends on stock of domestic cor- 
 porations registered in the name of foreign corporations, not 
 having an ofiice or place of business in the United States, 
 should be prepared on Form 1013, Revised (1918). 
 
 5. In order that the fulfillment of the requirements herein 
 provided may cause as little hardship as possible to individ- 
 uals, banks, collecting agents, corporations, etc., collectors 
 should satisfy themselves that they have a sufficient supply 
 of the revised forms on hand to meet anticipated demands, 
 and where the supply is not deemed sufficient, requisition 
 should be made without delay on Form 16, Revised, for such 
 additional quantity as may be necessary. Collectors are re- 
 quested to disseminate this information throughout their dis- 
 tricts as quickly as possible. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 18, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2705.) 
 
 United States Bonds bearing interest at a higher rate than 
 four per centum to be accepted at par and accrued interest 
 in payment of estate tax. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. April 23, 1918. 
 
 To Internal Revenue Officers and Others Concerned: 
 
 Section 14 of the Act of April 4, 1918 (Public— No. 120— 65th 
 Congress), provided in part: 
 
 "That any bonds of the United States bearing interest 
 at a higher rate than four per centum (whether Issued 
 under section one of this Act or upon conversion of bonds 
 Issued under this Act or under said Act approved April 
 twenty-fourth, nineteen hundred and seventeen), which 
 have been owned by any person continuously for at least 
 six months prior to the date of his death, and which upon 
 such date constitute part of his estate, shall, under rules 
 and regulations prescribed by the Secretary of the Treas- 
 ury, be receivable by the United States at par and accrued 
 interest in payment of any estate or inheritance taxes 
 imposed by the United States, under or by virtue of any 
 present or future law upon such estate or the Inheritance 
 thereof." 
 
 Bonds of the United States falling within the classification 
 specified will be accepted in payment of estate tax at par 
 and accrued interest. Bonds so receivable must (1) bear a 
 higher rate of interest than four per centum per annum, and 
 
 1248 
 
(2) have been owned by the decedent continuously for at 
 least six months prior to the date of his death, and upon 
 such date constitute a part of the estate of the decedent. 
 The reckoning of the required period of ownership may begin 
 on the date when the decedent acquired bonds bearing interest 
 at a higher rate than four per centum, by purchase, by con- 
 version of other bonds, or otherwise. 
 
 The entire estate tax may be paid in bonds, or the tax 
 may be paid partially in bonds and partially by cash or 
 check. Collectors may not, however, accept bonds, the par 
 value and accrued interest on which aggregates a greater 
 amount than the tax. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 23, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2706.) 
 
 Compensation for property requisitioned or lost or destroyed 
 through war hazards; replacement fund; taxation 
 deferred — 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Revenue Agents and Others 
 Concerned: 
 Regulations No. 33, Revised, provide in Article 94 as foUowa: 
 
 Art. 04. Income from Damages Becovered. — "When a 
 corporation as a result of suit or otherwise secures pay- 
 ment for damages which it may have sustained, and the 
 amount of such payment is in excess of an amount neces- 
 sary to make good the damage or damaged property, the 
 amount of such excess shall be considered and returned as 
 income for the year in which received. If the entire or 
 an estimated amount of the damage shall have been previ- 
 ously charged off and deducted from gross income, from 
 the amount recovered shall be returned as Income. 
 
 If the amount recovered Is less than the damage sus- 
 tained or less than an amount necessary to make good 
 the damage, the difference between the actual amount of 
 damage sustained and the amount recovered will be de- 
 ductible as loss. 
 
 In the case of property, title to which has been requisitioned 
 for war uses, or property which has been lost or destroyed 
 in whole or in part through war hazards, the amount re- 
 ceived by the owner as compensation for the property may 
 show an excess over the value of the property on March 1, 
 1913, or over its cost if it was acquired after that date. This 
 excess of the amount received over the value or cost of the 
 property, except so far as actually used for the replacement 
 of the property in kind, is subject to the income, war income 
 and excess profit* taxes. 
 
 Although the intention or obligation of the taxpayer in 
 such case may be to use the entire sum received as com- 
 pensation for the replacement in kind of the lost or damaged 
 property, it is recognized that it may not be practicable, 
 owing to war conditions, to make such replacement for a con- 
 siderable time. In such case the taxpayer may establish 
 A "replacement fund" in which the entire amount of the com- 
 
 1249 
 
pensation so received shall be held, and pending the disposi- 
 tion thereof the accounting for gain or loss thereupon may be 
 deferred for a reasonable period of time to be determined by 
 the Commissioner of Internal Revenue. Where the property 
 requisitioned, lost or damaged constituted all or part of the 
 security under a mortgage or trust indenture, the amount car- 
 carried to the replacement fund may, subject to the approval 
 of the Commissioner of Internal Revenue, be the amount of 
 compensation received less the amount, if any, which becomes 
 payable out of such compensation under the terms of such 
 instrument or the obligations thereby secured. 
 
 In any such case the taxpayer should make application to 
 the Commissioner of Internal Revenue for permission to estab- 
 lish such replacement fund and in his application should recite 
 all the facts relating to the transaction and undertake that 
 he will proceed as expeditiously as possible to replace or re- 
 store such property and an affidavit as to the truthfulness of 
 the statements made should be attached to the application. 
 
 The taxpayer will be required to furnish a bond with such 
 security or surety as the Commissioner of Internal Revenue 
 may require for an amount not less than the estimated addi- 
 tional excess profits and income taxes assessable by the 
 United States upon the income so carried to the replacement 
 fund; or at the option of the taxpayer and in lieu of such 
 bond the taxpayer may deposit as security for such estimated 
 additional amount of tax, obligations of the United States 
 issued after September 1, 1917, such obligations to be held in 
 trust as such security under such agreement as may be pre- 
 scribed by the Commissioner of Internal Revenue in a bank 
 or trust company approved by him. 
 
 In any such case when the the replacement or restoration 
 is made the new or restored property shall not be valued in 
 the accounts of the taxpayer at an amoimt in excess of that 
 at which the requisitioned, damaged or destroyed property 
 was carried, except and to the extent that such new or re- 
 stored property has an increased productive capacity. 
 
 Article 94 of Regulations No. 33 (Revised) as hereby modi- 
 fied shall apply to individuals and partnerships as well as to 
 corporations. 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved: April 25, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2707.) 
 
 Amending instructions relative to reporting income derived 
 from the sale of personal property on the installment 
 plan — 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 It has been ascertained that dealers in personal property 
 who sell on the installment plan adopt one of four ways of 
 protecting themselves in case of default, namely: 
 1. A provision that title is to remain in the seller imtil the 
 buyer has performed his part of the agreement. 
 
 1250 
 
2. A conveyance of title to the purchaser subject to a lien 
 
 for the unpaid portion of the purchase price. 
 
 3. The conveyance to the purchaser and an immediate recon- 
 
 veyance by way of chattel mortgage to the seller. 
 
 4. Conveyance to a trustee in trust to hold the title pending 
 
 performance of the contract and subject to its provisions 
 
 The purpose is the same in all of these transactions. 
 
 In view of the fact that in a number of States it is held 
 that the form first mentioned shall not be enforced according to 
 its terms, but will be regarded as a sale with a chattel mort- 
 gage back to secure the unpaid purchase price, it is desirable 
 that a uniform rule be established which will be equitable 
 and applicable to all. 
 
 The rule prescribed is that in the sale or contract for sale 
 of personal property on the installment plan, whether or not 
 title remains in the vendor until the property is fully paid 
 for, the income to be returned by the vendor will be that 
 proportion of each installment payment which the gross profit 
 to be realized when the property is paid for bears to the gross 
 contract price. If, for any reason, the vendee defaults in his 
 installment payments and the vendor repossesses the property, 
 the entire amount received on installment payments less the 
 profit originally returned will be income to the vendor to be so 
 returned for the year in which the property was repossessed. 
 
 This ruling amends Articles 117 and 120 of Regulations 33, 
 Revised, and revokes all previous decisions and rulings which 
 are in conflict herewith. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 25, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2708.) 
 
 Estates of Non-residents — Payment of Tax and Transfei 
 of Securities — 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 T. D. 2490 prescribes a method to be followed by transfer 
 agents who have orders for the transfer of stock standing in 
 the name of a non-resident decedent. The following alternative 
 procedure is established for observance by transfer agents 
 who prefer this method to that prescribed in T. D. 2490: 
 
 A supply of Form 706 will be furnished by the commissioner 
 or any collector of internal revenue to any transfer agent. 
 The transfer agent will forward forms to its foreign offices 
 or to its representatives in foreign countries, with instructions 
 that whenever an order is received for the transfer of securi- 
 ties belonging to a non-resident decedent, the foreign executor, 
 administration or beneficiary of the estate will be required to 
 execute a complete return on Form 706 of all property belong- 
 ing to the decedent situated in the United States, including 
 shares of stock in a domestic corporation. This return, in 
 triplicate, will be subscribed and sworn before a notary public 
 
 1251 
 
or a similar officer qualified to administer oaths. If the notary 
 public or other officer is known to the transfer agent and his 
 signature is guaranteed by the transfer agent, the authority 
 of the notary public or other official need not be attested by 
 a certificate of a United States consul. In addition to the 
 returns the foreign representative of the transfer agent will 
 obtain from the personal representative of the estate a copy 
 of the inventory required to be filed by the probate law of 
 the country in which the decedent was domiciled at the time 
 of death, which copy shall be certified to by the proper foreign 
 judicial officer under the same conditions provided for the 
 certification of the returns. The returns and inventory will 
 be forwarded to the United States with the order for transfer 
 of the shares of stock. 
 
 Upon receipt of the return and inventory by the transfer 
 agent the items on the return will be carefully checked against 
 the inventory. The transfer agent will retain the inventory 
 and send the return, in triplicate, to the Commissioner of 
 Internal Revenue at Washington, with a certificate to the 
 cflTect that all property disclosed by the inventory to be sit- 
 uated in the United States has been included in the return on 
 Form 706. The inventory will be furnished for inspection by 
 the Commissioner of Internal Revenue in any case where the 
 commissioner so desires. 
 
 After a review of the return and verification of the amount 
 of tax due, two copies of the return will be forwarded to the 
 collector to whom the tax must be paid. Upon payment of 
 the tax the collector will issue the usual receipts in triplicate 
 and in addition will certify on one copy of the return fur- 
 nished him that the amount of tax shown by the return to 
 be due has been paid. The certified and receipted copy of the 
 return will be forwarded with the usual receipts for payment 
 to the transfer agent, to be used as evidence that the securi- 
 ties listed on the return have been reported to the United 
 States Government, and that the Federal estate tax has been 
 paid with respect to all property disclosed on Form 706. 
 
 Notice on Form 704 and Form 714 must be filed with the 
 collector as heretofore. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: April 25, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2709.) 
 
 Revoking Treasury Decision 1987; requiring the filing by 
 fiduciaries of a separate ownership certificate where bonds 
 of the same issue are owned by more than one estate or 
 trust, and providing for the filing of one certificate in the 
 case of joint owners. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 1. Where fiduciaries have the control and custody of more 
 than one estate or trust, and said estates and trusts have as 
 assets bonds of corporations, etc., this office will hereafter 
 
 1252 
 
require that a certificate of ownership be executed for each 
 estate or trust regardless of the fact that the bonds are of the 
 same issue. When bonds are owned jointly by several persons, 
 one of the owners may execute an ownership certificate in be- 
 half of the other owners and endorse on the back thereof their 
 names and addresses, and proportion of ownership of each. 
 
 2. Treasury Decision 1987, dated May 29, 1914, and instruc- 
 tions on ownership certificates Forms 1000 and 1001, Revised, 
 which provide for the filing of a separate certificate by each 
 joint owner, are hereby superseded and repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: May 2, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2711.) 
 
 Revision of Article 62 of the Income Tax Regulations and 
 Article 2 of the Excess Profits Tax Regulations regarding 
 limited partnerships. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue. 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 10 (a) of the Income Tax Act of September 8, 1916, 
 as amended, provides for a tax upon the net income of "every 
 corporation, joint-stock company or association, or insurance 
 company, organized in the United States, no matter how 
 created or organized, but not including partnerships." Section 
 4 of the War Income Tax Act of October 3, 1917, and Section 
 407 of the Capital Stock Tax Act of September 8, 1916, contain 
 language similar in efl'ect. Section 200 of the War Excess 
 Profits Tax Act of October 3, 1917, specifying that when used 
 therein "the term 'corporation' includes joint-stock companies 
 or associations and insurance companies," provides for a tax 
 "upon the income of every corporation, partnership or indi- 
 vidual." 
 
 Article 63 of the Income Tax Regulations classes limited 
 partnerships as corporations for the purpose of the income tax 
 and requires income from the earnings of such partnerships to 
 be treated like dividends on corporate stock. Article 2 of the 
 Excess Profits Tax Regulations extends the term "corporation" 
 to include limited partnerships. 
 
 So far as limited partnerships of the type of partnerships 
 with limited liability or partnership associations authorized 
 by the statutes of Pennsylvania and of a few other States are 
 concerned, no reason exists for changing the regulations. Such 
 so-called limited partnerships, offering opportunity for limiting 
 the liability of all the members, providing for the transfer- 
 ability of partnership shares, and capable of holding real 
 estate and bringing suit in the common name, are more truly 
 corporations or joint-stock companies than partnerships. 
 
 But the regulations require revision with respect to limited 
 partnerships of the type authorized by the statutes of New 
 
 1253 
 
York and of most of the States. S'ucri limited partnerships, 
 which cannot limit the liability of the general partners, al- 
 though the special partners enjoy limited liability so long as 
 they observe the statutory conditions, which are dissolved by 
 the death or attempted transfer of the interest of a general 
 partner, and which cannot take real estate or sue in the part- 
 nership name, are so like common law partnerships as to 
 render inadvisable the differentiation hitherto existing in the 
 regulations. 
 
 The same considerations apply to the classification of lim- 
 ited partnerships for the purpose of the capital stock tax. 
 It is immaterial that partnerships with limited liability of the 
 Pennsylvania type may not issue stock. They have capital 
 stock and the interests of the members are shares within the 
 meaning of the statute, stock certificates being mere evidences 
 of ownership. 
 
 Therefore, for the purpose of the income tax, the war Income 
 tax, the excess profits tax and the capital stock tax, limited 
 partnerships of the Pennsylvania type of partnerships with 
 limited liability are corporations or joint-stock companies, and 
 limited partnerships of the New York type are partnerships. 
 Article 62 of the Income Tax Regulations and Article 2 of the 
 Excess Profits Tax Regulations are modified accordingly. How- 
 ever, in doubtful cases limited partnerships will be treated as 
 corporations unless thay submit satisfactory proof that they 
 are not in effect so organized. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: Mav 9, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2715). 
 
 Revision of Articles 83 and 84 of the Income Tax Regulations 
 regarding interest upon the obligations of a State or any 
 political sub-division thereof — 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 Section 4 of the Income Tax Act of September 8, 1916, as 
 amended by the Act of October 3, 1917, provides that the fol- 
 lowing income shall be exempt from the income tax: 
 
 "Interest upon the obligations of a State or any political 
 sub-division thereof." 
 
 In order more clearly to define this exemption Articles 83 
 and 84 of the Income Tax Regulations, as revised, are hereby 
 amended to read as follows: 
 
 "Art. 83. Obligations of a Statei — Among income exempt 
 from the income tax is interest upon the obligations of a 
 State or any political sub-division thereof. Obligations issued 
 for a public purpose by or on behalf of the State or a duly 
 organized political sub-division acting by constituted authori- 
 ties duly empowered to issue such obligations are the obliga- 
 tions of a State or a political sub-division thereof. 
 
 1254 
 
"Art. 84. Political sub-divisions.— The term 'political sub- 
 division' denotes any division of the State made by the proper 
 authorities thereof acting within their constitutional powers 
 for the purpose of carrying out a portion of those functions of 
 the State which by long usage and the inherent necessities of 
 government have always been regarded as public. Political 
 sub -divisions of a State, within the meaning of the exemption 
 referred to in Article 83, include special assessment districts so 
 created such as road, water, sewer, gas, light, reclamation, 
 drainage, irrigation, levee, school, harbor, port improvement 
 and similar districts and divisions of a State." 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved: May 20, 1918, 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2716.) 
 
 Amending Article 35, Regulations No. 33 (Revised), by defining 
 foreign items, and regulating the furnishing of informa- 
 tion as to such items by the bank or agency collecting the 
 same, and by the fiscal agent of the foreign country or 
 foreign corporation making the payment. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. 0. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 (1) Article 35, Regulations No. 33 (Revised), is hereby 
 amended to read as follows: 
 
 Art. 35. Such returns of information shall be required, 
 regardless of amount, in the case of payments of interest 
 upon bonds, mortgages, or deeds of trust or other similar 
 obligations of domestic or resident corporations, joint- 
 stock companies, associations, and insurance companies, 
 and in the case of foreign items. The original ownership 
 certificates, when duly filed, shall constitute and be treated 
 as returns of information. 
 
 The term "foreign item," as used In this article, means 
 any dividend upon the stock of a foreign corporation, or 
 any item of interest upon the bonds of foreign countries 
 of non-resident foreign corporations, whether or not such 
 dividend or interest is paid in the United States, or by 
 check drawn on a domestic bank. The term "foreign 
 corporation," as used in this article, means one not organ- 
 ized and existing under the laws of the United States or of 
 any State or Territory thereof, or of the District of Co- 
 lumbia, Porto Rico or the Philippine Islands. The term 
 "non-resident foreign corporation," as used in this article, 
 means any foreign corporation which has no office or 
 place of business in the United States. The mere mainte- 
 nance of an ofllce, or fiscal agency, in the United States 
 for the payment of dividends on stock or interest on 
 bonds, does not constitute a foreign corporation a "resi- 
 dent" of the United States within the meaning of this 
 article. 
 
 The first bank or agency accepting a foreign item for 
 collection is required to make a return of information con- 
 cerning the same. Whenever a foreign country of foreign 
 corporation making payment of foreign items has a fiscal 
 agent in this country, such agent, when requested by the 
 Commissioner of Internal Revenue, shall furnish whatever 
 information he has in relation to such Items. A dividend- 
 disbursing agent is deemed to be such a fiscal agent. 
 
 12S5 
 
Banks or agencies collecting foreign Items are required 
 to obtain a license from the Commissioner of Internal 
 Revenue to engage In such business, and are subject to 
 such regulations for the furnishing of information as said 
 commissioner, with the approval of the Secretary of the 
 Treasury, shall prescribe, and to the penalties prescribed 
 for failure to obtain such license (Act of September 8, 
 1916, Sec. 9(f), as amended by Act of October 3, 1917, Sec. 
 1205). A blank application (Form 1017) for such a license 
 may be obtained upon request, from any Collector of 
 Internal Revenue. This license is issued without cost. 
 
 Such foreign Items shall not be accepted for collection 
 by any bank or collecting agency so licensed unless ac- 
 companied by proper ownership certificates (Form 1001- A) 
 showing names and addresses of the owners, and all 
 other Information called for thereon. The licensee Is also 
 required to Indorse upon such item the words "Certificate 
 detached and Information furnished," adding his name 
 and address. When foreign Items have been Indorsed as 
 above prescribed, the certificates shall be detached and 
 forwarded to the Commissioner of Internal Revenue (Sort- 
 ing Division), Washington, D. C, on or before the twen- 
 tieth day of the month following that during which the 
 Items were accepted, accompanied by a letter of trans- 
 mittal showing the number of certificates, and the aggre- 
 gate amount of foreign items disclosed thereon. 
 
 (2) For the purpose of complying with the above require- 
 ments, a certificate, Form 1001 -A, will be provided by the 
 Government and furnished to CoUectori of Internal Revenue 
 for distribution to the public. This certificate shall be in the 
 following form: 
 
 FOREIGN ITEMS. 
 Form 1001-A. Names must be printed 
 
 U. S. Internal Revenue. or written plainly. 
 
 Ownership Certificate — Tax Not to be Paid at the Source. 
 
 (For the use of owners of stock of all foreign corporations, and 
 owners of bonds of foreign countries or non-resident foreign 
 corporations.) 
 
 Payor of Interest or Dividend. ] Owner of Bonds or Stocks. 
 
 Name Name 
 
 Address I Address 
 
 (On line above give full description of foreign Item — date of 
 dividend, or maturity of Interest. 
 
 I certify that the owner of the 
 bonds or stock upon which the 
 above-described Income accrued 
 falls within the class of per- 
 sons or organizations opposite 
 which such income Is entered, 
 and Is entitled to receive the 
 income reported without de- 
 duction of tax. 
 Signature of Owner 
 
 or Agent. 
 
 Address of Agentf. 
 
 Owner Int. Diva. 
 
 If owner Is an Individual Is 
 
 |If not, Is he I the head of 
 
 he married? | a family? 
 
 1. Citizen or resi- 
 dent of the Unit- 
 ed States, indi- 
 vidual or fiduci- 
 ary* $ 
 
 2. Domestic or res- 
 ident corpora- 
 tion, association 
 or partnership— $ 
 
 3. Non - resident 
 alien Individual. S 
 
 4. Non - resident 
 foreign corpora- 
 tion, association 
 
 or partnership-- $ |_. 
 
 ♦Fiduciaries must enter un- 
 der "Owner of bonds or stocks" 
 the name of estate, trust, or 
 beneficiary on behalf of whom 
 this certificate is made. 
 
 If securities are owned joint* 
 ly by several persons, one may 
 sign, and the names, addresses 
 and proportion of ownership of 
 each indorsed on the back 
 thereof. 
 
 1256 
 
NOTE: The first bank or collecting agent receiving this certifi- 
 cate is required to detach and forward it to the Commissioner of 
 Internal Revenue (Sorting Division), Washington, D. C, accom- 
 panied by a letter of transmittal shovv^ing the number of certifi- 
 cates, and the aggregate amount of foreign items disclosed there- 
 on. When certificate is detached, the collecting agent shall in- 
 dorse upon the foreign item "Certificate detached and information 
 
 furnished ." 
 
 (Name and address of licensee.) 
 
 Date 
 
 tA responsible bank or banker may execute the certificate on 
 behalf of a non-resident alien ov^ner of stocks or bonds. 
 
 (3) The use of Form 1071, Revised, is hereby discontimied. 
 All Treasury Decisions and other rulings by this office in 
 conflict herewith are hereby superseded and repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 APPROVED: May 28, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 Printed copies will be furnished upon request. 
 
 (T. D. 2720.) 
 
 Income Tax Act of October 3, 1913 — Decision of Court. 
 
 ASSOCIATION— 
 
 An organization according to whose constitution in- 
 dividuals who are beneficially interested in various 
 proportions in the same property and hold assignable 
 certificates representing their different interests there- 
 in, but who can claim no part of the income of such 
 property as their income as distinguished from the 
 income of the organization to which they belong, 
 commit the control and management of such prop- 
 erty, or for profit, to trustees, free from their own 
 immediate control or interference, except that such 
 individuals may act by majority in amount and in- 
 terest for the purpose of allowing extra compensa- 
 tion to the trustees, filling vacancies in the office of 
 trustees or modifying the terms of the declaration of 
 trust, is an "association" and taxable as such under 
 Section II. G(a) of the Act of October 3, 1913. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Circuit Court of 
 Appeals for the First Circuit in the cases of Crocker et al., 
 trustees, v. John F. Malley, collector of internal revenue, and 
 of John F. Malley, collector of internal revenue, v. Crocker 
 et al., trustees, is published for the information of internal 
 revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 1257 
 
UNITED STATES CmCUIT COURT OF APPEALS, FIRST 
 
 CIRCUIT, OCTOBER TERM, 1917. 
 
 1917. No. 1323. No. 1324. 
 
 Alvah Crocker et al., trustees, plaintiffs in error, v. John 
 F. Malley, collector, defendant, defendant in error; John F. 
 Malley, collector, defendant, plaintiff in error, v. Alvah 
 Crocker et al., trustees, plaintiffs, defendants in error. 
 
 Error to the District Court of the United States for the 
 District of Massachusetts. 
 
 Before Dodge, Johnson and Aldrich, Judges. 
 (May 3, 1918.) 
 
 Dodge, Judge: These cases arise under the Federal Income 
 Tax Act, approved October 3, 1913 (38 Stats. 166, 172). 
 
 The j&ve persons who were then the trustees under a declara- 
 tion of trust dated March 29, 1912, and recorded in the 
 Worcester County, Massachusetts, Northern District, registry 
 of deeds, brought suit on January 15, 1917, against the Col- 
 lector of Internal Revenue to recover back certain amounts 
 paid by them to him under protest, as income taxes claimed 
 by him to be due from them under said act, for the years 
 1913, 1914 and 1915. The case was heard in the district court 
 without a jury on an agreed statement of facts. The trus- 
 tees recovered judgment for $9,554.07, with interest, which 
 judgment the collector seeks to reverse in No. 1324, asserting 
 that the allowance of any recovery was error. By their writ 
 of error in No. 1323, the trustees assert the judgment to have 
 been erroneous in not allowing also the further recovery of 
 $1,321.33, included in their total claim as stated in their 
 declaration. Neither party disputes the finding below that 
 all the formalities required by the statute to enable the plain- 
 tiffs to bring this suit have been complied with. 
 
 The declaration of trust provided that "the title of this 
 trust (fixed for convenience) shall be The Wachuset Realty 
 Trust," The important features of the trust thereby created 
 are set forth as follows ui the "Opinion and Findings" of the 
 district court: 
 
 The trust was created under the common law. In Its Inception 
 there were five trustees and eight beneficiaries, five of whom were 
 trustees. The property of the trust consisted of real estate and 
 shares of stock In a Massachusetts corporation, the legal title to 
 which was vested in the trustees. The real estate was leased to 
 the Massachusetts corporation, and the income of the trust came 
 from the dividends on the stocl^ and the rentals of the real 
 estate. Certificates were issued by the trust to the beneficiaries in 
 proportion to their respective Interests in the property held by the 
 trust. The certificates contained a provision signifying the assent 
 of the beneficiaries to the terms of the trust agreement. 
 
 According to the trust agreement, the trust was to continue for 
 20 years from and after the death of the survivor of certain per- 
 sons named, when the property was to be converted Into money 
 and the net proceeds distributed among the persons then holding 
 and owning the beneficial interests therein. Pending final con- 
 version and distribution of the property full management and 
 control of the tame was vested in the trustees, with as full 
 
 Sowers as though they were themselves sole and absolute bene- 
 cial owners thereof in fee simple. 
 
 They were authorized to collect and receive all rents and In- 
 comes from the property and semi-annually or oftener to dis- 
 tribute such portion thereof as they, In their discretion, should 
 determine to be fairly distributable as Income to the several 
 cestui que trusts, according to their Interests. The compensation 
 of the trustees was not to exceed a total of one per cent, reckoned 
 upon the gross income received, "unless, at any time, a majority 
 In interest of the cestui que trusts consent in writing to gome 
 
 1258 
 
larger compensation for any past service." Any vacancies in the 
 office of trustee were to be filled by tlie remaining trustees by an 
 instrument in writing signed by them and assented to in writing 
 by the holder or holders of a majority in amount of the beneficial 
 interests in the trust; and the terms and provisions of the trust 
 could be modified at any time by an instrument in writing, 
 signed, sealed, and acknowledged "by the then trustees, assented 
 to in writing by a majority in interest of the cestui que trusts." 
 It was also stipulated that the cestui que trusts should "be trust 
 beneficiaries only, without partnership, associate, or any other 
 relation whatever inter sese." 
 
 The district court stated the question upon which the trus- 
 tees' right of recovery depends as follows: 
 
 The principal question in the case is whether the plaintiffs are 
 trustees and subject to the tax provisions of Section II., Subdivi- 
 sion D, of the Act of October 3, 1913, or whether they are an 
 association within Section II.. Subdivision G(a), of said act. The 
 contention of the defendant is that the plaintiffs are an associa- 
 tion and taxable under the provisions of Subdivision G, while 
 that of the plaintiffs is that they are a strict trust, not an asso- 
 ciation or partnership, and are subject to the tax provisions of 
 Subdivision D. 
 
 This question was resolved by the district court in favor 
 of the plaintiffs, and the case decided upon the ground that 
 they are a trust and not an association. 
 
 Under the corporation excise tax statute of 1909 (36 Stats., 
 11, 112) every corporation, joint- stock company, or associa- 
 tion organized for profit and having a capital stock represented 
 by shares, now or hereafter organized under the laws of the 
 United States or of any State or Territory, etc., was made 
 subject, if engaged in business in any State, etc., to pay an- 
 nually a special excise tax with respect to the carrying on or 
 doing business by it, of 1 per cent upon its entire net income 
 over and above $5,000 received by it from all sources during 
 the year. 
 
 In Eliot V. Freeman, 220 U. S., 178, it was held with regard 
 to two Massachusetts real estate trusts, more or less similar 
 in character to the trusts here under consideration, that they 
 were not within the provisions of the act nor liable to the 
 excise tax thereby imposed because formed in a State where 
 statutory joint- stock companies are unknown and not there- 
 fore deriving either from the laws of the United States or 
 of any State or Territory, etc., and quality or benefit not 
 existing at the common law. The intention of Congress was 
 held to have been to embrace within the statute only such 
 corporations and joint- stock associations as were organized 
 under some statute or did derive from that source some qual- 
 ity or benefit not existing at the common law. 
 
 This decision was in 1911. The language of the subsequently 
 enacted income tax statute of 1913 imposes the normal tax 
 therein provided for upon the entire net income of every 
 corporation, joint- stock company, or association organized in 
 the United States, no matter how created or organized. 
 
 If, therefore. The Wachuset Realty Trust is a joint- stock 
 company or association, within the meaning of those terms as 
 used in Section 11., G(a), of the statute of 1913, it makes no 
 difference whether it is created or organized under any statute 
 or not. Being organized in the United States its income is 
 liable to the tax imposed, although it derives no benefit 
 not existing at common law from any statutory source. The 
 question remains, however, whether or not the facts before 
 the district court required the finding that it was a "joint- 
 stock association" or "association" such as the above section 
 intends. We find no indication in Eliot v. Freeman or in any 
 other Supreme Court decision that a Massachusetts trust like 
 
 1259 
 
those before the court in that case must necessarily be re- 
 garded as such an "association" in the statutory sense. On 
 the collector's behalf it is said that in the legislation of 1913 
 Congress "intentionally omitted the one requirement which 
 exempted such an organization" under the legislation of 1909. 
 But we think it by no means clear from anything said in the 
 opinion that either trust before the court in Eliot v. Freeman 
 must have been held an "association" in the statutory sense, 
 had it only been organized under some statute expressly per- 
 mitting such organization. In the opinion it is expressly said, 
 as to the trusts then under consideration, that they could 
 "hardly be said to be organized within the ordinary meaning 
 of that term" (220 U. S., 186), and it was pointed out (at p. 
 187) that they did not have perpetual succession, but ended 
 2.0 years after lives in being — suggestions which would hardly 
 have been made if the decision was meant to be understood 
 as contended. 
 
 With regard to the statute of 1909 it is to be noticed that 
 while corporations, joint- stock companies, or associations and 
 insurance companies, were therein classed together as they 
 are in the statute of 1913— the former statute, unlike the lat- 
 ter, imposed upon them not a tax upon their incomes as such, 
 but a "special excise tax with respect to the carrying on or 
 doing business by them," equivalent to 1 per cent upon their 
 net incomes in excess of $5,000. Upon partnerships, not capa- 
 ble of being included in said classification, the statute of 1909 
 did not undertake to impose any such tax, any more than 
 upon individuals. The incomes of the partners from the busi- 
 ness of an ordinary partnership Congress could not have taxed 
 in 1909; the sixteenth amendment not having become a part 
 of the Constitution until February 25, 1913. 
 
 The statute of 1913, however, imposes a tax directly upon 
 net incomes not a special excise tax equivalent to the same 
 percentage. It imposes such tax directly upon the incomes 
 of individuals and partnerships as well as those of corpora- 
 tions, joint-stock companies or associations, and insurance 
 companies according to provisions alike in principle as to all 
 said incomes, however different as to matters such as the dif- 
 ferent amounts of exemptions or deductions allowed different 
 classes of recipients. The provisions of Section II., G(a), 
 which subject the incomes of corporations, joint-stock com- 
 panies or associations, and insurance companies to the tax 
 are there expressly declared not applicable to partnerships. 
 In Section II., D, are found separate and distinct provisions 
 which expressly direct that persons carrying on business in 
 partnership shall be liable for income tax only in their indi- 
 vidual capacities, and which regulate accordingly the returns 
 of incomes required to be made by partnerships. 
 
 No provisions are found in the statute of 1913 which directly 
 impose a tax upon incomes arising or accruing to fiduciaries, 
 in terms corresponding to those whereby a tax is imposed 
 upon incomes arising or accruing to individuals (Sec. IT., A-1) 
 or to corporations, joint-stock companies or associations, etc. 
 (Sec. IL, G-a). By Section II., I>, in a paragraph mainly 
 devoted to setting forth requirements t)f annual returns froin 
 or on behalf of the various classes of recipients of taxable 
 income, trustees, among other specified kinds of fiduciaries, 
 "and all persons, corporations, or associations acting in any 
 fiduciary capacity," are required to make such returns of "the 
 net income of the person for whom they act, subject to this 
 tax, coming into their custody or control and managemeit, 
 
 1260 
 
and be subject to all the provisiona of this section which apply 
 to individuals." 
 
 The provisions just referred to seem to be rather provisions 
 for the assessment and collection of the taxes due from the 
 different classes of recipients of incomes elsewhere directly 
 taxed by the statute than provisions creating still another 
 class of recipients and imposing a tax upon incomes arising 
 or accruing to them. Nowhere in the statute are incomes 
 arising or accruing to fiduciaries declared subject as such to 
 the provisions taxing incomes arising or accruing to indi- 
 viduals. 
 
 In view of the above features of the statute, the nrst ques- 
 tion presented in determining its application to these trustees 
 seems to be as follows : Is the income received by them dur- 
 ing each calendar year from the property under their control 
 to be considered income arising or accruing to the "persons 
 for whom they act," or as income arising or accruing to them, 
 notwithstanding that it is to be disposed of by them as the 
 trust declaration requires? If it is to be regarded as income 
 of the former description, i. e., as arising or accruing to the 
 respective beneficiaries, the above provisions of Section II., D, 
 require an annual return of it from them, and they are liable 
 to pay the tax imposed upon it by a clause in the same para- 
 grapgh subjecting them to all the provisions of the section 
 applicable to individuals; but under subsequent provisions 
 of Section II., D, they need not include in their returns so 
 much of said income as is derived from dividends upon the 
 stock forming part of the property under their control. But 
 if said income is to be considered as "arising or accruing" to 
 them rather than to the beneficiaries or certificate holders, 
 none of the above provisions of Section II., A, or of Section 
 II., D, seem to us applicable either to said income or to them. 
 Though arising or accruing to them as trustees or title holders 
 of the property from which it is derived, they do not, and 
 could not, claim such income as their own in any individual 
 capacity; and if they do not receive it as income subject to 
 the tax because it has arisen or accrued to the several bene- 
 ficiaries, it must be either income arising or accruing to them 
 collectively as the receiving officers of their organization, and 
 subject to the tax imposed by Section II., G-a, upon incomes 
 of the different class there dealt with, from which dividends 
 may not be deducted, or income upon which no tax is imposed 
 by any express and distinct provisions of the statute. 
 
 In order to make income from a trust estate received by the 
 fiduciary in any calendar year income of the person for whom 
 he acts, subject to the tax, in the sense of the above provi- 
 sions of Section II., D, it must be received by the fiduciary 
 upon terms which make it income arising or accruing during 
 that year to such person according to Section II., A-1. If the 
 terms of the trust are such that its receipt by the fiduciary 
 immediately renders it, or so much of it as is net income, 
 available as such to the beneficiary, no difficulty is found in 
 regarding it as income of the person for whom the fiduciary 
 acts, subject to the tax, coming into his custody or control and 
 management, and therefore governed by said provisions of 
 Section II., D. 
 
 But by the terms of the trust here in question the receipt 
 by the trustees during a given calendar year of income from 
 the trust estate does not render any part of such income 
 immediately so available to the beneficiaries as income arising 
 or accruing to them during the year. Such receipt gives to 
 
 1361 
 
no one of them any right to a share of what the trustees so 
 receive as then belonging to him individually, or any right 
 to direct the disposition of any such share according to his 
 individual determination. 
 
 The plaintiffs were not required by the trust declaration 
 under which they received the income from the trust estate for 
 the calendar years here in question to distribute it, or any 
 part of it, to the beneficiaries, as net income, at any time. 
 The requirements as to distribution are only that they dis- 
 tribute such portion of the income received "as they may in 
 their discretion determine to be fairly distributable net in- 
 come." And they are given full authority from time to time 
 to devote any funds on hand, whether received as capital or 
 income, to repair, improvement, protection, or development of 
 the property under their control, or to the acquisition of other 
 property, as they "may determine to be wise and expedient 
 for the protection and development of the trust property as 
 a whole pending its conversion and distribution." Further, 
 their determination is expressly made final, if made by them 
 in good faith, as to all questions as between capital and 
 income. 
 
 No beneficiary of this trust, therefore, had the right, when 
 the income for a given calendar year from the trust property 
 came into the plaintiffs' hands, to demand any share of it or 
 direct the disposition of any of it or even to have his individ- 
 ual share of it determined. To the plaintiffs, and not to their 
 beneficiaries, belonged the right to say whether any of it 
 should then go to the beneficiaries or whether all of it should 
 become part of the trust property ultimately to be distrib- 
 uted. In such final distribution no one who was a beneficiary 
 during the calendar year might live to share. While the value 
 of his proportionate interest in the trust estate might be in- 
 creased if income for the year went to augment said estate, 
 his proportionate share in income so disposed of can hardly 
 be called income arising or accruing to him as an individual dur- 
 ing the year, in the ordinary sense. We think it may \vell be 
 doubted whether income, received by the plaintiffs, subject to 
 such independent power of disposition, or any part thereof, is 
 income within the meaning of the language in Section 11., D, 
 "the net income of the person for whom they act, subject to 
 this tax, coming into their custody or control and manage- 
 ment." 
 
 The plaintiffs' powers and functions as defined by the in- 
 strument under which they act resemble the powers and 
 functions ordinarily exercised by the managers of an organi- 
 zation so constituted as to be of itself a recipient of taxable 
 income independently of the individuals beneficially interested 
 in the property from which it is derived, much more than they 
 resemble the powers and functions of ordinary fiduciaries act- 
 ing merely as such for ordinary beneficiaries. Particularly is 
 this true as to income received from their trust estate. Until 
 and unless, after its receipt, they have so exercised their dis- 
 cretion as to determine it, or some part of it, to be fairly dis- 
 tributable net income, no individual for whom they act can 
 claim any part of it as his income, as distinguished from the 
 income of the organization to which h-e belongs. The same 
 is true of a corporation's income, in which stockholders can 
 claim no individual right before the managers declare a divi- 
 dend from it. The same would be true of a corporation, joint- 
 stock company, or association which had given to its officers 
 powers of disposition over its income like the above. The 
 
 1263 
 
same would not be true in the ordinary eases of fiduciaries 
 exercising, with regard to income, only the powers necessary 
 for distributing net income as received to the persons for 
 whom they act, such as we think were contemplated by the 
 above provisions of Section II., D. 
 
 It is true, as the agreed statement before us shows, tliat 
 the plaintiffs "have disbursed such income" as they have from 
 time to time received from the real estate and stock which 
 they hold, "less charges and disbursements for taxes and 
 similar expenses, to their several beneficiaries in proportion to 
 their respective interests." This we understand to mean that 
 they have distributed so much of the income received by them 
 during the calendar years here in question as they determined 
 in their discretion, to be fairly distributable net income; ac- 
 cording to clause 3 of the declaration of trust. But in said 
 distributions the respective beneficiaries can hardly be said 
 to have got what they received because it had arisen or ac- 
 crued to each of them during the year; or the plaintiffs to 
 have been performing only the duty of paying over net in- 
 comes so arising or accruing. Each beneficiary took what he 
 received, not because it was his net income so arising or 
 accruing, but because the plaintiffs had elected to treat what 
 they distributed as "fairly distributable net income," instead 
 of accumulating it as they might have done. 
 
 The district court, as its opinion states, held the plaintiffs 
 to be "a trust" subject to the provisions of Section II., D, and 
 not "an association," in deference to the decisions in Williams 
 T. Milton, 215 Mass. 1; Crocker v. Crocker, previously decided 
 in the district court (May 23, 1914), and the authorities where- 
 upon those decisions were based. Crocker v. Crocker required 
 construction by the court of the same trust declaration as is 
 now before us. The bill in that case, filed by one of the bene- 
 ficiaries, asked the court to enjoin the present plaintiffs from 
 making a return of income taxable under this statute accord- 
 ing to Section II., G-a, thereof. 
 
 We agree with the district court, in this case and in Crocker 
 V. Crocker, that the organization formed under this trust dec- 
 laration is not, in view of the authorities referred to, to be 
 regarded as an association in such sense as to make the bene- 
 ciaries partners and the plaintiffs their agents for conducting 
 the partnership business. Its income, therefore, for the calen- 
 dar years in question, is not for the purpose of the statute 
 to be treated as income of a partnership. If it were to be so 
 treated it would be income arising or accruing to the several 
 partners and subject to the provisions of Section II., D, re- 
 garding such income. Nor could the organization be regarded 
 as belonging to either of the classes mentioned in Section 
 II, G-a, because the language there used expressly excludes 
 partnerships. 
 
 But although their beneficiaries stood, neither as to the trust 
 property nor as to the profits of its control and management, 
 nor as to the income therefrom, as partners, but only as 
 beneficiaries of a struct trust; and although the plaintiffs were 
 not the agents or representatives of a partnership, but trus- 
 tees in whose management and control of the trust property 
 and business the beneficiaries had no direct voice, we do not 
 think it necessarily follows that the organization composed 
 of themselves and the individuals for whose benefit they act 
 can not be called an "association" for the purposes of Section 
 n., G-a. Though not associated as partners, we fail to see 
 why they may not reasonably be said to be associated in the 
 
 1263 
 
sense contemplated by the statute. As pointed out above, the 
 statute, for the purposes of the taxation which it imposes, 
 broadly distinguishes between two classes of income only — 
 that which does and that which does not arise or accrue to 
 individuals as opposed to groups or bodies of individuals. 
 
 The plaintiffs fail to satisfy us that the terms ''voluntary 
 association" or "association" are entirely inapplicable for any 
 purpose to an organization according to whose constitution 
 individuals beneficially interested in various proportions in the 
 same property commit its control and management, for profit, 
 to trustees free from their own immediate control or inter- 
 ference. However important it may be to distinguish between 
 a trust under which there is no partnership relation among 
 the beneficiaries and an association imder which such relation 
 exists for the purposes of systems of taxation such as that of 
 Massachusetts (Williams v. Milton, 215 Mass., 1), or for the 
 purpose of statutes such as that construed in Smith v. Ander- 
 son, 50 L. J. Ch., 39; it does not seem to us that the dis- 
 tinction 80 made necessarily excludes an organization like 
 this from the general class of organizations to which the terms 
 "voluntary association" or "association" may properly be ap- 
 plied. The holders of the assignable certificates representing 
 the different beneficial interests in this "trust" may certainly 
 be described, without using language in any extraordinary 
 or unusual sense, as associated together for their common 
 benefit or profit. Their individual interests in the trust prop- 
 erty are combined for the purposes of a joint business venture 
 managed for the common benefit of all. The trust declaration 
 in effect associates them for the purposes of allowing extra 
 compensation to the trustees, of filling vacancies in the office 
 of trustees, or of modifying the terms of the declaration itself 
 when it requires for those purposes written assent from a 
 "majority in amount" or a "majority in interest." 
 
 Believing, in view of the entire scheme for taxation of in- 
 comes as established by this statute, that the legislative intent 
 as to incomes such as these plaintiffs have received was to 
 treat them as arising or accruing to the trustees collectively, 
 rather than to the individual beneficiaries for whose ultimate 
 benefit they were received, we are obliged to hold that the 
 taxes for the years here in question were lawfully assessed 
 and collected, and that the district court erred in its decision 
 to the contrary. This conclusion renders it unnecessary to 
 consider the questions w^hich would have had to be decided 
 upon the plaintiffs' writ of error No. 1323 had we agreed with 
 the district court. 
 
 In No. 1323 the writ of error is dismissed, and the defendant 
 in error recovers his costs of appeal. 
 
 In No. 1324 the judgment of the district court is reversed, 
 and the case is remanded to that court with directions to enter 
 judgment for the defendant, and the plaintiff in error recovers 
 his costs of appeal. 
 
 (T. D. 2721.) 
 
 Corporation Excise Tax Act of 1909— Decision of the 
 Supreme Court — 
 
 1. Nature of Iron-Ore Leases. 
 
 Iron ore leases of the kind under consideration are not 
 conveyances of the ore in place, but are grants of the privi- 
 lege' of entering upon, discovering, and developing and re- 
 
 1264 
 
moving the minerals from the land — The Sargent Land Com- 
 pany case (243 U. S., 503) followed. 
 
 2. Depletion of Capital Assets. 
 
 The lessee of mining property may not deduct the pro- 
 portionate value of the ore in place on January 1, 1909, with 
 respect to each ton of ore mined, as so much depletion of 
 capital assets, but may deduct a proportionate part of the 
 royalty paid in advance. 
 
 3. Judgment Reversed. 
 
 The judgment of the Circuit Court of Appeals is reversed 
 and that of the District Court is aifirmed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of United States of America v. Biwabik Mining 
 Company is published for the information of internal revenue 
 officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 594. 
 OCTOBER TERM, 1917. 
 
 United States of America, petitioner, v. Biwabik Mining 
 
 Company. 
 
 On writ of certiorari to the United States Circuit Court of 
 
 Appeals for the Sixth Circuit. 
 
 (May 20, 1918.) 
 
 Mr, Justice Day delivered the opinion of the court: 
 This case is here upon a writ of certiorari to the United 
 States Circuit Court of Appeals for the Sixth Circuit. It was 
 instituted by the United States in the District Court of the 
 United States for the Northern District of Ohio to recover 
 the sum of $2,653.72, being 1 per cent upon $365,372.08, which, 
 it was claimed, the mining company had wrongfully omitted 
 from the return of its net income for the year 1910 under the 
 corporation tax act of 1909. 
 
 The case was tried upon an agreed statement of facts which, 
 omitting imnecessary details, were epitomized by the District 
 Court as follows: 
 
 In the year 1898 the defendant, by assi|?nment of a lease, ac- 
 quired a leasehold estate in certain ore-prodncing properties in 
 the State of Minnesota, from whirh It mined ore from thnt date 
 to and including? the year 1910. For the year 3930 the dofendnnt 
 made a retnrn to the collector of internal revenue of its gross 
 Income, and from this amount it dpducted, "to cover realization of 
 nnfarned increment," the sum of $265,372.08. The amount of this 
 deduction was arrived at by mnltiplylncr the number of tons of ore 
 mined during the year by 48% cents, which was the market value 
 of the ore in place on the premises on the first day of January, 
 1909, as estimated by the defendant, this being the date upon 
 which the returns for taxation were to commence. It is stipu- 
 lated that this deduction Avas made in good faith upon the claim 
 that it was "a reasonable allowance for depreciation" of the prop- 
 erty of the defendant for that year. 
 
 1265 
 
In June, 1911, payment was made In accordance with this re- 
 turn, but the Treasury Department about the month of October, 
 1914, after investigating the books and records of the defendant, 
 made the claim that because the defendant was not the owner 
 in fee of the premises from which it was mining ore, but was 
 lessee of the same and was paying a royalty to the fee owners, 
 It was not entitled to deduct anything for depletion of the ore 
 body on the premises. Thereupon the defendant was requested to 
 amend its return for the year 1910 so as to include in its gross 
 Income the amount of said deduction, which it declined to do, 
 and thereupon this suit was instituted to recover the tax upon 
 the amount of this deduction, amounting to $2,653.72. 
 
 Some time prior to the making of the return for the year 1910 
 the defendant estimated the tonnage and the market value of the 
 ore In place upon the premises upon which it held its lease, which 
 estimate gave to the ore in place a value of 4S% cents per ton, 
 exclusive of royalty. 
 
 The rights of the defendant in the Iron ore mined In the year 
 1910 were derived from the assignment to it of a written lease 
 dated April 4, 1898, by the Biwabik Bessemer Company, lessor. 
 By the terms of that lease the defendant acquired the right for 
 the term of 50 years and 3 months from the first day of May, 
 1898, to explore for, mine out, and remove the merchantable 
 shipping iron ore which might be found upon the lands described 
 In the lease upon the payment of a royalty of 30 cents for each 
 ton mined. The expression "merchantable ore" is defined as 
 including "all ores which grade 55 per cent and above in metallic 
 iron regardless of other ingredients." 
 
 The lessee contracted to mine and remove at least 300,000 toui 
 of ore annually, or to pay to the lessor 30 cents per ton on that 
 amount if it should not be mined, but payments made In any 
 year in excess of royalty on ore actually mined could be credited 
 upon the excess which might be mined over the minimum re- 
 quirement In subsequent years. Any failure to keep or perform 
 any of the covenants or conditions of the lease gave to the lessor 
 the option to take Immediate possession of the premises. 
 
 The lessor in the lease reserved a lien upon any ore mined and 
 upon all improvements for any unpaid balance of royalty, and It 
 was also provided in the lease that the lessee should have the 
 right to terminate the lease on any first day of January during 
 its term by giving 90 days' notice of the purpose and desire so 
 to do. 
 
 The defendant, at the time it acquired this lease, paid to the 
 prior lessee the sum of $612,000, In addition to contracting to pay 
 the 30 cents per ton royalty upon the ore mined, as has been 
 Btated. 
 
 It Is stipulated In the agreed statement of facts that the deposit 
 of ore on the leased premises is of such character that its quality 
 and quantity were capable of determination "with extraordinary 
 accuracy" by drilling and shafts, and that the defendant "by 
 drilling and by standard recognized methods" had calculated the 
 tonnage remaining on the land on January 1, 19C9, as 6,874,605 
 tons, all of which could be easily removed within the term of the 
 lease. 
 
 Upon these facts the district court reached the conclusion 
 that the leases in question were not conveyances of ore in 
 place, but were grants of the privilege of entering upon the 
 premises and mining and removing the ore, and, consequently, 
 that the deduction claimed as being one from capital invest- 
 ment could not be allowed. In reaching this conclusion the 
 court cited the opinion of this court in Stratton's Independ- 
 ence (Ltd.) V. Howbert, Collector (231 U. S., 399), and the 
 judgment of the Circuit Court of Appeals for the Eighth 
 Circuit (311 Fed., 1023) affirming the judgment of the district 
 court (207 Fed., 419), which decision of the Circuit Court of 
 Appeals was made after the return of the answer to the ques- 
 tions propounded by that court to this court in the Stratton's 
 Independence case. 
 
 Coming to the question as to whrtt allowance should be 
 made to the mining company by way of deduction from its 
 income in making return, the district judge said: 
 
 The defendant paid $612,000 for the lease under considera- 
 tion and in addition assumed the payment of the royalties 
 stipulated for therein. This may properly and justly be con- 
 
 1266 
 
sidered a payment in advance of an increased royalty on ore 
 to be mined, and that is precisely the character which the 
 defendant gave to the payment when dealing with it in its 
 private accounts, in which the stipulation shows (Ex. H.) that 
 it carried one account, entitled "Rate of general ledger or 
 capitalized value $0,03885 per ton," and another account en- 
 titled "Rate of increment value, January 1, 1909, $0.44865 per 
 ton." These two values added make the 48% cents per ton 
 which the defendant deducted in making its return. 
 
 Thus, in its own bookkeeping the defendant gives its private 
 opinion as to the requisite reimbursement necessary to main- 
 tain its capital investment, and thereby is made applicable 
 that long-standing rule for the construction of contracts, viz. : 
 "Show me what men have done under a contract, and I will 
 tell you what it means." The defendant should not complain 
 if it be held to that construction of this lease and its invest- 
 ment under it which it adopted for purposes of its own ac- 
 counting before the question of taxation had arisen to call 
 forth ingenuity of interpretation. 
 
 It results that a decree will be entered allowing instead of 
 the deduction computed on the basis of 48.75 cents per ton of 
 ore mined, the sum of 0.03885 cent per ton, and there being 
 no question of bad faith in the case, the ends of justice will 
 be served by the payment of interest at the rate of 6 per cent 
 per annum from the date when the additional payment found 
 due should have been made. 
 
 The district court thereupon entered judgment: 
 
 And the court finds as conclusions of law from said facts that 
 the defendant was entitled to deduct for and on account of the 
 544,353 tons of iron ore mined by it under its lease in the year 
 1910, the sum of 0.03885 cents per ton (which amount the parties 
 agree hereoy is the cost to defendant of said ore at the time it 
 acquired the property in the year 1898, interest, taxes, surveys 
 and other carrying charges on the said ore up to the time of its 
 removal from the said mine having been charged annually 
 including the year 1910 into operating expenses), and defendant 
 is not entitled to deduct the 48,75 cents per ton deducted by it 
 In its return, and there is due from the defendant to the plaintiff 
 the sum of $2,442.23, with interest thereon at 6 per cent from the 
 30th day of June, 1911, the date when said sum should have been 
 paid, and the court assesses the plaintiff's damages herein at 
 $3,140.70, and judgment is hereby rendered against the defendant 
 in favor of the plaintiff of the sum of $3,140.70, with interest from 
 the first day of this term of court. 
 
 The company took the case to the Circuit Court of Appeals 
 upon writ of error, that court reversed the judgment of the 
 district court, holding that the company was entitled to the 
 deduction of 48.75 cents per ton upon each ton of ore mined, as 
 so much depletion of capital assets (242 Fed,, 9). This con- 
 clusion was reached upon a construction of the lease in view 
 of the character of the mining property involved, and largely 
 because of the fact that the quantity of the ore in place could 
 be estimated with substantial accuracy. The court held that 
 the selling price of the ore in any one year so far as it rep- 
 resented the actual value to the mining company of the ore 
 in the ground on January 1, 1909, was not income within the 
 meaning of the corporation tax act of 1909. In the course of 
 its opinion the Circuit Court of Appeals announced the de- 
 cisive question of law to be: "So far as the selling price 
 of the ore in 1910 represented its actual value to the company 
 in the ground on January 1, 1909, was it income or was it the 
 sale price of capital assets?" And after dealing with the 
 character of this lease and the property covered by it, said: 
 
 1267 
 
We think that the lessee of such property and under such a 
 lease Is as much entitled as Is the owner of the fee to treat the 
 value of his interest In the ore in the ground at the beginning ol 
 the tax period as his capital — Indeed, the lessee's right to do so is, 
 In some respects, the stronger of the two, as hereafter pointed out. 
 Such a lease, as applied to this situation, is in every substantial 
 way pro tanto a purchase. 
 
 This view of the character of these instruments and their 
 legal effect differs from that taken by this court in the Sar- 
 gent Land Company case (242 U. S., 503), wherein precisely 
 similar iron ore leases were under consideration. In that 
 case this court reached the conclusion that such leases were 
 not conveyances of the ore in place, but were grants of the 
 privilege of entering upon, discovering, and developing and 
 removing the minerals from the land, and that the lessor's 
 income from such operation was obtained by a corporation 
 shown to be carrying on business, and upon principles laid 
 down in previous cases in this court (Stratton's Independence 
 V. Howbert, supra; 'Stanton v. Baltic Mining Company, 240 
 U. S., 103) that such income was subject to taxation under the 
 corporation act of 1909. 
 
 In the Sargent Land Company case it was pointed out that 
 the courts of Minnesota, certainly familiar with the physical 
 characteristics of the ore deposits involved, had in a series of 
 cases held these instruments to be leases, and that the royal- 
 ties agreed to be paid were rentals in compensation for the 
 privileges granted the lessee. We held the conclusion of the 
 Minnesota courts to be warranted by reason and authority. 
 (242 U. S., 503, and cases cited in margin, p. 518.) 
 
 The Circuit Court of Appeals distinguished the Sargent 
 Land Company case, and of it said: 
 
 Finally, It Is urged that this case Is controlled by the decision 
 of the Supreme Court In the Sargent Land Company case. The 
 mining leases involved in that case and in this one seem to be iden- 
 tical in substance, and It is now said with great plausibility that 
 the ore in the ground and affected by such a lease belongs partly 
 to the lessor and partly to the lessee, and that if the interest of 
 the lessor Is not capital assets no more is the interest of the 
 lessee, and that If the receipts of the former are income so must 
 those of the latter be. We are convinced that the analogy between 
 the two cases is superficial and not substantial. In that case 
 the Supreme Court had to determine Avhether the royalties re- 
 ceived by the lessor were income or were a depletion of capital. 
 Many considerations led to the conclusion that they must be 
 treated as income. The contract was a "lease," the receipts were 
 "royalties," and royalties being rentals are inherently Income and 
 have been commonly so considered. All these things seem to have 
 affected the conclusion of the court, but after all the dominating 
 thought appears to be that when land Is devoted to mining it Is 
 put to only one of those productive uses of Avhich it is capable, 
 and that the product of the use should be called Income. The 
 land Itself Is the chief thing. After the mining is finished the 
 land remains suitable for other uses; and the fact, If it Is a fact, 
 that the minerals are the greater part of its value can not operate 
 to make the Incidental overshadow the principal. These reasons 
 do not apply at all to the case of the lessee whose existing interest 
 at the beginning of the taxing period over and above the royalty 
 which he must pay amounted to $3,000,000; his entire interest was 
 each year, as far as he went, consumed and exhausted forever; 
 he did not have remaining the principal thing— the land— which 
 he could put to some other use; the receipt In 1910 of his Janu- 
 ary 1, 1909. Interest in the ore was not the offshoot and Income 
 of his property; it was the transformation and eating up of the 
 very property and of the whole of It. We therefore think that 
 applying the principle of the Sargent case results in holding that 
 these receipts were from the sale of capital assets and not from 
 income. 
 
 We are unable to concur in this view expressed in the opin- 
 ion of the Circuit Court of Appeals as to the effect of the 
 Sargent Land Company case. Certainly this court had not in 
 
 1268 
 
mind the distinction suggested. In the Sargent Land Company- 
 case the Circuit Court of Appeals for the Eighth Circuit found 
 that the land including the ore in it was worth hundreds of 
 thousands of dollars, and without the right to the ore the land 
 was worth practically nothing. (219 Fed. 38.) This finding, 
 as well as facts of general knowledge, leave little room to 
 suppose that this court made its decision concerning the rights 
 of the lessor influenced by the fact that the land itself was 
 the chief thing, and the ownership of it after the exhaustion 
 of the minerals one of the controlling reasons in reaching the 
 conclusion announced in that case. The lessee takes from the 
 property the ore mined, paying for the privilege so much per 
 ton for each ton removed. He has this right or privilege under 
 the form of lease here involved so long as he sees fit to hold 
 the same without exercising the privilege of cancellation 
 therein contained. He is, as we held in the Sargent Land 
 Company case, in no legal sense a purchaser of ore in place. 
 
 In this case the Government took no writ of error as to the 
 partial deduction allowed by the District Court, it follows 
 that the correctness of that ruling is not open here. The 
 Circuit Court of Appeals erred in making the additional allow- 
 ance for capital depletion.. It follows that the judgment of the 
 Circuit Court of Appeals must be reversed, and that of the 
 District Court affirmed, and it is so ordered. 
 
 Reversed. 
 
 Mr. Justice Clarke took no part in the consideration or 
 decision of this case. 
 
 (T. D. 27^2.) 
 
 Corporation Excise Tax Act of 1909— Decision of the 
 Supreme Court — 
 
 1. Depletion of Ore Bodies. 
 
 For the purpose of determining its net income for the 
 basis of taxation under the act, a mining corporation is not 
 entitled to deduct from its gross income any amount what- 
 ever on account of depletion or exhaustion of ore bodies 
 caused by its operations for the year for which the tax is 
 assessed. 
 
 2. Deduction of Cost Value of Ore in Ground. 
 
 In the ascertainment of its net income under the act, a 
 mining corporation is not entitled to a deduction against 
 gross proceeds from the mining and treatment of ores to 
 the extent of the cost value of the ore in the ground before 
 it was mined, ascertained in compliance with T. D. 1675. 
 
 3. Questions Answered. 
 
 The questions propounded by the Circuit Court of Appeals 
 are answered as above specified. 
 
 Treasury Department, 
 
 Ofiice of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of the Goldfield Consolidated Mines Company v. 
 
 1369 
 
Joseph J. Scott, as collector of internal revenue, is published 
 for the information of internal revenue officers and others 
 concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 334. 
 
 OCTOBER TERM, 1917. 
 
 Goldfield Consolidated Mines Company v. Joseph J. Scott, as 
 
 collector of internal revenue. Fourth California District. 
 
 On a certificate from the United States Circuit Court of Appeals 
 
 for the Ninth Circuit. 
 
 (May 20, 1918.) 
 
 Mr. Justice Day delivered the opinion of the court: 
 This case is here upon certificate from the United States 
 Circuit Court of Appeals for the Ninth Circuit, from which it 
 appears that the Goldfield Consolidated Mines Company 
 brought an action against Scott, United 'States collector of 
 internal revenue, Fourth California District, to recover certain 
 taxes levied for the years 1909 and 1910 imder the corpora- 
 tion tax act of 1909. The District Court sustained a demurrer 
 to the complaint, and entered judgment against the present 
 plaintiff in error. 
 
 In the certificate the Circuit Court of Appeals sets out the 
 allegations of the complaint as to the first cause of action, 
 stating that the second cause of action need not be repeated 
 as the facts are of the same character as those set out in the 
 first. Omitting formal and unnecessary matters the Circuit 
 Court of Appeals certifies as the allegations of the complaint, 
 to which the demurrer was sustained, the following. 
 
 The plaintiff below, and plaintiff in error herein, the Goldfield 
 Consolidated Mines Company is and was a corporation engaged 
 in mining in the State of Nevada, which State is within the juris- 
 diction of the fourth internal revenue district of California. 
 
 An assessment of an excise tax under Section 38 of the Act of 
 Congress approved August 5, 1909, entitled "An Act to Provide 
 Revenue, Equalize Duties, and Encourage the Industries of the 
 United States, and for other purposes," was levied upon the 
 plaintiff in error by the then collector of internal revenue for the 
 said district amounting to $41,890.91, upon an assessment of 
 $4,189,091.61 which tax was paid under protest of the levy and 
 assessment. The plaintiff in error had made a return of annual 
 net income for that year, 1909, claiming a deduction for the value 
 of the ore in the ground before it was mined, of 230,4(i3 tons of 
 ore, of the value in the ground before it was mined, of $.'),64G,940.46, 
 upon the ground that such ore constituted exhaustion of the 
 capital value of the property owned by it, and its protest against 
 the assessment and levy was based thereon. Thereafter, the 
 plaintiff in error made application for refund of said tax pur- 
 suant to Sections 3220 and 3226 of the Revised Statutes, and based 
 its claim to such refund upon the propriety of the deduction so 
 claimed, and stated in said application that such exhaustion of 
 capital assets constituted a depreciation within the meaning of 
 the Act in question, and that the same would have more than 
 offset the total net income of the plaintiff in error. 
 
 Thereafter, during the pendency before the Commissioner of 
 Internal Revenue of said application for refund, the plaintiff in 
 error, by its duly authorized officials, made full explanation before 
 the Commissioner of Internal Revenue, and offered full proof of 
 the correctness in all respects of its said return of annual net in- 
 come for the year 1909 and of all statements of fact contained 
 therein, and while the Commissioner of Internal Revenue was 
 holding said application under consideration the plaintiff in error 
 
 1270 
 
was duly and regularly granted by said commissioner leave to 
 comply fully with the then rules and regulations of the Treasury 
 Department embodied in Treasury Decision 1675, promulgated 
 February 14, 1911, and particularly Sections 80 to 89 thereof re- 
 lating to depreciation of property of corporations whose business 
 involved wasting assets and like leave was so given to present to 
 the Commissioner of Internal Revenue an amended statement and 
 return of annual net income for said year with explanations of 
 fact in support thereof, and to ascertain the unit cost per ton of 
 the estimated ore bodies belonging to the plaintiff in its various 
 mining properties as of January 1, 1909, and the estimated value 
 of the ore in the ground before it was mined for the year 1909, 
 by multiplying the said unit cost per ton by the total number of 
 tons mined in said year, all of which was done, and the same 
 was filed by the plaintiff in error during the time so provided. 
 
 The rules and regulations are then set out. 
 
 In addition to the rules and regulations as above set out, the 
 
 flaintiff in error was further required by the Commissioner of 
 nternal Revenue to make a calculation for the year 1909 and 
 of previous years of operation to ascertain the total exhaustion of 
 ore which had taken place in the operation of its mining proper- 
 ties, and to enter such amount of tonnage exhaustion, multiplied 
 by the unit cost per ton, in its official corporate books of ac- 
 counts, and also cause the same to be included in its printed 
 annual report of that current year to its stockholders and the 
 public with appropriate explanation thereof, all of which require- 
 ments were performed by the plaintiff in error in obedience to 
 said orders of the Commissioner of Internal Revenue, and within 
 the time granted therefor. 
 
 The complaint alleged that the resulting figures so rendered 
 In said return were and are in all respects true and correct, and 
 resulted in a showing of net income measuring the excise tax 
 under the rules and regulations amounting to $765,380.02, upon 
 which the tax would have been $7,653.80; it also appeared from 
 said complaint that this compliance with the requirements of the 
 Commissioner of Internal Revenue was made by the plaintiff 
 in error without waiving its claim to the full deduction originally 
 claimed. 
 
 It further appears from the complaint that, in disobedience and 
 disregard of the law and of the rules and regulations of the 
 Treasury Department, the Commissioner of Internal Revenue dis- 
 allowed the application for refund of the plaintiff in error in 
 toto, which disallowance was communicated to the plaintiff In 
 error December 29, 1913, by the defendant in error. Collector 
 of Internal Revenue, the then collector having succeeded to the 
 office of the Collector of Internal Revenue who had originally 
 levied the tax in question. The complaint alleges that no part 
 
 of the said tax has been refunded or paid back, and that the 
 
 same is still due and unpaid. 
 
 The questions propounded are: 
 
 1. Under the provisions of paragraph 38 of the Act of Con- 
 gress entitled "An Act to provide revenue, equalize duties, and 
 encourage the industries of the United States, and for other 
 purposes," approved August 5, 1909 (36 Stat. L., p. 11, at 
 p. 112), is a mining corporation, for the purpose of determining 
 its net income for the basis of taxation, entitled to deduct 
 from its gross income any amount whatever on accomit of 
 depletion or exhaustion of ore bodies caused by its operations 
 for the year for which the tax is assessed? 
 
 2. Is such a corporation under said act entitled in the ascer- 
 tainment of its net income to a deduction against gross pro- 
 ceeds from the mining and treatment of ores to the extent 
 of the cost value of the ore in the ground before it was mined, 
 ascertained in strict compliance with the rules and regulations 
 of the Treasury Department of February 14, 1911 (Tr. Dec. 
 1675) ? 
 
 3. Where such a corporation claimed originally in its return 
 of net income under said act a deduction for depreciation 
 from exhaustion of ore for the year equal to the actual valua 
 
 1371 
 
of the ore in the ground before it was mined, and having been 
 denied any deduction whatever for exhaustion of ore, and 
 having been assessed accordingly and having paid the resulting 
 tax, made application pursuant to {Sections 3220 and 3226, 
 lievised Statutes, for refund, during the pendency of which 
 application said corporation was granted leave to amend and 
 did amend its return of net income in strict accordance with 
 the rules and regulations promulgated February 14, lyil (sees. 
 80 to 89, T. D. 1675), resulting in an amended return based 
 upon cost as provided in said regulations and showing claimed 
 deductions therefrom less than the corporation's net realiza- 
 tions for the year from the ore actually mined, is such cor- 
 poration entitled to an allowance of deductions and refund 
 of taxes accordingly? 
 
 4. In what, if any, way is the right to such claimed deduc- 
 tions affected by the fact that such corporation, in obedience 
 to requirements imposed by the Commissioner of Internal 
 Revenue at the time of liling its amended returns showing the 
 cost value as of January 1, 1909, of the ores mined during 
 the year, caused to be entered in its oiiicial books of account 
 and printed in its annual report of that current year to all of 
 its stockholders and to the public, a statement of the total 
 amomit of ore exhaustions, multiplied by the unit cost per 
 ton on its mining properties for that and all previous years! 
 
 In the brief submitted for the Goldheld Consolidated Mines 
 Company comisel frankly admit that if this court is to adhere 
 to the principles laid down in Stratton's Independence v. 
 Howbert (231 U. S., 399) and Von Baumbach, Collector, v. 
 Sargent Land Company (242 U. S., 503), those cases are con- 
 clusive against the contentions of the Mines Company in this 
 proceeding. In view of the discussion of the nature of mining 
 property in Stratton's Independence v. Howbert (supra), and 
 the application of the principles therein laid down in the sub- 
 sequent cases of Baltic Mining Company v. Stanton (240 U. S., 
 103), and Von Baumbach, Collector, v. Sargent Land Com- 
 pany (supra), it is necessary to enter upon further considera- 
 tion of the matters disposed of in those cases. We find no 
 occasion to depart from the principles therein announced, or 
 the rulings therein made. They have been reaffirmed in the 
 case of United States v. Biwabik Mining Company, just de- 
 cided. In this view it follows that the first and second ques- 
 tions must be answered in the negative, and that it is unnec- 
 essary to answer the tlurd and fourth questions. 
 
 So ordered. 
 
 (T. D. 2723.) 
 
 Corporation Excise Tax Act of 1909— Decision of the 
 Supreme Court — 
 
 1. Purpose of the Act. 
 
 The legislative purpose was not to tax property as such 
 or the mere conversion of property, but to tax the conduct 
 of the business of corporations organized for profit by a meas- 
 ure based upon the gainful returns from their business 
 operations and property from the time the act took effect. 
 
 2. Treatment of Proceeds of Conversion of Capital Assets. 
 
 The suggestion that the entire proceeds of the conversion 
 of capital assets should be still treated as the same capital, 
 
 1272 
 
changed only in form and containing iio element of income, 
 although including an increment of value, is inconsistent 
 with the general purpose of the act. 
 
 3. Meaning of "Income." 
 
 "Income" imports, as used in the act, something entirely 
 distinct from principal or capital either as a subject of taxa- 
 tion or as a measure of the tax, conveying rather the idea 
 of gain or increase arising from corporate activities. 
 
 4. Determination of Gain or Loss. 
 
 In order to determine whether there has been gain or loss 
 and the amount of the gain, if any, an amount must be 
 withdrawn from the gross proceeds of sale sufficient to re- 
 store the capital value that existed on December 31, 1908, 
 notwithstanding any increment of value up to that time had 
 not been entered upon the plaintiff's books of account. 
 
 5. Sales of Timber. 
 
 The gain on a sale of timber acquired by a lumber manu- 
 facturing company before January 1, 1909, and converted into 
 money after that date is income within the meaning of the 
 act, but only such portion of the gain as accrued subsequent 
 to December 31, 1908, is taxable. 
 
 6. Judgment Affirmed. 
 
 The judgment of the Circuit Court of Appeals is affirmed. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 In the case of Emanuel J. Doyle, collector of internal revenue, 
 V. Mitchell Brothers Company is published for the information 
 of internal revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved Jime 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 492. 
 OCTOBER TERM, 1917. 
 
 Emanuel J. Doyle, collector of internal revenue, petitioner, v. 
 Mitchell Brothers Company. 
 
 On writ of certiorari to the United States Circuit Court of 
 
 Appeals for tlie Sixth Circuit. 
 
 (May 20, 1918.) 
 
 Mr. Justice Pitney delivered the opinion of the court : 
 This was an action to recover from the collector additional 
 taxes assessed against the respondent under the corporation 
 excise-tax act of August 5, 1909 (ch. 6, 36 Stat. 11, 112, sec. 
 38), and paid under protest. The district court gave judgment 
 for the plaintiff, which was affirmed by the Circuit Court of 
 Appeals (225 Fed. Rep., 437; 235 Fed. Rep., 686), and the case 
 comes here on certiorari. 
 
 It was submitted at the same time with several other cases 
 decided this day arising under the same act. 
 
 1273 
 
The facts are as follows: Plaintiff is a lumber manufactur- 
 ing corporation which operates its own mills, manufactures 
 into lumber therein its own stumpage, sells the lumber in the 
 market, and from these sales and sales of various by-products 
 makes its profits, declares its dividends, and creates its sur- 
 plus. It sells its stumpage lands, so called, after the timber 
 is cut and removed. Its sole business is as described; it is not 
 a real estate trading corporation. Plaintiff acquired certain 
 timberlands at its organization in 1903 and paid for them at 
 a valuation approximately equivalent to $30 per acre. Owing 
 to increases in the market price of stumpage the market value 
 of the timberland, on December 31, 1908, had become approxi- 
 mately $40 per acre.* The company made no entry upon its 
 books representing this increase, but each year entered as a 
 profit the difference between the original cost of the timber 
 cut and the sums received for the manufactured product, less 
 the cost of manufacture. After the passage of the excise-tax 
 act, and preparatory to making a return of income for the 
 year 1909, the company revalued its timber stumpage as of 
 December 31, 1908, at approximately $40 per acre. The good 
 faith and accuracy of this valuation are not in question, but 
 the figures representing it never were entered in the corporate 
 books. 
 
 Under the act the company made a return for each of the 
 years 1909, 1910, 1911 and 1912, and in each instance deducted 
 from its gross receipts the market value, as of December 31, 
 1908, of the stumpage cut and converted during the year 
 covered by the tax. There appears to have been no change 
 in its market value during these years. 
 
 The Commissioner of Internal Revenue having allowed a 
 deduction of the cost of the timber in 1903 and refused to 
 allow the difference between that cost and the market value 
 of the timber on December 31, 1908, the question is whether 
 this difference (made the basis of the additional taxes) was 
 income for the y^ars in which it was converted into money, 
 within the meaning of the act. 
 
 Other items are involved in the case, arising from the sale 
 of certain stump lands, certain by-products, and a parcel of 
 real estate, but they raise no different question from that 
 which arises upon the valuation of the stumpage, and need 
 not be further mentioned. 
 
 The act became effective January 1, 1909, and provided for 
 the annual payment by every domestic corporation "organized 
 for profit and having a capital stock represented by shares" 
 of an excise tax "equivalent to one per centum upon the 
 entire net income over and above five thousand dollars re- 
 ceived by it from all sources during such year," with excep- 
 tions not now material. It is declared that such net income 
 should be ascertained by deducting from the gross mcome 
 received within the year from all sources the expenses paid 
 within the year out of income in the maintenance and opera- 
 tion of business and property, including rentals and the like; 
 losses sustained within the year and not compensated by in- 
 surance or otherwise, including a reasonable allowance for 
 depreciation of property; interest paid within the year to a 
 limited extent; taxes; and amounts received within the year 
 as dividends upon stock of other corporations subject to the 
 same tax. In the case of a corporation organized under the 
 
 •The valuations were based upon the Qu^'^tity of standing tlm 
 ber, 
 
 1274 
 
 ber? at certain prices per thousand feet for the different varieties. 
 ^ ayproxiniate acreage equivalent is employed for convenience. 
 
laws of a foreign country, the net income was to be ascer- 
 tained by taking into account the gross income received within 
 the year "from business transacted and capital invested within 
 the United States and any of its Territories, Alaska and the 
 District of Columbia," with deductions for expenses of main- 
 tenance and operation, business losses, interest and taxes, all 
 referable to that portion of its business transacted and capital 
 invested within the United States, etc. 
 
 An examination of these and other provisions of the act 
 makes it plain that the legislative purpose was not to tax 
 property as «uch, or the mere conversion of property, but to 
 tax the conduct of the business of corporations organized for 
 profit by a measure based upon the gainful returns from their 
 business operations and property from the time the act took 
 effect. As was pointed out in Flint v. Stone Tracy Co. (220 
 U. S., 107, 145), the tax was imposed "not upon the franchises 
 of the corporation irrespective of their use in business, nor 
 upon the property of the corporation, but upon the doing of 
 corporate or insurance business and with respect to the carry- 
 ing on thereof"; an exposition that has been consistently ad- 
 hered to. McCoach v. Minehill R. R. Co. (228 U. S., 295, 300) ; 
 United States v. Whitridge (231 U. S., 144, 147); Anderson v. 
 Forty-two Broadway (239 U. S., 69, 72). 
 
 When we come to apply the act to gains acquired through 
 an increase in the value of capital assets acquired before and 
 converted into money after the taking effect of the act, ques- 
 tions of difficulty are encountered. The suggestion that the 
 entire proceeds of the conversion should be still treated as the 
 same capital, changed only in form and containing no element 
 of income, although including an increment of value, we reject 
 at once as inconsistent with the general purpose of the act. 
 Selling for profit is too familiar a business transaction to 
 permit us to suppose that it was intended to be omitted from 
 consideration in an act for taxing the doing of business in 
 corporate form upon the basis of the income received "from 
 all sources." 
 
 Starting from this point, the learned Solicitor General has 
 submitted an elaborate argument in behalf of the Government, 
 based in part upon theoretical definitions of "capital," "in- 
 come," "profits," etc., and in part upon expressions quoted 
 from our opinions in Flint v. Stone Tracy Company (220 U. S., 
 107, 147), and Anderson v. Forty-two Broadway (239 U. S., 
 69, 72), with the object of showing that a conversion of capi- 
 tal into money always produces income, and that for the 
 purposes of the present case the words "gross income" are 
 equivalent to "gross receipts"; the insistence being that the 
 entire proceeds of a conversion of capital assets should be 
 treated as gross income, and that by deducting the mere cost 
 of such assets we arrive at net income. The cases referred 
 to throw little light upon the present matter, and the expres- 
 sions quoted from the opinions were employed by us with 
 reference to questions wholly remote from any that is here 
 presented. 
 
 The formula that the entire receipts derived from a con- 
 version of capital assets after deducting cost value must be 
 treated as net income, so far as it is applied to a conversion 
 of assets acquired before the act took effect and so as to tax 
 as income any increased value that accrued before that date, 
 finds no support in either the letter or the spirit of the act, 
 and brings the former into incongruity with the latter. If the 
 gross receipts upon such a conversion are to be treated as 
 
 1275 
 
gross income, what authority have we for deducting either the 
 cost or the previous market value of the assets converted in 
 order to arrive at net income? The deductions specifically 
 authorized are only such as expenses of maintenance and 
 operation of the business and property, rentals, uncompen- 
 sated losses, depreciation, interest and taxes. There is no 
 express provision that even allows a merchant to deduct the 
 cost of the goods that he sells. 
 
 Yet it is plain, we think, that by the true intent and mean- 
 ing of the act the entire proceeds of a mere conversion of capi- 
 tal assets were not to be treated as income. Whatever diffi- 
 culty there may be about a precise and scientific definition 
 of "income," it imports, as used here, something entirely dis- 
 tinct from principal or capital either as a subject of taxation 
 or as a measure of the tax; conveying rather the idea of gain 
 or increase arising from corporate activities. As was said 
 in Stratton's Independence v. Howbert (231 U. S., 399, 415) : 
 "Income may be defined as the gain derived from capital, from 
 labor, or from both combined." 
 
 Understanding the term in this natural and obvious sense, 
 it can not be said that a conversion of capital assets invariably 
 produces income. If sold at less than cost, it produces rather 
 loss or outgo. Nevertheless, in many if not in most cases 
 there results a gain that properly may be accounted as a part 
 of the "gross income" received "from all soui'ces," and by 
 applying to this the authorized deductions we arrive at "net 
 income." In order to determine whether there has been gain 
 or loss, and the amount of the gain, if any, we must with- 
 draw from the gross proceeds an amount sufficient to restore 
 the capital value that existed at the commencement of the 
 period under consideration. 
 
 This has been recognized from the beginning by the admin- 
 istrative officers of the Government. Shortly after the pas- 
 sage of the act, and before the time (March 1, 1910) for mak- 
 ing the first returns of income, the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, 
 promulgated Regulations No. 31, under date December 3, 
 1909, for the guidance of collectors and other subordinate offi- 
 cers in the performance of their duties under the act. These 
 prescribed, with respect to manufacturing companies, that 
 gross income should consist of the difference between the price 
 received for the goods as sold and the cost of such goods as 
 manufactured; cost to be "ascertained by an addition of a 
 charge to the account of the cost of goods as manufactured 
 during the year of the sum of the inventory at beginning of 
 the year and a credit to the account of the sum of the inven- 
 tory at the end of the year." In the case of mercantile com- 
 panies, gross income was to be the "amount ascertamed 
 through inventory, or its equivalent, which shows the differ- 
 ence between the price received for goods sold and the cost 
 of goods purchased during the year, with an addition of a 
 charge to the account of the sum of the inventory at begin- 
 ning of the year and a credit to the account of the sum of the 
 inventory at the end of the year." And as to miscellaneous 
 corporations, gross income was to be "the gross revenue de- 
 rived from the operation and management of the business 
 and property of the corporation," with all income derived from 
 other sources. The matter of income arising from a profitable 
 gale of capital assets was dealt with specifically in such a way 
 as to limit the tax to income arising after the effective date 
 of the act. This was done by adopting the rule that an ad- 
 
 1276 
 
vance in value arising during a period of years should be so 
 adjusted that only so much as property was attributable to 
 the time subsequent to January 1, 1909 (December 31, 1908, 
 would have been more precise), should be subjected to the 
 tax.* Subsequent Treasury regulations, promulgated from 
 time to time (T. D. 1606, March 29, 1910, paragraphs 40, 71, 
 76; T. D. 1675, February 14, 1911, paragraphs 37, 55, 75; T. D. 
 1742, December 15, 1911, paragraphs 43, 62, 86, 91), adhered 
 to the same rule with respect to lands bought prior to Janu- 
 ary 1, 1909, and sold during a subsequent year, prescribing, 
 however, that the profits, when not otherwise accurately de- 
 terminable, should be prorated according to the time elapsed 
 before and after the act took effect; and gave to it an appli- 
 cation especially pertinent here, one of the regulations reading: 
 
 The mere removal of timber by onttinj? from timber lanfli=!, unless 
 the timber Is otherwise disposed of through sales or plant opera- 
 tions, is considered simply a change in form of assets. If said 
 timber is disposed of through sales or otherwise, it is to be 
 Recounted for in accordance with regulations governing disposi- 
 tion of capital and other assets. 
 
 In our opinion these regulations correctly interpret the act 
 in its application to the facts of the present case. When the 
 Oct took effect, plaintiff's timber lands, with whatever value 
 they then possessed, were a part of its capital assets, and a 
 subsequent change of form by conversion into money did not 
 change the essence. Their increased value since purchase, as 
 that value stood on December 31, 1908, was not in any proper 
 sense the result of the operation and management of the 
 business or property of the corporation while the act was in 
 force. Nor is the result altered by the mere fact that the 
 increment of value had not been entered upon plaintiff's books 
 of account. Such books are no more than evidential, being 
 neither indispensable nor conclusive. The decision must rest 
 upon the actual facts, which in the present case are not in 
 dispute. 
 
 The plaintiff, in making up its income tax returns for the 
 years 1909, 1910, 1911 and 1912, deducted from its gross re- 
 ceipts the admittedly accurate valuation as of December 31, 
 1908, of the stumpage cut and converted during the year cov- 
 ered by the tax. There having been no change in market 
 values during these years, the deduction did but restore to the 
 capital in money that which had been withdrawn in stumpage 
 cut, leaving the aggregate of capital neither increased nor 
 decreased, and leaving the residue of the gross receipts to 
 represent the gain realized by the conversion, so far as that 
 grain arose while the act was in effect. This was in accord- 
 ance with the true intent and meaning of the act. 
 
 It may be observed that it is a mere question of methods, 
 not affecting the result, whether the amount necessary to be 
 withdrawn in order to preserve capital intact should be de- 
 
 ♦TJxtract from Treasury Regulations No. 31, Issued December 
 3, 1909: 
 
 Sale of Capital Assets. — Tn ascertaining income derived from 
 the sale of capital assets If the assets were acquired subsequent 
 to January 1, 1909, the difference between the selling price and 
 the buying price shall constitute an item of gross income to be 
 added to or subtracted from gross Income according to whether 
 the selling price was greater or less than the buying price. If 
 the capital assets were acquired prior to January 1, 1909, the 
 amount of increment or depreciation representing the diflFerence 
 between the selling and buying price Is to be adjusted so as to 
 fairly determine tbe proportion of the loss or gain arising subse- 
 quent to January 1, 1909, and which proportion shall be deducted 
 from or added to the gross income for the year In which the sale 
 was made. 
 
 1277 
 
ducted from gross receipts in the process of ascertaining gross 
 income or should be deducted from gross income in the form 
 of a depreciation account in the process of determining net 
 income. In either case the object is to distinguish capital 
 previously existing from income taxable under the act. 
 
 There is only a superficial analogy between this case and 
 the case of an allowance claimed for depreciation of a mining 
 property through the removal of minerals, since we have held 
 that owing to the peculiar nature of mining property its 
 partial exhaustion attributable to the removal of ores can not 
 be regarded as depreciation within the meaning of the act. 
 Von Baumbach v. Sargent Land Company (243 U. S., 503, 520, 
 524); United States v. Biwabik Mining Company, this day 
 decided; Goldfield Consolidated Mines Company v. Scott, this 
 day decided. 
 
 It should be added that in this case no question is raised 
 as to whether, in apportioning the profits derived from a 
 disposition of capital assets acquired before and converted 
 after the act took effect, the division should be pro rata, ac- 
 cording to the time elapsed, or should be based upon an inven- 
 tory taken as of December 31, 1908. PlaintilTs, in accordance 
 with Treasury Regulations No. 31, T. D. 1578, January 4, 1910, 
 and T. D. 1588, January 24, 1910, adopted the latter method, 
 and the Government makes no contention as to the accuracy 
 of the result thereby reached, under the stipulated facts, if 
 our construction of the act be correct. 
 
 Judgment affirmed. 
 
 (T. D. 2724.) 
 
 Corporation excise tax act of 1909 — Decision of the Supreme 
 Court— 
 
 l.The Act of March 2, 1867, Distinguished. 
 
 The act of March 2, 1867, with certain exceptions, taxed 
 only such gains or profits as might be realized from a busi- 
 ness transaction begun and completed during the preceding 
 year, but the language of the act of 1909 is different in 
 material particulars. — Gray v. Darlington (15 Wall., 63), 
 which construed the former act, is accordingly not con- 
 trolling. 
 
 2. Construction of the Act. 
 
 The act measured the tax by the income received within 
 the year for which the assessment was levied, whether it 
 accrued within that year or in some preceding year while 
 the act was in effect; but it excluded all income that accrued 
 prior to January 1, 1909, although afterwards received while 
 the act was in effect. 
 
 B. Computation of Gain. 
 
 The sale of stock resulted in a gain or profit to the extent 
 of the difference between the buying and selling prices, there 
 being no merit in the contention that interest^ should be 
 added to the purchase price in order to ascertain its cost, 
 and so much of the profits as may be deemed to have ac- 
 crued subsequent to December 31, 1908, must be treated as 
 a part of the gross income of the respondent. 
 
 4. Determination of Value of Capital Assets on December 31, 
 1908. 
 Whether the determination of the value of the capital 
 assets on December 31, 1908, should be made by taking an 
 
 1278 
 
L 
 
 inventory upon the basis of market values then existing, 
 or whether the entire increment accruing between the time 
 of acquiring and the time of disposing of -the assets should 
 be prorated as if it had arisen through a series of gradual 
 and imperceptible augmentations, is a matter of detail, to 
 be settled according to the best evidence abtainab^e and in 
 accordance with valid departmental regulations. 
 
 5. Judgment Reversed. 
 
 The judgment of the Circuit Court of Appeals is reversed 
 and that of the District Court is affirmed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of S. A. Hays, collector of internal revenue, v. The 
 Gauley Mountain Coal Company is published for the informa* 
 tion of internal revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 327. 
 OCTOBER TERM, 1917. 
 
 5. A. Hays, collector of internal revenue for the district of 
 
 West Virginia, petitioner, v. The Gauley Mountain 
 Coal Company. 
 
 On writ of certiorari to the United States Circuit Court of 
 
 Appeals for the Fourth Circuit. 
 
 (May 20, 1918.) 
 
 Mr. Justice Pitney delivered the opinion of the court: 
 Suit by the Gauley Mountain Coal Company against the 
 collector to recover taxes alleged to have been unlawfully col- 
 lected under corporation excise-tax act of August 5, 1909 (ch. 
 
 6, 36 Stat., 11, 112, sec. 38). The district court gave judgment 
 in favor of defendant, which was reversed by the Circuit 
 Court of Appeals (230 Fed. Rep., 110), whereupon a writ of 
 certiorari was allowed. The case was submitted, together with 
 several other cases decided this day, arising under the same 
 act. 
 
 The agreed facts are in substance as follows: The com- 
 pany is a mining corporation organized under the laws of the 
 State of West Virginia. The business of trading in stocks is 
 not included among its corporate powers, nor does it appear 
 that, with a single exception, it ever bought or sold any. 
 On December 9, 1902, it purchased certain shares of another 
 mining corporation for $800,000, and sold them October 16, 
 1911, for $1,010,000, this sum being less by $214,933.33 than 
 the purchase price plus interest at 6 per cent, but greater by 
 $210,000 than cost ignoring interest. The Commissioner of 
 Internal Revenue held that a proportion of the $210,000 rep- 
 resented by the ratio of the 1,019 days that elapsed between 
 January 1, 1909, when the corporation excise-tax act became 
 effective, and October 16, 1911, the date of the sale, to the 
 3,233 days that elapsed between the date of purchase and the 
 
 1279 
 
date of sale, constituted income of the corporation for the 
 year 1911 within the meaning of the act. The apportioned 
 simi, $66,189.30, reduced to $52,506 by certain deductions not 
 now in question, was made the basis of an additional assess- 
 ment at 1 per cent upon the latter sum; and this assessment, 
 having been collected by duress, formed the subject of the 
 present suit. 
 
 The decision of the Circuit Court of Appeals, and the prin- 
 cipal contentions made by respondent in support of it, are 
 based upon the decision of this court in Gray v. Darlington 
 (15 Wall., 63). That case arose under the act of Congress 
 of March 2, 1867 (14 Stat., 477, ch. 169, sec. 13), which pro- 
 vided that a certain tax should be levied, collected and paid 
 annually upon the amount over $1,000 of the gains, profits 
 and income of every person, declaring that "the tax herein 
 provided for shall be assessed, collected and paid upon the 
 gains, profits and income for the year ending the thirty-first 
 of December next preceding the time for levying, collecting and 
 paying said tax." There was this further provision: "That, 
 in estimating the gains, profits and income of any person, 
 there shall be included all income derived from interest upon 
 notes, bonds and other securities of the United States; profits 
 realized within the year from sales of real estate purchased 
 within the year or within two years previous to the year 
 for which income is estimated. . . . and all other gains, 
 profits and income derived from any sources whatever," with 
 an exception that need not be stated. It appeared that plain- 
 tiff acquired certain United States bonds in the year 1865 and 
 sold them in 1869 at an advance of $20,000 over their cost, and 
 was taxed upon this amount as gains, profits and income for 
 the latter year. This court held that by the true construction 
 of the act, except, as to gains and profits from trade and 
 commerce and sales of real property, the statute only applied 
 to such gains, profits and income as were strictly acquisitions 
 made during the year preceding that in which the assessment 
 was levied and collected. We do not regard the decision as 
 controlling, because the language of the act now under con- 
 sideration is different in material particulars. As pointed out 
 in Doyle, collector, v. Mitchell Brothers Company, this day 
 decided, ante, p. — , it imposes annually a special excise tax 
 with respect to the carrying on or doing business by the cor- 
 poration "equivalent to one per centum upon the entire net 
 income over and above five thousand dollars received by it 
 from all sources during such year," to be ascertained by tak- 
 ing gross income and applying certain exceptions and deduc- 
 tions. "Gains, profits and income for the year ending the 
 thirty-first day of December next preceding" (act of 1867) 
 conveys a different meaning from "the entire net income . . . 
 received by it . . . during such year" (act of 1909). The former 
 expression, as this court held (15 Wall., 65), denoted "such 
 gains or profits as may be realized from a business transac- 
 tion begun and completed during the preceding year,'* with 
 the exceptions already mentioned. The expression "income 
 received during such year," employed in the act of 1909, looks 
 to the time of realization rather than to the period of accrue- 
 ment, except as the taking effect of the act on a specified 
 date (January 1, 1909) excludes income that accrued before 
 that date. There are other differences upon which we need 
 not dwell. 
 
 As we construe the latter act, it measured the tax by the 
 income received within the year for which the assessment 
 
 1380 
 
was levied, whether it accrued within that year or in some 
 preceding year while the act was in elFect; but it excluded 
 all income that accrued prior to January 1, 1909, although 
 afterwards received while the act was in effect. 
 
 This brings us to consider whether the proceeds of the sale 
 of stock by respondent in October, 1911, included anything, 
 and if so, how much, of "income" accruing on or after Janu- 
 ary 1, 1909, as the term "income" is employed in the act. 
 
 That the sale resulted in a gain or profit to the extent of 
 $210,000, the difference between the buying and selling prices, 
 is not to be doubted, for there is no merit in the contention 
 that interest should be added to the purchase price in order 
 to ascertain its cost. The money that went into the purchase 
 was not loaned at interest; on the contrary, by the very fact 
 of the purchase it was placed where it could not earn interest 
 for the respondent in the ordinary sense, and the gain rep- 
 resented by the increase of selling price over cost price must 
 be regarded as a substitute for whatever return some other 
 form of investment might have yielded. 
 
 It results that so much of the $210,000 of profits as may be 
 deemed to have accrued subsequent to December 31, 1908, must 
 be treated as a part of the "gross income" of respondent. For 
 it is the simple case of a conversion of capital assets acquired 
 before and turned into money after the taking effect of the 
 act; and, as we have shown in Doyle, collector, v. Mitchell 
 Brothers Company, this day decided, since a conversion of 
 capital often results in gain, the general purpose of the act of 
 1909 to measure the tax by the increase arising from corporate 
 activities together with the income from invested property 
 leads to the inference that that portion of the gross proceeds 
 which represents gain or increase acquired after the taking 
 effect of the act must be regarded as "gross income"; and to 
 this end it must be distinguished from that portion which 
 represents a return of the capital value existing before. In 
 order to do this, it is necessary to ascertain what was the 
 value of the capital assets on December 31, 1908. Whether 
 this should be done by taking an inventory upon the basis of 
 market values then existing, or whether the entire increment 
 accruing between the time of acquiring and the time of dis- 
 posing of the assets should be prorated as if it had arisen 
 through a series of gradual and imperceptible augmentations, 
 is a matter of detail, to be settled according to the best evi- 
 dence obtainable, and in accordance with valid departmental 
 regulations. Treasury Regulations No. 31, December 3, 1909, 
 provided for inventories at the beginning and end of each 
 year with respect to manufacturing and mercantile companies; 
 and with regard to a sale of capital assets acquired prior to 
 January 1, 1909, and sold thereafter, required that the amount 
 of increment or depreciation representing the difference be- 
 tween the selling and buying prices should be adjusted so as 
 fairly to determine the proportion of the loss or gain arising 
 subsequent to the date mentioned; but without prescribing 
 any particular method of doing this. Subsequent rulings re- 
 quired that sales of stocks and bonds should be regarded as 
 sales of capital assets and accounted for accordingly under 
 Regulations No. 31, and, while still requiring inventories, re- 
 sorted to the prorating method with respect to real estate, ap- 
 parently on the ground that increases and decreases in the 
 value of this class of property during particular periods could 
 not be accurately determined. (T. D. 106, March 29, 1910, 
 paragraphs 37, 50, 71; T. D. 1675, February 14, 1911, para- 
 
 1281 
 
graphs 36, 48, 55, 69; T. D. 1743, December 15, 1911, para- 
 graphs 42, 55, 62, 86.) 
 
 The present case was heard upon an agreed statement of 
 facts which contains nothing from which the value of the 
 stock at the time the act took effect may be deduced, other- 
 wise than by the prorating method that was adopted; nor is 
 any objection made by the respondent to the application of 
 that method. Hence there is no lawful ground for overthrow- 
 ing the tax, and the district court did not err in rendering 
 Judgment in favor of the collector. 
 
 Judgment of the Circuit Court of Appeals reversed and 
 that of the District Court aflirmed. 
 
 (T. D. 2725.) 
 
 Corporation Excise-Tax Act of 1909 — Decision of the 
 Supreme Court — 
 
 1. Profit upon Sale of Corporate Stock. 
 
 A railroad corporation purchasing stock in another cor- 
 poration for investment prior to January 1, 1909, is taxable 
 with respect to so much of the profit upon a sale of the 
 stock as accrued after December 31, 1908. 
 
 2. Determination of Value of Stock on December 31, 1908. 
 
 The market value of the stock on December 31, 1908, may 
 be determined by an inventory taken as of that date, and 
 the stipulated fact of the market value of the stock on that 
 date may be accepted as supplying the lack of an inventory. 
 
 3. Judgment Affirmed. 
 
 The judgment of the Circuit Court of Appeals is affirmed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of the United States of America v. The Cleveland, 
 Cincinnati, Chicago and St. Louis Railway Company is pub- 
 lished for the information of internal revenue officers and 
 others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 593. 
 OCTOBER TERM, 1917. 
 
 United States of America, petitioner, v. Cleveland, Cincinnati, 
 Chicago and St. Louis Railway Company. 
 
 On writ of certiorari to the United States Circuit Court of 
 
 Appeals for the Sixth Circuit. 
 
 (May 20, 1918.) 
 
 Mr. Justice Pitney delivered the opinion of the court: 
 In January, 1900, the respondent purchased 30,000 shares of 
 stock of the Chesapeake and Ohio Railway Company for $981,- 
 427.92, and sold them January 28, 1909, for $1,795,719— a profit 
 
 1282 
 
of over $814,000. It included no portion of this profit in its 
 return for the year 1909 under the corporation excise-tax act 
 of August 5, 1909 (ch. 6, 36 Stat., 11, 112, sec. 38), and the 
 United States brought this suit to recover the tax of 1 per 
 cent thereon. The district court directed a verdict in favor 
 of plaintiff. Upon review the circuit court of appeals held the 
 proceeds of sale of the stock could not be considered as income 
 under the act except to the extent by which they exceeded 
 the market value of the stock on December 31, 1908, ascertained 
 to be $57 per share. It therefore reversed the judgment, and 
 remanded the case with instruction to enter a new judgment 
 to include a tax on this account only upon the balance of the 
 selling price above $57 per share or $1,710,000 in all. (243 Fed., 
 Rep. 18.) A writ of certiorari was then allowed. 
 
 For reasons sufficiently stated in Doyle, collector, v. Mitchell 
 Brothers Company and Hays, collector, v. Gauley Mountain 
 Coal Company, this day decided, ante, pp. — , — , we concur in 
 the view that defendant was not taxable except with respect 
 to so much of the profit upon the stock as accrued after De- 
 cember 31, 1908. Just how this part is to be separated from 
 that which previously accrued is a matter of some nicety, as 
 we have shown in the Hays case. The Circuit Court of Ap- 
 peals adopted the theory of an inventory taken as of the time 
 the act went into effect; and although the assets here under 
 consideration were not acquired for the purpose of sale in the 
 manner of merchandise, but were bought for investment, and 
 hence were not inventoried on December 31, 1908, it accepted 
 the stipulated fact that the stock had regular market value 
 of $57 per share on that date as supplying the lack of an 
 inventory. This result accords with the views we have ex- 
 pressed in the cases referred to. 
 
 Judgment affirmed. 
 
 Mr. Justice Holmes took no part in the consideration or 
 decision of this case. 
 
 (T. D. 2726.) 
 
 Income Tax Act of October 3, 1913 — ^Decision of the 
 Supreme Court — 
 
 1. Effect of Sixteenth Amendment. 
 
 The sixteenth amendment to the Constitution of the 
 United States does not extend the taxing power to new or 
 excepted subjects, but merely removes all occasion which 
 otherwise might exist for an apportionment among the 
 States of taxes laid on income, whether it be derived from 
 one source or another. 
 
 2. Nature of Tax. 
 
 The tax is not laid on articles in course of exportation or 
 on anything which inherently or by the usages of commerce 
 is embraced in exportation or any of its processes, but on 
 the contrary is a general tax. 
 
 3. Net Income from Exportation Taxable. 
 
 The net income from the venture of exportation when 
 completed, that is to say, after the exportation and sale are 
 fully consummated, is subject to taxation under general 
 laws. 
 
 4. Judgment Affirmed. 
 
 The judgment of the District Court is affirmed. 
 
Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of William E. Peck and Company (Inc.) v. John 
 Z. Lowe, Jr., collector of internal revenue, is published, for the 
 information of internal revenue officers and others concerned: 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 4, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. No. 234. 
 OCTOBER TERM, 1917. 
 
 William E. Peck and Company (Inc.), plaintiff in error, v. 
 John Z. Lowe, Jr., collector, etc. 
 
 In Error to the District Court of the United States for the 
 
 Southern District of New York. 
 
 (May 20, 1918.) 
 
 Mr. Justice Van Devanter delivered the opinion of the court : 
 
 This was an action to recover a tax paid under protest and 
 alleged to have been imposed contrary to the constitutional 
 provision (art. 1, sec. 9, cl. 5) that "No tax or duty shall be 
 laid on articles exported from any State." The judgment below 
 was for the defendant. (234 Fed., 135.) 
 
 The plaintiff is a domestic corporation chiefly engaged in 
 buying goods in the several States, shipping them to foreign 
 countries, and there selling them. In 1914 its net income from 
 this business was $30,173.66 and from other sources $12,436.24. 
 An income tax for that year, computed on the aggregate of 
 these sums, was assessed against it and paid under compul- 
 sion. It is conceded that so much of the tax as was based 
 on the income from other sources was valid, and the contro- 
 versy is over so much of it as was attributable to the income 
 from shipping goods to foreign countries and there selling 
 them. 
 
 The tax was levied under the act of October 3, 1913 (c. 16, 
 Sec. II., 38 Stat., 166, 172), which provided for annually sub- 
 jecting every domestic corporation to the payment of a tax 
 of a specified per centum of its "entire net income arising or 
 accruing from all sources during the preceding calendar year." 
 Certain fraternal and other corporations, as also income from 
 certain enumerated sources, were specifically excepted, but 
 none of the exceptions included the plaintiff or any part of its 
 income. So, tested merely by the terms of the act, the tax 
 collected from the plaintiff was rightly computed on its total 
 net income. But as the act obviously could not impose a tax 
 forbidden by the Constitution, we proceed to consider whether 
 the tax, or rather the part in question, was forbidden by the 
 constitutional provision on which the plaintiff relies. 
 
 The sixteenth amendment, although* referred to in argument, 
 has no real bearing and may be put out of view. As pointed 
 out in recent decisions, it does not extend the taxing power 
 to new or excepted subjects, but merely removes all occasion, 
 which otherwise might exist, for an apportionment among the 
 States of taxes laid on income, whether it be derived from 
 
 1284 
 
one source or another. Brushaber v. Union Pacific Railroad 
 Company (240 U. S., 1, 17-19) ; Stanton v. Baltic Mining Com- 
 pany (240 U. S., 103, 112-113). 
 
 The Constitution broadly empowers Congress not only "to 
 lay and collect taxes, duties, imposts and excises," but also 
 "to regulate commerce with foreign nations." So, if the pro- 
 hibitory clause invoked by the plaintiff be not in the way. 
 Congress undoubtedly has power to lay and collect such a tax 
 as is here in question. That clause says "No tax or duty 
 shall be laid on articles exported from any State." Of course 
 it qualifies and restricts the power to tax as broadly conferred. 
 But to what extent? The decisions of this court answer that 
 it excepts from the range of that power articles in course of 
 exportation, Turpin v. Burgess (117 U. S., 504, 507); the act 
 or occupation of exporting. Brown v. Maryland (12 Wheat., 
 419, 445) ; bills of lading for articles being exported, Fair- 
 banks V. United States (181 U. S., 283) ; charter parties for 
 the carriage of cargoes from State to foreign ports. United 
 States V. Hvoslef (237 U. S., 1); and policies of marine insur- 
 ance on articles being exported — such insurance being uni- 
 formly regarded as "an integral part of the exportation" and 
 the policy as "one of the ordinary shipping documents," 
 Thames and Mersey Ins. Company v. United States, 237 
 U. S., 19. In short, the court has interpreted the clause as 
 meaning that exportation must be free from taxation, and 
 therefore as requiring "not simply an omission of a tax upon 
 the articles exported, but also a freedom from any tax which 
 directly burdens the exportation." Fairbanks v. United States, 
 supra, pages 292-293. And the court has indicated that where 
 the tax is not laid on the articles themselves while in course 
 of exportation the true test of its validity is whether it "so 
 directly and closely" bears on the "process of exporting" as to 
 be in substance a tax on the exportation. Thames and Mersey 
 Ins. Company v. United States, supra, page 25. In this view 
 it has been held that the clause does not condemn or invalidate 
 charges or taxes, not laid on property while being exported, 
 merely because they affect exportation indirectly or remotely. 
 Thus a charge for stamps which each package of manufac- 
 tured tobacco intended for export was required to bear before 
 removal from the factory was upheld in Pace v. Burgess, 
 92 U. S., 372, and Turpin v. Burgess, 117 U. S., 504; and the 
 application of a manufacturing tax on all filled cheese to 
 cheese manufactured under contract for export, and actually 
 exported, was upheld in Cornell v. Coyne, 192 U. S., 418. In 
 that case it was said, page 427: "The true construction of 
 the constitutional provision is that no burden by way of tax 
 or duty can be cast upon the exportation of articles, and does 
 not mean that articles exported are relieved from the prior 
 ordinary burdens of taxation which rest upon all property 
 similarly situated. The exemption attaches to the export and 
 not to the article before its exportation. 
 
 While fully assenting and adhering to the interpretation 
 which has been put on the clause in giving effect to its spirit 
 as well as its letter, we are of opinion that to broaden that 
 interpretation would be to depart from both the spirit and 
 letter. 
 
 The tax in question is unlike any of those heretofore con- 
 demned. It is not laid on articles in course of exportation or 
 on anything which inherently or by the usages of commerce is 
 embraced in exportation or any of its processes. On the con- 
 trary, it is an income tax laid generally on net incomes. And 
 
 1285 
 
while it can not be applied to any income which Congress has 
 no power to tax (see Stanton v. Baltic Mining Company, 
 supra, p. 113), it is both nominally and actually a general 
 tax. It is not laid on income from exportation because of 
 its source, or in a discriminative way, but just as it is laid 
 on other income. The words of the act are "net income aris- 
 ing or accruing from all sources." There is no discrimination. 
 At most, exportation is affected only indirectly and remotely. 
 The tax is levied after exportation is completed, after all ex- 
 penses are paid and losses adjusted, and after the recipient 
 of the income is free to use it as he chooses. Thus what is 
 taxed — the net income — is as far removed from exportation as 
 are articles intended for export before the exportation begins. 
 If articles manufactured and intended for export are subject 
 to taxation under general laws up to the time they are put 
 in course of exportation, as we have seen they are, the con- 
 clusion is unavoidable that the net income from the venture 
 when completed, that is to say, after the exportation and 
 sale are fully consummated, is likewise subject to taxation 
 under general laws. In that respect the status of the income 
 is not different from that of the exported articles prior to 
 the exportation. 
 
 For these reasons we hold that the objection urged against 
 the tax is not well grounded. 
 
 Judgment affirmed. 
 
 (T. D. 2729.) 
 
 Income Tax Act of October 3, 1913— Decision of the Supreme 
 Court— 
 
 1. Taxable Income. 
 
 Where the capital assets of a corporation increased in 
 value prior to March 1, 1913, and a single and final divi- 
 dend was made in liquidation of the entire assets in 1914, 
 without further appreciation or addition to the assets hav- 
 ing occurred, no part of the dividend received by a stock- 
 holder is taxable under the act of October 3, 1913.— Collector 
 V. Hubbard (12 Wall., 1), and Bailey v. Railroad Co. (22 
 Wall., 604; 106 U. S., 109) discussed. 
 
 2. Judgment Affirmed. 
 
 The judgment of the Circuit Court of Appeals is affirmed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of E. J. Lynch, as collector of internal revenue, v. 
 Henry Turrish, is published for the information of internal 
 revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 11, 1918: 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 1286 
 
SUPREME COURT OF THE UNITED STATES. 
 NO. 421. OCTOBER TERM, 1917. 
 
 E. J. Lynch, Collector of Internal Revenue for the District of 
 Minnesota, petitioner, v. Henry Turrish. 
 
 On Writ of Certiorari to the United States Circuit Court 
 
 of Appeals for the Eighth Circuit. 
 
 [June 3, 1918.] 
 
 Mr. Justice McKenna delivered the opinion of the court: 
 
 Suit to recover an income tax, paid under protest, assessed 
 under the act of October 3, 1913, 38 Stat. 166. 
 
 The facts, as submitted by demurrer, are these: Respond- 
 ent, Turrish, who was plaintiff in the trial court, made a re- 
 turn of his income for the calendar year 1914 which showed 
 that he had no net income for that year; afterwards the 
 Commissioner of Internal Revenue made a supplemental 
 assessment showing that he had received a net income of 
 $32,712.08, which, because of specific deductions and exemp- 
 tions, resulted in no normal tax, but as the net income ex- 
 ceeded the sum of $20,000 the commissioner assessed an addi- 
 tional or super tax of one per cent upon the excess, resulting 
 in a tax of $127.12, which was sought to be recovered. The 
 re-asssessment was based upon certain sums received by 
 the plaintiff in the year 1914 as distributions from corpora- 
 tions subject to the income-tax law and held by the com- 
 missioner to be income derived from dividends received by the 
 plaintiff on stock of domestic corporations; of which the sum 
 of $79,975, received as a distribution from the Payette Lumber 
 & Manufacturing Co., and without which no tax could have 
 been levied against the plaintiff is here in dispute. 
 
 Prior to March 1, 1913, and continuously thereafter until 
 the surrender of his stock as hereinafter mentioned, plaintiff 
 was a stockholder in the Payette Co., which was organized 
 in the year 1903 with power to buy, hold, and sell timber- 
 lands, and in fact never engaged in any other business than 
 this except minor businesses incidental to it. Immediately 
 after its organization this company began to invest in timber- 
 lands, and prior to March 1, 1913, had thus invested approxi- 
 mately $1,375,000. 
 
 On March 1, 1913, the value of its assets was not less than 
 $3,000,000, of which sum the value of the timberlands was 
 not less than $2,875,000. The increase was due to the gradual 
 rise in the market value of the lands. At that date the 
 value of Turrish's stock was twice its par value, pr $159,950, 
 and about that time he and all the other stockholders gave 
 an option to sell their stock for twice its par value. The 
 holders of the option formed another company, called the 
 Boise-Payette Lumber Co., and transferred the options to it. 
 The options having been extended to December 31, 1913, the 
 new company informed the Payette Co. and its stockholders 
 shortly before this date that instead of exercising the option 
 it preferred and proposed to purchase all of the assets of 
 the Payette Co., paying to that company such a purchase 
 price that there would be available for distribution to its 
 stockholders twice the par value of their stock. The stock- 
 holders by resolution authorized this sale, and, pursuant to 
 this and a resolution of the directors, the Payette Co. trans- 
 ferred to the new company all of its assets, property, and 
 franchises, and upon the completion of the transaction found 
 itself with no assets or property, except cash to the amount 
 
 1287 
 
of double the par value of its stock which had been paid to 
 it by the new company, and with no debt, liabilities, or obli- 
 gations except those which the new company had assumed. 
 The cash was distributed to the stockholders on the surrender 
 of their certificates of stock, and the company went out of 
 business. In this way, upon the surrender of his shares, 
 Turrish received $159,950, being double their par value. 
 
 The Commissioner of Internal Revenue considered that of 
 this sum one -half was not taxable, being tlie liquidation of 
 the par value of Turrish's stock, but that the other half 
 was income for the year 1914 and taxable under the act of 
 1913. 
 
 The question in the case is thus indicated. The district 
 court took a different view from that of the Commissioner of 
 Internal Revenue and therefore overruled the demurrer to 
 Turrish's complaint and entered judgment for him for the 
 sum prayed, which judgment was affirmed by the Circuit 
 Court of Appeals for the Eighth Circuit. (236 Fed., 653.) 
 
 The point in the case seems a short one. It, however, has 
 provoked much discussion on not only the legal but the 
 economic distinction between capital and income and by what 
 processes and at what point of time the former produces or 
 becomes the latter. And this in resolution of a statute which 
 concerns the activities of men and intended, it might be sup- 
 posed, to be without perplexities and readily solvable by the 
 offhand conceptions of those to whom it was addressed. 
 
 The provisions of the act, so far as material to be noticed, 
 are the following: That there is assessed "upon the entire 
 net income arising or accruing from all sources in the pre- 
 ceding calendar year to every * ♦ * person residing in 
 the United States * ♦ ♦ a tax of one per centum per 
 annum upon such income * * * » (Par. A, subdiv. 1.) 
 
 In addition to that tax, which is denominated the normal 
 income tax, it is provided that there shall be levied "upon 
 the net income of every individual an additional tax * * * 
 of one per centum per annum upon the amount by which 
 the total net income exceeds" certain amounts, and the per- 
 son subject to the tax is required to make a personal return 
 of his total net income from all sources under rules and regu- 
 lations to be prescribed by the Commissioner of Internal 
 Revenue. (Subdiv. 2.) 
 
 By paragraph B it is provided that, subject to certain ex- 
 emptions and deductions, "the net income of a taxable person 
 shall include gains, profits, and income derived from salaries, 
 wages, or compensation for personal service ♦ • * also 
 from interest, rent, dividends, securities, or the transaction of 
 any lawful business carried on for gain or profit, or gains or 
 profits and income derived from any source whatever." 
 
 After specifying tlie exemptions and deductions allowed, 
 the law declares as follows: 
 
 The said tax shall be computed upon the remainder of said 
 net income of each pei'son subject thereto, accruing during each 
 preceding calendar year ending December thirty-first: Provided, 
 however, That for the year ending December thirty-first, nine- 
 teen hundred and thirteen, said tax shall be computed on the 
 net incotae accruing from March first Jo December thirty-first, 
 nineteen hundred and thirteen, both dates inclusive ♦ ♦ ♦. 
 (Par. D.) 
 
 It will be observed, therefore, that the statute levies a 
 normal tax and an additional tax upon net incomes, derived 
 from whatever source, "arising or accruing" each preceding 
 calendar year ending December 31, except that for the year 
 
 1288 
 
ending December 31, 1913, the tax shall be computed on the 
 net income accruing from March 1, 1913, to December 31, 1913. 
 
 And in determining the application of the statute to Turrish 
 we must keep in mind that on the admitted facts the dis- 
 tribution received by him from the Payette Co. manifestly 
 was a single and final dividend in liquidation of the entire 
 assets and business of the company, a return to him of the 
 value of his stock upon the surrender of his entire interest 
 in the company, and at a price that represented its intrinsic 
 value at and before March 1, 1913, when the act took effect. 
 
 The district court and the Circuit Court of Appeals de- 
 cided that the amount so distributed to Turrish was not in- 
 come within the meaning of the statute, basing the decision 
 on two propositions, as expressed in the opinion of the 
 Circuit Court of Appeals, by Sanborn, circuit judge — (a) The 
 amount was the realization of an investment made some 
 years before, representing its gradual increase during those 
 years, and which reached its height before the effective date 
 of the law, that is, before March 1, 1913, and the mere 
 change of form of. the property "as from real to personal 
 property, or from stock to cash" was not income to its holders 
 because the value of the property was the same after as 
 before the change; (b) the timberlands were the property, 
 capital, and capital assets of their legal and equitable owner 
 and the enhancement of their value during a series of years 
 "prior to the effective date of the income-tax law, although 
 divided or distributed by dividend or otherwise subsequent 
 to that date, does not become income, gains, or profits tax- 
 able under such an act." 
 
 For proposition "a" the court cited Collector v. Hubbard 
 (12 Wall., 1); Bailey v. Railroad Company (22 Wall., 604, 
 and the same case in 106 U. S., 109). For proposition "b" 
 Gray v. Darlington (15 Wall., 63), was relied on. 
 
 The Government opposes both contentions by an elaborate 
 argument containing definitions of capital and income drawn 
 from legal and economic sources and given breadth to cover 
 a number of other cases submitted with this. The argument, 
 in effect, makes any increase of value of property income, 
 emerging as such and taxable at the moment of realization by 
 sale or some act of separation, as by dividend declared or by 
 distribution, as in the instant case. 
 
 To sustain the argument these definitions are presented: 
 
 1. Capital is anything, material or otherwise, capable of owner- 
 ship, viewed in its static condition at a moment of time, or the 
 rights of ownership therein. 
 
 2. Income is the service or return rendered by capital during 
 a period of time. ♦ ♦ ♦ 
 
 4. Net income ("profits") is the difference between income and 
 outgo. ♦ ♦ * 
 
 7. In the actual production and distribution of capital there 
 is a constant conversion of capital into income, and vice versa. 
 
 8. The attempt to conceal this conversion by treating "income" 
 as the standard return from intact "capital" only leads to con- 
 fusion of the value of capital with capital itself. 
 
 From these definitions are deduced the following proposi- 
 tions, which are said to be decisive of the problems in the 
 cases: 
 
 1. Income being derived from the use of capital, the conversion 
 or transfer of capital always produces income. 
 
 2. Mere appreciation of capital value does not produce "in- 
 come," nor mere depreciutiou "outgo." 
 
 1289 
 
3. Net Income Is the difference between actual "income" and 
 actual "outgo." 
 
 4. Income is not confined to money income, but includes any- 
 tliing capable of easy valuation in money. 
 
 It will be observed that the breadth of definition and the 
 breadth of application are necessary to the refutation of the 
 reasoning of the Circuit Court of Appeals. There is direct 
 antagonism, the court basing its reliance, it says, upon what 
 it asserts is the common sense and understanding of the 
 words of the law, and the exposition of like laws by the de- 
 cisions of this court. The Government's resource is the dis- 
 cussion of economists and the fact, concrete and practical, 
 of wealth not only increased but come to actual hand. The 
 instant case is an example. Turrish's stock doubled in value. 
 He paid for it $79,975.00; he received $159,950.00. It requires 
 a struggle to resist the influence of the fact, but we are 
 aided and fortified by our own precedents and saved from 
 such intricate and subtle discussion and an elaborate review 
 of other cases cited in confirmation or opposition. 
 
 In Collector v. Hubbard, supra, the distinction between a 
 corporation and its stockholders was recognized and that the 
 stockholder had no title for certain purposes to the earnings 
 of the corporation, net or other, prior to a dividend being 
 declared, but they might become capital by investment in 
 permanent improvements and thereby increase the market 
 value of the shares, "whether held by the original subscribers 
 or by assignees." In other words, it was held that the in- 
 vestments of the corporation were the investments of the 
 stockholders; that is, the stockholders could have an interest, 
 taxable under the act considered' though not identical w^ith 
 the corporation. This was repeated in Bailey v. Railroad Co. 
 (22 Wall., 604, 635, 636). 
 
 The latter case came here again in 106 U. S., 109, and it 
 was then declared that the purpose of an income tax law 
 was to tax the income for the year that it accrued; in other 
 words, no tax in contemplation of the law accrues upon some- 
 thing except for the year in which that something — earnings, 
 profits, gains, or income — accrues. In that case the subject 
 of the tax was a scrip dividend, but the certificates did not 
 show the year of the earnings and testimony as to the par- 
 ticular year was admitted. The principle applies to the case 
 at bar. If increase m value of the lands was income, it had 
 its particular time and such time must have been within the 
 time of the law to be subject to the law, that is, it must 
 have been after March 1, 1913. But, according to the fact 
 admitted, there was no increase after that date and therefore 
 no increase subject to the law. There was continuity of 
 value, not gain or increase. In the first proposition of the 
 Court of Appeals we, therefore, concur. 
 
 In support of its second proposition it adduced, as we have 
 seen. Gray v. Darlington (15 Wall., 63). The case arose 
 under the income tax law of 1867, which levied "upon the 
 gains, profits, and income of every person, ♦ ♦ ♦ whether 
 derived from any kind of property * * * or from any 
 other source whatever * * * a tax of 5 per centum on 
 the amount so derived over $1,000 * * * for the year 
 ending the thirty -first of December next preceding the time 
 for levying, collecting and paying said tax." 
 
 Darlington, in 1865, being the owner of certain United 
 States Treasury notes, exchanged them for United States 
 bonds. In 1869 he sold the bonds at an advance of $20,000 
 
 1290 
 
over the cost of the notes and upon this amount was levied 
 a tax of 5 per centum as gains, profits, and income for that 
 year. He paid the tax under protest and sued to recover, 
 and prevailed. This court, by Mr. Justice Field, said: 
 
 The question presented is wliether the advance in the value of 
 the bonds, during this period of four years, over their cost, 
 realized by their sale, was subject to taxation as gains, profits, 
 or income of the plaintiff for the year in which the bonds were 
 sold. The answer which should be given to this question does 
 not, in our judgment, admit of any doubt. The advance in the 
 value of property during a series of years can, in no just sense, 
 be considered the gains, profits, or income of any one particular 
 year of the series, although the entire amount of the advance 
 be at one time turned into money by the sale of the property. 
 The statute looks, with some exceptions, for subjects of taxation 
 only to annual gains, profits and income. 
 
 And again: 
 
 The mere fact that property has advanced in value between the 
 date of its acquisition and sale does not authorize the imposition 
 of a tax on the amount of the advance. Mere advance in value 
 in no sense constitutes the gains, profits, or income specified 
 by the statute. It constitutes and can be treated merely as 
 increase of capital. 
 
 This case has not been since questioned or modifier' 
 
 The Government feels the impediment of the case and at- 
 tempts to confine its ruling to the exact letter of the act of 
 March 2, 1867, and thereby distinguish that act from the act 
 of 1913 and give to the latter something of retrospective 
 effect. Opposed to this there is a presumption, resistless 
 except against an intention imperatively clear. The Govern- 
 ment, however, makes its view depend upon disputable differ- 
 ences between certain words of the two acts. It urges that 
 the act of 1913 makes the income taxed one "arismg or ac- 
 cruing" in the preceding calendar year, while the act of 1867 
 makes the income one "derived." Granting that there is a 
 shade of difference between the words, it cannot be granted 
 that Congress made that shade a criterion of intention and 
 committed the construction of its legislation to the disputes 
 of purists. Besides, the contention of the Government does 
 not reach the principle of Gray v. Darlington, which is that 
 the gradual advance in the value of property during a series 
 of years in no just sense can be ascribed to a particular year, 
 not therefore as "arising or accruing," to meet the challenge 
 of the words, in the last one of the years, as the Government 
 contends, and taxable as income for that year or when 
 turned into cash. Indeed, the case decides that such advance 
 in value is not income at all, but merely increase of capital 
 and not subject to a tax as income. 
 
 We concur, therefore, in the second proposition of the 
 Circuit Court of Appeals as well as in the first, and affirm the 
 judgment. 
 
 Mr. Justice Brandeis and Mr. Justice Clarke concur in the 
 result. 
 
 (T. D. 2730.) 
 
 Income-Tax Act of October 3, 1913 — ^Decision of the 
 Supreme Court — 
 
 \ 1. Intention of the Act. 
 
 It is the evident purpose of the act to refrain from tax- 
 ing income that accrued prior to March 1, 1913, and to 
 exclude from consideration in making computation of tax- 
 
 i2di 
 
able income for a given year any income that accrued in 
 the preceding taxable year. 
 
 2. Act of June 30, 1864, Compared and Distinguished. 
 
 The income tax act of June 30, 1864, contains special 
 language, different from the 1913 act, which distinguishes 
 the case of Collector of Hubbard (12 Wall., 1), from the 
 present case. 
 
 3. Taxability of Dividends from Subsidiary Corporation. 
 
 Where a corporation is the owner of all the stock in a 
 subsidiary company and the lessee of all its property, 
 regularly maintaining possession, control, and management 
 of all the subsidiary's money and other property, so that 
 the subsidiary is a mere agent of the other corporation 
 and is practically merged therewith, dividends of the sub- 
 sidiary declared out of a surplus which accrued prior to 
 March 1, 1913, are not taxable income of the parent cor- 
 poration. 
 
 4. Effect of Decision Limited. 
 
 This case turns on its peculiar facts. Pullman Car Co. v. 
 Missouri Pacific Co. (115 U. S., 587) ; Peterson v. Chicago, 
 Rock Island & Pacific Railway (206 U. S., 364), are dis- 
 tinguishable. 
 
 5. Judgment Reversed. 
 
 The judgment of the District Court is reversed, and the 
 cause remanded for further proceedings. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of Southern Pacific Co. v. John Z. Lowe, Jr., aa 
 Collector of Internal Revenue, is published for the information 
 of internal -revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 11, 1918: 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. 
 NO. 452. OCTOBER TERM, 1917. 
 
 Southern Pacific Co., plaintiff in error, v. John Z. Lowe, Jr., 
 
 United States Collector of Internal Revenue for the 
 
 Second District of New York. 
 
 In Error to the District Court of the United States for the 
 
 Southern District of New York. 
 
 [June 3, 1918.] 
 
 Mr. Justice Pitney delivered the opinion of the court: 
 This case presents a question arising under the Federal 
 income-tax act of October 3, 1913 (Ch. 16, 38 Stat., 114, 166). 
 Suit was brought by plaintiff-in-error against the collector 
 to recover taxes assessed against it and paid under protest. 
 There were two causes of action, of which only the second 
 went to trial, it having been stipulated that the trial of the 
 
 1292 
 
other might be postponed imtil the final determination of 
 this one. So far as it is presented to us, the suit is an effort 
 to recover a tax imposed upon certain dividends upon stock, 
 in form received by the plaintiff from another corporation in 
 the early part of the year 1914, and alleged by the plaintiff 
 to have been paid out of a surplus accumulated not only 
 prior to the effective date of the act but prior to the adoption 
 of the sixteenth amendment to the Constitution ot the United 
 States. The District Court directed a verdict and judgment 
 in favor of the collector (238 Fed, Eep., 847), and the case 
 comes here by direct writ of error under section 238, Judicial 
 Code, because of the constitutional question. That our juris- 
 diction was properly invoked is settled by Towne v. Eisner 
 (245 U. S., 418, 425). 
 
 The case was submitted at the same time with several other 
 cases arising under the same act and decided this day, viz.: 
 Lynch, Collector v. Turrish, and Lynch, Collector v. Hornby, 
 and Peabody v. Eisner, Collector. 
 
 The material facts are as follows: Prior to Januarv 1, 
 1913, and at all times material to the case, plaintiff, a cor- 
 poration organized under the laws of the State of Kentucky, 
 owned all the capital stock of the Central Pacific Railway 
 Co., a corporation of the State of Utah, including the stock 
 registered in the names of the directors.* This situation ex- 
 isted continuously from the incorporation of the railway 
 company in the year 1899. That company is the successor of 
 the Central Pacific Railroad Co. and acquired all of its prop- 
 erties, which constitute a part of a large system of railways 
 owned or controlled by the Southern Pacific Co. The latter 
 company, besides being sole stockholder, was in the actual 
 physical possession of the railroads and all other assets of 
 the railway company, and in charge of its operations, which 
 were conducted in accordance with the terms of a lease made 
 by the predecessor company to the Southern Pacific and as- 
 sumed by the railway company, the effect of which was that 
 the Southern Pacific should pay to the lessor company $10,000 
 per annum for organization expenses, should operate the rail- 
 roads, branches, and leased lines belonging to the lessor, and 
 account annually for the net earnings, and if these exceeded 
 6 per cent on the existing capital stock of the lessor the 
 lessee should retain to itself one-half of the excess; ad- 
 vances by the lessee for account of the lessor were to bear 
 lawful interest, and the lessee was to be entitled at any 
 time and from time to time to refund to itself its advances 
 and interest out of any net earnings which might be in its 
 hands. The provisions of the lease were observed by both 
 corporations for bookkeeping purposes. The Southern Pacific 
 acted as cashier and banker for the entire system; the Central 
 Pacific kept no bank account, its earnings being deposited 
 with the bank account of the Southern Pacific; and if the 
 Central Pacific needed money for additions and betterments 
 or for making up a deficit of current earnings the necessary 
 funds were advanced by the Southern Pacific. As a result 
 of these operations and of the conversion of certain capital 
 assets of the Central Pacific Co., that company showed upon 
 its books a large surplus accumulated prior to January 1, 
 1913, principally in the form of a debit against the Southern 
 Pacific, which at the same time, as sole stockholder, was 
 
 ♦There was another question, concerning a dividend paid by the 
 Reward Oil Co., whose stock likewise was owned by the Southern 
 Pacific Co., but the contention of plaintiff in error respecting this 
 item has been abandoned. 
 
 1293 
 
entitled to any and all dividends that might be declared, and 
 being in control of the board of directors was able to and 
 did control the dividend policy. The dividends in question 
 were declared and paid during the first six months of the. 
 year 1914 out of this surplus of the Central Pacific accumu- 
 lated prior to January 1, 1913; but the payment was only 
 constructive, being carried into effect by bookkeeping entries 
 which simply reduced the apparent surplus of the Central 
 Pacific and reduced the apparent indebtedness of the Southern 
 Pacific to the Central Pacific by precisely the amount of the 
 dividends. 
 
 The question is whether the dividends received under these 
 circumstances and in this manner by the Southern Pacific Co. 
 were taxable as income of that company under the income 
 tax act of 1913.t 
 
 The act provides in section 2, paragraph A, subdivision 1 
 (38 Stat., 166), "that there shall be levied, assessed, collected, 
 and paid annually upon the entire net income arising or ac- 
 cruing from all sources in the preceding calendar year" to 
 every person residing in the United States a tax of 1 per 
 cent per annum, with exceptions not now material, by para- 
 graph G (a) (p. 172), it is provided "that the normal tax 
 hereinbefore imposed upon individuals [1 per cent] likewise 
 shall be levied, assessed, and paid annually upon the entire 
 net income arising or accruing from all sources during the 
 preceding calendar year to every corporation " * * or- 
 ganized in the United States," with other provisions not now 
 material. 
 
 It is provided in paragraph G (b), as to domestic corpora- 
 tions, that such net income shall be ascertained by deducting 
 from the gross amount of the income of the corporation 
 (1) ordinary and necessary expenses paid within the year in 
 the maintenance and operation of its business and properties, 
 including rentals and the like; (2) losses sustained within 
 the year and not compensated by insurance or otherwise, in- 
 cluding a reasonable allowance for depreciation by use, wear 
 and tear of property, if any, and in the case of mines a cer- 
 tain allowance for depletion of ores and other natural de- 
 posits; (3) interest accrued and paid within the year upon 
 indebtedness of the corporation, within the prescribed limits; 
 (4) National and State taxes paid. It will be observed that 
 . moneys received as dividends upon the stock of other cor- 
 porations are not deducted, as they are in computing the in- 
 come of individuals for the purpose of the normal tax under 
 this act (p. 167), and as they were in computing the income 
 of a corporation under the excise tax act of August 5, 1909 
 (Ch. 6, 36 Stat., 11, 113, sec. 38). 
 
 By paragraph G (c) the tax upon corporations is to be com- 
 puted upon tJie entire net income accrued within each cal- 
 endar year, but for the year 1913 only upon the net income 
 accrued from March 1 to December 31, to be ascertained by 
 taking five-sixths of the entire net income for the calendar 
 year. 
 
 The purpose to refrain from taxing income that accrued 
 prior to March 1, 1913, and to exclude from consideration in 
 making the computation any income that accrued in a pre- 
 
 tln addition, n question was made to the District Court as to 
 a special dividend declared by the Central I'aciflc out of the 
 proceeds of sale of certain land on Long Island, taken in satis- 
 faction of a debt and sold in December. 1913. As to this, how- 
 ever, no argument is submitted by plaintiff in error, the facts 
 are not clear, and we pass it without consideration. 
 
 1294 
 
ceding calendar year, is made plain by the provision last 
 referred to; indeed, the sixteenth amendment, under which 
 for the first time Congress was authorized to tax income 
 from property without apportioning the tax among the States 
 according to population, received the approval of the requisite 
 number of States only in February, 1913. (Pollock v. Farmers' 
 Loan & Trust Co., 157 U. S., 429, 581; 158 U. S., 601, 637; 
 Brushaber v. Union Pacific Railroad, 240 U. S., 1, 16.) 
 
 We must reject in this case, as we have rejected in cases 
 arising under the corporation excise tax act of 1909 (Doyle, 
 collector, v. Mitchell Bros. Co., and Hays, collector, v. Gauley 
 Mountain Coal Co., decided May 20, 1918), the broad conten- 
 tion submitted in behalf of the Government that all receipts — 
 eveiything that comes in — are income within the proper 
 definition of the term "gross income," and that the entire 
 proceeds of a conversion of capital assets, in whatever form 
 and under whatever circumstances accomplished, should be 
 treated as gross income. Certainly the term "income" has 
 no broader meaning in the 1913 act than in that of 1909 
 (see Stratton's Independence v. Howbert, 231 U. S., 399, 416, 
 417), and for the present purpose we assume there is no 
 difference in its meaning as used in the two acts. This being 
 go, we are bound to consider accumulations that accrued to 
 a corporation prior to January 1, 1913, as being capital, not 
 income, for the purposes of the act. And we perceive no 
 adequate ground for a distinction, in this regard, between an 
 accumulation of surplus earnings, and the increment due to 
 an appreciation in value of the assets of the taxpayer. 
 
 That the dividends in question were paid out of a surplus 
 that accrued to the Central Pacific prior to January 1, 1913, 
 is undisputed; and we deem it to be equally clear that this 
 surplus accrued to the Southern Pacific (Jo. prior to that date, 
 in every substantial sense pertinent to the present inquiry, 
 and hence underwent nothing more than a change of form 
 when the dividends were declared. 
 
 We do not rest this upon the view that for the purposes 
 of the act of 1913 stockholders in the ordinary case have 
 the same interest in the accumulated earnings of the company 
 before as after the declaration of dividends. The act is quite 
 different in this respect from the income tax act of June 30, 
 1864 (Ch. 173, 13 Stat., 223, 281, 282), under which this court 
 held in Collector v. Hubbard (12 Wall, 1, 16), that an indi- 
 vidual was taxable upon his proportion of the earnings of 
 the corporation although not declared as dividends. That 
 decision was based upon the very special language of a 
 clause of section 117 of the act (13 Stat., 282) that "the 
 gains and profits of all companies, whether incorporated 
 or partnersliip, other than the companies specified in this 
 section, shall be included in estimating the annual gains, 
 profits, or income of any person entitled to the same, whether 
 divided or otherwise." The act of 1913 contains no similar 
 language, but on the contrary deals with dividends as a par- 
 ticular item of incom.e, leaving them free from the normal 
 tax imposed upon individuals, subjecting them to the grad- 
 uated surtaxes only when received as dividends (38 Stat., 
 167, par. B), and subjecting the interest of an individual 
 shareholder in the undivided gains and profits of his corpora- 
 tion to these taxes only in case the company is formed or 
 fraudulently availed of for the purpose of preventing the im- 
 position of such tax by permitting gains and profits to ac- 
 
 1295 
 
cumulate instead of being divided or distributed.* Our view 
 of the effect of this act upon dividends received by the 
 ordinary stockholder after it took effect but paid out of a 
 surplus that accrued to the corporation before that event, is 
 set forth in Lynch, collector, v. Hornby, decided this day. 
 
 We base our conclusion in the present case upon the view 
 that it was the purpose and intent of Congress, while taxing 
 "the entire net income arising or accruing from all sources" 
 during each year commencing with the first day of March, 
 1913, to refrain from taxing that which in mere form only 
 bore the appearance of income accruing after that date, while 
 in truth and in substance it accrued before; and upon the 
 fact that the Central Pacific and the Southern Pacific were 
 in substance identical because of the complete ownership and 
 control which the latter possessed over the former, as stock- 
 holder and in other capacities. While the two companies 
 were separate legal entities, yet in fact, and for all practical 
 purposes they were merged, the former being but a part of 
 the latter, acting merely as its agent and subject in all things 
 to its proper direction and control. And, besides, the funds 
 represented by the dividends were in the actual possession 
 and control of the Southern Pacific as well before as after 
 the declaration of the dividends. The fact that the books 
 were kept in accordance with the provisions of the lease, so 
 that these funds appeared upon the accounts as an indebted- 
 ness of the lessee to the lessor, cannot be controlling, in 
 view of the practical identity between lessor and lessee. 
 Aside from the interests of creditors and the public — and 
 there is nothing to suggest that the interests of either were 
 concerned in the disposition of the surplus of the Central 
 Pacific — the Southern Pacific was entitled to dispose of the 
 matter as it saw fit. There is no question of there being a 
 surplus to warrant the dividends at the time they were made, 
 hence any speculation as to what might have happened in 
 case of financial reverses that did not occur is beside the 
 mark. 
 
 It is true that in ordinary cases the mere accumulation of 
 an adequate surplus does not entitle a stockholder to divi- 
 dends until the directors in their discretion declare them. 
 New York, etc., Railroad v. Nickals (119 U. S., 296, 306); 
 Gibbons v. Mahan (136 U. S., 549, 558). And see Humphreys 
 V. McKissock (140 U. S., 304, 312). But this is not the 
 ordinary case. In fact the discretion of the directors was 
 affirmatively exercised by declaring dividends out of the 
 surplus that was accumulated prior to January 1, 1913; 
 it does not appear that any other fair exercise of discretion 
 was open; and the complete ownership and right of control 
 
 ♦'•For the purpose of this additional tax the taxable income 
 of any individual shall embrace the share to which he would be 
 entitled of the gains and profits, if divided or distributed, 
 whether divided or distributed or not, of all corporations, joint- 
 stock companies, or associations however created or organized, 
 formed or fraudulently availed of for the purpose of preventing 
 the Imposition of such tax through the medium of permitting 
 such gains and profits to accumulate instead of being divided 
 or distributed: and the fact that any such corporation • ♦ • 
 is a mere holding company, or that the gains and profits are per- 
 mitted to accumulate beyond the reasonable needs of the business 
 shall be prima facie evidence of a fraudulent purpose to escape 
 such tax; but the fact that the gains and profits are in any case 
 permitted to accumulate and become surplus shall not be con- 
 strued as evidence of a purpose to escape the said tax in such 
 case unless the Secretary of the Treasury shall certify that in 
 his opinion such accumulation Is unreasonable for the purposes 
 of the business." (38 Stat., 166, 167.) 
 
 1296 
 
of the Southern Pacific at all times material makes it a 
 matter of indifference whether the vote was at one time or 
 another. Under the circumstances, the entire matter of the 
 declaration and payment of the dividends was a paper trans- 
 action to bring the books into accord with the acknowledged 
 rights of the Southern Pacific; and so far as the dividends 
 represented the surplus of the Central Pacific that accumu- 
 lated prior to January 1, 1913, they were not taxable as in- 
 come of the Southern Pacific within the true intent and 
 meaning of the act of 1913. 
 
 The case turns upon its very peculiar facts, and is dis- 
 tinguishable from others in which the question of the identity 
 of a controlling stockholder with his corporation has been 
 raised. Pullman Car Co. v. Missouri Pacific Co. (115 U. S., 
 687, 596); Peterson v. Chicago, Rock Island & Pacific Railway 
 1205 U. S., 364, 391). 
 
 Judgment reversed, and the cause remanded for further 
 fjroceedings in conformity with this opinion. 
 
 Mr. Justice Clarke dissents. 
 
 (T. D. 2731.) 
 
 Income Tax Act of October 3, 1913 — Decision of the 
 Supreme Court — 
 
 1. Taxing Power Under Sixteenth Amendment. 
 
 Under the sixteenth amendment to the Constitution, 
 Congress has power to tax as income, without apportion- 
 ment, everything that became income in the ordinary sense 
 of the word after the adoption of the amendment. 
 
 2. Retroactive Report. 
 
 The retroactivity of the act to March 1, 1913 — a date not 
 prior to the adoption of the amendment — is permissible. 
 Brushaber v. Union Pacific Railroad (240 U. S., 1) approved. 
 
 3. Taxable Income. 
 
 An individual stockholder is subject to the additional 
 tax under the 1913 act on all dividends declared and paid 
 by a corporation in the ordinary course of busmess after 
 the taking eftect of the act, whether from current earnings 
 or from the accumulated surplus made up of past earnings 
 or increase in value of corporate assets, notwithstanding 
 the surplus accrued to the corporation in whole or in part 
 prior to March 1, 1913. 
 
 4. Cases Distinguished. 
 
 Lynch, collector, v. Turrish, decided by the Supreme Court 
 June 3, 1918, and Southern Pacific Railway Co. v. Lowe, 
 collector, decided by the Supreme Court June 3, 1915, rest 
 upon their special facts, and are plainly distinguishable. 
 
 5. The Act of September 8, 1916, and the Act of October 3, 
 1917, Discussed. 
 
 The act of September 8, 1916, and the act of October 3, 
 1917, in excluding dividends declared out of earnings or 
 profits that accrued prior to March 1, 1913, are not intended 
 to be declaratory of the meaning of the term "dividends'* 
 in the 1913 act. 
 
 1297 
 
6. Judgment Reversed. 
 
 The judgment of the Circuit Court of Appeals is reversed, 
 and the cause remanded to the District Court for further 
 proceedings. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of E. J. Lynch, as collector of internal revenue, 
 V. H. C. Hornby is published for the information of internal- 
 revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner ot Internal Revenue. 
 
 Approved June 11, 1918: 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. 
 NO. 422. OCTOBER TERM, 1917. 
 
 E. J. Lynch, Collector of Internal Revenue for the District of 
 Minnesota, petitioner, v. H. C. Hornby. 
 
 On Writ of Certiorari to the United States Circuit Court of 
 
 Appeals for the Eighth Circuit. 
 
 [June 3, 1918.] 
 
 Mr. Justice Pitney delivered the opinion of the court: 
 Hornby, the respondent, recovered a judgment in the United 
 States District Court against Lynch, as collector, ot internal 
 revenue, for the the return of $171, assessed as an additional 
 income tax under the act of October 3, 1913 (Ch. 16, 38 Stat., 
 114, 166), and paid under protest. The Circuit Court of 
 Appeals affirmed the judgment (236 Fed., 661), and the case 
 comes here on certiorari. It was submitted at the same time 
 with Lynch, collector, v. Turrish, Southern Pacific Co. v. 
 Lowe, collector, and Peabody v. Eisner, collector, arising under 
 the same act, and this day decided. 
 
 The facts, in brief, are as follows: Hornby, from 1906 to 
 1915, was the owner of 434 (out of 10,000) shares of the 
 capital stock of the Cloquet Lumber Co., an Iowa corporation, 
 which for more than a quarter of a century had been engaged 
 in purchasing timber lands, manufacturing the timber into 
 lumber and selling it. Its shares had a par value of $100 
 each, making the entire capital stock $1,000,000. On and prior 
 to March 1, 1913, by the increase of the value of its timber 
 lands and through its business operations, the total property 
 of the company had come to be worth $4,000,000, and Hornby's 
 stock, the par value of which was $43,400, had become worth 
 at least $150,000. In the year 1914 the company was engaged 
 in cutting its standing timber, manufacturing it into lumber, 
 selling the lumber, and distributing the proceeds among its 
 stockholders. In that year it thus distributed dividends ag- 
 gregating $650,000, of which $240,000, or 24 per cent of the 
 par value of the capital stock, was derived from current earn- 
 ings, and $410,000 from conversion into money of property 
 that it owned or in which it had an interest on March 1, 1913. 
 Hornby's share of the latter amount was $17,794, and this not 
 
 1398 
 
having been included in his income tax return, the Commis- 
 sioner of Internal Revenue levied an additional tax of $171 
 on account of it, and this forms the subject of the present 
 suit. 
 
 The case was tried in the district court and argued in the 
 Circuit Court of Appeals together with Lynch, collector, v. 
 Turrish (236 Fed., 653), and was treated as presenting sub- 
 stantially the same question upon the merits. In our opinion 
 it is distinguishable from the Turrish case, where the dis- 
 tribution in question was a single and final dividend received 
 by Turrish from the Payette Co. in liquidation of the entire 
 assets and business of the company and a return to him of 
 the value of his stock upon the surrender of his entire interest 
 in the company, at a price that represented its intrinsic value 
 at and before March 1, 1913, when the income tax act took 
 effect. 
 
 In the present case there was no winding up or liquidation 
 of the Cloquet Lumber Co. nor any surrender of Hornby's 
 stock. He was but one of many stockholders, and had but 
 the ordinary stockholder's interest in the capital and surplus 
 of the company — that is, a right to have them devoted to 
 the proper business of the corporation and to receive from 
 the current earnings or accumulated surplus such dividends 
 as the directors in their discretion might declare. Gibbons v, 
 Mahon (136 U. S., 549, 557). The operations of this company 
 in the year 1914 were, according to the facts pleaded, of a 
 nature essentially like those in whtch it had been engaged 
 for more than a quarter of a century. The fact that they 
 resulted in converting into money, and thus setting free for 
 distribution as dividends, a part of its surplus assets accumu- 
 lated prior to March 1, 1913, does not render Hornby's share 
 of those dividends any the less a part of his income within 
 the true intent and meaning of the act, the pertment lan- 
 guage of which is as follows (38 Stat., 166, 167) : 
 
 A. Subdivision 1. That there shall be levied, assessed, col- 
 lected, and paid annually upon the entire net income arising or 
 accruing from all sources in the preceding calendar year to every 
 citizen of the United States, ♦ * • and to every person re- 
 siding in the United States, ♦ * * a tax of 1 per centum per 
 annum upon such income, except as hereinafter provided; • ♦ ♦ 
 
 B, That, subject only to such exemptions and deductions as 
 are hereinafter allowed, the net income of a taxable person shall 
 include gains, profits, and income derived from salaries, wages, 
 or compensation for personal service, • ♦ ♦ also from interest, 
 rent, dividends, securities, or the transaction of any lawful busi- 
 ness carried on for gain or profit, or gains or profits and income 
 derived from any source whatever. 
 
 Among the deductions allowed for the purpose of the normal 
 tax is "seventh, the amount received as dividends upon the 
 stock or from the net earnings of any corporation, * * • 
 which is taxable upon its net income as hereinafter provided." 
 There is a graduated additional tax, commonly known as a 
 "surtax," upon net income in excess of $20,000, including 
 income from dividends, and for the purpose of this additional 
 tax "the taxable income of any individual shall embrace the 
 share to which he would be entitled of the gains and profits, 
 if divided or distributed, whether divided or distributed or 
 not, of all corporations * * * formed or fraudulently 
 availed of for the purpose of preventing the imposition of 
 such tax through the medium of permitting such gains and 
 profits to accumulate instead of being divided or distributed." 
 
 It is evident that Congress intended to draw and did draw 
 a distinction between a stockholder's undivided share or in- 
 
 1399 
 
tere«t in the gains and profits of a corporation prior to the 
 declaration of a dividend, and his participation in the divi- 
 dends declared and paid, treating the latter in ordinary cir- 
 cumstances as a part of his income for the purposes of the 
 surtax, and not regarding the former as taxable income un- 
 less fraudulently accumulated for the purpose of evading the 
 tax. 
 
 This treatment of undivided profits applies only to profits 
 permitted to accumulate after the taking effect of the act, 
 since only with respect to these is a fraudulent purpose of 
 evading the tax predicable. Corporate profits that accumu- 
 lated before the act took effect stand on a different footing. 
 As to these, however, just as we deem the legislative intent 
 manifest to tax the stockholder with respect to such accumu- 
 lations only if and when and to the extent that his interest 
 in them comes to fruition as income — that is, in dividends 
 declared— so we can perceive no constitutional obstacle that 
 stands in the way of carrying out this intent when dividends 
 are declared out of a pre-existing surplus. The act took 
 effect on March 1, 1913, a few days after the requisite number 
 of States had given approval to the sixteenth amendment, 
 under which for the first time Congress was empowered to 
 tax income from property without apportioning the tax 
 among the States according to population. Southern Pacific 
 Co. V. Lowe, supra. That the retroactivity of the act from 
 the date of its passage (Oct. 3, 1913) to a date not prior to 
 the adoption of the amendment was permissible is settled 
 by Brushaber v. Union Pacific Railroad (240 U. S., 1, 20). 
 And we deem it equally clear that Congress was at liberty 
 under the amendment to tax as income, without apportion- 
 ment, everything that became income in the ordinary sense 
 of the word after the adoption of the amendment, including 
 dividends received in the ordinary course by a stockholder 
 from a corporation, even though they were extraordinary in 
 amount and might appear upon analysis to be a mere realiza- 
 tion in possession of an inchoate and contingent interest that 
 the stockholder had in a surplus of corporate assets pre- 
 viously existing. Dividends are the appropriate fruit of stock 
 ownership, are commonly reckoned as income, and are ex- 
 pended as such by the stockholder without regard to whether 
 they are declared from the most recent earnings or from a 
 surplus accumulated from the earnings of the past or are 
 based upon the increased value of the property of the corpora- 
 tion. The stockholder is in the ordinary case a different 
 entity from the corporation, and Congress was at liberty to 
 treat the dividends as coming to him ab extra and as con- 
 stituting a part of his income when they came to hand. 
 
 Hence we construe the provision of the act that "the net 
 income of a taxable person shall include gains, profits, and 
 income derived from * * * interest, rent, dividends, ♦ • • 
 or gains or profits and income derived from any source 
 whatever" as including (for the purposes of the additional 
 tax) all dividends declared and paid in the ordinary course 
 of business by a corporation to its stockholders after the 
 taking effect of the act (Mar. 1, 1913), whether from current 
 earnings or from the accumulated surplus made up of past 
 earnings or increase in value of corporate assets, notwith- 
 standing it accrued to the corporation in whole or in part 
 prior to March 1, 1913. In short, the word "dividends" was 
 employed in the act as descriptive of one kind of gain to the 
 individual stockholder, dividends being treated as the tangible 
 
 1300 
 
and recurrent returns upon his stock, analogous to the in- 
 terest and rent received upon other forms of invested capital. 
 In the more recent income-tax acts, provisions have been 
 inserted for the purpose of excluding from the efi'ect of the 
 tax any dividends declared out of earnings or profits that 
 accrued prior to March 1, 1913. This originated with the act 
 of September 8, 1916, and has been continued in the act of 
 October 3, 1917.* We are referred to the legislative history 
 of the act of 1916, which it is contended indicates that the 
 new definition of the term "dividends" was intended to be 
 declaratory of the meaning of the term as used in the 1913 
 act. We cannot accept this suggestion, deeming it more 
 reasonable to regard the change as a concession to the equity 
 of stockholders granted in the 1916 act, in view of consti- 
 tutional questions that had been raised in this case, in the 
 companion case of Lynch, collector, v. Turrish, and perhaps 
 in other cases. These two cases were commenced in October, 
 1915, and decisions adverse to the tax were rendered in the 
 District Court in January, 1916, and in the Circuit Court of 
 Appeals September 4, 1916. 
 
 We repeat that under the 1913 act dividends declared and 
 paid in the ordinary course by a corporation to its stock- 
 holders after March 1, 1913, whether from current earnings 
 or from a surplus accumulated prior to that date, were taxable 
 as income to the stockholder. 
 
 We do not overlook the fact that every dividend distribu- 
 tion diminishes by just so much the assets of the corporation, 
 and in a theoretical sense reduces the intrinsic value of the 
 stock. But, at the same time, it demonstrates the capacity 
 of the corporation to pay dividends, holds out a promise of 
 further dividends in the future, and quite probably increases 
 the market value of the shares. In our opinion. Congress laid 
 hold of dividends paid in the ordinary course as de facto in- 
 come of the stockholder, without regard to the ultimate effect 
 upon the corporation resulting from their payment. 
 
 Of course, we are dealing here with the ordinary stockholder 
 
 ♦In act of September 8, 1916 (Ch. 463, 39 Stat., 756, 757), which 
 took the place of the act of 1913, the substance of what we have 
 quoted from paragraph B of the 3913 act was embodied in sec. 2 
 (a), but with this proviso: "Provided, that the term 'dividends' 
 as used in this title shall be held to mean any distribution 
 made or ordered to be made by a corporation * ♦ ♦ out of 
 its earnings or profits accrued since March first, nineteen hundred 
 and thirteen, and payable to its shareholders, whether in cash 
 or in stock of the corporation," etc. And by the act of October 
 3, 1917 (Ch. 63, 40 Stat., 300, 329, 337-8), sec. 2 (a) of the 1916 
 act was amended by being repeated without the proviso (p. 329), 
 while the proviso was inserted as a new section — 31 (a) — and to 
 It Avas added a subsection (b), as follows: 
 
 "(b) Any distribution made to the shareholders or members 
 of a corporation ♦ * * in the year nineteen hundred and 
 seventeen, or subsequent tax years shall be deemed to have been 
 made from the most recently accumulated undivided profits or 
 surplus, and shall constitute a part of the annual income of the 
 distributee for the year in which received, and shall be taxed 
 to the distributee at the rates prescribed by law for the years 
 in which such profits or surplus were accumulated by the cor- 
 poration, ♦ ♦ * but nothing herein shall be construed as tax- 
 ing any earnings or profits accrued prior to March first, nineteen 
 hundred and thirteen, but such earnings or profits may be dis- 
 tributed in stock dividends or otherwise, exempt from the tax, 
 after the distribution of earnings and profits accrued since March 
 first, nineteen hundred and thirteen, has been made. This sub- 
 division shall not apply to any distribution made prior to August 
 Bixth, nineteen hundred and seventeen, out of earnings or profits 
 accrued prior to March first, nineteen hundred and thirteen." 
 
 1301 
 
receiving dividends declared in the ordinary way of business. 
 Lynch, collector, v. Turrish, and Southern Pacific Co. v. Lowe, 
 collector, this day decided, rest upon their special facts and 
 are plainly distinguishable. 
 
 It results from what we have said that it was erroneous 
 to award a return of the tax collected from the respondent, 
 and that the judgment should be 
 
 Reversed, and the cause remanded to the District Court for 
 further proceedings in conformity with this opinion. 
 
 (T. D. 2732.) 
 
 Income Tax Act of October 3, 1913 — Decision of the 
 Supreme Court — 
 
 1. Taxable Income. 
 
 A dividend declared and paid by a going corporation 
 partly in cash and partly in assets of the corporation, is 
 subject to the additional tax imposed by the act of Octobei 
 3, 1913, when received by an individual stockholder, al- 
 though declared from a surplus which was in part accumu- 
 - lated before March 1, 1913. — Southern Pacific Co. v. Lowe 
 collector, decided by the Supreme Court the same day. 
 distinguished. 
 
 2. Rights of Stockholders Before Dividends Declared. 
 
 An ordinary stockliolder, before the declaration of a divi 
 dend, has only the right to have the assets of the cor- 
 poration devoted to its proper business, and to receive such 
 dividends as the directors may in their discretion declare— 
 a very different interest from his interest after a divi- 
 dend is declared. — Lynch, collector, v. Hornby, decided bj 
 the Supreme Court the same day, is controlling. 
 
 3. Meaning of "Stock Dividend." 
 
 A dividend declared and paid by one corporation in the 
 stock of another is not a "stock dividend" within the ac- 
 cepted meaning of that term. 
 
 4. Judgment Affirmed. 
 
 The judgment of the District Court is affirmed. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue 
 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of Charles A. Peabody v. Mark Eisner, as col- 
 lector of internal revenue, is published for the information ot 
 internal -revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 11, 1918 : 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 1302 
 
SUPREME COURT OF THE UNITED STATES. 
 NO. 705. OCTOBER TERM, 1917. 
 
 Charles A. Peabody, plaintiff in error, v. Mark Eisner, collector 
 of Internal Revenue. 
 
 In Error to the District Court of the United States for the 
 Southern District of New York. 
 
 [June 3, 1918.] 
 Mr. Justice Pitney delivered the opinion of the court: 
 This case arose under the Federal income-tax act of October 
 3, 1913 (Ch. 16, 38 Stat., 114, 166). The controversy is over 
 the first cause of action set up by plaintiff in error in a suit 
 against the collector for the recovery of an additional tax 
 exacted in respect of a certain dividend received by plaintiff 
 in the year 1914, the facts being as follows: On and prior 
 to March 1, 1913, and thenceforward until payment of the 
 dividend in question, petitioner was owner of 1,100 shares 
 (out of a total of 2,000,000 shares outstanding) of common 
 stock of the Union Pacific Railroad Co., of the par value of 
 $100 each, and during the same period the company had large 
 holdings of the common and preferred stocks of the Baltimore 
 & Ohio Railroad Co. On March 2, 1914, the Union Pacific 
 declared and paid an extra dividend upon each share of its 
 common stock, amounting to $3 in cash, $12 in par value 
 of preferred stock of the Baltimore & Ohio, and $22.50 in 
 par value of the common stock of the same company; the 
 result being that petitioner received as his dividend upon his 
 holding of Union Pacific common stock $3,300 in cash, 132 
 shares of Baltimore & Ohio preferred and 2471/2 shares of 
 Baltimore & Ohio common stock. In his income return for 
 1914 he included as taxable mcome $4.12 per share of this 
 dividend, or $4,532 in all, and paid his tax upon the basis of 
 this return. Afterwards he was subjected to an additional 
 assessment upon a valuation of the balance of his dividend, 
 and this, having been paid under protest, is the subject of 
 the present suit, the theory of which is that the entire earn- 
 ings, income, gains, and profits from all sources realized by 
 the Union Pacific Railroad Co. from March 1, 1913, to March 
 2, 1914, remaining after the payment of prior charges, did 
 not exceed $4.12 per share of the Union Pacific common stock, 
 and that the cash and Baltimore & Ohio stock disposed of in 
 the extra dividend (so far as they exceeded the value of $4.12 
 per share of Union Pacific) did not constitute a gain, profit, 
 or income of the Union Pacific, and therefore did not con- 
 stitute a gain, profit, or income of the plaintiff arising or 
 accruing either in or for the year 1914 or for any period 
 subsequent to March 1, 1913, the date when the income-tax 
 law took effect. The District Court overruled this contention 
 upon the authority of Southern Pacific Co. v. Lowe, collector 
 (238 Fed., 847), and Towne v. Eisner, collector (242 Fed., 
 702). The latter case has since been reversed (245 U. S., 
 418), but only upon the ground that it related to a stock 
 dividend which in fact took nothing from the property of the 
 corporation and added nothing to the interest of the share- 
 holder, but merely changed the evidence which represented 
 that interest. Southern Pacific Co. v. Lowe, collector, has 
 been reversed this day, but only upon the ground that the 
 Central Pacific Railway Co., which paid the dividend, and 
 the Southern Pacific Co., which received it, were in substance 
 identical corporations because of the complete ownership and 
 
 1303 
 
control which the latter possessed over the former as stock- 
 holder and in other capacities, so that while the two com- 
 panies were separate legal entities, yet in fact and for all 
 practical purposes the former was but a part of the latter, 
 acting merely as its agent and subject in all things to its 
 direction and control; and for the further reason that the 
 funds represented by the dividend were in the actual posses- 
 sion and control of the Southern Pacific Co. as well before 
 as after the declaration of the dividend. In this case the 
 plaintiif in error stands in the position of the ordinary stock- 
 holder, whose interest in the accumulated earnings and sur- 
 plus of the company are not the same before aa after the 
 declaration of a dividend; his right being merely to have the 
 assets devoted to the proper business of the corporation and 
 to receive from the current earnings or accumulated surplus 
 such dividends as the directors in their discretion may declare; 
 and without right or power on his part to control that dis- 
 cretion. 
 
 It hardly is necessary to say that this case is not ruled by 
 our decision in Towne v. Eisner, since the dividend of Balti- 
 more & Ohio shares was not a stock dividend but a distribu- 
 tion in specie of a portion of the assets of the Union Pacific, 
 and is to be governed for all present purposes by the same 
 rule applicable to the distribution of a like value in money. 
 It is controlled by Lynch, collector, t. Hornby, this day 
 decided. 
 
 Judgment afiirmed. 
 
 (T. D. 2733.) 
 Form for Instruments Required Under T. D. 2706 — 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 The following form is prescribed to facilitate compliance 
 with T. D. 2706 regarding the establishment of a replacement 
 fund in the case of property requisitioned for war uses or 
 lost or destroyed in whole or in part through war hazards: 
 
 Form 1114. U. S. Internal Revenue. 
 
 INCOME AND EXCESS PROFITS TAXES. 
 
 Application Under T. D. 2706 for Permission to Establish * 
 
 Replacement Fund. 
 
 TO THE COMMISSIONER OF INTERNAL REVENUE: 
 
 1. The undersigned (individual) (partnership) (corporation) 
 represents that as a result of suit or otherwise he has secured pay- 
 ment by way of damages or compensation for property title to 
 which has been requisitioned for war uses, or property which 
 has been lost or destroyed in whole or in part through war 
 hazards, to an amount in excess of the value of the property on 
 March 1, 1913, or of its cost if acquired after that date, and that 
 he desires and intends to use the entire sum receivd as com- 
 pensation for the replacement in kind of the lost or damaiged 
 property. 
 
 2. It being Impracticable owing to war conditions to make 
 Buch a replacement for a considerable time, the undersigned 
 hereby makes application for permission to establish a replace- 
 ment fund In which the entire amount of the compensation so 
 received will be held (unless the property requisitioned, lost or 
 damaged, constituted all or part of the security under a mortgage 
 
 1304 
 
or trust Indenture, in which event the amount carried to the 
 replacement fund will, subject to the approval of the Commis- 
 sioner of Internal Itevenue, be the amount of compensation 
 rceived, less the amount, if any, which bcomes payable out of 
 such compensation under the terms of such instrument or the 
 obligations thereby secured). 
 
 3. Attached hereto as Schedule A and made a part hereof is a 
 statement reciting all the facts relating to the transaction, includ- 
 ing the nature of the property, the character and extent of the 
 loss, the manner and date of securing compensation, the date of 
 acauisition of the property and its cost or fair value on March 1, 
 1913, the amount of compensation, the amount necessary to make 
 the damage igood, a description of the replacement intended and 
 the steps already taken to that end, the probable date of com- 
 pletion, the estimated additional excess profits and income taxes 
 assessable upon the income carried to the replacement fund, and 
 ftll other matters which might affect a determination. 
 
 4. The undersigned (a) has executed and will cause to be 
 executed by a surety company in good standing the bond hereto 
 annexed as Schedule B in an amount not less than the estimated 
 additional excess profits and income taxes assessable by the 
 United States upon the income carried to the replacement fund, 
 or (b) has executed the agreement hereto annexed as Schedule C 
 and will deposit as security for such estimated additional amount 
 of tax obligations of the United States issued after September 1, 
 1917, to at least an equal amount, to be held in trust as such 
 security in a bank or trust company approved by the Commis- 
 sioner of Internal Revenue. 
 
 5. The undersigned undertakes that he will proceed as expedi- 
 tiously as possible to replace or restore such property, and 
 covenants that when the replacement or restoration is made, the 
 new or restored property will be valued in his accounts at an 
 amount in excess of that at which the requisitioned, damaged or 
 destroyed property was carried, except and to the extent that 
 such new or restored property has an increased productive 
 capacity. 
 
 IN WITNESS WHEREOF the undersigned Individual has here- 
 unto set his hand and seal, or the undersigned partnership has 
 executed this instrument under the hand and seal of one of its 
 members, or the undersigned corporation has caused these presents 
 to be subscribed by one of its officers and its corporate seal to be 
 
 hereunto affixed, all the day of , 19 , in 
 
 triplicate. 
 
 .._. (L. S.) 
 
 (L. S.) 
 
 State of ) 
 
 County of ] s^. 
 
 , beimg duly sworn, deposes 
 
 and says that he is the individual applicant above-named, or is a 
 member of the partnership above-named, or is an officer of the 
 corporation above-named, and that the statements made in the 
 foregoing application are true to the best of deponent's knowledge, 
 information and belief. 
 Subscribed and sworn 
 
 before me 
 
 vorn to \ 
 
 SCHEDULE A. 
 STATEMENT OF FACTS. 
 
 Name of applicant 
 
 Address 
 
 Business 
 
 Nature of property involved 
 
 How requisitioned, lost or destroyed 
 
 How compensation secured 
 
 Date of rceipt of payment 
 
 Date of acquisition of property 
 
 Cost (or fair value on March 1, 1913) $_. 
 
 Amount of compensation $_. 
 
 Excess ovijr cost or value on March 1, 1913 |_ 
 
 1305 
 
Amount necessary to make damage good f- 
 
 Nature of replacement intended 
 
 Steps already taken — 
 
 Probable date of completion of replacement 
 
 Amount deductible from replacement fund pursuant to 
 
 any mortgage | 
 
 Estimated additional excess profits tax $ 
 
 Estimated additional income tax $ 
 
 Surety on bond or bank for deposit of securities 
 
 SCHEDULE B. 
 BONDS. 
 
 KNOW ALL MEN BY THESE PRESENTS that 
 
 , as principal, and 
 
 , as surety, are held and firmly 
 
 bound unto the United States of America in the sum of 
 
 dollars, lawful money of the United States, 
 
 for the payment whereof we bind ourselves, our heirs, executors, 
 administrators, successors and assigns, jointly and severally, 
 firmly by these presents. 
 
 WHEREAS the above-bounden principal has made application 
 to the Commissioner of Internal Revenue for permission to estab- 
 lish a replacement fund pursuant to Treasury Decision 2706 of 
 April 25, 1918, and it appears that the amount of this bond is not 
 less than the estimated additional excess profits and Income taxes 
 assessable by the United States upon the income to be carried to 
 the replacement fund ; 
 
 NOW, THEREFORE, the condition of the foregoing obligation 
 Is such that if the principal shall either dispose of said replace- 
 ment fund, as specified in said application and complete said 
 replacement on or before the final date set in the permit granted 
 by the Commissioner of Internal Revenue, or account for and pay 
 the additional excess profits and Income taxes assessable upon 
 the income so carried to the replacement fund at the rate of tax 
 In force at the time of the original receipt of such Income, and 
 shall otherwise well and truly perform and observe all the 
 covenants and conditions contained In the instruments annexed 
 hereto and all the provisions of law and the regulations, then 
 this obligation Is to be void, but otherwise to remain in full force 
 and virtue. 
 
 WITNESS our hands and seals In triplicate this day of 
 
 , 19 
 
 Signed, sealed (L. S.) 
 
 and delivered (L. S.) 
 
 in the pres- Principal. . 
 
 ence of 
 
 (T^. S.) 
 
 (L. S.) 
 
 Surety. 
 
 BOND APPROVED this day of , 19 
 
 Commissioner of fnternal Revenue. 
 
 SCHEDULE C. 
 DEPOSIT AGREEMENT. 
 
 AN AGREEMENT between of 
 
 , party of the first part, and 
 
 a corporation of the State of , party of the second 
 
 part. 
 
 WHEREAS the party of the first part has made application to 
 the Commissioner of Internal Revenue for permission to establish 
 a replacement fund under Treasury Decision 2706 of April 25, 1918, 
 In accordance with the Instrument hereto annexed, and has elected 
 in lieu of a bond to deposit as security for the estimated addi- 
 tional excess profits and income taxes assessable by the United 
 States upon the Income to be carried to the replacement fnnd 
 obligations of the United States Issued after September 1, 1917; 
 
 1306 
 
NOW, THEREFORE, In consiaeranon of a valuable considera- 
 tion to each of the parties hereto in hand paid by the other, the 
 receipt whereof is hereby acknowledged, it is covenanted and 
 agreed as follows: 
 
 1. The party of the first part has deposited with the party of 
 the second part obligations of the United States issued after 
 September 1, 1917, for a principal amount not less than the esti- 
 mated taxes aforesaid, in bearer form or with transfer power 
 attached, described as follows : 
 
 No. Name Denomination Total 
 
 $- 
 
 $ § 
 
 Aggregate total, $ —. 
 
 2. Such obligations are to be held in trust by the party of the 
 second part as security for the payment of the additional excess 
 profits and income taxes assessable by the United States upon the 
 income carried to said replacement fund at the rate of tax in 
 force at the time of the original receipt of such income; provided 
 the party of the first part shall not dispose of said replacement 
 fund as specified in said application and complete said replace- 
 ment on or before the final date set in the permit hereto annexed 
 granted by the Commissioner of Internal Revenue. 
 
 3. If on or before the date set in said permit said replacement 
 shall be completed, as evidenced by an acknowledgment in writing 
 to such effect signed by the Commissioner of Internal Revenue, 
 the party of the second part shall thereupon surrender said 
 obligations to the party of the first part or upon his order, and 
 the receipt therefor of the party of the first part shall constitute 
 full satisfaction and discharge of any liability of the party of 
 the second part hereunder. The Commissioner of Internal 
 Revenue may similarly at any time and fi'om time to time author- 
 ize the surrender of such portion of said obligations as in his 
 judgment the progress of said replacement shall justify. 
 
 4. If on the date set in said permit the party of the second 
 part shall not have received such final written acknowledgment 
 from the Commissioner of Internal Revenue, it shall hold and 
 deliver said obligations, or the remainder of them, in all respects 
 subject to the order of the Commissioner of Internal Revenue, 
 and at his direction shall proceed to sell said obligations at public 
 or private sale, with or without notice thereof, and shall apply 
 the proceeds thereof to the payment of said taxes and any other 
 taxes due from the party of the first part, and interest, penalties 
 and expenses of the sale, paying the residue, if any, to the party 
 of the first part. After said date the receipt of the Commissioner 
 of Internal Revenue shall constitute full satisfaction and discharge 
 of any liability of the party of the second part hereunder. 
 
 5. The party of the second part accepts the trust hereunder 
 and acknowledges the receipt and deposit of said obligations. 
 
 Signed, sealed 
 and delivered 
 
 19 
 
 
 
 (L 
 
 S.) 
 
 
 
 
 (L 
 
 in the pres- 
 ence of 
 
 
 
 
 (L. S.^ 
 
 
 
 
 
 :_.. (l: 
 
 S.) 
 
 AGREEMENT 
 
 ' APPROVED this 
 
 day of - — 
 
 
 
 19 
 
 
 
 
 
 
 Commissioner of Internal Revenue. 
 
 
 PERMIT TO ESTABI.ISH I1EPI.ACEMENT FUND. 
 
 Treasury Department, 
 OflJce of Commissioner of Internal Revenue, 
 
 Washington, D. C, -^ , 19 . 
 
 UPON the application and schedules hereto annexed the Com- 
 missioner of Internal Revenue hereby grants permission to establish 
 a replacement fund pursuant thereto, and directs that pending 
 the disposition of the amount held therein the accountin.g for 
 gain or loss thereupon may be deferred for the period of time 
 ending , 19 , or such further date as he may 
 
 1307 
 
determine to be reasonable and endorse hereupon. This permit, 
 however, is expressly conditioned upon the applicant forthwith 
 furnishing a bond in the prescribed form approved by the Com- 
 missioner of Internal Revenue, or executing an agreement in the 
 prescribed form and depositing subject thereto obligations of the 
 United States Issued after September 1, 1917, in an amount and 
 in a bank or trust company approved by the Commissioner of 
 Internal lievenue. 
 
 Commissioner of Internal Revenue. 
 
 Instructions. 
 
 1. The applicant should execute the form of application in 
 triplicate and fill out Schedule A. He should also attach to 
 Schedule A a statement of any other special features of the situ- 
 ation which might help the Commissioner In arriving at a 
 decision. 
 
 2. The applicant should execute the bond (Schedule B) or the 
 deposit agreement (Schedule C) in triplicate, inserting the amount 
 and indicating the surety or bank proposed. 
 
 3. The applicant should then forward all three copies of the 
 form to the Commissioner of Internal Revenue, who will consider 
 the application and if he igrants it will sign the permit and 
 return the form of the applicant. 
 
 4. The applicant should then forthwith procure the completion 
 of the bond or deposit agreement in triplicate and submit it for 
 approval by the Commissioner, which must be given before the 
 permit will become effective. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: June 17, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 Printed copies will be furnished upon request. 
 
 (T. D. 2734.) 
 
 Determination of the amount of gain or loss on a sale of 
 stock received as a stock dividend — Revision of paragraphs 
 28 and 60 of the Income Tax Regulations — 
 
 Treasury Department, 
 
 Oflfice of Commissioner of Internal Revenue, 
 
 ♦ Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 By Sections 2(a) and 31(a) of the Income Tax Act of Sep- 
 tember 8, 1916, as amended, taxable income includes stock 
 dividends paid by a corporation in 1916 or subsequent years 
 out of its earnings or profits accrued since March 1, 1913, to 
 the amount of the earnings or profits so distributed, and ex- 
 cludes stock dividends paid in 1916 or subsequent years out of 
 surplus other than earnings or profits accrued since March 1, 
 1913. In Towne v. Eisner, 245 U. S. 418, stock dividends paid 
 in 1913, 1914 and 1915 out of surplus however created were 
 held not to be taxable income under the' Income Tax Act of 
 October 3, 1913. 
 
 Section 31(b) of the Act of September 8, 1916, as amended, 
 Article 107 of the Income Tax Regulations, and Treasury De- 
 cisions 2659 of February 28, 1918, and 2678 of March 23, 1918, 
 provide the method of determining out of what earninga or 
 
 1308 
 
profits a dividend declared in 1917 or subsequent years is 
 deemed to have been paid. 
 
 For the purpose of ascertaining under the Income Tax Act 
 the gain or loss derived from the sale of stock or other prop- 
 erty, its cost, or if acquired before March 1, 1913, its fair mar- 
 ket price or value as of March 1, 1913, is evidently the basis 
 to be sought. Such basis once found, the problem is resolved 
 into a matter of subtraction. To avoid unnecessary complica- 
 tion "cost" is used herein to include also, where required, "fair 
 market price or value as of March 1, 1913." 
 
 For the purpose, then of ascertaining the gain or loss de- 
 rived from the sale of stock of a corporation received as a 
 dividend, or from the sale of the stock in respect of which such 
 dividend was paid, the cost of such stock is to be determined 
 in accordance with the following rules: 
 
 1. In the case of stock (a) received as a dividend in 1913, 
 1914 or 1915 out of surplus however created, or (b) received 
 as a dividend in 1916 or subsequent years out of surplus other 
 than earnings or profits accrued since March 1, 1913, the cost 
 of each share of new stock is the quotient of the cost of the 
 old stock divided by the number of old and new shares added 
 together. 
 
 2. In the case of the stock in respect of which any stock 
 dividend was paid as described under 1, the cost of each share 
 of old stock is similarly the quotient of the cost of the old 
 stock divided by the number of old and new shares. 
 
 3. In the case of stock received as a dividend in 1916 or sub- 
 sequent years out of surplus earnings or profits accrued since 
 March 1, 1913, the cost of each share is the valuation at which 
 it was returnable as income, as shown by the transfer of 
 surplus to capital account on the books of the corporation, 
 usually its par value. 
 
 4. In the case of the stock in respect of which any stock 
 dividend was paid as described under 3, the cost of each share 
 is its original cost, regardless of any stock dividend. 
 
 Paragraph 28 of Regulations No. 33 (revised) is hereby 
 amended to read as follows: 
 
 Stock Dividends. — Stock dividends declared from earnings 
 or profits accrued prior to March 1, 1913, or from surplus 
 created by the revaluation of capital assets or by placing 
 a value upon trademarks, goodwill, etc., do not represent a 
 distribution of earnings or profits subject to tax as a divi- 
 dend in the hands of the recipient shareholder. When stock 
 received in payment of such a dividend, or stock in respect 
 of which any such dividend was paid, is sold, the cost of each 
 share of stock, whether old or new, for the purpose of ascer- 
 taining the gain or loss resulting from its sale, is the quotient 
 of the cost of the old stock, if acquired on or after March 1, 
 1913, or its fair market price or value as of that date if ac- 
 quired prior thereto, divided by the number of old and new 
 shares added together. The profit so ascertained from the 
 sale of such stock is income subject to both normal and ad- 
 ditional tax and shall be accounted for in the shareholder's 
 return rendered for the year in which the sale is made. 
 
 Paragraph 60 of Regulations No. 33 (revised) is hereby 
 amended to read as follows: 
 
 Profit From the Sale of Stock.— When stock is sold from 
 lots purchased at different times and at different prices and 
 the identity of the lots can not be determined as to the dates 
 of purchase, the stock sold shall be charged against the earli- 
 
 1309 
 
est purchases of such stock. The excess of the amount real- 
 ized on the sale over the cost of the stock, or its fair market 
 price or value as of March 1, 1913, if purchased before that 
 date, will be the profit to be accounted for as income. In the 
 case of stock received as a stock dividend out of surplus other 
 than earnings or profits accrued since March 1, 1913, or of 
 stock in respect of which any such dividend was paid, the 
 cost of each share of such stock shall be ascertained as speci- 
 fied in paragraph 28 hereof. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved, June 17, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 Printed copies will be furnished upon request. 
 
 (T. D. 2735.) 
 
 Real estate located outside of the United States belonging to 
 a decedent resident within the United States should not be 
 included in the gross estate of such decedent for estate 
 tax purposes. 
 
 Treasury Department, 
 Ofi'ice of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 The following ruling is based upon an opinion of the At- 
 torney General, dated May 14, 1918: 
 
 The value of real estate, belong to a decedent resident 
 within the United States at the time of his death, located out- 
 side of the United States, meaning thereby the States' Terri- 
 tories of Alaska and Hawaii^i and the District of Columbia, 
 should not be included in determining the value of the gross 
 estate of such decedent for the purpose of the tax imposed by 
 Title II. of the Revenue Act of September 8,, 1916. 
 
 DANTIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 Approved, June 17, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2736.) 
 
 Tax on undistributed net income of corporations, joint stock 
 companies and associations, and insurance companies. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 1. Statute.— Section 10(b) added to Title I of the Revenue 
 Act of September 8, 1916, by Section 1206 of Title XII of the 
 War Revenue Act of October 3, 1917, is as follows: 
 
 In addition to tlie Income tax imposed by subdivision 
 (a) of this section tiiere siiall be levied, assessed, collected, 
 
 1310 
 
and paid annually an additional tax of ten per centum 
 upon the amount, remaining undistributed six months 
 after the end of each calendar or fiscal year, of the total 
 net income of every corporation, joint-stock company or 
 association, or insurance company, received during the 
 year, as determined for the purposes of the tax imposed 
 by such subdivision (a), but not including the amount 
 of any income taxes paid by it within the year imposed 
 by the authority of the United States. 
 
 The tax imposed by this subdivision shall not apply 
 to that portion of such undistributed net income which is 
 actually invested and employed in the business or is re- 
 tained for employment in the reasonable requirements of 
 the business or is invested in obligations of the United 
 States issued after September first, nineteen hundred and 
 seventeen: Provided, That if the Secretary of the Treas- 
 ury ascertains and finds that any portion of such amount 
 so retained at any time for employment in the business is 
 not so employed or is not reasonably required in the 
 business a tax of fifteen per centum shall be levied, as- 
 sessed, collected, and paid thereon. 
 
 The foregoing tax rates shall apply to the undistributed 
 net income received by every taxable corporation, joint- 
 stock company or association, or insurance company in 
 the calendar year nineteen hundred and seventeen and in 
 each year thereafter, except that if it has fixed its own 
 fiscal year under the provision of existing law. the fore- 
 going rates shall apply to the proportion of the taxable 
 undistributed net income returned for the fiscal year end- 
 ing prior to December thirty-first, nineteen hundred and 
 •eventeen, which the period between January first, nine- 
 teen hundred and seventeen, and the end of such fiscal 
 year bears to the whole of such fiscal year. 
 
 2. Definitions, Corporation. — The term "corporation" or "cor- 
 porations" as used in this Treasury Decision shall be con- 
 strued to include all corporations, joint-stock companies and 
 associations, and insurance companies, coming within the 
 terms of Title I of the Act of September 8, 1916, as amended 
 by Title XII of the Act of October 3, 1917. 
 
 Taxable Year. — The term "taxable year" as used in this 
 Treasury Decision contemplates the calendar year 1917 and 
 each calendar year thereafter, or in the case of a corporation 
 properly filing its income returns upon the basis of a fiscal 
 year other than the calendar year, the fiscal year ending in 
 1917 and each fiscal year thereafter. 
 
 3. Corporation Subject to Tax. — Every corporation, domestic 
 or foreign, which was subject to taxation upon the total net 
 income received by it during the preceding taxable year is 
 subject to the provisions of Section 10(b) added to the Act of 
 September 8, 1916, by "Section 1206 of the Act of October 3, 
 1917, which impose a tax upon undistributed net income. 
 Corporations which are exempt under the provisions of Sec- 
 tion 11(a) of the Act of September 8, 1916, from tax upon 
 total net income are not taxable upon undistributed net in- 
 come under said Section 10(b). 
 
 4. Returns. — Every corporation which is required by the 
 provisions of the Act of September 8, 1916, as amended by 
 the Act of October 3, 1917, to make a return of its annual 
 net income, and which had a taxable net income for the 
 preceding taxable year, shall make a return of the amount 
 of such net income received during such taxable year re- 
 maining undistributed six months after the end of such tax- 
 able year. The return shall be made upon Form 1112, shall 
 be sworn to by the president, vice-president or other principal 
 officer, and by the treasurer or assistant treasurer of the cor- 
 poration and shall be made to the Collector of Internal Rev- 
 enue of the district in which its return of annual net income 
 is required to be filed. Such return shall be made within sixty 
 
 1311 
 
days after the expiration of six months after the end of such 
 taxable year, except that any corporation which would other- 
 wise be required to make a return on or before a date earlier 
 than August 1, 1918, may make such return on or before 
 August 1, 1918. 
 
 5. Rate of Tax. — Taxes are imposed by Section 10(b) of the 
 Act of September 8, 1916, as amended, at two different rates, 
 ten per cent and fifteen per cent. 
 
 6. Income Subject to the Ten Per Cent Tax. — The amount 
 of income subject to the ten per cent tax is to be ascertained 
 in the following manner: 
 
 From the total net income received by a corporation during 
 its taxable year as determined for the purposes of the annual 
 tax imposed thereon by subdivision (a) of Section 10 of the 
 Act of September 8, 1916, as amended, which remains undis- 
 tributed six months after the end of such taxable year, are 
 to be deducted (1) the amount of any income taxes imposed 
 by the authority of the United States paid by the corporation 
 within such taxable year from income of that year, (2) such 
 part of the undistributed income as is actually invested and 
 employed in the business, or (3) is retained for employment 
 in the reasonable requirements of the business, or (4) is in- 
 vested in obligations of the United States issued after Sep- 
 tember 1, 1917. If the taxable year began on or after Janu- 
 ary 1, 1917, the remainder is the amount upon which the tax 
 is assessed. If the taxable year began before January 1, 1917, 
 the proportion of such remainder which the period between 
 January 1, 1917, and the end of such taxable year bears to 
 the whole of such taxable year is the amount upon which the 
 tax is assessed. Income received by a corporation before the 
 beginning of a taxable year ending in 1917 is not subject to 
 the tax even though remaining undistributed six months after 
 the end of such taxable year. 
 
 7. Time of Determining Amount of Undistributed Income 
 Subject to Ten Per Cent Tax. — The amount of undistributed 
 net income subject to ten per cent tax is to be determined as 
 of a date six months after the end of the taxable year. 
 Changes in the amount of such undistributed income after 
 such date do not change the amount subject to ten per cent 
 tax. The Commissioner of Internal Revenue has no authority 
 to change the date as of which the amount of undistributed 
 net income subject to ten per cent tax is determined, either 
 in the case of a taxable year ending before October 3, 1917, 
 or of any other taxable year. 
 
 8. Undistributed Income. — The net income received by a cor- 
 poration during its taxable year remains undistributed until 
 it is distributed in the form of dividends, whether it is repre- 
 sented by liquid assets or otherwise. Income distributed in 
 the form of dividends is subject to the provisions of Section 
 31(b) added to the Act of September 8, 1916, by Section 1211 
 of the Act of October 3, 1917, which provides in part as 
 follows : 
 
 Any distribution made to the shareholders or members 
 of a corporation, joint-stock company, or association, or 
 insurance company, in the year nlijetoen hundred and 
 seventeen, or subsequent tax years, shall be deemed to 
 have been made from the most recently accumulated un- 
 divided profits or surplus. • ♦ ♦ 
 
 The burden is upon the corporation seeking to establish 
 a distribution in the current year of profits of the preceding 
 taxable year to show that all the earnings of the current 
 
 1313 
 
year have been first distributed. In determining the source 
 of earnings from which a particular distribution is made a 
 corporation is, however, permitted to treat the undivided 
 profits and surplus of the current year as reduced by pay- 
 ments for income and excess-profits taxes, or if keeping its 
 accounts on an accrual basis by proper reserves for such taxes, 
 although such payments or reserves are not deductible in com- 
 puting the income of the corporation for income and excess- 
 profits taxes. (Treasury Decision 2700. See also Treasury 
 Decision 2659, and Treasury Decision 2678). 
 
 9. "The Business" of a Corporation. — "The business" of a 
 corporation is not limited to the business which the corpora- 
 tion has previously carried on but includes any line of busi- 
 ness which the corporation may legitimately undertake. 
 
 When one corporation owns the stock of another corporation 
 in the same or a related line of business and in effect operates 
 the other corporation, the business of the other corporation 
 falling within the general scope of the powers of the first, 
 that business may be in effect although not in legal form the 
 business of the first corporation. Income of the first corpora- 
 tion may be put into the second through the purchase of 
 stock or otherwise and might, if the subsidiary relationship 
 is established, constitute employment of the income in its 
 own business. For such employment to fall within the ex- 
 ception it would be essential for the corporation to show the 
 same facts with reference to the actual utilization of the 
 funds so employed, or their retention for its reasonable re- 
 quirements which it would be necessary for the corporation 
 to show with reference to funds employed or retained directly 
 by it. 
 
 Investment by a corporation of income in securities of an- 
 other corporation is not, without more, to be regarded as em- 
 ployment of the income in "the business." The business of 
 one corporation may not be regarded as including the busi- 
 ness of another, within the meaning of that exception, unless 
 the other corporation is a mere instrumentality of the first; 
 to establish this it is ordinarily essential that the first cor- 
 poration own all of the stock of the second. 
 
 10. Undistributed Income "Actually Invested and Employed 
 in the Business." — The portion of undistributed net income 
 which is "actually invested and employed in the business" is 
 not subject to the ten per cent tax. No attempt is here made 
 to enumerate all the ways in which such undistributed in- 
 come may be so invested and employed. Undistributed income 
 i» used or employed in the business if invested in increased 
 inventories or additions to plant reasonably required by the 
 business; if used for the payment of income and excess- 
 profits taxes for the taxable year, provided the amounts so 
 paid are designated upon the books of the corporation as 
 made from the income of such taxable year; if used to make 
 good an impairment of capital when such income is by law 
 required to be so used; or if used to retire the whole or any 
 part of the capital stock of the corporation, but reserves set 
 up for this purpose are neither invested and employed in the 
 business, nor retained for employment in the reasonable re- 
 quirements of the business. In the case of a banking institu- 
 tion the business of which is to receive and loan money, using 
 capital, surplus and deposits for this purpose, undistributed 
 income actually represented by loans is invested and employed 
 in the business. 
 
 1313 
 
11. Undistributed Income "Retained for Employment in the 
 Reasonable Requirements of the Business." — The portion of 
 undistributed net income which is "retained for employment 
 in the reasonable requirements of the business" is not subject 
 to the ten per cent tax. No attempt is here made to enumer- 
 ate all the ways in which such undistributed income may be 
 retained. Undistributed income is retained for employment in 
 the reasonable requirements of the business if to a reasonable 
 amount it is retained to make good an impairment of capital 
 when such income is by law required to be so used; or in ac- 
 cordance with contract requirements placed in the credit of a 
 sinking fund for the purpose of retiring bonds issued by the 
 corporation; or retained for working capital required by the 
 business. In the case of a banking institution the business 
 of %\hich is to receive and loan money, using capital, surplus 
 and deposits for this purpose, such reasonable amounts of un- 
 distributed net income as are retained for future loans are 
 not subject to the ten per cent tax. 
 
 12. Undistributed Income "Invested in Obligations of the 
 United States Issued After September First, Nineteen Hundred 
 and Seventeen." — ^Undistributed net income "invested in obli- 
 gations of the United States issued after September first, 
 nineteen hundred and seventeen" is not subject to the ten 
 per cent tax. This is not true of obligations of the United 
 States issued before September 1, 1917. 
 
 The restrictions as to the distribution of earnings of previ- 
 ous taxable years resulting from the presumption that all 
 current distributions are from current earnings do not apply 
 to the use of earnings for investments by corporations. There 
 is in the statutes no limitation or restriction as to the source 
 from which may be taken earnings used for this purpose. 
 Amounts invested in obligations of the United States issued 
 after September 1, 1917, may thus be treated as made from 
 such earnings as the corporation may designate. (Treasury 
 Decision 2700). 
 
 13. Income Subject to Fifteen Per Cent Tax.— If the Secre- 
 tary of the Treasury ascertains and finds that any portion of 
 the undistributed net income retained at any time for em- 
 ployment in the business is not so employed, or is not reason- 
 ably required in the business, it is subject to a tax of fifteen 
 per cent. The liability of undistributed net income to the ten 
 per cent tax depends upon the manner in which it is invested 
 on the date six months after the end of the taxable year. 
 However, the status of the income is not lost by the invest- 
 ment, but persists for the possible application of the fifteen 
 per cent tax. Amounts of undistributed net income not sub- 
 ject to the ten per cent tax because of employment in the 
 business, retention for such employment or investment in cer- 
 tain obligations of the United States, become subject to the 
 fifteen per cent tax if retained after such investment, employ- 
 ment or retention for employment in the reasonable require- 
 ments of the business has ceased. 
 
 14. Penalty for Nonpayment.— If the tax assessed on un- 
 distributed net income is not paid within ten days after the 
 date of notice and demand therefor it* shall be the duty of 
 the collector to collect said tax with a penalty of five per 
 cent additional upon the amount thereof and interest at the 
 rate of one per cent a month. 
 
 15. Other Penalties. — In case of any failure to make and 
 file a return within the time prescribed by law fifty per cent 
 
 1314 
 
of the amount of the tax shall be added thereto, except that 
 when a return is voluntarily and without notice from the col- 
 lector filed after such time, and it is shown that the failure 
 to file it was due to reasonable cause and not to wilful neglect 
 no such addition shall be made to the tax. In case a false or 
 fraudulent return is wilfully made one hundred per cent of 
 the amount of the tax shall be added thereto. Corporations, 
 officers thereof and other individuals required to make, render, 
 sign or verify returns of corporations shall be subject to the 
 specific penalties provided by law for refusal or neglect to 
 make such returns and for making false or fraudulent returns. 
 
 16. Extension of Regulations No. 33 (Revised). — ^Regulations 
 No. 33 (Revised), dated January 2, 1918, and all subsequent 
 Treasury Decisions so far as they are applicable to the taxes 
 imposed by subdivision (b) added to Section 10 of the Act of 
 September 8, 1916, by 'Section 1206 of the Act of October 3, 
 1917, are hereby extended and made a part of this Treasury 
 Decision in so far as they do not conflict with the rulings 
 contained herein. Article 238 of said Regulations No. 33 (Re- 
 vised) is hereby revoked. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved, June 18, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 Printed copies will be furnished upon request. 
 
 (T. D. 2737.) 
 
 Co-operative merchandising organizations are subject to the 
 provisions of the Act of September 8, 1916, as amended 
 by the Act of October 3, 1917. Periodical refunds made 
 to purchasers are to be regarded as discounts, reducing 
 the organization's net income. The recipient need not 
 return them as income, but should treat sums so received 
 as rebates, reducing the cost to him of the purchases on 
 which the refund is based. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Co-operative societies, associations or corporations which 
 make a periodical refund — sometimes called a dividend — to 
 members or to prospective members or to patrons generally, 
 in proportion to the purchases made by the recipient, are not 
 within any of the exceptions or exemptions of the Act of 
 September 8, 1916, as amended by the Act of October 3, 1917, 
 and are subject to its provisions. 
 
 Where such refund payments are made in accordance with 
 by-laws or published rules regularly adhered to, they are to 
 be regarded as discounts or rebates tending to reduce the 
 taxable net income of the organization. Like discounts gen- 
 erally, they should appear as an added item of cost in the 
 detailed schedule of cost items submitted with the organiza- 
 tion's return of income. 
 This ruling is in accordance with settled practice in the 
 
 1315 
 
administration of the income tax laws, adopted because the 
 real purpose of such organizations is to fuiuish goods at cost. 
 So-called "dividends" of this character are wholly different 
 from ordinary dividends based on stock-holdings, and they 
 need not be listed as income by the recipient. However, if 
 the recipient is claiming the right to deduct as business ex- 
 penses any expenditure on which the refund is based in whole 
 or in part, the sum claimed as a deduction must be reduced 
 in proportion to the refund received. 
 
 DxlNIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved June 19, 1918: 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2740.) 
 
 Corporation Excise Tax and Income Taxes. 
 
 Digest of Recent Decision of the Supreme Court of the United 
 States. 
 
 Treasury Department, 
 
 OflB.ce of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 The following propositions of law, stated for the informa- 
 tion and guidance of internal revenue officers and others con- 
 cerned, are expressed or implied in the recent decisions of 
 the Supreme Court of the United States in United States v. 
 Biwabik Mining Company (T. D. 2721), Goldfield Consolidated 
 Mines Company v. Scott (T. D. 2722), Doyle v. Mitchell Bros. 
 Co. (T. D. 2723), Hays v. Gauley Mountain Coal Company 
 (T. D. 2724), United States v. Cleveland, Cincinnati, Chicago 
 & St. Louis Railway Company (T. D. 2725), William E. Peck 
 & Co. (Inc.) V. Lowe (T. D. 2726), Lynch v. Turrish (T. D. 
 2729), Southern Pacific Company v. Lowe (T. D. 2730), Lynch 
 V. Hornby (T. D. 2731), and Peabody v. Eisner (T. D. 2732): 
 
 1. In the determination of net income the Excise Tax Act 
 of August 5, 1909, permitted the deduction from gross income 
 of "a reasonable allowance for depreciation of property, if 
 any;" the Income Tax Act of October 3, 1913, permitted "a 
 reasonable allowance for the exhaustion, wear and tear of 
 property arising out of its use or employment in the busi- 
 ness, not to exceed, in the case of mines, 5 per centum of 
 the gross value at the mine of the output for the year for 
 which the computation is made;" and the Income Tax Act 
 of September 8, 1916, as amended, permits "in the case of 
 mines a reasonable allowance for depletion thereof not to 
 exceed the market value in the mine of the product thereof 
 which has been mined and sold during -the year for which 
 the return and computation are made." 
 
 (a) As mining leases are not conveyances of the ore in 
 place, but are grants of the privilege of entering upon the 
 premises and mining and removing the ore, under none of 
 the Acts of 1909, 1913 or 1916 may a lessee of mining prop- 
 
 1316 
 
erty deduct as so much depletion of capital assets the pro- 
 portionate value in place on January 1, 1909, or any other 
 date, of each ton of ore mined during the taxable year. 
 See T. D. 1606 (75); Article 145 of Regulations No. 33; and 
 Articles 8, 171 and 173 of Regulations No. 33 (revised). 
 (United States v. Biwabik Mining Company. See Von Baum- 
 bach V. Sargent Land Company, 242 U. S. 503.) 
 
 (b) Under the Act of 1909 a mining corporation owning its 
 mine is not entitled to a deduction from its gross income 
 of any amount whatever on account of depletion or ex- 
 haustion of the ore bodies caused by its operations for the 
 year for which the tax is assessed, nor to a deduction against 
 the gross proceeds frjom the mining and treatment of ores 
 to the extent of the cost value of the ore in the ground before 
 it was mined. T. D. 1675 (80-89) and T. D. 1742 (96-106) 
 are modified accordingly. In view of their different provisions 
 this rule is inapplicable to situations arising under the Acts 
 of 1913 and 1916. See Articles 141 and 142 of Regulations No. 
 33; and Articles 8, 171 and 172 of Regulations No. 33 (revised). 
 (Goldfield Consolidated Mines Company v. Scott. See Strat- 
 ton's Independence v. Howbert, 231 U. S., 399; Stanton y. 
 Baltic Mining Company, 240 U. S., 103.) 
 
 2. The Excise Tax Act of August 5, 1909, measured the 
 tax by the net income of a corporation "received" by it from 
 all sources during the taxable year; the Income Tax Act of 
 October 3, 1913, imposed the tax upon the net income "arising 
 or accruing" from all sources during the taxable year; and 
 the Income Tax Act of September 8, 1916, as amended, upon 
 the net income "received" from all sources during the taxable 
 year. 
 
 (a) Where property is acquired by a corporation and sub- 
 sequently sold for a higher price, under all three Acts the 
 gain on the sale is income to the corporation. If, however, 
 the property was acquired before January 1, 1909, only such 
 portion of the gain as accrued subsequent to December 31, 
 1908, was taxable under the Act of 1909, and if it was ac- 
 quired before March 1, 1913, only such portion of the gain 
 as accrued subsequent to February 28, 1913, was taxable 
 under the Act of 1913 or is taxable under the Act of 1916. 
 See Regulations No. 31, T. D. 1606 (40, 50, 76), T. D. 1675 
 (37, 48, 75), T. D. 1742 ]43, 55, 91); and Articles 88, 101 and 
 116 of Regulations No. 33 (revised). (Doyle v. Mitchell Bros. 
 Company; Hays v. Gauley Mountain Coal Company; United 
 States V. Cleveland, Cincinnati, Chicago and St. Louis Rail- 
 way Company.) 
 
 (b) In order to determine whether there has been gain or 
 loss on a sale, and the amount of the gain, if any, in general 
 under all three Acts an amount must be withdrawn from 
 the gross proceeds sufficient to restore the cost of the prop- 
 erty or the capital value that existed at the commencement 
 of the period imder consideration (either January 1, 1909, or 
 March 1, 1913). Interest should not be added to the purchase 
 price in order to ascertain the cost of the property. In ap- 
 portioning the profits derived from a disposition of property 
 acquired before and sold after January 1, 1909, for the pur- 
 pose of the Act of 1909, or acquired before and sold after 
 March 1, 1913, for the purpose of the Act of 1913, the division 
 may be pro rata according to the time elapsed or may be 
 based on an appraisal or inventory taken as of December 31, 
 1908, or February 28, 1913. This is a matter of detail, to be 
 
 1317 
 
settled according to the best evidence obtainable and in ac- 
 cordance with valid departmental regulations. For the pur- 
 pose of the Act of 1916, however, the fair market price or 
 value as of March 1, 1913, to be ascertained in any practic- 
 able manner, is the statutory basis for determining the amount 
 of gain on a sale of property acquired before that date. See 
 Regulations No. 31, T. D. 1578, T. D. 1588, T. D. 1606 (37, 
 71), T. D. 1675 (36, 55, 69), T. D. 1742 (42, 62, 86); Articles 
 4, 90, 91, 92, 93, 101, 109, 111, 112 and 116 of Regulations 
 No. 33 (revised), and T. D. 2649. (Doyle v. Mitchell Brothers 
 Company; Hays v. Gauley Mountain Coal Company; United 
 States V. Cleveland, Cincinnati, Chicago and St. Louis Rail- 
 way Company.) 
 
 (c) The Act of 1913 is valid and constitutional in taxing 
 net income derived from sales in foreign commerce. The same 
 principle applies to the Acts of 1909 and 1916. (William E. 
 Peck and Company (Inc.) v. Lowe.) 
 
 (d) Where a stockholder in a corporation receives as a 
 liquidation dividend, representing his share in the distribution 
 of the proceeds of the sale of the property of the corporation 
 upon dissolution, a sum greater than the cost of his stock 
 under the Acts of both 1913 and 1916 the gain is income to 
 the stockholder. If, however, he acquired the stock before 
 March 1, 1913, only such portion of the gain as accrued subse- 
 quent to February 28, 1913, was taxable under the Act of 
 1913 or is taxable under the Act of 1916. Compare the case 
 of a dividend in ordinaiy course in paragraph (f) below. See 
 the citations in paragraphs (a) and (b) above. (Lynch v. 
 Turrish.) 
 
 (e) Wliere a corporation owns all the stock and operates 
 under a lease all the property and business of another cor- 
 poration, acting as banker for it, and the two corporations 
 being in substance identical and merged for all practical pur- 
 poses, under the Acts of both 1913 and 1916 surplus of the 
 lessor corporation accrues as income to the lessee corporation 
 as and when accumulated by the lessor corporation, notwith- 
 standing the formal distribution of such surplus in dividends 
 to the lessee corporation may not occur during the taxable 
 year. This special situation forms an exception to the gen- 
 eral rule stated in paragraph (f) below. See Articles 125, 
 207 and 208 of Regulations No. 33 (revised). (Southern 
 Pacific Company v. Lowe.) 
 
 (f) Where a stockholder of a corporation receives dividends 
 paid in the ordinary course of business, even though extra- 
 ordinary in amount, under the Acts of both 1913 and 1916 
 such dividends are income in the year in which they are 
 received by the stockholder. If paid out of surplus accrued 
 to the corporation prior to March 1, 1913, they were subject 
 to tax imder the Act of 1913, although expressly exempt 
 from tax under the Act of 1916. A dividend paid by a going 
 corporation out of current earnings or accumulated surplus 
 when declared by the directors in their discretion, being in 
 the nature of a recurrent return upon the stock, is distinguish- 
 able from a so-called dividend in liquidation of the entire 
 assets and business of the corporation, which is a return to 
 the stockholder of the value of his stock upon the surrender 
 of his entire interest in the corporation. Compare the case 
 of a liquidation dividend in paragraph (d) above. See Articles 
 105, 106 and 107 of Regulations No. 33 (revised), T. D. 2659 
 and T. D. 2678. (Lynch v. Hornby; Peabody v. Eisner.) 
 
 1318 
 
(g) A dividend in ordinary course paid on stock of a cor- 
 poration in property or stock other than its own is income 
 to the stocldiolders to the amount of its cash value when 
 received under the Acts of both 1913 and 1916. A dividend 
 paid in stock of another corporation is not a stock dividend. 
 See Articles 4 and 106 of Regulations No. 33 (revised). 
 (Peabody v. Eisner; compare Towne v. Eisner, 245 U. S., 418.) 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved June 24, 1918: 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. No. 2744.) 
 
 Returns made upon the basis of "cost or market value, 
 whichever is lower" to be accepted; T. D. 2609 as supple- 
 mented by T. D. 2649 affirmed. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Revenue Agents and Others 
 Concerned : 
 As question had arisen as to the legality of the authorization 
 by Treasury Decision No. 2609 of returns for income and 
 excess profits tax purposes upon the basis of inventories taken 
 "at cost or market value, whichever is lower," the matter was 
 referred to the Attorney-General. (See T. D. 2649.) The 
 Attorney-General has advised upon the basis of a recent deci- 
 sion of the Supreme Court (Doyle v. Mitchell Brothers, decided 
 May 20th last), that the methods of taking inventories au- 
 thorized by Treasury Decision No. 2609 are permissible. That 
 decision supplemented by the last paragraph of Treasury De- 
 cision No. 2649 defining "a dealer in securities" therefore con- 
 tinues to stand as a regulation of the Department. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: July 3, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2747.) 
 
 Proceeds of Accident Insurance Policies Received by Indi- 
 viduals on Account of Personal Injuries Sustained Through 
 Accident. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue^ 
 
 Washington, T>. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 The Attorney General has advised upon the basis of recent 
 decisions of the Supreme Court (Doyle v. Mitchell Brother i 
 
 1319 
 
Company, decided May 20, last; Lynch v. Hornby, Lynch v. 
 Turrish and Southern Pacific Company v. Lowe, decided June 
 3, last) and it is accordingly held that the proceeds of an 
 accident insurance policy received by an individual on account 
 of personal injuries sustained by him through accident are 
 not income taxable under the provisions of Title I. of the Act 
 of September 8, 1916, as amended by Title XII. of the Act of 
 October 3, 1917, and of Title L of the Act of October 3, 1917. 
 
 It is held upon similar principles that an amount received 
 by an individual as the result of a suit or compromise for 
 personal injuries sustained by him through accident is not 
 Income taxable under the provisions of said Titles. 
 
 Such provisions of Treasury Decisions and of Regulations 
 No. 33 (Revised) as are inconsistent herewith are hereby re- 
 voked. 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved: July 12, 1918. 
 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2754) 
 
 Basis of Allowances for Depreciation — 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 Section 12(a) of the Act of September 8, 1916, as amended, 
 to which Section 5(a) is similar, provides that net income shall 
 be ascertained by deducting from gross income, among other 
 things : 
 
 "Second. All losses actually sustained and charged 
 oflf within the year and not compensated by insur- 
 ance or otherwise, including a reasonable allowance 
 for the exliaustion, wear and tear of property arising 
 out of its use or employment in the business or trade." 
 
 A reasonable allowance for the wear and tear of property 
 arising out of its use or employment in the business or trade 
 is to be based on the cost of such property or on its fair market 
 price or value as of March 1, 1913, if acquired prior thereto. In 
 the absence of proof to the contrary it will be assumed that 
 such value as of March 1, 1913, is the cost of the property, less 
 depreciation up to that date. 
 
 This decision is supplemental to Article 159 to 169 inclusive 
 of Regulations No. 33 (revised), which to any necessary extent 
 are modified accordingly. 
 
 (Signed) D'ANIEL C. ROPER, 
 Commissioner. 
 Approved: August 23, 1918. 
 
 (Signed) JAMES H. MOYLE, 
 Acting Secretary of the Treasiury. 
 
 1320 
 
(T. D. 2755) 
 
 Depositaries and Sureties Acceptable Under T. D. 2706 and 
 T. D. 2733— 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and others concerned: 
 
 To facilitate compliance with the provisions of T. D. 2706, 
 which permits the establishment of a replacement fund in the 
 case of property requisitioned for war uses or lost or de- 
 stroyed in whole or in part through war hazards, applicants 
 are notified that only active depositaries of public moneys 
 and surety companies holding certificates of authority from 
 the Secretary of the Treasury as acceptable sureties on Fed- 
 eral bonds will be approved as sureties or depositaries under 
 Schedule B and C of form 1114, prescribed by T. D. 2733. 
 
 (Signed) DANIEL C. ROPER, 
 Commissioner. 
 Approved: August 26, 1918. 
 
 (Signed) JAMES H. MOYLE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2756.) 
 
 (1) Conditions under which five per cent discount may be 
 allowed for advance payment of estate tax. 
 
 (2) Conditions under which a tentative return may be filed. 
 
 (3) Granting of extension in which to file final return. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 FIVE PER CENT DISCOUNT. 
 
 Section 204 of the Estate Tax Law (Act of September 8, 
 1916) provides that estate tax shall be due one year after 
 decedent's death, and if the tax is paid before it is due a 
 discount at the rate of five per centum per annum, calculated 
 from the time payment is made to the date when the tax is 
 due, shall be dediicted. Discount is not allowable unless the 
 total tax be determined and advance payment made in full. 
 
 It is not contemplated by the Act that immediately after 
 a decedent's death, or at any time before the expiration of 
 the year, the executor may make partial payment on account 
 of the tax and receive credit for the discount because of ad- 
 vance payment. If advance payment is to be made before the 
 due date of the tax, the estate must be in a position to tile 
 a final return on Form 706 showing the value of all assets 
 as of the date of decedent's death and the alloAvable deduc- 
 tions to which the estate is entitled under Section 203 of the 
 Act, the value of the net estate and the determined tax be- 
 cause of the transfer of the net estate. 
 
 1321 
 
Final return must be filed wherever advance payment is de- 
 sired and the amount paid should be entered upon the col- 
 lector's assessment list for the month in which paid as advance 
 collection. 
 
 TENTATIVE RETURN. 
 
 Section 207 of the Estate Tax Act provides that if for any 
 reason the amount of the tax cannot be determined the pay- 
 ment of a sum of money sufficient in the opinion of the col- 
 lector to discharge the tax shall be deemed payment in full 
 of the tax, etc. This provision clearly relates to the time 
 when the tax is due. The collector is not required to exercise 
 his discretion as to what amount will satisfy the tax until 
 the due date thereof. It is obvious that no discount is allow- 
 able upon such payment, as necessarily the payment cannot 
 be made before the expiration of a year following decedent's 
 death. 
 
 The following regulations govern the above payments: 
 If at the end of the year following decedent's death the 
 executor represents and the collector is satisfied that the 
 amount of tax upon the estate cannot be determined, a return 
 may be filed by the executor setting forth the then known 
 assets of the estate and the actual value thereof as of date 
 of decedent's death, the determined and allowable deductions 
 to which the estate is entitled, the value of the net estate 
 thus disclosed and the tax due thereon. This return will be 
 designated "tentative." The tax shown to be due upon the 
 tentative return should be paid and entered upon the collec- 
 tor's assessment list for the month in which paid. 
 
 As further provided in Section 207 of the Act, if the amount 
 of tax as finally determined is less than the amount paid 
 upon the basis of the tentative return the Commissioner will, 
 upon filing claim on Form 46, make refund of the excess pay- 
 ment. If the amount of tax as finally determined exceeds 
 the amount so paid the Commissioner will notify the executor 
 of such excess. From the time of such notification to the time 
 of final payment of such excess part of the tax interest will 
 be added thereto at the rate of ten per centum per annum. 
 
 EXTENSION FOR FILING FINAL RETURN. 
 
 At the time the "tentative" return is filed an extension 
 not to exceed ninety days may be granted by the collector 
 in which to file a final return. If at the expiration of the 
 extension granted the executor represents that he is still 
 unable to determine the tax and file final return a detailed 
 statement as to the reason preventing the determination of 
 the tax should be transmitted to the Bureau for considera- 
 tion as to whether an additional extension should be granted. 
 
 In every case where a tentative return is filed it should be 
 plainly so designated and a duplicate thereof transmitted to 
 the Bureau with a statement by the collector as to the period 
 of extension granted. 
 
 All regulations and treasury decisions inconsistent with the 
 ruling contained herein are hereby modified. 
 
 DANIEL C. ROPER, 
 
 Commissioner. 
 Approved: September 5, 1918. 
 
 L. S. ROWE, 
 Acting Secretary of the Treasurv. 
 
 1323 
 
(T. D. 2759.) 
 
 Amending Article 35, Regulations No. 33, Revised, and Treas- 
 ury Decision 2716, by providing that the first collecting 
 bank or agent shall be the source of information in all 
 cases of foreign items except where the item is an interest 
 item; that, where a foreign country or corporation issuing 
 the interest -bearing obligations has a paying agent in this 
 country, such paying agent shall be the source of informa- 
 tion; and that, if no such agent has been appointed then 
 the last bank or collecting agent in this country which 
 handles the interest item shall be the source of informa- 
 tion. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. 0. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 1. Article 35, regulations No. 33, Revised, as amended by 
 Treasury Decision 2716, is hereby amended to read as follows: 
 
 Article 35. Such returns of information shall be re- 
 quired, regardless of amount, in the case of payments of 
 interest upon bonds, mortgages, or deeds of trust or other 
 similar obligations of domestic or resident corporations, 
 joint-stock companies, associations, and insurance com- 
 panies, and in the case of foreign items. The original 
 ownership certificates when duly filed, shall constitute and 
 be treated as returns of information. 
 
 The term "foreign item," as used in this Article, means 
 any dividend upon the stock of a foreign corporation, or 
 any item of interest upon the bonds of foreign countries 
 or foreign corporations, whether or not such dividend or 
 interest is paid in the United States, or by check drawn 
 on a domestic bank. The term "foreign corporation" as 
 uged in this article, means one not organized and existing 
 under the laws of the United States or of any State or 
 Territory thereof, or of the District of Columbia, Porto 
 Rico, or the Philippine Islands. 
 
 Wherever a foreign country or foreign corporation issu- 
 ing bonds has appointed a paying agent in this country, 
 charged with the duty of paying the interest upon such 
 bonds, such paying agent shall be the source of informa- 
 tion. If such foreign country or foreign corporation has 
 no such agent then the last bank or collecting agent in 
 this country shall be the source of information. In the 
 case of dividends on the stock of a foreign corporation, 
 the first bank or collecting agent accepting such item for 
 collection shall be the source of information. 
 
 Where bonds of foreign countries, or bonds or stocks 
 of foreign corporations, are owned by citizens or resi- 
 dents of the United States, individual or fiduciary, or by 
 domestic or resident corporations, joint stock companies, 
 associations, Insurance companies or partnerships, owner- 
 ship certificate lOOlA shall be executed by the actual 
 owner, or by his duly authorized agent, when presenting 
 the item for collection, whether such item is a dividend 
 or an interest payment, except in the case of a foreign 
 country or a foreign corporation having a paying agent in 
 this country and issuing bonds which contain a '^tax-free" 
 covenant clause. In such cases the paying agent is re- 
 quired to withhold the normal tax upon the interest on 
 such bonds; and ownership certificate. Form 1000, prop- 
 erly modified to show that the debtor has a paying agent 
 in this country, should be used, unless the owner desires 
 to claim exemption ; in which case Form lOOlA should be 
 filed. 
 
 Where bonds of foreign countries, or bonds or stocks 
 of foreign corporations, are owned by nonresident alien 
 individuals, or foreign corporations, associations or part- 
 nerships, ownership certificate. Form 1071, Revised, shall 
 
 1323 
 
be used for and on behalf of such owners by any respon- 
 sible bank or banker, either foreign or domestic. 
 
 Banks or agents collecting foreign items are required 
 to obtain a license from the Commissioner of Internal 
 Revenue to engage in such business, and are subject to 
 such regulations for the furnishing of Information as the 
 Commissioner, with the approval of the Secretary of the 
 Treasury, shall prescribe, and to the penalties prescribed 
 for failure to obtain such license (Act of September 8, 
 1916, Section 9 (f), as amended by Act of October 8, 1017, 
 Section 120G). A blank application (Form 1017) for such 
 license may be obtained, upon request, from any collector 
 of internal revenue. This license is issued without cost. 
 
 Foreign items shall not be accepted for collection by 
 any bank or collecting agent so licensed unless endorsed 
 as hereinafter provided or accompanied by proper owner- 
 ship certificates (Form 1001-A, Form 1000, properly modi- 
 fied as outlined above, or Form 1071, Revised, as the case 
 may be), giving all information called for by such cer- 
 tificate. In all cases in which the first licensed bank or 
 collecting agent is the source of information, such licensee 
 shall detach the ownership certificate, and indorse on the 
 item the words "Certificate detached and Information 
 furnished," adding his name and address. Where an in- 
 terest coupon is received for collection, the ownership 
 certificate shall accompany the coupon to the paying agent 
 In this country, or, if there is no such agent, then to the 
 last bank or collecting agent handling the item in this 
 country. When more than one coupon of the same ma- 
 turity is received at one time from the same owner and 
 from the same issue of bonds, a single certificate may be 
 used for all of such coupons. When foreign items have 
 been indorsed as above prescribed, the certificates shall 
 be detached and forwarded to the Commissioner of In- 
 ternal Revenue (Sorting Division), Washington, D. C, on 
 or before the 20th day of the month following that during 
 which the items were accepted, accompanied by a letter 
 of transmittal, showing the number of certificates, and the 
 aggregate amount of foreign items disclosed thereon. 
 
 In all cases in which the paying agent or the last bank 
 or collecting agent in this country is the source of in- 
 formation, the ownership certificate shall accompany the 
 coupon to such agent or source of Information, who shall 
 forward the ownership certificate to the Commissioner 
 of Internal Revenue, in the manner provided where such 
 duty is placed upon the licensee: Provided, however, that, 
 in case ownership certificate. Form 1000, is used as pro- 
 vided above, the paying agent shall make return on Form 
 1012 as provided in the Regulations. 
 
 2. In order that these requirements may be complied with, 
 certificates (Form 1001-A and Form 1071, Revised) will be 
 provided by the Government and furnished to collectors of 
 internal revenue for distribution to the public. Form 1001-A, 
 as hereby revised, shall be in the following form: 
 
 Form 1001-A FOREIGN ITEMS. Names must be 
 
 (Revised) U. S. printed or 
 
 Internal Revenue written plainly 
 
 Ownership Certificate— Tax Not to Be Paid at the Source. 
 
 (For the use of citizen or resident owners of stock of all 
 foreign corporations, and citizen or resident owners of bonds of 
 foreign countries or foreign corporations not having a paying 
 agent in the United States.) 
 
 Debtor Organization. Owner of Bonds or Stocks. 
 
 Name Name 
 
 Address Address 
 
 (On line above give full description of foreign Item, date of 
 dividend, or maturity of interest.) 
 
 1324 
 
I certify that the owner of If owner is an individual, Is 
 
 the bonds or stock upon which he married? 
 
 the above-described income ac- jf ^ot, is he the head of a 
 
 crued falls within the class of family' 
 
 persons or organizations oppo- * rTTnM' 
 
 site which such income is en- nmxTtro «f ^.L^i 
 
 tered, and Is entitled to receive , O^NER. est dends 
 
 the income reported without ^ ^\ ^"if^",, °^tt f^ i 
 deduction of tax. gent of the United 
 
 States, individual or 
 
 fiduciary 
 
 (Signature of owner or agent.) * — * — 
 
 2. Domestic or resi- 
 ^^^^ corporation, as- 
 
 Address sociation or partner- 
 ship 
 
 of agent ^ — ^ — 
 
 Fiduciaries must enter under 
 "Owner of Bonds or Stocks" 
 the name of estate, trust er 
 beneficiary on behalf of whom 
 this certificate is made. 
 
 If securities art owned joint- 
 ly by several persona, one may 
 sign, and the names, addresses, 
 and proportion of ownership of 
 each indorsed on the back 
 hereof. 
 
 NOTE. — The first licensed bank or collecting a«gent receiving 
 this certificate is required to detach and forward it to the Com- 
 missioner of Internal Revenue (Sorting Division), Washington, 
 D. C, accompanied by a letter of transmittal showing the number 
 of certificates and the aggregate amount of foreign items dis- 
 closed thereon ; except that in the case of interest on bonds, the 
 coupon accompanied by the proper ownership certificate shall be 
 forwarded to the paying agent in this country, if one has been ap- 
 pointed, and in cases where there is no such agent the csrtiflcate 
 shall accompany the coupon to the last bank or collecting a«gent 
 handling the item in this country. The certificate shall be de- 
 tached by the paying agent and forwarded to the Commissioner 
 of Internal Revenue with a letter of transmittal. If the debtor 
 has no paying agent in this country, the last bank or collecting 
 agent handling the interest item shall detach the certlllcate and 
 forward same to the Commissioner of Internal Revenue in the 
 same manner as prescribed in the case the first licensed bank or 
 collecting agent is the source. When the certificate is detached 
 by the first licensed bank or collecting aigent such bank or agent 
 shall indorse upon the foreign item, "Certificate detached and in- 
 formation furnished" 
 
 (Name and address of licensee.) 
 
 Date 
 
 Treasury Decision 2716, and other rulings by this ofTiee in 
 conflict herewith, are hereby superseded and repealed. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: October 2, 1918. 
 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 132S 
 
(T. D. 2762) 
 
 Exemption of Interest on Liberty Bonds Held or Subscribed 
 for by Trustees, Partnerships and Corporations Under 
 Supplement to Second Liberty Bond Act — 
 
 Treasury Department, 
 
 Office cf Comiiiissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Questions have arisen with regard to the exemption of in- 
 terest on bonds held or subscribed for by trustees, partner- 
 ships or corporations under Section 1 of the Supplement to 
 Second Liberty Bond Act, approved September 24, 1918. This 
 section is as follows: 
 
 That until the expiration of two years after the date of 
 the termination of the war between the United States and 
 the Imperial German Government, as fixed by proclama- 
 tion of the President — 
 
 (1) That interest on an amount of bonds of the Fourth 
 Liberty Loan the principal of which does not exceed 
 $30,000, owned by any individual, partnership, associa- 
 tion, or corporation, shall be exempt from graduated addi- 
 tional income taxes, commonly known as surtaxes, and 
 excess and war-profits taxes, now or hereafter Imposed 
 by the United States, upon the income or profits of indi- 
 viduals, partnerships, associations, or corporations; 
 
 (2) The interest received after January 1, 1918, on an 
 amount of bonds of the First Liberty Loan Converted, 
 dated either November 15, 1917, or May 9, 1918, the Second 
 Liberty Loan, converted and unconverted, and the Third 
 Liberty Loan, the principal of which does not exceed 
 $45,000 in the aggregate, owned by any individual, part- 
 nership, association, or corporation, shall be exempt from 
 such taxes : Provided, however, That no owner of such 
 bonds shall be entitled to such exemption In respect to 
 the interest on an aggregate principal amount of such 
 bonds exceeding one and one-half times the principal 
 amount of bonds of the Fourth Liberty Loan originally 
 subscribed for by such owner and still owned by him at 
 the date of his tax return ; and 
 
 (3) The Interest on an amount of bonds, the principal 
 of which does not exceed $30,000, owned by any indi- 
 vidual, partnership, association, or corporation, Issued 
 upon conversion of 3% per centum bonds of the First 
 Liberty Loan in the exercise of any privilege arising as 
 a consequence of the issue of bonds of the Fourth Liberty 
 Loan, shall be exempt from such taxes. 
 
 The exemption provided in this section shall be In addi- 
 tion to the exemption provided in section 7 of the Second 
 Liberty Bond Act In respect to the Interest on an amount 
 of bonds and certificates, authorized by siich Act and 
 amendments thereto, the principal of which does not ex- 
 ceed In the aggregate $5,000, and in addition to all other 
 exemptions provided In the Second Liberty Bond Act. 
 
 The exemptions authorized by subdivisions 1 and 3 of thif 
 Section are conferred by reason of the ownership of bond 
 therein referred to, while the exemption authorized by sub- 
 division 2 is a collateral exemption conferred upon the bonds 
 therein referred to by reason of the original subscription for 
 and continued holding of Fourth Liberty Loan Bonds. 
 
 (1) Trusts. — When income as such is taxable to bene- 
 ficiaries, as in the case, under the present income tax law, 
 of a trust the income of which is to be distributed annually 
 or regularly between existing beneficiaries, each beneficiary 
 is regarded as the owner of a proportionate part of the bonds 
 held in trust and is entitled to exemption on account of such 
 ownership as if he owned such proportionate part of the bonds 
 
 1326 
 
directly. In such a case a subscription by a trustee for bonds 
 of the Fourth Liberty Loan constitutes each beneficiary exist- 
 ing at the time of such subscription an original subscriber 
 for his proportionate part of such bonds and entitles such 
 beneficiary, to the collateral exemption of interest on bonds of 
 previous issues, whether owned by such beneficiary or by the 
 trustee, as if the beneficiary had himself originally sub«cribed 
 for such proportionate part of the bonds, and a subscription 
 by such beneficiary for bonds of the Fourth Liberty Loan 
 entitles him to the collateral exemption of interest on bonds 
 of previous issues held by the trustees. When income is tax- 
 able to the trustee, as in the case, under the present income 
 tax law, of a trust the income of which is accumulated for 
 the benefit of unborn or unascertained persons, the trustee is 
 regarded as the owner of all the bonds held in trust and the 
 trust is entitled to exemption on account of such ownership. 
 In such a case a subscription by a trustee constitutes the 
 trustee as such the original subscriber and entitled the trust, 
 on account of such subscription, to the collateral exemption 
 of interest on bonds of previous issues. 
 
 (2) Partnerships. — ^When income of a partnership is taxable 
 to the individual partners, as under the present income tax 
 law, each partner is treated as the owner of a proportionate 
 part of the bonds held by the partnership and entitled to 
 exemption on account of such ownership as if such partner 
 owned such proportionate part of the bonds directly. When 
 the income of a partnership is taxable to the partnership as 
 such, as under the present excess profits tax law, the partner- 
 ship is treated as the owner of the bonds held by it and 
 entitled to exemption from taxes assessed upon the income 
 of the partnership as such. With reference to a tax assessed 
 upon an individual partner on his share of the partnership 
 income such partner, if a partner at the time of the original 
 subscription by the partnership for bonds of the Fourth 
 Liberty Loan, is treated as an original subscriber for a pro- 
 portionate part of such bonds subscribed for by the partner- 
 ship and as entitled to the collateral exemption of interest 
 on bonds of previous issues on account of such original sub- 
 scription for bonds of the Fourth Liberty Loan, as if he had 
 subscribed directly for such proportionate part of the bonds. 
 With reference to a tax assessed to the partnership upon the 
 partnership income as a whole such partnership is the original 
 subscriber and entitled to the collateral exemption of interest 
 on bonds of previous issues on account of such original sub- 
 scription for bonds of the Fourth Liberty Loan. 
 
 (3) Corporations. — Income of a corporation as such is tax- 
 able to the corporation and is not taxable to the stockholders. 
 The corporation, and not the stockholders, is regarded as the 
 owner of the bonds held by the corporation and entitled to 
 exemption on account of such ownership. When bonds of 
 the Fourth Liberty Loan are subscribed for by the corpora- 
 tion it, and not the stockholders, is the original subscriber 
 and entitled to the collateral exemption of interest on bonds 
 of previous issues on account of such original subscription. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: October 18, 1918. 
 P. 0. LEFFINGWELL, 
 Acting Secretary of the Treasury. 
 
 1337 
 
(T. D. 2763) 
 
 Tax on Undistributed Net Income of Corporations, Joint- 
 Stock Companies and Associations, and Insurance Com- 
 panies — 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned : 
 
 The following rulings with respect to the tax on undis- 
 tributed income imposed by Section 10(b) added to Title I of 
 the Revenue Act of September 8, 1916, by Section 1206 of 
 Title Xn of the War Revenue Act of October 3, 1917, are 
 additional to the rulings contained in Treasury Decision 2736. 
 
 1. Undistributed Net Income Subject to Tax. — In determin- 
 ing the amount of net income of the taxable year "remaining 
 undistributed" six months after its close, and not "invested 
 and employed in the business," there may in general be 
 subtracted the amount of any interest paid by the corporation 
 but not allowed to be deducted for income tax purposes, and 
 also the amount of contributions properly made for charitable 
 or war purposes. 
 
 2. Use of Balance Sheets to Show Employment of Undis- 
 tributed Net Income. — A corporation unable to show by tracing 
 into particular assets or into the decrease of particular liabili- 
 ties, the employment of undistributed net income in the 
 business, is permitted to claim a benefit of what may be 
 shown by a balance sheet for the date of the expiration 
 of six months after the taxable year, or by a comparative 
 balance sheet as indicated below. 
 
 Thus, if the balance sheet for the date of the expiration 
 of the six months period shows that the entire surplus and 
 undivided profits of the corporation are represented by assets 
 pertaining directly to the business, such as plant, equipment, 
 inventories and accounts receivable, with only such amount 
 represented by cash and by salable securities as is reasonably 
 necessary for working capital or other established business 
 requirements, the inference would seem warranted that the 
 undistributed net income for the taxable year has been 
 employed either for an increase in assets needed for the 
 business or for a reduction of the business liabilities. 
 
 It is therefore suggested that corporations unable to estab- 
 lish through tracing into particular assets or into the decrease 
 of particular liabilities the use of undistributed net income 
 for employment in the business, may submit a comparative 
 balance sheet showing in reasonable detail the assets and 
 liabilities of the corporation as at the opening and the close 
 of the taxable year and as at the close of the six months 
 period. 
 
 3. Net Income of a Corporation During the Six Months 
 Period. — If resort is made to the balance sheet in the effort 
 to show the employment in the business of all undistributed 
 net income of the taxable year or its retention for the reason- 
 able requirements of the business, the net income for the 
 six months after the taxable year is necessarily to be taken 
 into account and it must be shown that the undistributed 
 net income of the taxable year as well as the undistributed 
 net income of the six months is so employed or retained. 
 
 1328 
 
4. Distribution of Current Earnings Designated for Particu- 
 lar Investments.— Paragraph 12 of T. D. 2736 referring to the 
 statement that corporations may designate from what earn- 
 ings an investment is made is not to be taken as in any 
 manner altering the rule relative to the order in which 
 earnings are to be treated and distributed as dividends under 
 the provisions of Section 31(b) of the Act of September 8, 
 1916, added by Section 1210 of the Act of October 3, 1917. 
 It is there specified that any distribution made to shareholders 
 shall be deemed to have been made from the most recently 
 accumulated undivided profits or surplus. The application of 
 this provision is dealt with in T. D. 2659 and T. D. 2768. 
 While a corporation retains profits without distribution of 
 dividends, it may retain them in such form as it may elect, 
 but when it makes any distribution of dividends the distri- 
 bution must be treated as made from the most recent profits 
 or surplus regardless of any previous designation of any 
 portion of such earnings for investment purposes. The desig- 
 nation of an investment in obligations of the United States 
 issued subsequent to September 1, 1917, may serve to prevent 
 the application of the additional tax of ten per cent to the 
 amount so invested, but it does not warrant the disregarding 
 of the amount of net income for the taxable year so invested 
 in determining the profits or surplus from which any dividends 
 may be distributed. 
 
 DAKIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: October 21, 1918. 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 (T. D. 2770.) 
 
 The time of notification to an executor of the amount of 
 "excess" estate tax due is the date on which notice 
 thereof is received by the executor. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Section 207 of the Estate Tax Law, Title II of the Act of 
 September 8, 1916, provides in part as follows: 
 
 "That the executor shall pay the tax to the collector or 
 deputy collector. If for any reason the amount of the 
 tax cannot be determined, the payment of a sum of money 
 sufficient, in the opinion of the collector, to discharge the 
 tax shall be deemed payment in full of the tax, except " 
 as in this section otherwise provided. If the amount so 
 paid exceeds the amount of the tax as finally determined, 
 the Commissioner of Internal Revenue shall refund such 
 excess to the executor. If the amount of the tax as 
 finally determined exceeds the amount so paid the Com- 
 missioner shall notify the executor of the amount of such 
 excess. From the time of such notification to the time 
 of the final payment of such excess part of the tax, in- 
 terest shall be added thereto at the rate of ten per centum 
 per annum, and the amount of such excess shall be a 
 lien upon the entire pross estate, except such part thereof 
 as may have been sold to a bona fide purchaser for a fair 
 consideration in money or money's worth." 
 
 1329 
 
The question has arisen under this section as to what is 
 the "time of such notification" from which interest is to be 
 computed. The "time of such notification" is the date on 
 which notice of the amount of such "excess part of the tax" 
 ia received by the executor, whether such notice is given by 
 mail or otherwise. 
 
 All regulations and rulings inconsistent herewith are modi- 
 fied accordingly. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: November 6, 1918. 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2771.) 
 
 Conditions under which taxes on real and personal prop- 
 erty, and on income, are deductible in computing the net 
 estate of a decedent for purposes of taxation under Title 
 II of the Act of September 8, 1916. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Internal Revenue Agents 
 and Others Concerned: 
 
 The Eitate Tax Law (Act of September 8, 1916, Section 
 203a) permits the deduction of "administration expenses," 
 "clairoa against the estate" and "charges against the estate," 
 in determining the value of the net estate. Where the State 
 sts.tus makes the tax a lien against property, it is deductible 
 ao a "charge against the estate." Where it is a personal 
 obligation of the taxpayer, it is deductible as a "claim against 
 the estate." Taxes are never deductible as "administration 
 expenses." 
 
 In certain jurisdictions taxes, upon both real and personal 
 property, are assessed prior to the expiration of the period 
 for which the tax is laid; payment is not required until a 
 date subsequent to the assessment; and the tax liability is 
 created as of a date prior to the performance by the tax 
 officers of all of their duties, such as determining the exact 
 amount to be assessed to the taxpayer, and giving him notice 
 of the tax. The rule for determining deductibility, in these 
 and other cases, is as follows: If the tax liability is created 
 as of a date in the lifetime of the decedent, the whole tax 
 is deductible, although the entire period for which the tax is 
 laid has not elapsed, its exact amount is not then ascertain- 
 able, and payment is not required until a later date. On the 
 other hand, if the tax liability is created as of a date subse- 
 quent to the decedent's death, no part of it is deductible, 
 although part of the period for which the tax is laid elapsed 
 in the decedent's lifetime. 
 
 The foregoing rules also apply to taxes on income, whether 
 imposed by State statute or Act of Congress. Where the 
 statute creates either a lien or personal obligation, as of a 
 date in the decedent's lifetime, the tax is deductible. Where 
 the lien or obligation is created as of a date subsequent to the 
 decedent's death, the tax is not deductible. 
 
 1330 
 
The Income and Excess Profits Taxes imposed by the Acts 
 of September 8, 1916, and October 3, 1917, constitute personal 
 obligations of the taxpayer, and are deductible in accordance 
 with these rules. All unpaid taxes for years prior to that in 
 which the decedent died are deductible. For the year in which 
 the decedent died, the tax upon income up to the date of death 
 is deductible. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: November 8, 1918. 
 L. S. ROWE, 
 
 Acting Secretary of the Treasury. 
 
 (T. D. 2772.) 
 
 Securities such as shares of stock in domestic corporations 
 which are property within the United States within the 
 meaning of Section 202, Title II of the Act of September 
 8, 1916, belonging to a non-resident decedent and de- 
 posited with the British Treasury, for which certificates 
 of deposit were issued, are subject to estate tax on the 
 death of such non-resident decedent if the certificates 
 have not previously been transferred. 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 To Collectors of Internal Revenue, Internal Revenue Agents 
 and Others Concerned: 
 
 Estate tax is imposed by Title II of the Act of September 
 8, 1916, upon all property of a non-resident decedent situated 
 in the United States. (See Sections 201, 202, 203, 205. Sec- 
 tion 202 provides that "for the purposes of this title, stock 
 in a domestic corporation owned and held by a non-resident 
 decedent shall be deemed property within the United States." 
 The question has been considered whether if such stock in a 
 domestic corporation, or other security which if owned by a 
 non-resident decedent would be property within the United 
 States, is deposited with the British Treasury and a certificate 
 of deposit is issued therefor such stock or other property is 
 upon the death of the certificate holder a part of his gross 
 estate and subject to estate tax. 
 
 The holder of the certificate of deposit is the beneficial 
 owner of the stock or other property for which such certifi- 
 cate is issued. The relation of the British government to a 
 certificate holder is substantially, if not technically, that of a 
 trustee to a beneficiary. Upon the death of the beneficiary 
 of a trust a transfer subject to estate tax takes place with 
 reference to property within the United States held upon trust 
 for such beneficiary. This is true even though the equitable 
 title to such stock passes without the recording of the trans- 
 fer upon the books of the corporation. For the purpose of 
 the estate tax no distinction is to be taken between the rights 
 of a deceased certificate holder and the rights of a deceased 
 beneficiary of a trust of which an individual or corporation 
 is trustee. 
 
 It is held, therefore, that securities such as shares of stock 
 
 1331 
 
in domestic corporations which are property within the United 
 States within the meaning of Title II of the Act of September 
 8, 1916, deposited by an individual not resident within the 
 United States with the British Treasuiy, and for which cer- 
 tificates of deposit were issued, are at the death of such non- 
 resident, if such certificates have not been transferred, a part 
 of his gross estate and subject to estate tax. 
 
 DANIEL C. ROPER, 
 Commissions of Int«mal R«v«nua. 
 
 Approved: November 8, 1918. 
 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 (T. D. 2773.) 
 
 Special Excise Tax on Corporations — Decision of Court. 
 
 A steamship company is entitled to deduct from gross 
 income in annual tax returns required by action 88 of 
 the act of Aujust 5, 1909 (36 Stat., 118), amounts paid 
 out for ordinary and nectssary repairs in the maintenance 
 and operation of its business and property and in addition 
 a reasonable allowance for depreciation of property, if any 
 
 Treasury Department, 
 
 Office of Commissioner of Internal Revenue, 
 
 Washington, D. C. 
 
 The appended decision of the United States District Court 
 for the Southern District of the Northern Division of Cali- 
 fornia, in the case of the San Francisco & Portland Steamship 
 Co. vs. John J. Scott, collector, is published for the informa- 
 tion of internal revenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: November 8, 1918. 
 
 L. S. ROWE, 
 Acting Secretary of the Treasury. 
 
 In the District Court of the United States for the Southern 
 
 Division of the Northern District of California, Second 
 
 Division. No. 15,782. 
 The San Francisco & Portland Steamship Co., plaintiff, vs. 
 
 John J. Scott, collector of internal revenue, etc., and 
 
 August F. Muenter, defendants. 
 (Memorandum by Bean, District Judge, sitting by special 
 assignment.) 
 
 This action is to recover certain amounts paid by the plain- 
 tiff under protect as excise taxes levied under the act of 
 Congress August 5, 1909, section 38 (36 Stat. L., 112) for the 
 years 1910 and 1912. 
 
 In its returns plaintiff included in its deductions for ordi- 
 nary and necessary expen.ses paid out for the maintenance 
 and operation of its business and property, for the year 1910, 
 $17,088.77 and for the year 1912, $25,371.40, being amounts 
 
 1332 
 
•xpended in each of such yearg for making "ordinary and 
 necessary" repairs to the deck department, engine department, 
 and commissary department of its steamers, and also 
 $59,642.11 for 1910, and $79,350.96 for 1913 for depreciation 
 of such steamers, being 5 per cent, of the book value thereof. 
 
 It is admitted that the deductions for depreciation are rea- 
 sonable and should be allowed, but the commissioner ruled 
 that the cost of making ordinary and necessary repairs was 
 not a proper item to be included in the operation and main- 
 tenance expenses but was covered by the deductions for de- 
 preciation and required plaintiff to pay taxes thereon, which 
 it did under protest and hence this suit. 
 
 The question thus raised does not seem to have been directly 
 decided in any reported case to which my attention has been 
 called or which I have been able to find, although the cost 
 of repairs and upkeep was assumed in Grand Rapids and 
 Indiana Railway vs. Doyle (245 Fed., 792) to be an item prop- 
 erly included in operating and maintenance expense. 
 
 Under the law the tax is to be laid on net income and such 
 net income is to be ascertained by deducting from the gross 
 income (1) all the ordinary and necessary expenses actually 
 paid within the year out of income in the "maintenance and 
 operation" of the business and property; (2) losses actually 
 suffered not covered by insurance, including a reasonaoie 
 allowance for depreciation, if any. « » * 
 
 It will thus be seen that the deductions allowed are to 
 include not only ordinary and necessary amounts actually paid 
 out in the operations of the property but also the amounts 
 paid out in the maintenance thereof, and in addition a rea- 
 sonable sum for depreciation, if any. Now, th? operation of 
 a business or property includes payment for labor and ma- 
 terials which go into the actual operation thereof, while main- 
 tenance means the upkeep or preserving the condition of the 
 property to be operated and therefore, in my judgment, in- 
 cludes the cost ordinary repairs necessary and proper from 
 time to time for that purpose. Depreciation as used in the 
 statute is not to be confused with ordinary repairs. It is 
 intended to cover the estimated lessening in value of the orig- 
 inal property, if any, due to wear and tear, decay, or gradual 
 decline from natural causes, inadequacy, obsolescence, etc., 
 which at some time in the future will require the abandon- 
 ment or replacement of the property in spite of ordinary cur- 
 rent repairs. 
 
 It follows that the tax complained of was illegally exacted 
 and the plaintiff is entitled to judgment for its recovery. 
 Findings may be prepared accordingly. 
 
 (T. D. 2778.) 
 
 Instructions relative to acceptance of certificates of indebted- 
 ness for income and profits taxes — 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 To Collectors of Internal Revenue and Others Concerned: 
 
 Collectors of Internal Revenue are directed to receive at par 
 United States Treasury certificates of indebtedness of the 
 Tax Series of 1919, dated August 20, 1918, and maturing July 
 
 1333 
 
15, 1919, and of Series T, dated November 7, 1918, and matur- 
 ing March 15, 1919, in payment of income and profits taxes 
 when payable at or before the maturity of the certificates. 
 The amount, at par, of the Treasury certificates of indebted- 
 ness presented by any taxpayer in* payment of income and 
 profits taxes must not exceed the amount of the taxes to be 
 paid by him. Deposits of certificates of indebtedness must be 
 made by collectors with the Federal Reserve Banks of the 
 districts in which the respective collectors' offices are located. 
 Such certificates of indebtedness may be accepted by the col- 
 lector prior to the date the tax is due and in that case should 
 be forwarded by the collector to the Federal Reserve Bank 
 to be held for account of the collector until the date the tax 
 is due and for deposit on such date. Certificates of indebted- 
 ness should be stamped as follows by the collector and when 
 so stamped transmitted to the Federal Reserve Bank by reg- 
 istered mail uninsured: 
 
 , 191—. 
 
 This certificate has been accepted in payment of income and 
 profits taxes and will not be redeemed by the United States 
 except for credit of the undersigned. 
 
 Collector of Internal Revenue 
 
 for the district of 
 
 Each unmatured coupon attached to each such certificate ot 
 indebtedness must be stamped across the face by the collector 
 as follows: "Paid." 
 
 All coupons maturing on or before the date the tax is due 
 must be detached by the taxpayer and collected in ordinary 
 course; but all other coupons must be attached to the certifi- 
 cates and forwarded to the Federal Reserve Bank. Any 
 accrued interest to the date the tax is due not covered by 
 coupons detached as above provided will be remitted to the 
 taxpayer by the Federal Reserve Bank by check and the col- 
 lector must furnish to the Federal Reserve Bank the 
 name and address of the taxpayer, the amount and serial 
 numbers of the certificates presented in each case, the date of 
 issue of the certificates, and the date the tax was due. Col- 
 lectors shall in no case pay interest on such certificates nor 
 accept them for an amount other or gi-eater than their face 
 value. Receipts given by collectors to taxpayers should show 
 the amount of certificates of each series received in payment 
 of taxes. 
 
 The collectors should make in tabular form a schedule in 
 duplicate of the certificates of indebtedness to be sent to the 
 Federal Reserve Bank, showing the serial number of each cer- 
 tificate, date of issue, and face value. Certificates of indebted- 
 ness accepted prior to the date the tax is due must be sched- 
 uled separately, and such date must appear on the schedule. 
 At the bottom of the schedule there should be written or 
 
 stamped "Income and Profits Taxes $ ," which must 
 
 agree with the total shown on the schedule. Such income and 
 profits tax deposits must in all cases be shown on the face of 
 the certificate of deposit (National Bank Form 15), separate 
 and distinct from the item of miscellaneous internal revenue 
 collections (formerly called Ordinary), but it is not necessary 
 to give the separation into corporation income, individual in- 
 come and profits taxes. One copy of this schedule must ac- 
 company the certificates sent to the Federal Reserve Bank, 
 and the other be retained by the collector. 
 
 1334 
 
Until certificates of deposit are received from the Federal 
 Reserve Banks, the amounts must be carried as cash on hand, 
 and not credited as collections, as the dates of certificates of 
 deposit determine the dates of collections. 
 
 For the purpose of saving taxpayers the expense of trans- 
 mitting such certificates as are held in Federal Reserve cities 
 to the off"ice of the collector in whose district the taxes are 
 payable, taxpayers desiring to pay income and profits taxes 
 by Treasury certificates of indebtedness acceptable in payment 
 of such taxes, should communicate with the collector of the 
 district in which the taxes are payable and request from him 
 authority to deposit such certificates with the Federal Re- 
 serve Bank in the city in which the certificates are held. 
 
 Collectors are authorized to permit deposits of Treasury cer- 
 tificates of indebtedness in any Federal Reserve Bank with the 
 distinct imderstanding that the Federal Reserve Bank is to 
 issue a certificate of deposit in the collector's name covering 
 the amount of the certificates of indebtedness at par and to 
 state on the face of the certificate of deposit that the amount 
 represented thereby is in payment of income and profits taxes. 
 The Federal Reserve Bank should forward the original certifi- 
 cate of deposit to the Treasurer of the United States, with its 
 daily transcript, and transmit to the collector the duplicate 
 and triplicate, accompanied by a statement giving the name 
 of the taxpayer for whom the payment is made in order that 
 the collector may make the necessary record and forward the 
 duplicate to this oflfice. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: December 11, 1918. 
 
 W. G. McADOO, 
 Secretary of the Treasury. 
 
 (T. D. 2783) 
 
 INCOME TAX ACT OF OCTOBER 3, 1913— DECISION OF 
 THE SUPREME COURT. 
 
 1. Taxability of Dividends from Subsidiary Corporations. 
 Where a holding company owns all the stock of its subsidi- 
 ary corporations except the qualifying shares of the directors, 
 and the subsidiary corporations together with the holding 
 company constitute a single enterprise, the accumulated earn- 
 ings and surplus of the subsidiary corporations used by them 
 as capital prior to January 1, 1913, do not become taxable 
 income of the holding company when formally transferred to 
 it as dividends. 
 
 2. Effect of the Decision. 
 
 Though the holding company did not itself do the business 
 of its subsidiaries and have possession of their property as 
 in the Southern Pacific Company v. Lowe (247 U. S. 330) 
 (T. D. 2730), the principle of that case governs. 
 
 3. Judgment Reversed. 
 
 The judgment of the Circuit Court of Appeals (245 Fed. 1) 
 (T. D. 2542) is reversed. 
 
 1335 
 
Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C. 
 
 The appended decision of the United States Supreme Court 
 in the case of the Gulf Oil Corporation, petitioner, v. C. G. 
 Lewellyn, Collector of Internal Revenue for the 23rd District 
 of Pennsylvania, is published for the information of Internal 
 Reyenue officers and others concerned. 
 
 DANIEL C. ROPER, 
 Commissioner of Internal Revenue. 
 
 Approved: January 7, 1919. 
 CARTER GLASS, 
 
 Secretary of the Treasury. 
 
 SUPREME COURT OF THE UNITED STATES. 
 No. 310— October Term, 1918. 
 
 On Writ of Certiorari to the 
 United States Circuit Court 
 of Appeals for the Third 
 Circuit. 
 
 Gulf Oil Corporation, Petitioner, 
 vs. 
 
 C. G. Lewellyn, Collector of In- 
 ternal Revenue for the Twenty- 
 third District of Pennsylvania. 
 
 (December 9, 1918.) 
 
 Mr. Justice HOLMES delivered the opinion of the Court. 
 
 This is a suit to recover a tax levied upon certain dividends 
 as income, under the Act of October 3, 1913, c. 16, Section II 38 
 Stat. 114, 166. The District Court gave judgment for the plaintiff, 
 242 Fed. Rep. 709, but this judgment was reversed by the Circuit 
 Court of Appeals. 245 Fed. Rep. 1, 158. C. C. A. 1. 
 
 The facts may be abridged from the findings below as follows. 
 The petitioner was a holding company owning all the stock in 
 the other corporations concerned except the qualifying shares held 
 by directors. These companies with others constituted a single 
 enterprise, carried on by the petitioner, of producing, buying, 
 transporting, refining and selling oil. The subsidiary companies 
 had retained their earnings, although making some loans inter se, 
 and all their funds were invested in properties or actually 
 required to carry on the business, so that the debtor companies 
 had no money available to pay their debts. In January, 1913, the 
 
 f)etitioner decided to take over the previously accumulated earn- 
 ngs and surplus and did so in that year by votes of the com- 
 panies that it controlled. B\jt, disregarding the forms gone 
 through, the result was merely that the petitioner became the 
 holder of the debts previously due from one of its companies 
 to another. It was no richer than before, but its property 
 now was represented by stock in and debts due from its sub- 
 sidiaries, whereas formerly it was represented by the stock 
 alone, the change being effected by entries upon the respective 
 companies' books. The earnings thus transferred had been 
 accumulated and had been used as capital before the taxing year. 
 Lynch v. Turrish, 247 U. S. 221, 228. 
 
 We are of opinion that the decision of the District Court was 
 right. It is true that the petitioner and its subsidiaries were 
 distinct beings in contemplation of law, but the facts that they 
 w^ere related as parts of one enterprise, all owned by the 
 petitioner, that the debts were all enterprise debts due to 
 members, and that the dividends represented earnings that had 
 been made in former years and that practically had been con- 
 verted into capital, unite to convince us that the transaction 
 should be regarded as bookkeeping rather than as "dividends 
 declared and paid in the ordinary course by a corporation." 
 Lynch v. Hornby, 247 U. S. 339, 346. The petitioner did not 
 Itself do the business of its subsidiaries and have possession 
 of their property as in Southern Pacific Co. v. Lowe, 247 U, S. 330, 
 but the principle ot that case must be taken to cover this. By 
 Section II, G, (c), 38 Stat. 174, and S. id. 202, the tax from 
 January 1 to February 28, 1913, is levied as a special excise 
 tax, but in view of our decision that the dividends here con- 
 cerned were not Income it is unnecessarv to discuss the further 
 question that has been raised under the latter clause as to the 
 effect of the fact that excise taxes upon the subsidiary corpora- 
 tions had been paid. 
 
 Judgment reversed. 
 Clerk Supreme Court, U. S. 
 A true copy. 
 Test: 
 
 1336 
 
(I. T.— CIS. Mim. 1795.) 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, February 26, 1918. 
 
 To Collectors of Internal Revenue: 
 
 In order to complete claim* for the refunding of income tax 
 collected under the Act of October S, 1913, on stock dividends; 
 that is, claims based upon the decision of the Supreme Court 
 in the case of Towne vs. Eisner, the following evid«nca is 
 required : 
 
 An affidavit showing — 
 
 1. The name of the corporation which declared and paid 
 the stock dividend. 
 
 3. The date of declaration of the stock dividend and date 
 of receipt by claimant. 
 
 3. In which year's return of annual net income did the 
 
 claimant include this stock dividend? 
 
 4. Under what item on the return was the value of the 
 
 stock dividend included, and what was the valuation 
 placed upon the dividend in the return? 
 
 5. Has the stock thus received and returned as a dividend 
 
 been sold by the claimant, and if so, what was the 
 date of sale; how much did claimant receive from 
 the sale; and what part of the total amount received 
 from the sale was included by the claimant in its re- 
 turn of annual net income for the year in which the 
 sale occurred? 
 
 6. Did the dividend consist of stock of the corporation dis- 
 
 tributing the dividend to claimant, or did it consist 
 of stock acquired by the distributor in another cor- 
 poration ? 
 
 ITote. — ^A stock dividend is a distribution by a corporation 
 to its stockholders of capital stock of the distributing cor- 
 poration. A distribution of capital stock other than that of 
 the distributing corporation is not a stock dividend but a 
 dividend in property. 
 
 The receipt on Form No. 1 should also be filed with the 
 claim. 
 
 In giving publicity to this requirement please inform tax- 
 payers that there is no possible advantage in the employment 
 of special attorneys for the prosecution of claims. Prepara- 
 tions are being made for the prompt handling of these cases 
 and it is believed that they can be disposed of with minimum 
 delay and inconvenience to the taxpayer. Claims filed directly 
 by the claimants will receive in every respect as careful and 
 expeditious consideration as those filed through special 
 attorneys. 
 
 DANIEL C. ROPER, 
 
 Commissioner, 
 
 (I. T. MIM. 1866.) 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 Washington, D. C, April. 23, 1918. 
 
 To Collectors of Internal Revenue: 
 
 The attention of collectors is directed to the printed in- 
 structions contained on monthly return Form 1012, Revised, 
 
 1337 
 
1918, to the effect that "each class of payments must be 
 listed and totaled separately under the heading A, B, C or D." 
 
 This office has received many monthly returns on which 
 there have been listed by debtor corporations and withholding 
 agents payments of interest falling within the above classes 
 which have not been segregated as required. Returns pre- 
 pared in this manner can not be satisfactorily audited by this 
 office. The co-operation of organizations required to file 
 monthly returns is desired, and their observance of all in- 
 structions in this connection will, in the opinion of this office, 
 not only serve to keep their own records more clearly, but 
 will facilitate the audit of such returns. 
 
 This office will hereafter require that monthly returns on 
 Form 1012, Revised, be rendered by debtor corporations and 
 withholding agents strictly according to the printed instruc- 
 tions appearing thereon. Collectors of Internal Revenue are 
 instructed, therefore, that they shall return to the debtor cor- 
 poration or withholding agent concerned, any monthly returns 
 on Form 1013, Revised, filed subsequent to the receipt by them 
 of this letter, which are not rendered in accordance with the 
 procedure outlined above, and require such debtor corporation 
 or withholding agent to file amended returns. 
 
 DANIEL C. ROPER, 
 Commissioner. 
 
 Bonds Containing Tax-Free Clause, and Certificate to be 
 Filed on or Before February 1st — 
 
 Treasury Department, 
 Washington, D. C, February 26, 1918. 
 
 Standard Statistics Co., Inc., 
 47-49 West St., 
 
 New York, N. Y. 
 Sirs: 
 
 Receipt is acknowledged of your communication dated Jan- 
 uary 16, 1918, referring to the provisions of subdivision (c) 
 of Section 9 of the Act of September 8, 1916, as amended, 
 and requesting that in view of the considerable difference 
 of opinion which exists as to the interpretation placed upon 
 the provision thereof, you be advised whether the construc- 
 tion placed thereon is as follows: 
 
 "Where bonds contain a tax-free clause, will it be neces- 
 sary for the corporation to actually withhold the tax on an 
 amount in excess of the exemption claimed or does the cor- 
 poration pay the interest in full to the bondholder and as- 
 sume the liability for the payment of the tax. Relative to 
 the certificate to be filed with the withholding agent on or 
 before February first, in order to receive the benefit of ex- 
 emption, is this interpreted to mean that if an individual 
 entitled to an exemption of $2,000 and has income equivalent 
 to this amount, derived entirely from tax-free bonds will 
 have the tax deducted by the corporation, if a certificate is 
 filed not claiming exemption, or whether the individual is 
 privileged to substitute an exemption certificate for non- 
 exemption certificate up until February first of the follow- 
 ing year, during which the income was earned?" 
 
 In reply you are advised that under the provisions of the 
 section mentioned, there is imposed upon the debtor corpora- 
 
 1338 
 
tion or its duly accredited withholding agent the liability for 
 the deduction, withholding and payment of the 2% normal 
 tax from all interest payments made to citizens and aliens, 
 both resident and non-resident, upon bonds, containing a tax- 
 free clause made to the obligees on and after January 1, 
 1917, and a like tax of 6% on all such payments made to 
 foreign corporations having no place of business in the 
 United States, after October 3, 1917. 
 
 If an individual has an income of the amount in the in- 
 stance cited by you and files a certificate claiming no ex- 
 emption, the debtor corporation will be held liable for the 
 withholding of the normal tax on the full amount of the 
 interest payment due. If, however, the individual, at any 
 time prior to February 1st, of the year following during 
 which the income was paid, substitutes for the certificate 
 previously filed, one claiming exemption, the debtor corpora- 
 tion will not be required to withhold tax an any amount 
 not in excess of the exemption claimed. 
 
 Respectfully, 
 
 L. F. SPEER, 
 Deputy Commissioner. 
 
 Wife's Income Prior to Marriage to be Included in Husband'i 
 Return. 
 
 Treasury Department, 
 Washington, February 28, 1918. 
 Mr. C. H. Hubbell, 
 Tax Consultant, 
 First National Bank, 
 Cleveland, Ohio. 
 
 Sir:— 
 
 Reference is made to your letter of the 6th instant in which 
 you ask the manner in which an individual who was married 
 during the year should render his income tax return. You 
 state that the salary for the year of the individual amounted 
 to $3,900.00, and that his wife earned during the year and 
 prior to their marriage $700.00. You ask if the amount earned 
 by the wife prior to her marriage should be included in the 
 husband's return, and what exemption should be claimed by 
 the husband. 
 
 In reply you are advised that unless the wife has a separate 
 estate which requires her to file a separate return of income, 
 or to join her husband in a return which shall set forth her 
 income separately, her husband should include in his return 
 the income accruing to the wife from services rendered by her 
 whether such income accrued prior or subsequent to their 
 marriage. 
 
 An exemption of $2,000.00 should then be taken by the 
 husband. 
 
 Respectfully, 
 
 (Signed) L. F. SPEER, 
 Deputy Commissioner. 
 By courtesy of 
 First National Bank, 
 Cleveland, Ohio. 
 
 1339 
 
March 13, 1918. 
 
 DANIEL C. ROPER, 
 
 Commissioner of Internal lleveniie, 
 Washington, D. C. 
 
 (INQUIRY.) 
 
 We understand partnership income tax return, Form 1065, 
 is required from domestic partnerships having $6,000 or more 
 without deducting salaries or interest paid to partners. Are 
 we to read paragraph 2, Partnership Excess Profits Tax Re- 
 turn, Form 1102, as though the words six thousand dollars 
 or more were followed by the phrase "without deducting sal- 
 aries or interest paid to partners"? 
 
 Is an individual having net income from trade or business 
 three thousand dollars and from rents and dividends outside 
 of his trade or business four thousand dollars required to 
 make individual excess profits tax return? Please wire 
 answer collect to Loudonville. 
 
 FARMERS BANK, 
 
 Loudonville, Ohio. 
 
 (REPLY.) 
 
 "Replying to your telegram March 14. If salary and inter- 
 est payment covered Articles 32 and 33 Regulations 41 are 
 fully explained on Form 1065; return on Form 1102 will not 
 be required when partnership net income after deduction of 
 salaries and interest is less than six thousand dollars unless 
 specially called for. 
 
 "In case of individual submitted by you he would not be 
 required to file excess profits tax return unless the manage- 
 ment of rental properties constitute a trade or business as 
 defined by Article 8, Regulations 41, and the combined income 
 from his several trades and businesses amounts to six 
 thousand dollars or more." 
 
 FLOOR TAX AS A DEDUCTION. 
 
 Treasury Department, 
 Washington, March 15, 1918. 
 
 Mr. Chas. H. Hubbell, Tax Consultant, 
 
 First National Bank, Cleveland, Ohio. 
 
 Sir: 
 
 Receipt is acknowledged of your letter of the 20th ultimo, m 
 which you ask for information in behalf of the Wm. J. Gal- 
 lagher Company, of Cleveland, Ohio. The information desired 
 is in regard to the so-called floor tax on liquor imposed by 
 Section 303 of the Act of October 3, 1917. You ask to be ad- 
 vised whether such floor tax should be considered as a part 
 of the cost of the goods, or should such tax be included as a 
 deduction in arriving at the net income of the corporation. 
 
 In reply you are informed that the floor taxes actually paid 
 or set up as a liability as discussed hereinafter may be de- 
 ducted from gross income as taxes paid. 
 
 1340 
 
Floor taxes paid on specific articles under the provisiont of 
 the Act of October 3, 1917, cannot be treated by the owner of 
 the articles as a part of the cost of such articles. 
 
 With reference to your inquiry in regard to any distinction 
 to be made between floor taxes paid and floor taxet for which 
 ft bond has been given, in the case of a concern keeping its 
 books on an accrual basis, you are informed that a corpora- 
 tion keeping accounts upon any other basis than that of actual 
 receipts and disbursements may make its returns upon th» 
 basis upon which its accounts are kept. It therefore follows 
 that if a corporation which is subject to the tax imposed by 
 Section 303 of the Act of October 3, 1917, keeps its accounts 
 upon a basis other than actual receipts and disbursements, and 
 its returns of annual net income are prepared in accordance 
 with Treasury Decision 2433, it will be permitted to deduct, 
 in its returns of annual net income for the year 1917 the 
 amount of floor taxes assessed for that year, and for which 
 it has given bonds as collateral for the payment of the tax 
 to the Collector of Internal Revenue. If, however, the cor- 
 poration prepares its returns upon the basis of actual receipts 
 and disbursements, and not in accordance with Treasury De- 
 cision 2433, it will not be permitted to deduct as taxes paid, 
 in the return of annual net income for the year 1917, the taxes 
 imposed by Section 303 of the Act of October 3, 1917, which 
 taxes arc paid subsequent, to January 1, 1918. 
 
 Respectfully, 
 
 (Signed) DANIEL C. ROPER.. 
 Commissioner. 
 
 By courtesy of First National Bank, Cleveland, Ohio. 
 
 March 19, 1918. 
 
 Instructions Issued by the Alien Property Custodian In 
 Relation to Income Taxes. 
 
 By a Treasury Decision issued March 18 (T. D. No. 2673) 
 all individuals, firms or corporations are to be governed as 
 follows in respect to filing Federal income tax returns oi 
 paying Federal income taxes under the Income Tax Act and 
 the War Income Tax Act on any money or other property of 
 enemies, as defined by the "Trading with the Enemy Act,** 
 that has come or may come into their possession: 
 
 I. 
 
 For the Tear 1917. 
 
 1. Where money or other property has not yet been de- 
 livered to the Alien Property Custodian, but is held 
 subject to his order. 
 In all such cases it is necessary to file returns of informa- 
 tion and income in respect of all such money or other prop- 
 erty for such period as may elapse prior to the actual delivery 
 •f the money or other property to the custodian, and also to 
 withhold and to pay the normal tax in respect of any income 
 actually paid to or for any enemy prior to October 6, 1917, 
 the date when the "Trading with the Enemy Act" became a 
 law. 
 
 1341 
 
2. Where the money or other property has actually been 
 delivered to the Alien Property Custodian. 
 
 Where the money or other property has actually been de- 
 livered to the custodian, return of income is still required to 
 be filed in due course in respect of all money or other property 
 for the period that has elapsed up to the time of the actual 
 delivery to the custodian, and payment of taxes is required 
 to be made in cases, but only in such cases, where there has 
 been withheld from what is actually delivered to the custodian 
 the amount of the normal tax in respect of income actually 
 paid over to or for the enemy prior to October 6, 1917. 
 
 II. 
 For the Year 1918 and Subsequent Years. 
 
 Return of income is required to be filed in due course ^n 
 respect of all money or other property for such part of the 
 year 1918 or any subsequent year as may elapse prior to the 
 actual delivery of the money or other property to the Alien 
 Property Custodian, but no withholding or the payment ot 
 any taxes is required. 
 
 III. 
 
 Requirements in respect to money or other property of enemies 
 
 held or utilized under authority of licenses 
 
 issued by the War Trade Board. 
 
 Wherever money or other property is held or utilized unuer 
 authority of a license issued by the War Trade Board, the 
 obligation upon every individual, firm or corporation holding 
 such license to withhold or return or pay income taxes for the 
 duration of such license, is not affected in any way by this 
 Treasury Decision. 
 
 IV. 
 
 Requirements in respect to depositaries and agents appointed 
 
 by the Alien Property Custodian. 
 
 Depositaries and agents appointed by the Alien Property 
 Custodian to represent him in relation to any money or other 
 property are not required to make any deductions, or to file 
 any returns, or to make any payments in respect to any in- 
 come taxes for the year 1917 or subsequent years on any 
 money or other property that may come into their hands. 
 The obligation, if any, to make the same rests, as above ex- 
 plained, upon the individual, firm or corporation from whom 
 the depositaries or agents receive the money or other property 
 for the account of the Alien Property Custodian. 
 
 V. 
 
 Requirements as to licenses, ownership certificates, etc., for 
 collection of coupons. 
 
 Nothing in the above is to be construed as relieving any 
 individual, firm or corporation from complying before col- 
 lection of coupons for or on account of enemies with the 
 requirments (1) of the War Trade Board in respect to license 
 before such collection; (2) of the Alien Property Custodian 
 in respect to any rules and regulations relatmg to such col- 
 lection; (3) of the Federal Reserve Board in respect to regis- 
 tration certificates; and (4) of the Internal Revenue Depart- 
 ment in respect to ownership certificates to accompany such 
 coupons. Of these requirements only the fourth applies to 
 depositaries and agents appointed by the Alien Property Cus- 
 
 1342 
 
todian. United States Internal Revenue Forms No. 1000 and 
 No. 1001, as revised January, 1918, are to be used by such 
 depositaries and agents in collecting coupons for the account 
 of the Alien Property Custodian and such certificates are to 
 be signed as follows: 
 
 (Name of enemy) Trust. 
 
 by 
 
 (Alien Property Custodian Depositary.) 
 
 Treasury Department, 
 Washington, July 1», 1918. 
 
 Tax on Undistributed Net Income — 
 
 L. & A. U. Zinke, 
 290 Broadway, 
 
 New York, N. Y. 
 
 Sirs: 
 
 Replying to your letter of the 11th instant, you are in- 
 formed that a corporation having a fiscal year ended within 
 the calendar year, 1917, which is required to file its return on 
 Form 1112, should file such return with the Collector of 
 Internal Revenue on or before August 1, 1918. 
 
 A corporation which files its return on the basis of the 
 calendar year is not required to file such return until sixty 
 (60) days after the expiration of six months from the close 
 of its taxable year. Therefore, in such a case the return Is 
 not due until August 29, 1918. 
 
 Respectfully, 
 
 L. F. SPEER, 
 Deputy Commissioner. 
 By courtesy of 
 
 L. & A. U. Zinke, 
 New York. 
 
 TAX CERTIFICATES, SERIES OF 1919— 
 
 Announcement of the Secretary of the Treasury Relating to 
 United States Treasury Certificates of Indebtedness, Re- 
 ceivable for Income and Excess Profits Taxes. Dated 
 August 20, 1918, Payable July 15, 1919—4% Interest- 
 August 19, 1918. 
 
 To the Banks, Trust Companies and the Public of the 
 Fifth Federal Reserve District: 
 "The Secretary of the Treasury under authority of Act 
 approved September 24, 1917, as amended by Act approved 
 April 4, 1918, offers for subscription at par and accrued in- 
 terest Treasury Certificates of Indebtedness of the United 
 States, tax series of 1919, dated and bearing interest from 
 
 1343 
 
August 20, 1918, payable July 15, 1919, bearing interest at 
 the rate of 4% per annum. Applications will be received 
 at the Federal Reserve Banks. 
 
 Subscription books will close at close of business August 
 30, 1918. 
 
 Bearer certificates with interest coupons attached will be 
 issued in denominations of $500, $1,000, $5,000, $10,000 and 
 $100,000. 
 
 Tax Exemption Features. — Said certificates shall be exempt 
 both as to principal and interest from all taxation now or 
 hereafter imposed by the United States, any State or any of 
 the possessions of the United States, or by any local taxing 
 authority, except: 
 
 (a) Estate or inheritance taxes, and, 
 
 (b) Graduated additional income taxes, commonly known 
 as surtaxes, and excess profits and war profits taxes now or 
 hereafter imposed by the United States upon the income or 
 profits of individuals, partnerships, associations or corpora- 
 tions. 
 
 (They carry exemptions from the increased income taxes 
 that are in contemplation by Congiess.) 
 
 The interest on an amount of bonds and certificates au- 
 thorized by said Act, approved September 24,^1917, or by said 
 Act as amended by said Act approved April 4, 1918, or by the 
 Act approved July 9, 1918, the principal of which does not 
 exceed in the aggregate $5,000 owned by any individual, 
 partnership, association or corporation, shall be exempt from 
 the taxes provided for in clause (b) above. 
 
 Receivable in Payment of Income and Excess Profits Taxes. 
 — The certificates of this series will be accepted at par v.ith 
 adjustment of accrued interest under rules and regulations 
 to be prescribed by the Secretary of the Treasury, in pay- 
 ment of income and excess profits taxes when payable at or 
 before the maturity of the certificates. 
 
 The certificates of this series do not bear the circulation 
 privilege and will not be accepted in payment on bond sub- 
 scriptions. 
 
 The right is reserved to reject any subscription and to allot 
 less than the amount of certificates applied for, and to close 
 the subscriptions at any time without notice. 
 
 Time of Payment. — Payment at par ana accrued interest 
 for certificates allotted must be made on allotment. After 
 allotment and upon payment Federal Reserve Banks will issue 
 interim receipts pending delivery of the definitive certificates. 
 
 Payment by Credit. — Qualified depositaries will be permitted 
 to make payment by credit for certificates allotted to them 
 for themselves and their customers up to an amount for 
 which each shall have been qualified in excess of existing de- 
 posits, when so notified by Federal Reserve Banks. 
 
 (Application to become depositaries, or to increase the 
 amount for which any bank or trust company may have been 
 designated as a depositary, will be received and promptly 
 acted upon.) 
 
 As Fiscal Agents of the United States, Federal Reserve 
 Banks are authorized and requested to receive subscriptions 
 and to make allotment in full in the order of the receipt of 
 subscriptions until further notice. 
 
 1344 
 
 I 
 
Certificates of series IV-A, IV-B, IV-C and IV-D will be 
 accepted at par with an adjustment of accrued interest in 
 payment for any certificates of the series now ofiered which 
 shall be subscribed for and allotted not later than August 
 30, 1918." 
 
 Respectfully, 
 
 FEDERAL RESERVE BANK OF RICHMOND, 
 Fiscal Agent of the United States. 
 
 Office of 
 
 Commissioner of Internal Revenue. 
 
 Treasury Department. 
 
 Washington, December 24, 1918. 
 
 Standard Statistics Company, Inc., 
 47 West Street, New York City. 
 
 Gentlemen : 
 
 Reference is made to your letter of December 12, 1918, which 
 is quoted as follows: 
 
 "Under an unofficial ruling your office has held that 
 the Government cannot accept payment of taxes by a 
 corporation in behalf of a bondholder where such bond 
 does not contain a tax-free covenant. 
 
 "Corporation *A' issuing bonds without a tax-free cove- 
 nant voluntarily pays its coupons at 102% of face valua 
 for the purpose of reimbursing its bondholders for a por- 
 tion of the normal tax assessed against income from 
 interest. 
 
 "Thus, bondholder 'B,' holding coupons to the face value 
 of $1,000, receives $1,020 from the corporation. 
 
 "Is the $20 extra received from the corporation income 
 to the bondholder subject to tax, or should it be classitiea 
 as a gift, the principal of which is exempt from tax?" 
 
 In reply you are advised that if a corporation contracts with 
 its bondholders to pay the income tax to be imposed on its 
 bonds, and if such agreement is not embodied in the form of a 
 "tax-free covenant" in such bonds, then any amount paid to 
 the bondholders by virtue of such contract constitutes income 
 for the year in which received. The contract so entered into 
 is a bargain, as between the debtor corporation and its bond- 
 holders, of which this office does not take cognizance. 
 
 However, if there is no prior contract or agreement or under- 
 standing in the matter and the corporation voluntarily re- 
 imbursed its bondholders for a portion of the tax to be 
 assessed against the income from interest, then the amount 
 so received will be regarded as a gift to the bondholders, and 
 the sum so paid will not be allowed as a deduction to the 
 corporation. 
 
 Respectfully, 
 
 DANIEL C. ROPER, 
 Commissioner. 
 
 1345 
 
STOCK DIVIDENDS. 
 
 Judge Julius M. Mayer, sitting in a test case in the United 
 States District Court, decided without leaving the bench that 
 the Supreme Court of the United States meant what it said 
 in the famous Towne Case, and that stock dividends are no 
 more subject to income tax under the 1916 Law than they were 
 under the 1913 Law, which was the subject of the original de- 
 cision. 
 
 The Towne Case above referred to was the case of Towne vs. 
 Eisner, in which the United States Supreme Court handed 
 down a decision on January 7th, 1918. Under this decision it 
 was held that a stock dividend declared by a corporation in 
 January, 1914, was not taxable income. As the Act of October 
 3, 1913, was in effect for the years 1913-1914 and 1915; this 
 decision only affected stock dividends paid within these years. 
 The Income Tax Laws of September 8th, 1916, and October 3rd, 
 1917, as well as the present Revenue Bill about to be passed 
 specifically tax stock dividends. 
 
 If the decision handed down by Judge Mayer is upheld by 
 the United States Supreme Court, it will mean that all taxes 
 which have been paid upon stock dividends from January 1st, 
 1916, will have to be refunded to taxpayers upon the submis- 
 sion of proper claims. 
 
 The opinion in the above case consists merely of an endorse- 
 ment on the demurrer, as follows : 
 
 Demurrer overruled on the authority of Towne v. Eisner, 24.') 
 U. S. 418— see also Peabody v. Eisner, 247 U. S. 347. 
 
 JULIUS M. MAYER, 
 District Judge. 
 
 Tax on Undistributed Net Income of Corporations. 
 The Act of September 8, 1916, as amended, Section 10(b), 
 provides that — 
 
 (b) In addition to the income tax imposed by subdivision (a) 
 of this section there shall be levied, assessed, collected and paid 
 annually an additional tax of ten per centum upon the amount 
 remaining undistributed six months after the end of each calendar 
 or fiscal year of the total net Income of every corporation, Joint- 
 stock company or association, or insurance company, received 
 during the year, as determined for the purposes of the tax im- 
 posed by such subdivision (a), but not including the amount of 
 any income taxes paid by It within the year imposed by the 
 authority of the United States. 
 
 The tax Imposed by this subdivision shall not apply to that 
 portion of such undistributed net income which is actually In- 
 vested and employed in the business or Is retained for employ- 
 ment In the reasonable requirements of the business or is invested 
 in the obligations of the United States Issued after September 
 first, nineteen hundred and seventeen : Provided, That if the Sec- 
 retary of the Treasury ascertains and finds that any portion of 
 such amount so retained at any time for employment in the busi- 
 ness is not so employed or is not reasonably required in the busi- 
 ness a tax of fifteen per centum shall be levied, assessed, collected 
 and paid thereon. 
 
 The foregoing tax rates shall apply to the undistributed net 
 income received by every taxable corporation, joint-stock com- 
 pany, or association, or insurance company in the calendar year 
 nineteen hundred and seventeen and in each year thereafter, ex- 
 cept that if It baa fixed its own fiscal year under the provisions 
 of existing law, the foregoing rates shall apply to the proportion 
 of the taxable undistributed net Income returned for the fiscal 
 year ending prior to December thirty-first, nineteen hundred and 
 seventeen, which the period between January first, nineteen hun- 
 dred and seventeen, and the end of such fiscal year bears to the 
 whole of such fiscal year. 
 
 The period of six months after the end of each calendar 
 year referred to for corporations who closed their books on 
 December thirty -first, nineteen hundred and seventeen, is from 
 
 1346 
 
January first, nineteen hundred and eighteen, to June thir- 
 tieth, nineteen hundred and eighteen. 
 
 Domestic and foreign corporations with a taxable net income 
 as shown by returns rendered for the year nineteen hundred 
 and seventeen will be required to file a return of undistributed 
 net income on Form 1112, as prescribed by the Government, 
 and the time for filing this return is within sixty days after 
 the expiration of six months (June 30, 1918) from the close 
 of the last taxable year (that is, a calendar year or fiscal year, 
 if diflferent from the calendar year). 
 
 There will be a tax of ten per centum on the undistributed 
 net income and a tax of fifteen per centum, if any portion of 
 the net income of the taxable year reported to be retained 
 for employment in the reasonable requirements of the busi- 
 ness was not 80 employed. The time for the payment of the 
 tax is ten days after the day of notice and demand of tax 
 assessed. Otherwise there will be a penalty of five per centum 
 of the amount thereof, plus one per centum interest per month 
 that the tax remains unpaid. For failure to file the return 
 within the time required fifty per centum penalty of the tax 
 will attach and a penalty not to exceed ten thousand dollars. 
 
 Returns in this connection may be had from the local 
 internal revenue collector. 
 
 STANDARD STATISTICS CO., Ipc 
 
 Excess Profits Tax Primer. 
 
 Prepared by the Bureau of Internal Revenue for the 
 Information and Assistance of Taxpayers. 
 
 GENERAL FEATURES. 
 TAX APPLIES TO TRADE OR BUSINESS. 
 
 In the case of a corporation or partnership the law ex- 
 pressly provides (Sec. 201) that all its income, from what- 
 ever source derived, shall be deemed to be received from its 
 trade or business. In this case there is one business and one 
 net income. 
 
 In the case of an individual the excess profits tax applies 
 only to that part of the net income which is derived from 
 the taxpayer's trade, business, profession or occupation, even 
 though the taxpayer may have other income subject to the 
 ordinary income tax. Unlike a corporation or partnership, 
 an individual may be engaged in two businesses, one with 
 invested capital, one with no invested capital or only a nomi- 
 nal capital. If he has more than one business with invested 
 capital, they will all be regarded as one; and if he has more 
 than one business with no invested capital, they will be re- 
 garded as one. If he has both kinds of business, he will 
 be regarded as having two businesses. 
 
 It is an Income Tax. 
 It is an income tax in addition to the regular income tax 
 of September 8, 1916, as amended, and the war income tax of 
 October 3, 1917. It is more than a tax on "war profits"; it 
 
 1347 
 
reaches all income in excess of a stipulated normal deduc- 
 tion. The tax falls into two classes: 
 
 (a) An 8 per cent tax imposed by Section 209 upon trades 
 or businesses having no invested capital or merely a nominal 
 capital, e. g., doctors, lawyers, and professional or salaried 
 persons in general. Domestic corporations under this sec- 
 tion are allowed a specific deduction of $3,000; domestic part- 
 nerships and individual citizens or residents a specific deduc- 
 tion of $6,000. (See Articles 71-74 of Regulations No. 41.) 
 
 (b) A graduated tax with rates rising from 20 to 60 per 
 cent upon the net income in excess of a deduction equal to 
 a percentage (varying from 7 to 9 per cent) upon invested 
 capital, plus $6,000 in the case of an individual or partner- 
 ship or $3,000 in the case of a corporation. Foreign corpora- 
 tions or partnerships and non-resident aliens are not entitled 
 to the specific deductions of $3,000 or $6,000, respectively. 
 
 An exceedingly important sub-division under class (b) con- 
 sists of those cases in which the invested capital — or the net 
 income for the pre-war period — can not be satisfactorily de- 
 termined. In such cases the assessm.ent is based largely 
 upon conditions or relations existing among representative 
 business concerns in a like or similar trade or business. (See 
 Sections 205 and 210 of the law and Articles 18, 24 and 52 
 of Regulations No. 41.) 
 
 Classification of Taxpayers. 
 
 In the case of a corporation or partnership all of its income 
 will be held to be of the same class as the income from its 
 principal trade or business. There is one income and one tax. 
 (Article 14 of Regulations No. 41.) 
 
 In the case of an individual there may be income subject 
 to the 8 per cent rate and income subject to the graduated 
 rates, in which case there will be two deductions and two 
 taxes — but not more than two. (See Articles 35 and 36 of 
 Regulations No. 41.) 
 
 In general, the taxpayer can not decide for himself whether 
 he is subject to the 8 per cent tax or the graduated tax, but 
 must fill out the ordinary form so far as possible in order 
 that the department may decide into which class he properly 
 falls. Exception, however, is made in the case of individuals 
 whose income consists wholly of salary or the earnings of 
 personal service and who employ no invested capital in their 
 trade or business. In such cases the excess profits tax will 
 be computed from the data on the income tax return. Form 
 1040. 
 
 INCOME SUBJECT TO TAX— CORPORATIONS, PARTNER- 
 SHIPS, AND INDIVIDUALS. 
 
 1. A partnership makes |S0,G00, one-fourth of which is 
 paid to a special or sileat partner who takes no real part in 
 th« ctnduct of the business. Is the partnership taxable with 
 respect to the $20,000 paid to the silent partner? 
 
 Yts. Th« partnership is engaged in business and is taxable 
 upon its entire net income. However, no member of the 
 partnership as an individual is subject to excess profits tax 
 on his shart of the partnership profits. (See Article 41 of 
 Regulations No. 41.) 
 
 8. A corporation has been making income tax returns on 
 the basis of a fiscal year ending June 30. Net income for the 
 last six months of 1916 was $1,000,000. The losses for the 
 
 1348 
 
first six months of 1917 were $400,000. Is there any taxable 
 income subject to excess profits tax for the year 1917? 
 
 Yes. The profits for the full fiscal year were $600,000. 
 One-half of the fiscal year falling in the calendar year 1917, 
 the corporation will be taxable on a proportionate amount. 
 The corporation should make a return for the full fiscal year, 
 compute the tax that would ordinarily be due for an entire 
 year, and then take a proportionate part (in this case one- 
 half) as the tax to be paid. (See Article 19 of Rejfulations 
 No. 41.) 
 
 3. Is a "Massachusetts tnist" taxed as a corporation or 
 partnership? 
 
 As a corporation. The term "corporation" includes joint- 
 stock companies or associations, no matter how created or 
 organized. (See Article 2 of Regulations No. 41.) 
 
 4. A. B., an attorney, bought a house and lot in June, 1917, 
 received rent from it until October, 1917, and then sold it at 
 a profit. Does he pay on rentals and the profit? 
 
 An attorney, whose business is of a purely personal- service 
 nature is taxable at 8 per cent under Section 209. He might 
 buy real estate for investment and later sell it at a consider- 
 able profit, but this being an isolated transaction and not a 
 business, the income and profits therefrom would not be sub- 
 ject to excess profits tax. He would be entitled to one de- 
 duction of $6,000. 
 
 5. A lawyer with a considerable income from his practice, 
 receives fees as director in two banks and an insurance com- 
 pany. Are such fees taxable? 
 
 Regular service as a director constitutes an occupation or 
 business and the fees therefrom, along wdth the regular in- 
 come of the lawyer from his practice, are taxable at 8 per 
 cent under Section 209, with one deduction of $6,000. 
 
 6. A landlord renting a large farm on shares, which re- 
 quires considerable attention, employs an agent to look after 
 his interest, see that the farm buildings are kept in good 
 repair, collect and market his share of the crops, etc. Is the 
 rental taxable? 
 
 Yes; at the graduated rates. The landlord is engaged in 
 business with respect to the farm and the fact that he em- 
 ploys an agent to look after his business does not relieve him 
 frbm the tax nor entitle him to th« 8 per cisnt rate. 
 
 7. John Smith owns and operates a dry goods store. He 
 also owns and operates a shoe store. Is he allowed to re- 
 port these businesses separately with a separate deduction 
 for each? 
 
 No; the rule is that there may be one deduction for a 
 busineBS with no invested capital or merely a nominal capital 
 (personal service), and another deduction for an imrelated 
 business having invested capital, but there may not be more 
 than one deduction for businesses taxed under Section 201, 
 or for businesses taxed imder Section 209. 
 
 8. I conduct two entirely separate businesses both employ- 
 ing invested capital. Should I make a combined return for 
 the two businesses, or a separate return for each ousiness? 
 
 You should make one return covering the two businesses. 
 
 9. A contractor and dealer in real estate also lists property 
 owned by others and does business as a real estate agent or 
 broker. How is he taxed? 
 
 1349 
 
These activities are so interrelated as to constitute one 
 business. If the individual employs in this real estate busi- 
 ness a considerable amount of capital he is taxable at the 
 graduated rates under Section 201. 
 
 10. I am a doctor and also manage and direct a small fac- 
 tory which I own. How am I taxed? 
 
 You will pay a tax of 8 per cent on the fees from your 
 medical practice under Section 209, and a graduated tax on 
 the income from your factory. Under Section 209 you will get 
 a deduction of $6,000; under Section 201 a specific deduction 
 of $6,000 plus a percentage deduction of from 7 to 9 per cent 
 on the capital invested in the factory. 
 
 11. A school teacher buys a farm upon which oil is dis- 
 covered, and sells the farm at a large profit. Is such profit 
 subject to excess profits tax? 
 
 Not unless the teacher is also a farmer or buys and sells 
 real estate with sufficient frequency to make the latter one 
 of his occupations. The teacher may have an occupation or 
 business other than teaching the profits from which would 
 be taxable, but if he buys a farm simply as an isolated in- 
 vestment and does not run it, the profits from its sale would 
 not be subject to the tax. (See question 12.) 
 
 12. A manufacturer who has been in business for many 
 years sells his factory at a considerable profit. Is such profit 
 subject to excess profits tax? 
 
 Yes; because the profit in this and similiar cases is a nor- 
 mal result of winding up the business; it is part of the busi- 
 ness. On the other hand, if the manufacturer had bought a 
 farm and sold it at a profit, the profit would not — if the 
 transaction were isolated — be taxable. Profit from an iso- 
 lated transaction outside of his business is not taxable. Profit 
 from an isolated transaction connected with his business is 
 taxable. 
 
 13. I am a traveling salesman, working wholly on a com- 
 mission basis. I earn $15,000. My traveling expenses are 
 $3,000. My house advances me $6,000 per year, giving me the 
 rest of my commissions at the end of the year. May I con- 
 sider that I am in business and allow myself a salary of 
 $6,000, leaving a profit of $6,000 for the business itself? In 
 that case I should be entitled to a deduction of $6,000 for the 
 business and $6,000 against my salary and I should have no 
 excess profits tax to pay. 
 
 No. You should enter the $15,000 in block A on Form 1040, 
 making proper deduction for expenses. You would then have 
 a net income of $12,000, of which $6,000 would be taxable at 
 the 8 per cent rate. 
 
 14. An individual who received a salary of $8,000 during the 
 taxable year has a minor son who earned $800 during the 
 taxable year in a separate occupation. Must the $800 be in- 
 cluded in the income of the parent subject to excess profits 
 tax? 
 
 No. The father is not engaged in business with respect to 
 the income of his minor children earned in a separate and 
 distinct occupation. 
 
 DEDUCTIONS. 
 
 15. A corporation had a net income of $10,000 in 1911, 
 $8,000 in 1912, and a loss of $2,000 in 1913. What is the 
 "average amount of the annual net income of the trade or 
 
 1350 
 
business during the pre-war period," for the purpose of de- 
 termining the percentage deduction? 
 
 Six thousand dollars ($18,000 divided by three). The loss 
 of $2,000 is disregarded inasmuch as the income tax law does 
 not permit the loss of one year to affect or reduce the profit 
 of another year. 
 
 16. A firm commenced business April 1, 1911. What period 
 should it use to determine its pre-war earnings and invested 
 capital? 
 
 All of the years 1912 and 1913. The year 1911 is disre- 
 garded, as the law provides that only entire calendar years 
 shall be counted. (See Section 200.) 
 
 17. What percentage deduction is given a taxpayer who 
 started in business after January 1, 1913? 
 
 Eight per cent of the invested capital. (See Section 204 
 of the law and Article 21 of Regulations No. 41.) 
 
 18. Jones was in the hardware business during the pre-war 
 period. He made more than 9 per cent on his invested capital. 
 In 1914 he sold the hardware business and established a fur- 
 niture store and is making over 9 per cent. What percentage 
 deduction does he get? 
 
 ■ Eight per cent, since he is now carrying on a business in 
 which he was not engaged during the pre-war period. How- 
 ever, if he had bought an established furniture business hav- 
 ing pre-war earnings of 9 per cent, he would be allowed 9 per 
 cent, the business being a continuation of a business with 
 pre-war experience. (See Section 204 of the law and Article 
 22 of Regulations No. 41.) 
 
 19. Smith bought a hotel business in 1914 which had been 
 in existence during the pre-war period, but he is unable to 
 ascertain what was its average invested capital for that 
 period. What is his percentage deduction? 
 
 He should compute the tax in the first instance on the 
 basis of a 7 per cent deduction, but may file a claim (with 
 explanation) for final assessment under the provisions of Sec- 
 tion 210 (Articles 24 and 52 of Regulations No. 41), and if 
 the Secretary of the Treasury is unable satisfactorily to de- 
 termine the invested capital, the percentage deduction will 
 be computed at the same rate per cent as in the case of rep- 
 resentative individuals engaged in a like or similar business. 
 
 20. An individual is engaged in the manufacturing business. 
 He makes annual contributions to a near-by hospital in which 
 injured employes of his establishment are cared for. He also 
 makes contributions to his church and to the public library. 
 Is he allowed to deduct these contributions in computing his 
 net income for purposes of the excess profits tax? 
 
 The contributions to the hospital would constitute a proper 
 deduction, since they have a reasonable connection with his 
 business, and may be considered as coming from the business 
 rather than from the individual in his personal capacity. Such 
 contributions will be allowed up to 15 per cent of the income 
 of the business. 
 
 The contributions to the church and the library will be re- 
 garded as made by the individual in his personal capacity and 
 are not allowable deductions from the income of the trade or 
 business for the purposes of the excess profits tax. (See 
 Article 37 Regulations No. 41.) 
 
 1351 
 
21. A partnership has been in the habit of making contribu- 
 tions to various churches, local charities and the Y. M. C. A., 
 and charging the amounts off to profit and loss at the end of 
 the year. Will it be allowed to deduct these contributions in 
 computing its net income for purposes of the excess profits 
 tax? 
 
 No. These contributions are not connected with the trade or 
 business. The same rule applies in the case of a partnership 
 as in the case of an individual. (See Section 206 of the law 
 and Article 37 of Regulations No. 41.) 
 
 22. An incorporated department store occasionally con- 
 tributes to local charities, hospitals, etc. Are these items de- 
 ductible? 
 
 No. Donations which do not have in them the element of 
 compensation are considered gratuities and are not allowable 
 deductions from gross income as an expense of operation or 
 maintenance or under any other head. (See Articles 134 and 
 135, Regulations No. 33, Revised, governing the collection of 
 the income tax.) 
 
 23. Several of our regular employes have enlisted in the serv- 
 ice of the United States in different capacities, some in the 
 Army, others in the Navy, Food Administration, etc. We 
 have continued their salaries during their absence. May we 
 charges these payments as expense in computing our profits? 
 
 Yes. 
 
 24. Four other attorneys and mystelf conduct a law business 
 under a partnership arrangement. There is no invested capital. 
 It is our custom to distribute the entire net income to the 
 partners as salaries, leaving the partnership no net profits. 
 May we continue to do this? If the partnership makes a 
 return it will be entitled to a deduction of $6,000 and the 
 several partners are each entitled to the same deduction. In 
 other words, if we make a separate return for the partnership 
 there will be a total of six $6,000 deductions, whereas if all the 
 net income is distributed and taxed to the individual partners 
 there will be only five such deductions. In the latter case the 
 Government will collect $480 more tax. We prefer not to make 
 a partnership return. 
 
 The department will not recognize a division or sharing of 
 the entire net income of a partnership as an allowable method 
 of determining the salaries of the partners, although in rare 
 cases the salaries may exhaust or even exceed the net income 
 of the partnership. (See Article 32 of Regulation No. 41.) 
 Every cTomestic part^ership having a net income of $6,000 or 
 more without deducting salaries or interest paid to partners 
 must make a return of income on Form 1065. 
 
 CONCERNS IN OPERATION ONLY PART OF TAXABLE 
 YEAR. 
 
 25. A partnership was established and began operations 
 August 1, 1917. The capital invested was $300,000 and the 
 net income for the five remaining months of 1917 was $60,000. 
 What is the tax? 
 
 As the net incom« covers only five-twelfths of a year, the 
 deduction and the invested capital must be brought to the 
 same basis. Five -twelfths of the total deduction for a full 
 year is $12,500. (The percentage deduction for a full yea,r 
 
 1352 
 
would be $24,000 and the specific deduction would be $6,000, 
 a total of 30,000. Five-twelfths of the last figure is $12,500.) 
 Five-twelfths of the total invested capital is $125,000. Thus 
 in this case the tax would be computed on the basis of an 
 invested capital of $125,000, net income of $60,000, and a 
 total deduction of $12,500. The tax would be $20,750. 
 
 26. A Corporation organized July 1, 1917, makes $2,400 in 
 the last half of that year. Is it required to make return and 
 pay excess-profits tax? 
 
 Yes. A corporation engaged in business for only a part of 
 the year must make return if its net income is. at the rate of 
 $3,000 or more per annum. A similar rule applies to an in- 
 dividual or partnership engaged in business for only part of 
 the taxable year; a return must be made and the excess- 
 profits tax paid if the net income for the taxable year is at 
 the rate of $6,000 or more. (This answer does not apply in 
 the case of a corporation or partnership whose first fiscal year 
 ends in 1918 and which has secured permission to make its 
 return on the basis of its fiscal year.) 
 
 INVESTED CAPITAL. 
 
 87. Section 207 (clause 3) authorizes the inclusion in in- 
 vested capital of "paid in or earned surplus and undivided 
 profits used or employed in the business." Can a corporation 
 or partnership have any surplus or undivided profits which 
 for purposes of the excess-profits tax will not be deemed to be 
 used or employed in the business? 
 
 All the surplus and undivided profits of a corporation or 
 partnership (exclusive of undivided profits earned during the 
 year), will, unless invested in assets the income from which 
 Is not subject to the excess-profits tax, be deemed to be used 
 or employed in the business and may be included in the in- 
 vested capital. (See Article 62 of Regulations No. 41.) 
 
 28. A corporation balances its books monthly, carrying 
 profits into surplus account. Is the capital as of January lat 
 increased for the purposes of the excess-profits tax by the 
 addition of these monthly profits? 
 
 No. The law specifically excludes undivided profits earned 
 during the taxable year. The profits accumulated during the 
 year, even though entered on the books as surplus before the 
 close of the year, can not be counted as additions to the capi- 
 tal for that year. (See Article 61 of Regulations No. 41.) 
 
 29. In computing invested capital for the purposes of the 
 excess-profits tax, may a corporation take as the value of its 
 capital stock the amount fixed by the department for the pur- 
 poses of the capital-stock tax? 
 
 No. Each return must be prepared in accordance with the 
 provisions of the law under which it is made. 
 
 30. According to Section 207, bonds (other than obligations 
 of the United States), the income from which is not subject 
 to the excess-profits tax, can not be included in invested capi- 
 tal. Section 200 states that "The term 'United States* means 
 only the States, the Territories of Alaska and Hawaii and the 
 District of Columbia." May State bonds be included in in- 
 vested capital? 
 
 No. The above defmition applies only in a geographical 
 sense. The term "United States" in the parenthetical clause 
 
 1353 
 
above is not used in a geographical sense. Hence the term 
 "obligations of the United States" means only obligations of 
 the Federal Government. 
 
 31. In 1901 a corporation was organized and took over the 
 assets of a dozen going concerns, issuing therefor $25,000,000 
 of capital stock The assets consisted of various plant struc- 
 tures, equipment, real estate, patents, and good will. At the 
 time of the transaction all of these items were entered in a 
 lump sum and no attempt was made to indicate the specific 
 amounts of stock issued for the respective kinds of property. 
 It is shown that at that time the tangible property was worth 
 $10,000,000, the patents $2,000,000, and the good will not less 
 than $7,000,000. How is the invested capital to be computed? 
 
 In accordance with Article 59 of Regulations No. 41, it will 
 be presumed that $12,000,000 of the stock was issued for the 
 tangible property and the patents and that $13,000,000 was 
 issued for good will. The tangible property will be taken at 
 its value as of January 1, 1914, but not to exceed $10,000,000, 
 the par value of the stock deemed to have been issued for it. 
 The patents will be taken at their value at the time of ac- 
 quisition, namely, $3,000,000. Although $13,000,000 of stock 
 was issued for the good will, it can be taken at only $5,000,000, 
 i. e., 20 per cent of the total stock outstanding on March 
 3, 1917. 
 
 32. A banking corporation began operations in 1902. In 
 the course of 12 years, for reasons of conservatism, the bank 
 charged off practically the entire value of its building, and 
 sihce January 1, 1915, has been carrying it on its books at 
 the nominal figure of $1. Can any of this value be restored 
 for the purpose of computing invested capital? 
 
 Yes. The building may be taken at cost, less a fair allow- 
 ance for depreciation. However, any amounts which may have 
 been allowed as a deduction for depreciation under the income- 
 tax law can not be restored. 
 
 33. A farmer bought a piece of land December 1, 1913. He 
 has put no new money in the business, but has spent all his 
 income from the land for tile and ditching. The farm cost 
 originally $4,000, and is now easily worth $10,000. In com- 
 puting invested capital should the value as of January 1, 1914, 
 be taken? 
 
 No. The property will be valued at cost, less depreciation 
 (on buildings, etc.), plus the amount of earnings from year 
 to year invested in the permanent improvement of the prop- 
 erty. 
 
 34. Article 18 of the Regulations says that when the de- 
 duction is determined under Artcile 24 a "constructive" capi- 
 tal will be used for applying the rates of taxation. It may 
 be that in some cases it will be impossible to determine satis- 
 factorily the invested capital for the pre-war period, but quite 
 possible to determine the invested capital for the taxabl« 
 year. In such cases the deduction will be determined under 
 Article 24. Will the constructive capital described in Article 
 18 be used? 
 
 No. The constructive capital is to be used only in cases 
 where it is impossible to determine satisfactorily the invested 
 capital for the taxable year. 
 
 1354 
 
35. In 1900 a corporation was organzed and took over a 
 mining property then valued at $1,000,000. For this property 
 the corporation issued stock to the amount of $1,000,000. Ai 
 a result of development, the discovery of new ore bodies^ etc., 
 the property increased in value until in 1910 after an appraisal 
 it was entered on the books at $10,000,000 and the surplus 
 was increased accordingly. In 1917 another appraisal was 
 had and the value of the property was then fixed at $15,000,000. 
 The balance sheet of the corporation now shows capital stock 
 of $1,000,000 and a surplus of $20,000,000, of which $14,000,000 
 is represented by the appreciation in value above described. 
 May the appraised value of the property be taken as the basis 
 for computing invested capital? 
 
 No. The excess-profits tax law expressly places the com- 
 putation of invested capital upon the basis of the cash and 
 other property actually put into the business, plus the earned 
 surplus and undivided profits, and not upon that of a present 
 valuation or appraisal of its assets. Returns in which the 
 invested capital includes surplus or undivided profits com- 
 puted upon present values as determined by an appraisal can 
 not be accepted. 
 
 36. In 1907 a corporation acquired a manufacturing plant 
 valued at $500,000, issuing therefor $500,000 of capital stock. 
 The books of the corporation on December 31, 1916^ showed 
 a surplus of $1,000,000, accumulated through the earnings of 
 the business. Most of this surplus was invested in increased 
 plant equipment, etc. In December, 1917, the property was 
 appraised (as of Jan. 1, 1917) by an appraisal company and 
 the value fixed at $2,500,000, or $1,000,000 more than the values 
 previously shown on the books. This increase was attributable 
 mainly to increased value of land and in part to larger values 
 placed by the appraisal company upon the machinery and 
 equipment. May this appreciation of $1,000,000 be regarded 
 as an earned surplus, and the value fixed by the appraisal 
 company in December, 1917, be taken as a basis for computing 
 invested capital for that year? 
 
 No. The same rule applies here as in the case stated in 
 question No. 35. For the purposes of the excess profits tax 
 law appreciation in the value of property will not be regarded 
 as earned surplus, and an appraisal of property upon current 
 values will not be accepted as a basis for computing invested 
 capital. 
 
 37. A proprietary medicine company has spent large sums 
 in advertising and has thereby built up a good wilL May 
 these sums be included as expenditures for a capital asset? 
 
 If the money was spent from original capital the original 
 capital is of course allowed. But if these advertising bills 
 were paid from income and the amounts charged to general 
 expense they can not be included as capital. Good will can 
 be included only when bought and paid for specifically as such. 
 
 RETURNS. 
 
 38. A corporation is engaged in the brokerage business, em- 
 ploying only a nominal capital. According to Article 73 of 
 the Regulations, it is taxable at the 8 per cent rate under 
 Section 209 of the law. Its income tax return is made out on 
 Form 1031. Must it also make out a return on Form 1103, 
 which apparently relates only to corporations having an in- 
 vested capital? 
 
 1355 
 
Yes. Every corporation claiming to have only a nominal 
 capital must file a return on Form 1103, however small its 
 capitalization may be. 
 
 39. If a corporation claiming to have only a nominal capi- 
 tal files a return on Form 1103, will this not be construed as 
 an admission that it has invested capital and is taxable at the 
 graduated rates under Section 201? 
 
 No. This return is required for the sake of information, so 
 as to enable the department to determine the justice of the 
 claim. The two forms (1031 and 1103) should be filed to- 
 gether and should be accompanied by a statement describing 
 the nature of the business, the purposes for which the capital 
 is employed, and any other facts tending to show that the 
 corporation is of a kind properly taxable under Section 209, 
 at the 8 per cent rate. 
 
 40. In the case of a corporation claiming to have only a 
 nominal capital, on which form and under what schedule 
 should the tax at the 8 per cent rate be computed? 
 
 (a) In the case of a domestic corporation, take the net 
 income as shown in item 6, Schedule I of Form 1103, com- 
 pute 8 per cent on the amount thereof in excess of $3,000, and 
 enter the result as item 12 on Form 1031. (b) In the case of 
 a foreign corporation, if the net income shown in Item 6, 
 Schedule I of Form 1103 is in excess of $3,000 the tax will be 
 8 per cent upon the whole amount and should be entered as 
 Item 12 on Form 1031. (c) In either case it should be noted 
 under Item 12 that the tax is computed at the 8 per cent rate. 
 
 41. If a corporation during 1917 made less than 7 per cent 
 on its invested capital, is it required to file an excess-profits 
 return? 
 
 Every corporation having an income for the taxable year 
 of $3,000 or over is required to file an excess-profits return, 
 even though its total deduction may be in excess of its net 
 income. 
 
 42. On Form 1065 (partnership -income return) it is stated 
 on page 1, under "6. Excess Profits Tax," that "if the partner- 
 ship reports any income from sources other than those in- 
 cluded under A, page 3, it must make a return and compute 
 the amount of tax (if any) on Form 1102." If a domestic part- 
 nership rendering professional or personal services and report- 
 ing its main income in block A also reports a small amount 
 of interest from bank balances, etc., in block F, will it be re- 
 quired to make a return on Form 1102? 
 
 No. The income of a partnership or corporation (unlike 
 that of an individual) must be taxed as a unit — all under the 
 graduated rates or all at 8 per cent. (See Article 14 of Regu- 
 lations No. 41.) If the partnership has a substantial amount 
 of capital (however invested), return must be made on Form 
 1102 for purposes of information. (See answers 38 and 39 
 above.) But if the partnership has only a small capital and 
 Is clearly taxable at the 8 per cent rate as to the income from 
 its principal trade or business, any income which it derives 
 from other sources will be taxed in the same manner and 
 there will be no occasion for a return of invested capital. 
 
 43. In the case stated in question No. 42, how should the 
 tax be computed? 
 
 1356 
 
In every case the excess-projBts tax of a partnership is to 
 bo computed upon the net income, as shown in block G, page 
 4, of Form 1065. In the case above stated this will consist 
 of the sum of the totals reported under A and F. The tax 
 will be 8 per cent upon the amount by which this sum exceeds 
 $6,000. (The statement on page 4 of Form 1065 that the ex- 
 cess-profits tax on a business with no invested capital, or 
 only a nominal capital, will be "8 per cent of the amount by 
 which the net total reported under A, page 3, exceeds $6,000, 
 or in the case of a foreign partnership, 8 per cent of the entire 
 net total reported under A" applies only in cases where the 
 entire net income falls in block A.) 
 
 44. Will every partnership reporting income from business 
 under block B, page 3 of Form 1065, be taxable at the gradu- 
 ated rates under Section 201? 
 
 Not necessarliy. Every partnership reporting income under 
 block B must make a return on Form 1102. But if it is clear 
 that its principal trade or business consists in rendering per- 
 sonal service (income reported under block A) and is taxable 
 at the 8 per cent rate, all of its income will be taxed at that 
 rate even though a part of it may be derived from "invested 
 capital." 
 
 45. Block C, on page 3 of Form 1065, provides space for 
 entering profits from sale of real estate, stocks, bonds, and 
 other property. If a partnership sustains a net loss from 
 such transactions can it take account of such loss in computing 
 its net income subject to the excess-profits tax? 
 
 Yes. The loss should be entered in red ink or as a negative 
 quantity in block C. 
 
 46. On the individual excess-profits tax return (Form 1101) 
 there appears under schedule B a column for entering the 
 "Cost" of assets acquired except "tangible property put into 
 the business." Where should the value of tangible property 
 put into the business be entered? 
 
 In the same column (column 2, headed "Cost"). If the 
 property was put in before January 1, 1914, enter the value 
 as of that date; if put in on or before that date, enter the 
 value as of the time when put in. In all such cases enter 
 along with the description of the asset the date when it was 
 paid in. 
 
 47. If an individual who keeps books reports his invested 
 capital in schedule A on Form 1101, must he also fill out 
 schedule B? 
 
 Not necessarily. If invested capital is reported in schedule 
 A, the return should be accompanied by a statement explaining 
 adjustments. In many cases, however, it may be advisable 
 to fill in the spaces provided in schedule B for the description 
 of assets and their proper valuation. This may be useful in 
 connection with the explanatory statement. 
 
 48. Item 7 in schedule A of Form 1101 (individual excess- 
 profits tax return) calls for the excess of inadmissible assets 
 over liabilities. Should an individual reporting his invested 
 capital in schedule A specify the amount of liabilities and in- 
 admissible assets respectively under items 23 to 27 of sched- 
 ule B? 
 
 Yes. This is the most convenient way of explaining item 
 7 of schedule A. 
 
 1357 
 
49. How does a member of a partnership, in making his 
 individual income-tax return, report his credit for his propor- 
 tionate share of the excess-profits tax assessed against the 
 partnership? Does he add that share to any excess-profits 
 tax assessed against him as an individual and report this sum 
 in block L on Form 1040? 
 
 No. On Form 1065, page 4, the partnership takes credit for 
 its excess-profits fax (block J) before arriving at the net in- 
 come to be shared by the partners (block K). So the indi- 
 vidual partner in reporting his total net income (Form 1040, 
 block K) has already deducted his proportionate share of the 
 partnership excess -profits tax and he may not again include 
 that share as a part of his deduction under block L of Form 
 1040. He should enter in that space only the amount of ex- 
 cess-profits tax, if any, assessed against his as an individual. 
 
 50. On page 2 of Form 1065 (partnership-income return), 
 under the heading "Other expenses" is the following instruc- 
 tion: "Do not deduct salary for any partner's services unless 
 such salary is paid in accordance with a prior agreement prop- 
 erly recorded on the books of the partnership." Does this in- 
 struction supersede Article 32 of the Regulations? 
 
 No. With respect to any period prior to March 1, 1918, 
 a salary deduction for services actually rendered will be al- 
 lowed regardless of whether a previous agreement had been 
 made. 
 
 51. A corporation in which most of the stock is owned by 
 its officers has in the past voted to its officers only nominal 
 salaries as drawing accounts. In computing net income for 
 purposes of the excess-profits tax may the corporation deduct 
 as items of expense amounts which would constitute reason- 
 able compensation for the services actually rendered by its 
 officers? 
 
 Yes, if a satisfactory explanation is given. For any period 
 prior to March 1, 1918, reasonable salaries for services actually 
 rendered may be deducted, even though the full amounts had 
 not been formally voted as salaries by the corporation. 
 
 March 14, 1918. 
 
 EXCESS PROFITS TAX SERIES— Letter No. 9. 
 
 The questions in Letters 1 to 8, inclusive, have been re- 
 arranged according to their subject matter and published in 
 the "'Excess Profits Tax Primer." This and subsequent letters 
 will serve as supplements to the Primer. 
 
 52. An individual is in the habit of balancing his books twice 
 a year, on June 30 and on December 31. In computing 
 his invested capital for 1917, may he take the state- 
 ments on his books for December 31, L916, June 30, 1917, 
 and December 31, 1917, and average the three? 
 No. He should ascertain his capital as of December 31, 1916, 
 
 and as of December 31, 1917, and take the average of the two. 
 
 However, he may, if he prefers, ascertain the invested capital 
 
 once each month and compute his invested capital for the year 
 
 by the monthly average method. 
 
 1358 
 
53. During the past six years a manufacturer has carried a 
 loan of $100,000 from his bank. This is used in purchas- 
 ing raw materials. For practical purposes it is a part 
 of his working capital. May he include it in his invested 
 capital? 
 
 No. It is borrowed money and is specifically excluded by 
 the law. 
 
 54. A grocer in business as an individual pays taxes of 
 $1,800 on his stock and store building and $800 on his 
 (separate) residence. May he deduct all of these taxes 
 in computing his net income for purposes of the excess 
 profits tax? 
 
 No. The taxes on his store and stock, being incident to the 
 business, may be deducted; but the tax on his residence is 
 not deductible for purposes of the excess profits tax. 
 
 55. May an individual working on a salary of $10,000 deduct 
 taxes of $500 on his residence on the ground that the 
 residence is necessary to his personal service business? 
 
 No. 
 
 56. An individual receives a salary of $10,000. His excess 
 profits tax is $320. Does he pay income tax on the full 
 $10,000? 
 
 No. In addition to his personal exemption he may deduct 
 the $320 excess profits tax before computing the income sub- 
 ject to income tax. 
 
 57. My invested capital is $50,000; my net income $40,000; 
 my total deduction $10,000; so that my taxable income 
 is $30,000. How do I apply the graduated rates? Should 
 I use only the $30,000 in determining the amount of 
 income subject to the various rates? 
 
 No. Your total net income of $40,000 should be used for this 
 purpose. The deduction comes out of the first bracket, but if 
 it exceeds the amount of income in that bracket, then the rest 
 of the deduction is allowed under the second and succeeding 
 brackets until it is exhausted. In the above case the deduction 
 exceeds 15 per cent of the capital (the amount of the net in- 
 come in the first bracket, $7,500) and also absorbs all of the 
 income in the second bracket ($3,500).' This leaves $2,500 to 
 be taxed at the 35 per cent rate, $4,000 at the 45 per cent rate, 
 and $23,500 at the 60 per cent rate. The total tax is $16,775. 
 
 58. In July, 1917, a patent medicine concern with a capital 
 stock of $100,000 and owning assets, including good will, 
 plainly worth $1,500,000, transferred its assets to a new 
 corporation, receiving in payment therefor the total 
 capital stock of the new company to the amount of $1,- 
 600,000. The stock of the old company was then can- 
 celled, its stockholders receiving in exchange therefor 
 the stock of the new corporation. In computing invested 
 capital may the good will be included up to 20 per cent 
 of the $1,500,000? 
 
 No. In the case of a reorganization after March 3, 1917, 
 where the control of the business remains in the same hands, 
 nc asset transferred to the new company may be included at 
 a greater value than would have been allowed to the old com- 
 pany, unless the asset is actually purchased with cash or tan- 
 gible property. In the above case, if the good will is allowed 
 it may not be included at a value exceeding 20 per cent of the 
 $100,000 capital stock of the old corporation, 
 
 1359 
 
69. A manufacturing corporation owns 99 per cent of the 
 stock of another corporation which has title to certain 
 buildings, real estate, and other property used by the 
 manufacturing corporation. May they make a consoli- 
 dated return? 
 Yea. An associated or subsidiary corporation which owns 
 property employed in the business of another corporation will 
 be deemed to be affiliated with the latter corporation and shall 
 join with it in making a consolidated return for purposes of 
 the excess profits tax if the controlling corporation owns 95 per 
 cent or more of the stock of the subsidiary. 
 
 March 15, 1918. 
 
 EXCESS PROFITS TAX SERIES— Letter No. 10. 
 
 60. Two partners invested $4,000 each, with the understand- 
 ing that the partners would pay them 8 per cent on this 
 amount before distributing any other profits. Should 
 the partnership deduct as expense the $640 so paid? 
 
 No. It was a division of profits. However, if the notes of 
 the partnership were issued for money actually loaned by the 
 partners, the interest would be deductible but the amount of 
 the loan could not be included in the invested capital. 
 
 61. A partnership conducts a merchandising business in 
 which capital is employed. It also does a commission 
 business entirely separate and apart from the merchan- 
 dising business. May it report the merchandising busi- 
 ness on Form 1102, computing the tax at the graduated 
 rates, and report the commission business in Block A 
 of Form 1065, computing the tax at the 8 per cent rate? 
 
 No. All the trades or businesses of a partnership are treated 
 as a single trade or business. All of its income will be clas- 
 sified and taxed according to the nature of its principal trade 
 or business. In the above case the partnership should report 
 all of its income under the proper Blocks on Form 1065 and 
 should also make a return on Form 1102. If the merchandising 
 business is its principal business, then the tax will be com- 
 puted at the graduated rates on Form 1102; if the commission 
 business is its prmcipal business, the tax will be computed at 
 the 8 per cent rate on Form 1065. In either case the tax 
 should be computed upon the net income shown in Item G, 
 page 4, of Form 1065. 
 
 62. A corporation has an authorized capital stock ot $500,- 
 000. $100,000 was issued for cash. In February, 1917, 
 another $100,000 was issued for notes. The balance is 
 unissued. May we count our paid up capital stock as 
 $200,000? 
 
 Bnforeible notes or other evidences of indebtedness, bearing 
 a reasonable rate of interest, bona fide and lawfully received 
 by a corporation in payment for its corporate stock may be 
 considered as tangible property in computing invested capital. 
 But if the interest on the notes is not paid within the taxable 
 year or if the indebtedness evidenced thereby is not paid 
 within a reasonable time, the obligations will be presumed to 
 be colorable only and will be excluded in computing invested 
 capital. If there is any agreement or understanding that such 
 obligations are to be paid out of tlie earnings of the corpora- 
 tion when distributed in the form of dividends or otherwise, 
 
 1360 
 
then the obligations will not be regarded as tangible property 
 paid in and the stock issued for them will not be regarded as 
 paid up until the obligations are actually paid. 
 
 63. On December 15, 1916, a corporation declared a dividend 
 to the amount of $100,000, payable March 25, 1917. Wai 
 the $100,000 in question part of the invested capital on 
 January 1, 1917? 
 
 Yes. It may be treated as a part of the surplus until paid. 
 If at the time of payment the 1917 profits were sufficient, the 
 dividend will be deemed to have been paid out of the 1917 
 profits and the surplus carried forward from 1916 will not be 
 reduced on account of this dividend. If, however, the 1917 
 earnings were not sufficient to pay the dividend, the surplus 
 carried forward from 1916 will be reduced by the amount 
 thereof required for the payment of the dividend. 
 
 64. A conservatively managed manufacturing plant has been 
 charging depreciation on its machinery at the rate of 10 
 per cent a year. A considerable portion of its equip- 
 ment has been entirely charged ofiE on its books, although 
 the machinery is in use and at present prices is worth 
 practically all it originally cost. May any of this de- 
 preciation be restored to capital account? 
 
 Under the conditions imposed by Article 64 of Regulations 
 No. 41, a taxpayer may, in computing invested capital, restore 
 to capital account any depreciation upon property still in use 
 which was charged off prior to March 1, 1913, and is now shown 
 to have been excessive, and also any depreciation charged ofT 
 subsequent to March 1, 1913, which has been disallowed by the 
 Bureau of Internal Revenue. 
 
 65. An individual balance sheet shows the following state- 
 ment: 
 
 Assets— Liabilities— 
 
 Cash 125,000 Capital Account 1200,000 
 
 Merchandise 75,000 Accts. Payable ^ 100,000 
 
 Accts. Receivable 50,000 
 
 Securities 150,000 
 
 1300,000 1300,000 
 
 The securities consist entirely of municipal bonds and 
 the stock of domestic corporations. They have always 
 been carried as a business investment and are continu- 
 ally used as collateral. What is the invested capital? 
 $150,000 (assuming that due allowance has been made for 
 adjustments in the capital account). The securities are 
 inadmissible assets and exceed the liabilities (accounts pay- 
 able) by $50,000. This amount should be entered as Item 7, 
 Schedule A on Form 1101, and is to be subtracted from the 
 adjusted capital account, $200,000. This leaves invested cap- 
 ital of $150,000. 
 
 March 19, 1918. 
 EXCESS PROFITS TAX SERIES— Letter No. 11. 
 
 NOTE. — Correction in Excess Profits Tax Primer.— On page 
 15 (item No. 1763, page 517, issue of March 19) of the Primer 
 under Question No. 46, in the third line of the Answer, the 
 word "before" should be "after," so that the second sentence 
 will read as follows: 
 
 "If the property was put in before January 1, 
 1914, enter the value as of that date; if put in on 
 or after that date, enter the value as of the time 
 when put in." 
 
 1361 
 
66. A partnership engaged in the practice of law has a net 
 income of $15,000. One partner draws a salary of $3,000 
 and the other $6,000, leaving $6,000 net for the partner- 
 ship. The deduction for the partnership is $6,000, leav- 
 no tax to be paid. The $6,000 profits, however, is paid 
 to the partner drawing the $6,000 salary. Does he pay 
 excess profits tax on the basis of an income of $12,000? 
 
 No. He has a $6,000 deduction which covers his salary, and 
 the $6,000 received in the form of partnership profits is not 
 taxable to the individual partner under the Excess Profits 
 Tax Law. In the above case, neither the partnership nor the 
 individual partners will have any excess profits tax to pay. 
 
 67. A partnership has a capital of $60,000, including $10,000 
 invested in municipal bonds and the stock of domestic 
 corporations. The dividends and interest received on 
 the stock and bonds are figured as a part of the partner- 
 ship profits for the year. May the $10,000 be included 
 as a part of the invested capital? 
 
 No. The income from this investment is not subject to the 
 excess profits tax. The stocks and bonds in question are there- 
 fore inadmissible assets and may not be included in the in- 
 vested capital. 
 
 68. A corporation having a capital stock of $100,000 is en- 
 gaged in the buying and selling of securities. During 
 the year 1917 an average of $75,000 of its capital was 
 invested in municipal bonds. Interest on the bonds 
 amounted to $4,500; profits from the sale of the bonds 
 amounted to $18,000. May any of the $75,000 invested 
 in these bonds be included in invested capital? 
 
 Yes. The total income from the bonds (interest plus trad- 
 ing profits) was $22,500. The trading profits were four-fifths 
 of this amount. Under Article 45 of Regulations No. 41, four- 
 fifths of the amount ($75,000) invested in the bonds, namely, 
 $60,000, may be included in the invested capital. 
 
 69. A corporation with a paid-up capital stock of $100,000 
 had accumulated a surplus of $20,000 on December 31, 
 1914. In 1915 the corporation suffered a loss through 
 fire amounting to $50,000. Since then it has made up 
 $10,000 of the loss. In computing invested capital must 
 the capital be reduced by the amount of the loss which 
 was in excess of the surplus and which has not yet been 
 made up? In other words, will the invested capital now 
 be reduced to $80,000? 
 
 No. The invested capital will be $100,000. The loss must 
 be taken into account only to the extent that it wiped out 
 the surplus. The amount of the original cash investment need 
 not be reduced for this purpose. However, no new surplus can 
 be included in the invested capital until the full loss of $30,000 
 chargeable against the capital account has been made good. 
 
 70. When adjustments are made under Schedule B or C of 
 Form 1103, must the corporation change its books ac- 
 cordingly? 
 
 It is not necessary that the books be changed, provided 
 some permanent record of the adjustments be kept. 
 
 71. On December 31, 1917, a corporation set aside a reserve 
 of $100,000 to pay the excess profits tax due in June, 
 1918, in case the current earnings should not be suffi- 
 cient. May this $100,000 be included in the invested 
 capital as of January 1, 1918? 
 
 1362 
 
Yes. Although set aside as a reserve fund, it will be re- 
 garded as a part of the siirplus. 
 
 72. In 1914 a corporation acquired a secret formula valued 
 at that time at $500,000, issuing therefor $500,000 of 
 capital stock. May the secret formula be included in 
 invested capital at this figure? 
 Not if this amount exceeds 20 per cent of the total stock 
 outstanding March 3, 1917. Secret formulae or secret proc- 
 esses are regarded as intangibles and are subject to the same 
 limitations. 
 
 March 22, 1918. 
 
 EXCESS PROFITS TAX SERIES— Letter No. 13. 
 
 73. In the case of corporation A, the percentage deduction, 
 carried out to two decimal places, is 8.69. In the case of 
 corporation B, the percentage deduction is 8.23. Should 
 A take 9 per cent and B 8 per cent, as the percentage to 
 to be used in computing its deduction? In other words, 
 should the decimal part be disregarded when less than 
 half of 1 per cent and be increased to 1 per cent, when 
 it amounts to one-half of 1 per cent or more? 
 
 No. The exact percentage, including decimals, should be 
 used. In figuring the percentage, carry out the result to as 
 many decimal places as desired, but drop the remainder, if 
 any, without increasing the final figure of the percentage. 
 
 74. If a taxpayer in making his excess profit tax return for 
 1917 wishes to be relieved from computing the pre-war 
 data and accepts 7 per cent as his percentage deduction, 
 will he be precluded in subsequent years from sub- 
 mitting the pre-war data and taking whatever percent- 
 age deduction such data would show him entitled to? 
 
 No. 
 
 75. A corporation has a gross income in 1917 amounting to 
 $4,000, but its net income was only $2,800. Will it be 
 regarded as "having an income for the taxable year of 
 $3,000 or over" and thus be required to file an excess 
 profits return? 
 
 No. Under existing regulations (Article 10, Regulations No. 
 41) an excess profits return is required only when the net 
 income is $3,000 or over. 
 
 76. A domestic corporation has a net income of $8,000 and 
 an invested capital of $100,000. It will be entitled to a 
 deduction of at least $10,000, so that it will have no 
 excess profits tax to pay. Must it file a return? 
 
 Yes. Whenever the net income is $3,000 or over, the excess 
 profits tax return will be required regardless of the amount 
 of the deduction. 
 
 77. In October, 1917, a corporation invested $200,000 of its 
 
 current earnings in Liberty bonds. May this amount be 
 included in the invested capital for 1917? 
 No. Although the Liberty bonds are "admissable" assets, 
 their acquisition did not affect the invested capital for 1917. 
 Profits of a taxable year, even though carried to surplus ac- 
 count, cannot be included in invested capital for that year. 
 
 1363 
 
78. An individual dealer in bonds began business in Jan- 
 uary, 1917, with a capital of $20,000. He carried on an 
 average through the year $700,000 municipal bonds and 
 $100,000 corporate bonds. His average indebtedness foi 
 the year was $600,000, on which he paid interest amount- 
 ing to $30,000. His corporate bonds yielded interest to 
 the amount of $5,000. The interest received from mu- 
 nicipal bonds was $21,000; but the interest paid in in- 
 debtedness incurred for carrying municipals amounted 
 to $26,250, leaving a deficit of $5,250. The municipals 
 were sold at a loss of $8,000; but the industrial bonds 
 were sold at a sufficient figure to leave the dealer net 
 trading profits for the year — after deducting all ex- 
 penses other than interest— of $48,000. His taxable net 
 income then consists of $53,000 (trading profits plus in- 
 terest on corporate bonds) less deductible interest paid 
 ($3,750), or $49,250; but since the non-deductible interest 
 paid ($26,250) exceeds the tax free interest received 
 ($21,000), his net income as computed on his own books 
 is only $44,000, and he is in effect taxed on a $5,250 loss. 
 May he include any part of the municipal bonds in his 
 invested capital? 
 No. No part of the municipal bonds may be treated as 
 admissible assets under Article 45 inasmuch as a trade loss 
 and not a gain was sustained from their sale. Moreover, in- 
 debtedness upon which an interest deduction is denied cannot 
 be included in invested capital under Article 44 when incurred 
 for the purchase of inadmissible assets. However, under cir- 
 cumstances such as those recited above application for assess- 
 ment under Section 210 (Article 52) will be considered. 
 
 1364 
 
Collection Districts 
 
 A Complete List of Collection Districts, with the Names 
 and Addresses of Collectors — 
 
 (Numbers of districts represent the results of numerous 
 amendments and consolidations. Unless otherwise mentioned, 
 the entire State or Territory is included within the district 
 designated.) 
 
 District Collector Address 
 
 Alabama John D. McNeel Birmingham 
 
 (Includes State of Mississippi.) 
 
 Alaska (see Washington). 
 
 Arizona (see New Mexico). 
 
 Arkansas Jack Walker Little Rock 
 
 1st California Justus S. Wardell San Francisco 
 
 (Includes the counties of Alameda, Alpine, Amador, 
 Butte, Calaveras, Colusa, Contra Costa, Del Norte, Eldorado, 
 Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Laasen, 
 Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, 
 Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San 
 Benito, San Francisco, San Joaquin, San Mateo, Santa 
 Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, 
 Stanislaus, Sutter, Tulare, Tehama, Trinity, Tuolumne, 
 Yolo, Yuba; also, includes State of Nevada.) 
 
 6th California John P. Carter Los Angeles 
 
 (Includes the counties of Imperial, Kern, Los Angeles, 
 Orange, Riverside, San Bernardino, San Diego, San Luis 
 Obispo, Santa Barbara and Ventura.) 
 
 Colorado Mark A. Skinner Denver 
 
 (Includes State of Wyoming.) 
 
 Connecticut .. James J. Walsh Hartford 
 
 (Includes State of Rhode Island.) 
 
 Delaware (see Maryland). 
 
 Florida James M. Cathcart Jacksonville 
 
 Georgia Aaron 0. Blalock Atlanta 
 
 Hawaii Howard Hathaway Honolulu 
 
 Idaho (see Montana). 
 
 Ist Hlinois Julius F. Smietanka Chicago 
 
 (Including the counties of Boone, Carroll, Cook, Dekalb, 
 Dupage, Grundy, Jo Daviess, Kane, Kankakee, Kendall, 
 Lake, Lasalle, Lee, McHenry, Ogle, Stephenson, Whiteside 
 Will and Winnebago.) 
 
 5th Hlinois Edward D. MeCabe Peoria 
 
 (Including the counties of Bureau, Henderson, Henry, 
 Knox, Marshall, Mercer, Peoria, Putnam, Rock Island, 
 Stark and Warren. Date of present constitution of district, 
 July 1, 1887.) 
 
 1365 
 
District Collector Address 
 
 8th Illinois John L. Pickering Springfield 
 
 (Including the counties of Adams, Bond, Brown, Callioun, 
 Cass, Cliampalgn, Christian, Coles, Cumberland, Dewitt, 
 Douglas, Edgar, Ford, Pulton, Greene, Hancock, Iroquois, 
 Jersey, Livingston, Logan, McDonough, McLean, Macon, 
 Macoupin, Mason, Menard, Montgomery, Morgan, Moultrie, 
 Piatt, Pike, Sangamon, Schuyler, Scott, Shelby, Tazewell, 
 Vermilion and Woodford.) 
 
 13th Illinois John M. Rapp East St. Louis 
 
 (Including the counties of Alexander, Clark, Clay, Clin- 
 ton, Crawford, Edwards, Effingham, Fayette, Franklin, 
 Gallatin. Hamilton, Hardin, Jackson, Jasper, Jefferson, 
 Johnson, Lawrence, Madison, Marion, Massac, Monroe, 
 Perry, Pope, Pulaski, Randolph, Richland, St. Clair, Saline, 
 Union, Wabash, Washington, Wayne, White and Will- 
 iamson.) 
 
 6th Indiana Peter J. Kruyer Indianapolis 
 
 (Including the counties of Adams, Allen, Bartholomew, 
 Benton, Blackford, Brown, Cass, Dearborn, Decatur, De- 
 kalb, Delaware, Elkhart, Fayette, Franklin, Fulton, Grant, 
 Hamilton, Hancock, Hendricks, Henry, Howard, Hunting- 
 ton, Jackson, Jasper, Jay, Jefferson, Jennings, Johnson, 
 Kosciusko, Lagrange, Lake, Laporte, Lawrence, Madison, 
 Marion, Marshall, Miami, Monroe, Morgan, Newton, Noble, 
 Ohio, Porter, Pulaski, Randolph, Ripley, Rush, St. Joseph, 
 Shelby, Starke, Steuben, Switzerland, Tipton, Union, Wa- 
 bash, Wayne, Wells, White and Whitley.) 
 
 7th Indiana Isaac R. Strouse Terre Haute 
 
 (Including the counties of Boone, Carroll, Clark, Clay, 
 Clinton, Crawford, Davies, Dubois, Floyd, Fountain, Gib- 
 son, Greene, Harrison, Knox, Martin, Montgomery, Orange, 
 Owen, Parke, Perry, Pike, Posey, Putnam, Scott. Spencer, 
 Sullivan, Tippecanoe, Vanderburg, Vermilion, Vigo, War- 
 ren, Warrick and Washington.) 
 
 3d Iowa Louis Murphy Dubuque 
 
 Kansas Wm. H. L. Pepperell Wichita 
 
 2d Kentucky Josh T. Griffith Owensboro 
 
 (Including the counties of Allen, Ballard, Barren, Breck- 
 enridge. But, Caldwell, Calloway, Carlisle, Christian, Clin- 
 ton, Crittenden, Cumberland, Davies, Edmonson, Fulton, 
 Graves, Grayson, Hancock, Hart, Henderson, Hickman, 
 Hopkins, Livingston, Logan, Lyon, McCracken, McLean, 
 Marshall, Metcalfe, Monroe, Muhlenberg, Ohio, Russell, 
 Simpson, Todd, Trigg, Union, Warren and Webster.) 
 
 6th Kentucky ^ Thomas Scott Mayes Louisville 
 
 (Including the city of Louisville and the counties of 
 Adair, Bullitt, Casey, Green, Hardin, Henry, Jefferson, 
 Larue, Marion, Meade, Nelson, Oldham, Owen, Shelby, 
 Spencer, Taylor and Washington.) 
 
 6th Kentucky Charlton B. Thompson Covington 
 
 (Including the counties of Boone, Bracken, Campbell, 
 Carroll, Gallatin, Grant, Harrison, Kenton, Pendleton, 
 Robertson and Trimble.) 
 
 7th Kentucky William P. D. Haly Lexington 
 
 (Including the counties of Bath, Bourbon, Boyd, Carter, 
 Clark, Elliott, Fayette, Fleming, Franklin, Greenup, John- 
 son, Lawrence, Lewis, Martin, Mason, Menifee, Mont- 
 gomery, Morgan, Nicholas, Powell, Rowan, Scott and 
 Woodford.) 
 
 8th Kentucky John W. Hughes . Danville 
 
 (Including the counties of Anderson, Bell, Boyle, Brea- 
 thitt, Clay, Estill, Floyd, Garrard, Harlan, Jackson, Jessa- 
 mine, Knott, Knox, Laurel, Lee, Leslie, Letcher, Lincoln, 
 Madison, Magoffin, Mercer, McCreary, Owsley, Perry, Pike, 
 Pulaski, Rockcastle, Wayne, Whitley and Wolfe.) 
 
 Louisiana John Y. Fauntleroy New Orleans 
 
 1366 
 
District Collector AddresB 
 
 Maine (see New Hampshire). 
 
 Maryland Joshua W. Miles Baltimore 
 
 (Including the States of Maryland and Delaware, the 
 District of Columbia, and the counties of Accomac and 
 Northampton of the State of Virginia.) 
 
 3d Massachusetts John F. Malley Boston 
 
 1st Michigan James J. Brady Detroit 
 
 (Including counties of Alcona, Alpena, Arenac, Bay, 
 Branch, Calhoun, Cheboygan, Clare, Clinton, Crawford, 
 Genesee, Gladwin, Gratiot, Hillsdale, Huron, Ingham, Iosco, 
 Isabella, Jackson, Lapeer, Lenawee, Livingston, Macomb, 
 Midland, Monroe, Montmorency, Oakland, Ogemaw, Oscoda, 
 Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, Shia- 
 wassee, St. Clair, Tuscola, Washtenaw and Wayne.) 
 
 4th Michigan Emanuel J. Doyle Grand Rapids 
 
 (Including counties of Alger, Allegan, Antrim, Baraga, 
 Barry, Benzie, Berrien, Cass, Charlevoix, Chippewa, Delta, 
 Dickinson, Eaton, Emmet, Gogebic, Grand Traverse, Hough- 
 ton, Ionia, Iron, Kalamazoo, Kalkaska, Kent, Keweenaw, 
 Lake, Leelanau, Luce, Mackinac, Manistee, Marquette, 
 Mason, Mecosta, Menominee, Missaukee, Montcalm, Muske- 
 gon, Newaygo, Oceana, Ontonagon, Osceola, Ottawa, St. 
 Joseph, Schoolcraft, Van Buren and Wexford.) 
 
 Minnesota Edward J. Lynch St. Paul 
 
 Mississippi (see Alabama). 
 
 1st Missouri Geo. H. Moore St. Louis 
 
 (Including the counties of Adair, Audrian, Bollinger, 
 Boone, Butler, Callaway, Cape Girardeau, Carter, Clark, 
 Crawford, Dent, Dunklin, Franklin, Gasconade, Howard, 
 Iron, Jefferson, Knox, Lewis, Lincoln, Linn, Macon, Madi- 
 son, Maries, Marion, Mississippi, Montgomery, Monroe, New 
 Madrid, Oregon, Osage, Pemiscot, Perry, Phelps, Pike, 
 Pulaski, Ralls. Randolph, Reynolds, Ripley, St. Charles, 
 St. Francois, Ste. Genevieve, St. Louis, Schuyler, Scotland, 
 Scott, Shannon, Shelby, Stoddard, Warren, Washington and 
 Wayne.) 
 
 6th Missouri Edgar M. Harbor Kansas City 
 
 (Including the counties of Andrew, Atchison, Barry, 
 Barton, Bates, Benton, Buchanan, Caldwell, Camden, 
 Carroll, Cass, Cedar, Chariton, Christian, Clay, Clinton, 
 Cole, Cooper, Dade, Dallas, Daviess, Dekalb, Douglas, 
 Gentry, Greene, Grundy, Harrison, Henry, Hickory, Holt, 
 Howell, Jackson, Jasper, Johnson, Laclede, Lafayette, 
 Lawrence, Livingston, McDonald, Mercer, Miller, Moniteau, 
 Morgan, Newton, Nodaway, Ozark, Pettis, Platte, Polk, 
 Putnam, Ray, St. Clair, Saline, Stone, Sullivan, Taney, 
 Texas, Vernon, Webster, Worth and Wright.) 
 
 Montana William C. Whaley Helena 
 
 (Includes States of Idaho and Utah.) 
 
 Nebraska Geo. L. Loomis Omaha 
 
 Nevada (see 1st California). 
 
 New Hampshire Seth W. Jones Portsmouth 
 
 (Includes States of Maine and Vermont.) 
 
 Ist New Jersey , Samuel Iredell Camden 
 
 (Including the counties of Atlantic, Burlington, Camden, 
 Cape May, Cumberland, Gloucester, Mercer, Monmouth, 
 Ocean and Salem.) 
 
 6th New Jersey - Charles V. Duffy Newark 
 
 (Including the counties of Bergen, Essex, Hudson, 
 Hunterdon, Middlesex, Morris, Passaic, Somerset, Sussex, 
 Union and Warren.) 
 
 1367 
 
District Collector Address 
 
 New Mexico Lewis T. Carpenter Phoenix, Ariz. 
 
 (Includes State of Arizona.) 
 
 1st New York Bertram Gardner (Acting) Brooklyn 
 
 (Including the counties of Kings, Nassau, Queens, Rich- 
 mond and Suffolk.) 
 
 2d New York Wm. H. Edwards New York City 
 
 (Including the first, second, third, fourth, fifth, sixth, 
 eighth, ninth and fifteenth wards of New York City; that 
 portion of the fourteenth ward lying west of the centre of 
 Mott Street ; that portion of the sixteenth ward lying south 
 ot the centre of West Twenty-fourth Street, and Governors 
 Isiand). 
 
 3d New York Mark Eisner New York City 
 
 (Including the seventh, tenth, eleventh, twelfth, thirtenth, 
 seventeenth, eighteenth, nineteenth, twentieth, twenty-first 
 and twenty-second wards of New York City ; that part of 
 the fourteenth ward lying east of the centre of Mott Street ; 
 that part of the sixteenth ward lying north of the centre 
 of West Twenty-fourth Street, and Blackwells, Randalls 
 and Wards Islands.) 
 
 14th New York Roscoe Irwin Albany 
 
 (Including the counties of Albany, Clinton, Columbia, 
 Dutchess, Essex, Fulton, Greene, Hamilton, Montgomery, 
 Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenec- 
 tady, Schoharie, Sullivan, Ulster, Warren, Washington and 
 Westchester, and the twenty-third and twenty-fourth wards 
 of New York City.) 
 
 21st New York Neal Brewster Syracuse 
 
 (Including the counties of Broome, Cayuga, Chenango, 
 Cortland, Delaware, Franklin, Herkimer, Jefferson, Lewis, 
 Madison, Oneida, Onondaga, Oswego, Otsego, St. Lawrence, 
 Schuyler, Seneca, Tioga, Tompkins and Wayne.) 
 
 28th New York Vincent H. Riordan Buffalo 
 
 (Including the counties of Allegany, Cattaraugus, Chau- 
 tauqua, Chemung, Brie, Genesee, Livingston, Monroe, 
 Niagara, Ontario, Orleans, Steuben, Wyoming and Yates.) 
 
 4th North Carolina Joshua W. Bailey Raleigh 
 
 (Including the counties of Alamance, Beaufort, Bertie, 
 Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, 
 Chowan, Columbus, Craven, Cumberland, Currituck, Dare, 
 Duplin, Durham, Edgecombe, Franklin, Gates, Granville, 
 Greene, Halifax, Harnett, Hertford, Hyde, Johnston, Jones, 
 Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, 
 Northampton, Onslow, Orange, Pamlico, Pasquotank, 
 Pender, Perquimans, Person, Pitt, Richmond, Robeson, 
 Sampson, Scotland, Tyrrell, Vance, Wake, Warren, Wash- 
 ington, Wayne and Wilson.) 
 
 6th North Carolina Alston D. Watts Statesville 
 
 (Including the counties of Alexander, Allegany, Anson, 
 Ashe, Buncombe, Burke, Cabarrus, Caldwell, Catawba, 
 Cherokee, Clay, Cleveland, Davidson, Davie, Forsyth, Gas- 
 ton, Graham, Guilford, Haywood, Henderson, Iredell, Jack- 
 son, Lincoln, McDowell, Macon. Madison, Mecklenburg, 
 Mitchell, Polk, Randolph, Rockingham, Rowan, Ruther- 
 ford, Stanly, Stokes, Surry, Swain, Transylvania, Union, 
 Watauga, Wilkes, Yadkin and Yancey.) 
 
 No. & So. Dakota James Coffey Aberdeen, S. D. 
 
 (Including States of North Dakota and South Dakota 
 detached from District of Nebraska and constituted one 
 district, to be known as the District of North and South 
 
 1st Ohio Andrew C. Gilligan Cincinnati 
 
 (Including the counties of Brown, Butler, Clarke, Cler- 
 mont, Clinton, Fayette, Greene, Hamilton, Highland, Miami, 
 Montgomery, Preble and Warren.) 
 
 1368 
 
District Collector Address 
 
 10th Ohio Frank B. Niles Toledo 
 
 (Including the counties of Allen, Auglaize, Champaign, 
 Crawford, Darke, Defiance, Erie, Fulton, Hancock, Hardin, 
 Henry, Huron, Logan, Lucas, Mercer, Ottawa, Paulding, 
 Putnam, Sandusky, Seneca, Shelby, Van Wert, Williams, 
 Wood and Wyandot.) 
 
 11th Ohio Beriah E. Williams Columbus 
 
 (Including the counties of Adams, Athens, Coshocton, 
 Delaware, Fairfield, Franklin, Gallia, Guernsey, Hocking, 
 Jackson, Knox, Lawrence, Licking, Madison, Marion, Meigs, 
 Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross, 
 Scioto, Union, Vinton and Washington.) 
 
 18th Ohio - Harry H. Weiss Cleveland 
 
 (Including the counties of Ashland, Ashtabula, Belmont, 
 Carroll, Columbiana, Cuyahoga, Geauga, Harrison, Holmes, 
 Jefferson, Lake, Lorain, Mahoning, Medina, Monroe, Port- 
 age, Richland, Stark, Summit, Trumbull, Tuscarawas and 
 Wayne.) 
 
 Oklahoma Hubert L. Bolen Oklahoma City 
 
 Oregon, Milton A. Miller Portland 
 
 Ist Pennsylvania Ephraim Lederer Philadelphia 
 
 (Including the counties of Berks, Bucks, Chester, Dela- 
 ware, Lehigh, Montgomery, Philadelphia and Schuylkill.) 
 
 9th Pennsylvania Benjamin F. Davis Lancaster 
 
 (Including the counties of Adams, Bedford, Blair, 
 Cumberland, Dauphin, Franklin, Fulton, Huntingdon, 
 Juniata, Lancaster, Lebanon, Mifflin, Perry, Snyder and 
 York.) 
 
 12th Pennsylvania Fred C. Kirkendall Scranton 
 
 (Including the counties of Bradford, Carbon, Centre, 
 Clinton, Columbia, Lackawanna, Luzerne, Lycoming, Mon- 
 roe, Montour, Northampton, Northumberland, Pike, Potter, 
 Sullivan, Susquehanna, Tioga, Union, Wayne and Wy- 
 oming.) 
 
 23d Pennsylvania C. Gregg Lewellyn Pittsburgh 
 
 (Including the counties of Allegheny, Armstrong, Beaver, 
 Butler, Cambria, Cameron, Clarion, Clearfield, Crawford, 
 Elk, Erie, Fayette, Forest, Greene, Indiana, Jefferson, 
 Lawrence, McKean, Mercer, Somerset, Venango, Warren, 
 Washington and Westmoreland.) 
 
 Rhode Island (see Connecticut). 
 
 South Carolina Duncan C. Hayward Columbia 
 
 South Dakota (see North and South Dakota). 
 
 Tennessee Edward B. Craig Nashville 
 
 3d Texas Alexander S. Walker Austin 
 
 Utah (see Montana). 
 
 Vermont (see New Hampshire). 
 
 2d Virginia Richard C. L. Moncure Richmond 
 
 (Including the counties of Amelia, Appomattox, Bruns- 
 wick, Buckingham. Caroline, Charles City, Chesterfield, 
 Cumberland, Dinwiddle, Elizabeth City, Essex, Fluvanna, 
 Gloucester, Goochland, Greensville, Hanover, Henrico, Isle 
 of Wight, James City, King and Queen, King George, King 
 William, Lancaster, Louisa, Lunenburg, Mathews, Middle- 
 sex, Nansemond, New Kent, Norfolk, Northumberland, 
 Nottoway, Powhatan, Prince Edward, Prince George, 
 Princess Anne, Richmond, Stafford, Southampton, Spott- 
 Bylvania, Surry, Sussex, Warwick, Westmoreland and 
 York.) 
 
 1369 
 
District Collector Address 
 
 6th Virginia John M. Hart Roanoke 
 
 (Including the counties of Albemarle, Alexandria, Alle- 
 ghany, Amherst, Augusta, Bath, Bedford, Bland, Bote- 
 tourt, Buchanan, Campbell, Carroll, Charlotte, Clarke, 
 Craig, Culpeper, Dickenson, Fairfax, Fauquier, Floyd, 
 Franklin, Frederick, Giles, Grayson, Greene, Halifax, Henry, 
 Highland, Lee, Loudoun, Madison, Mecklenburg, Mont- 
 gomery, Nelson, Orange, Page, Patrick, Pittsylvania, 
 Prince William, Pulaski, Rappahannock, Roanoke, Rock- 
 bridge, Rockingham, Russell, Scott, Shenandoah, Smyth, 
 Tazewell, Warren, Washington, Wise and Wythe.) 
 
 Virginia (for Accomac & Northampton counties, see Maryland) 
 
 Washington David J. Williams Tacoma 
 
 (Includes Territory of Alaska.) 
 
 West Virginia Samuel A. Hays Farkersburg 
 
 1st Wisconsin Paul A. Hemmy Milwaukee 
 
 (Including counties of Brown, Calumet, Dodge, Door, 
 Florence, Fond du Lac, Forest, Green Lake, Kenosha, 
 Kewaunee, Manitowoc, Marinette, Marquette, Milwaukee, 
 Oconto, Outagamie, Ozaukee, Racine, Shawano, Sheboygan, 
 Walworth, Washington, Waukesha, Waupaca, Waushara, 
 Winnebago, and county of Langlade with exception of the 
 eight townships of said county which were formerly in 
 Lincoln County.) 
 
 2d Wisconsin Burt Williams Madison 
 
 (Including the counties of Adams, Ashland, Barron, Bay- 
 field, Buffalo, Burnett, Chippewa, Clark, Columbia, Craw- 
 ford, Dane, Douglas, Dunn, Eau Claire, Grant, Greene, 
 Iowa, Iron, Jackson, Jefferson, Juneau, La Crosse, Lafay- 
 ette, Lincoln, Marathon, Monroe, Oneida, Pepin, Pierce, 
 Polk, Portage, Price, Richland, Rock, Rusk, St. Croix, 
 Sauk, Sawyer, Taylor, Trempealeau, Vernon, Vilas, Wash- 
 burn, Wood, and the eight townships in the western part 
 of Langlade County, which were formerly In Lincoln 
 County.) 
 
 Wyoming (gee Colorado). 
 
 1370 
 
Additional Tax Schedules 
 For Previous Tax Years 
 
 The tables following show the amount 
 of the additional taxes imposed under 
 the Act of October 3, 1913, for the years 
 1913, 1914 and 1915, the Act of Sep- 
 tember 8, 1916, and the Act of Septem- 
 ber 8, 1916, as amended for the years 
 1916 and 1917, the latter two additional 
 taxes being the same; the Act of Octo- 
 ber 3, 1917 (War Income Tax) , for the 
 year 1917. 
 
 There is also given a combined table 
 of the additional taxes due under the 
 Act of September 8, 1916, as amended, 
 and thei Act of October 3, 1917 (War 
 Income Tax), for the year 1917. 
 
 1371 
 
ADDITIONAL TAXES FOR THE YEARS 
 1913, 1914 AND 1915. 
 
 The additional taxes imposed on net incomes of more than 
 $20,000, according to the provisions of the Act of October 
 3, 1913, for the years 1913, 1914 and 1915, are as follows: 
 
 ,; Annual 
 
 Additional 
 Tax 
 
 Income of over ?20,000 and not over $50,000 1% 
 
 Income of over 50,000 and not over 75,000 2% 
 
 Income of over 75,000 and not over 100,000 3% 
 
 Income of over 100,000 and not over 250,000 4% 
 
 Income of over 250,000 and not over 500,000 5% 
 
 Income of over 500,000 6% 
 
 ADDITIONAL TAXES FOR THE YEARS 
 1916 AND 1917. 
 
 The additional taxes imposed on net incomes of more than 
 $20,000 for the year 1916, in accordance with the Act of 
 September 8, 1916, and for the year 1917 under the Act 
 of September 8, 1916, as amended, are as follows: 
 
 Annual 
 Additional 
 Tax 
 
 Income of over $20,000 and not over $40,000 1% 
 
 Income of over 40,000 and not over 60,000 2% 
 
 Income of over 60,000 and not over 80,000 3% 
 
 Income of over 80,000 and not over 100,000 4% 
 
 Income of over 100,000 and not over 150,000 5% 
 
 Income of over 150,000 and not over 200,000 6% 
 
 Income of over 200,000 and not over 250,000 7% 
 
 Income of over 250,000 and not over 300,000 8% 
 
 Income of over 300,000 and not over 500,000 9% 
 
 Income of over 500,000 and not over 1,000,000 10% 
 
 Income of over 1,000,000 and not over 1,500,000 11% 
 
 Income of over 1,500,000 and not over 2,000,000 12% 
 
 Income of over 2,000,000 13% 
 
 1373 
 
ADDITIONAL TAXES FOR THE YEAR 1917. 
 
 The additional taxes for the year 1917 imposed by the 
 War Income Tax (Act of October 3, 1917) in excess of 
 $5,000 are as follows : 
 
 Annual 
 Additional 
 Tax 
 
 Income of over $5,000 and not over $7,500 1% . 
 
 Income of over 7,500 and not over 10,000 2% 
 
 Income of over 10,000 and not over 12,500 3% 
 
 Income of over 12,000 and not over 15,000 4% 
 
 Income of over 15,000 and not over 20,000 5% 
 
 Income of over 20,000 and not over 40,000 7% 
 
 Income of over 40,000 and not over 60,000 10% 
 
 Income fo over 60,000 and not over 80,000 14% 
 
 Income of over 80,000 and not over 100,000 18% 
 
 Income of over 100,000 and not over 150,000 22% 
 
 Income of over 150,000 and not over 200,000 25% 
 
 Income of over 200,000 and not over 250,000 30% 
 
 Income of over 250,000 and not over 300,000 347o 
 
 Income of over 300,000 and not over 500,000 37% 
 
 Income of over 500,000 and not over 750,000 40% 
 
 Income of over 750,000 and not over 1,000,000 45% 
 
 Income of over 1,000,000 50% 
 
 COMBINED ADDITIONAL TAXES 
 FOR THE YEAR 1917. 
 
 Combined tabulation of the additional taxes for the year 
 1917, computed under the Act of September 8, 1916, as 
 amended, and the Act of October 3, 1917 (War Income 
 Tax). 
 
 Rate of 
 Additional 
 Tax 
 
 Income of over $5,000 and not over $7,500 1% 
 
 Income of over 7,500 and not over 10,000 2% 
 
 Income of over 10,000 and not over 12,500 3% 
 
 Income of over 12,500 and not over 15,000 4% 
 
 Income of over 15,000 and not over 20,000 5% 
 
 Income of over 20,000 and not over 40,000 8% 
 
 Income of over 40,000 and not over 60,000 ^ 12% 
 
 Income of over 60,000 and not over 80.000 - 17% 
 
 Income of over 80,000 and not over 100,000 22% 
 
 Income of over 100,000 and not over 150,000 27% 
 
 Income of over 150,000 and not over 200,000 31% 
 
 Income of over 200,000 and not over 250,000 37% 
 
 Income of over 250,000 and not over 300,000 42% 
 
 Income of over 300,000 and not over 500,000— 46% 
 
 Income of over 500,000 and not over 750,000 50% 
 
 Income of over 750,000 and not over 1,000,000 55% 
 
 Income of over 1,000,000 and not over 1,500,000 61% 
 
 Income of over 1,500,000 and not over 2,000,000 62% 
 
 Income of over 2,000,000 63% 
 
 1374 
 
status of Bonds 
 
 "Under th© 
 
 Federal IncomeTax! 
 
 me lax"' 
 
 1919 Edition 
 
 A recent ruling of the Department 
 of Internal Revenue has completely 
 changed the tax status of interest 
 from corporation bonds. 
 
 Under this ruling the Government cannot accept payment 
 of taxes by a bond-issuing corporation in behalf of a 
 bondholder where such bond does not contain a tax-free 
 covenant. 
 
 Yet here are some startling facts, based upon official 
 information : 
 
 (1) Not all corporations issuing bonds with a so-called 
 tax-free covenant are observing the apparent terms 
 of such covenant. 
 
 (2) Many corporations issuing bonds without a tax-free 
 covenant are reimbursing the holder for a tax of 
 2% or more. 
 
 (3) Some corporations issuing bonds with a tax-free 
 covenant are assuming more than the 2% tax which 
 by law they are required to retain and pay in behalf 
 of the bondholder. 
 
 (4) Other corporations are paying coupons without 
 deduction of the 2% tax only where a certificate 
 of ownership is filed showing that the holder is 
 not exempt from the tax. 
 
 1375 
 
What the Bondholder Must Know 
 
 It is no longer sufficient, therefore, that a bondholder 
 know merely whether or not his bond contains a tax-free 
 covenant. 
 
 He must know also: 
 
 (a) In the case of a tax-free bond, what amount of tax, 
 if any, will be assumed by the issuing corporation. 
 
 (b) In the case of bonds without a tax-free covenant, 
 to what amount, if any, will the issuing corporation 
 reimburse the bondholder. 
 
 Without definite knowledge of these things there can 
 be no certainty that the bondholder is not either overpaying 
 his taxes or withholding payment legally due, and inno- 
 cently making himself liable to Government action. 
 
 How Your Tax is Made Up 
 
 The reason why the bondholder must know these several 
 points is that the annual income tax return of an individual 
 is composed of two items: 
 
 (a) The net income upon which taxes are to be paid 
 directly to the Government. 
 
 (b) The net income on which part of the tax is paid for 
 him at the source of such income. 
 
 From this second item springs a multitude of puzzling 
 questions. According to law, the only part of the tax to be 
 paid on behalf of the individual at its source is a tax of 2% 
 on the interest from those corporation bonds which contain 
 a so-called tax-free covenant. A tax-free covenant is an 
 apparent agreement that the issuing corporation is to 
 assume, in whole or in part, the specified tax against such 
 interest. 
 
 But to further comphcate the matter, this tax of 2% 
 is only a part of the tax assessed against the interest from 
 bonds and other corporate obligations. 
 
 So each different issue of corporation bonds presents a 
 new problem to the bondholder in the work of making out 
 an income tax return. 
 
 1376 
 
The reason for this is the difference between the apparent 
 meaning of certain clauses, such as the so-called tax-free 
 covenants, and the actual interpretation given them by the 
 issuing corporation or its paying agents. 
 
 This confusion results in underpaying or overpaying, 
 neglecting to pay entirely, or paying unnecessarily the 
 bondholders' income tax. In attempting to apply the 
 provisions of the present Federal Income Tax Law, the 
 bondholders simply cannot know, without reference to the 
 issuing corporation or its paying agents, the policy adopted 
 by the corporation to govern its payment of taxes on 
 interest. The real intent of the issuer is often exactly 
 opposite to the seeming intent as expressed in the bond. 
 
 In many cases a radical change in policy was 
 revealed through our work of gathering data, and 
 many surprises are brought to light. There are 
 hundreds of cases which show a complete reversal 
 of interpretations since last year on the part of 
 issuing corporations. 
 
 It is this necessary information, not to be obtained from 
 any other source, that is offered you in the "Status of Bonds 
 Under the Federal Income Tax," 1919 Edition. It furnishes 
 this data definitely, concisely and authoritatively on about 
 10,000 bonds, the issuing corporations or paying agents of 
 which having contributed the information. (See specimen 
 on last page.) 
 
 The Safe Way for the Bondholder 
 
 The 1919 Edition of "Status of Bonds Under the Federal 
 Income Tax," containing the officially revised Hst of over 
 10,000 bonds, is as complete, accurate and up-to-date as it 
 is possible for experienced statisticians to make it. 
 
 No expense has been spared in compiling it. The in- 
 formation it contains involves the querying of thousands 
 of bond-issuing corporations and paying agents. In almost 
 every case the data before reaching us was checked and 
 signed by either an official of the issuing corporation or 
 by the corporation's fiscal agent. 
 
 1377 
 
In the few cases where it was impossible to obtain direct 
 replies to inquiries, or where the information sought was 
 not available, the best unofficial data was utilized. In each 
 case of this kind the tax clause of the mortgage appears to 
 corroborate the information given in the book. 
 
 For individuals owning bonds, for investing corporations, 
 for banks, for lawyers and for trustees and administrators 
 of estates the ''Status of Bonds Under the Federal Income 
 Tax" is a necessity to safe, accurate return of taxes. There 
 is no substitute for it and no other collection of similar 
 information. It is of the utmost usefulness not only in mak- 
 ing an income tax return but also as a reference book in the 
 making of new investments. This book gives information 
 not available to you except through the arduous labor in 
 assembling it and in making certain of its accuracy. It is 
 offered you complete, correct, compact, and in a form for 
 instant reference. 
 
 Price List 
 
 Many users of past editions of the book bought them in 
 quantity for distribution among their customers or clients. 
 A reduction in price is made for books 
 furnished in quantity, and arrange- 
 ments are made to print the 
 name of the distributing com- 
 pany in gold letters on the 
 cover. Note the following 
 price list: 
 
 Single copies, $5.00 each 
 
 5 to 9 copies, 4.75 each 
 
 10 to 19 copies, 4.50 each 
 
 20 to 49 copies, 4.00 each 
 
 Special prices will be quoted upon 
 request on 100 copies and over. For 
 stamping your name in gold on covers 
 in lots of over 9 and less than 100 
 a charge of 35 cents per copy will be 
 made. In lots of 100 or over there 
 will be no extra charge for stamping. 
 
 Standard Statistics Company, Inc. 
 
 47-49 West Street, New York City 
 
 1378 
 
Specimen Page 
 
 Showing how the information is compiled in the "Status of Bonds Under 
 the Federal Income Tax." 
 
 Note the contradictory information indicated by Does Bond WhatAmt. 
 
 thp fi<!t«? MS mM\ Contain (If Any) 
 
 me iibL^ [mm m;. Tax-Free Does Corp. 
 
 Covenant? Assume? 
 
 Aslmelot Gas & Electric Co. 1st 5s, 1939 Yes 2% 
 
 Associated Gas & Electric Co. 1st & Col. 5s, 1939 Yes 2% 
 
 Associated Gas & Electric Co. Col. Tr. 6s, 1941 Yes 2% 
 
 Associated Gas & Electric Co. Deb. 6, 1949 Yes 2% 
 
 Associated Oil Co. 1st 5s, 1922 No None 
 
 Associated Oil Co. 1st R<^f. 5s, 1930 Yes 2% 
 
 Associated Simmons Hardware Co. 5% Sec. Notes, 1917-21— Yes 2% 
 
 Astoria Veneer Mills & Dock Co. 1st 6s, 1941 Yes 2% 
 
 Atares Wharf & Warehouse Co. 1st 6s, 1930 No None 
 
 Atchison & Eastern Bridge Co. 1st 4s, 1928 Yes 2% 
 
 Atchison Ry., Light & Power Co. 1st 5s, 1935 Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. 1st 4s, 1928— 
 
 East. Okla. Div. Yes 2% 
 
 Atchison, Topeka & Santa Fe Conv. 4s, 1955 (1905) Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. Conv. 4s, 1955 (1909)— Yes 2% 
 Atchison, Topeka & Santa Fe Ry. Co. — Transcontinental 
 
 Short Line 1st 43, 1958 Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. Conv. 4s, 1960 Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. 1st & Ref. 4y2S, 1962 
 
 Cal.-Ai'iz. Lines Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. Adj. 4s, 1995 Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. Co. Gen. 4s, 1995 Yes 2% 
 
 Atchison, Topeka & Santa Fe Ry. — ^Rocky Mountain Division 
 
 1st 4s, 1965, Ser. "A" No None 
 
 Athens Electric Railway Co. 1st 6s, 1931 Yes 2% 
 
 Athens Gas Light & Fuel Co. 1st 5s, 1942 Yes 2% 
 
 Athens Railway & Electric Co. 1st & Ref. 5s, 1950 Yes 2% 
 
 Athens Terminal Co. 1st 5s, 1937 Yes 2% . 
 
 pAthol Gas & Electric Co. 1st 5s, 1921 Yes None- 
 
 Atlanta, Birmingham & Atlantic Ry. 1st & Ref. 6s, 1945 No None 
 
 Atlanta, Birmingham & Atlantic Ry. Co., Inc., 58, 1930 No None 
 
 Atlanta & Char. Air Line Ry. Co. 1st Ser. "A," 41/28, & "B," 
 
 5s, 1944 No None 
 
 Atlanta Consolidated St. Ry. 1st Cons. 5s, 1939 Yes 2% 
 
 Atlanta Gas Light Co. 1st 5s, 1947 Yes 2% 
 
 Atlanta, Knoxville & Northern Ry. 1st 5s, 1946 Yes 2% 
 
 Atlanta, Knoxville & Northern Ry. Co. 1st 4s, 2002 Yes 2% 
 
 Atlanta Northern Ry. Co. 1st 5s, 1954 Yes 2% 
 
 Atlanta Street R. R. Co. 1st 6s, 1930 Yes 2% 
 
 r Atlanta Tel. & Tel. Co. 1st 5s, 1923 No 2% ' 
 
 r Atlanta Tel. & Tel. Co. Ss, 1927 No 2% • 
 
 Atlanta Terminal Co. 1st 4s, 1953 Yes 2% 
 
 Atlanta Water & Electric Power Co. Ist 5s, 1943 Yes 2% 
 
 1379 
 
UNIVERSITY OF CALIFORNIA LIBRARY, 
 BERKELEY 
 
 THIS BOOK IS DUE ON THE LAST DATE 
 
 STAMPED BELOW 
 
 Books not returned on time are subject to a fine of 
 50c per volume after the third day overdue, increasing 
 to $1.00 per volume after the sixth day. Books not in 
 demand may be renewed if application is made before 
 expiration of loan period. 
 
 um iQim 
 
 Am 6 1921 
 
 »»o 
 
 V 2 1944 
 
 20m-ll,'20 
 

 UNIVERSITY OF CALIFORNIA LIBRARY V; 
 
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