24 



HARDWOOD RECORD 



Mai 23, 1921 



E. SONDHEIMER COMPANY 



MEMPHIS TENNESSEE 



Band mills at 

 BATON ROUGE, LA.; SONDHEIMER, LA.; TALLULAH, LA. 



Office and Distributing Yard 



MEMPHIS, TENN. 



Mamifacttirers of Southern Hardwoods 



Dry Stock, Ready for Shipment. Ask us for prices. We may be able to save you some money. 

 We specialize in genuine Tensas Basin Red Gum — best in the world. 



WHITE ASH 



I" to 4" FAS 10 cars 



I" No. I Common . ..... 10 cars 



I'A" No. I Common Scars 



M/a" No. I Common Scars 



2" No. I Com. & Btr 8 cars 



I". IVa". l'/2" Ha. 2 Com.. Scars 



WILLOW 



1x13" to 17" Box Bds I car 



I" FAS 10 cars 



I" No. I Common. 10 cars 



I" No. 2 Common 10 cars 



I'A" No. 2 Com. & Btr 10 cars 



I'/j" No. 2 Com. & Btr. .10 cars 

 2" No. 2 Com. 4 Btr 10 cars 



CYPRESS 



I" FAS I car 



I" Select I car 



1x4. 6. 8. 10. 12" No. 10 8 cars 

 1x4" to 12" No. 2 Common . 5 cars 



\'/i" Select & Shop 8 cars 



2" Pecky 2 cars 



2x6" No. I & No. 2 Com 2 cars 



2" FAS 2 cars 



10/4" Select 4 Btr 2 cars 



3" Select & Btr , I car 



4" Select i Btr I car 



QUARTERED TUPELO 

 FAS I car 



PLAIN TUPELO 



I" FAS I 



I" No. I Common 



I" No. 2 Common 



\" No. 3 Common 



5/4" No. 2 Common 



COTTONWOOD 



I" FAS 



I" No. 1 Common 



I" No. 2 Common 



5/4" FAS 



5/4" No. I & No. 2 Com.. 



6/4" FAS 



6/4" No. I Common 



6/4" No. 2 Common 



BLACK GUM 

 I" No. 2 Com. & Btr . . 

 PECAN 



I" Log Run 



6/4" Log Run . 



2" Log Run 



SOFT ELM 



3/4" Crating 



6/4" Log Run 



cars 



2 cars 

 5 cars 



3 cars 

 I car 



10 cars 



15 cars 

 3 ears 

 5 cars 



10 cars 

 5 cars 

 5 cars 



12 cars 



3 cars 

 5 cars 



7 cars 



8 cars 

 1 tar 



10 4' No. 1 Com. & Btr.... 2 cars 



8/4" Log Run 8 cars 



3" Log Run 2 cars 



QTD. FIG. RED GUM 



I" No. 1 Common I car 



QUARTERED WHITE OAK 



5'B"No. I Common I car 



I" No. I Common 5 cars 



PLAIN RED GUM 



5 8" No. I Com. i. Btr Scars 



3 4" No. 1 Com. & Btr 5 cars 



I" FAS 3 cars 



I" No. I Common 8 cars 



I" No. 2 Common 5 cars 



5/4" FAS 5 cars 



5/4" No. I Common 10 cars 



QUARTERED SAP GUM 



1" No. I Com. i Btr 15 cars 



2" No. 1 Com. &. Btr 8 cars 



3- No. 1 Com. & Btr 2 cars 



QUARTERED RED OAK 



I" FAS 3 cars 



1" No. 1 Common 5 cars 



1" No. 2 Common 5 cars 



.■^,4" No. 1 Com. & Btr 5 cars 



QUARTERED RED GUM 

 I" FAS 5 cars 



I " No. I Common 10 cars 



|ij" & I':" No. I C. & B.. 3 cars 

 2' 2" & 3" No. I C. 4 B ... 4 cars 



PLAIN RED OAK 



1" FAS 3 -ars 



I" No. 1 Common 15 cars 



1" Sound Wormy S ears 



' No. 2 4 3 Common 10 cars 



5/4" No. I Com. & Btr. 



3 cars 



PLAIN WHITE OAK 



5/8" No. I Common I car 



5/8" No. 2 Common I car 



3/4" No. 1 Common I car 



I" No. I Common.. 10 cars 



i" No. 2 Common 5 cars 



PLAIN SAP GUM 

 5/8" No. 1 Com. 4 Btr. .. 12 cars 

 3/4" No. 1 Com. 4 Btr.... 5 cars 



4/4" FAS 10 cars 



4/4" No. I Common 15 cars 



4/4" No. 2 Common 10 cars 



5/4" FAS 10 cars 



5/4" No. I Common 15 cars 



5/4" No. 2 Common 5 cars 



MAGNOLIA 

 1" No. 1 4 No 2 .3 cars 



I f 'nihiiiii ft troHi iiiiijc 



'.- 1 



as allose'l. '!"■ iM-npi'i-t.v mI all linii's fnnii 11)12 tii I'.IIT hail a \a\w of 

 not It'ss than this sum. lii liH2 the iiniipany capitali/.L'd tlii' nre propert.v 

 ijii it< l)00ks at .^10.1i).">.40il anil in tic same yi'ar the old stuck of the 

 oompany, i-iinsistini; of a par value of i?;). ill."). 40(1. all of one class, was 

 called in: the charter ainendiil liy making the amount of the authorized 

 stock SlO.OOd.imo par value of cominon stock and .flil.dOO.non par value of 

 preferred stock. When Ihe old stock was turned in each stockholder re- 

 ceived In e-vcliangc one share of the new common stock and one share of 

 the new preferred stock for each sliare of his former stock. 



Tile Income Tax .Vet concerned In this case is the .\ct of OctoUer 3. 

 1017. whieli provided, under Title I. for the taking as an income tax 

 of certain iiercenta.nes of income cd' corporations, and individuals. Title 

 II of this .Vet provided for thi' levying of an excess profits tax on indi 

 viduals and coriiorations. 'I'lie theory of this excess profits tax was tiiat 

 after allowin;; a fair return of not less tlian 7 iirr cent nor more than 



per cent upon Invested capital, all the halance of tlie income should he 

 suhject to "excess prolits tax," the rates of tax running: up to (>u per cent. 

 Krom this it will he seen that im the invested cajiital of tlie taxpayer was 

 larw eniuiuh so tliat the net income did not exceed the 7 or !l per cent 

 on such Invested capital, tlien there were no excess profits to he taxed. 

 It wa.s, therefore. im|iiirtant that the invested capital of taxpayers he 

 made as larce as possible. 



Tlie term "Invested capital" is defined in Section 2117 •>< tlie l'.if7 .\et 

 which provides, to state the law, lu-ietly that "Invested capital' imlndcs : 



I. .\ctual cash paid in. 



II. Actual cash value of'tansildc proia'rty iialil In other than cash, 

 tor stock ipr shares in such corporations at the time of sucli payment 



1 but In case sticli tanglhle property was pai<i in )jriin- to .lantiary 1. 1014. 

 the actual cash value of such property as of .lanuary 1. 1014. but in no 

 case to excecHl the par value of the original stock or shares specilically 

 issued therefori and 



III. Paid in or earned surplus and undivided prolits nswl or employed 

 in the business, exclusive of undiviiled iirolits earned ilurins the taxable' 

 year. 



i.\rtlele 47 of liegulntion 41 relates to the "excess luolits tax" and 

 provides that the stocks wdien i)aid in for stctck or shares in a corporatioii 

 will he regarded as tangible property paid In.) 



The Government lakes the attitude that to dcterndne whether or not 

 this corponttlon made "excess profits" in 1017 the "Invested .capital" so 

 far as the property turned in for stock is concerned cannot, under the law. 

 exceed the pur value of the original stock issued, ov $0.01."i,4t'i'. 



The contentions of l.a 1 elh' Irtm \\'(irUs are as follows: 



I. The company is entitled \o include as paid in or earned surplus and 

 undivided profits the increase in the value of the ore lands. 



II. The stock of the company consisting of common stock par value 

 $0,U1."),400 and preferred stock par value $0.01.j.400 a total of $10,83t'.S(iO 

 issued in 1012 was fully paid for either by (1 1 the tangible assets, 

 including the ore-lands at their increased value, or (21 the certificates of 

 the old commcm stock. In cither case tangible projierty was paid in for 

 shares with an actual cash value eijual to .$10,S;!ti,wiii and the company 

 is entitled to include the full amount in its investtni capital, 



I'art 1 is the contention for which it is generally understood this case 

 stands as a ti^st case and that is that the taxpayer has a rigiit to include 

 in invested capital the appreciated value of capital assets used in his 

 business. 



My principal reason for stating as I have the facts in the La Belle 

 Iron Works case is to correct what appears to be the general impression 

 that the first contention stated al>ove is the only point at issue: whereas, 

 the fact is that the second contention is a very important one and it Is 

 possible that the case will be decided entirely upon the second contention, 

 igniaing contention No. 1. 



Inasmuch as this case has Iteen submitted to the Supreme t^ourt and is 

 pending a decision it would he ethically improper to enter into any dis- 

 cussion of the merits at this time. The statement here made, as indicated 

 above, is merely to place before the reader in a brief form the points 

 covered by the case. 



(Signed) L. C. BOYLC. 

 (Signed) H. I!, Mi-(\\wi.EY, (.■(ainsel. 



May 7, 1!I21, 

 Washington, 11. c. 



Northern Wholesalers Are Confident 



Market conditions, l)otli as applying to northern and southern 

 hardwoods, were carefully reviewed at the spring meeting of the 

 Northern Wholesale Hardwood Lumber Association, held in Milwau- 

 kee, Friday, Maj' 13. Some twenty-five members were in attendance, 

 and the ehstir was occupied by Theodore T. Jones of Minneapolis, 

 Minn., president of the association. In the absence of Secretary 

 J. F. Haydeu of Minneapolis, F. E. Andrews of the Stevens Jarvis 

 Lumber Company, Eau Claire, Wis., acted as secretary. 



