SEP 4 1985 



A SIDE LIGHT ON 1927-28 BUSINESS 

 ACTIVITY IN MONTANA 



Profits of 884 business firms in Montana paying corporation 

 license tax during the fiscal year ending June 30, 1928 on basis of 

 the tax ratio were $24,901,427 above exemption allowances. For the 

 same period ending June 30, 1927, the profits of 745 firms on the same 

 basis were $28,120,957. For the same period in 1925-26 there were 

 807 firms with profits of $29,057,933 while for the same period 1924-25 

 a total of 662 firms indicated profits above exemptions of $23,909,918. 



These data are based on a statement of corporation license tax 

 compiled by the State Board of Equalization. Analysis of the dis- 

 tribution of the returns shows that while the indicated profits above 

 exemptions for the total number of firms reporting to June 30, 1928, 

 was about 4 million dollars less than for all firms reporting to June 

 30, 1927, there were 198 firms which indicate a total of about 6 mil- 

 lion dollars less profits compared with the preceding year while 686 

 firms reporting indicated about 3 million dollars more profits com- 

 pared with the preceding year. 



The large bulk of the decrease is further shown to have come 

 in the mining, milling and smelting lines and in railroads and trans- 

 portation companies. There was less activity in mining lines while 

 in case of the railroads replacement expenses apparently offset a 

 larger volume of business as reflected in the carloadings both years. 

 Other lines showed decreases include principally creameries and dairy 

 products, drugs, furniture and carpets, auto sales accessories, etc., 

 laundries, light and power, lumber and stationers and publishers. 



On the other side of the picture there is an Impressive array of 

 26 business lines out of a total of 38 reporting that all show increased 

 profits over the preceding fiscal period. Leading lines are general 

 merchandise. Hour, millers, banks, real estate, oil production, etc., 

 grocers, insurance, foundry and machine shops, teaming, storage and 

 transfer, and incorporated farming and livestock enterprises. 



The incorporated farmer and stockman for 67 firms reporting 

 shows taxes on profits of $878,407 or a gain of $314,002 for the year 

 while 52 banks indicate profits of $423,211 with a gain of $149,966 

 for the year. The elevator business represented by 34 firms indicated 

 profits for the year of $233,116 or a gain of $14,977; the grocers 

 represented by 37 firms indicated profits for the year of $456,032 or 

 a gain of $153,826. 



Not only does the incorporated farmer and stockman compare 

 very favorably with other business lines but during the past four 

 fiscal years of the statement has increased the number of his tax 

 paying corporations from 39 in 1924 to 67 in 1928. Each successive 

 year of this period also shows a gross gain while the per firm profits 

 as indicated increased from $9,639 in 1924 to $13,110 for the fiscal 

 year just ended and were as high as $16,389 in 1925. 



Compared with other business lines the average or per firm 

 profits of incorporated farmers and stockmen exceeded those of 

 amusement companies, banks, electrical n achinery and supplies, fruit 

 and produce, grain and elevators, retail and wholesale grocers, hard- 

 ware, lumber, coal, etc., hotels and restaurants, tobacconists, under- 

 takers, laundries, drugs, boots and shoes, packers and butchers, real 

 estate and insurance, stationers and publishers, auto sales and sup- 

 plies, furniture and carpets, and creamery and dairy products. They 

 were exceeded in turn by bakers and confectioners, contractors, flour 

 millers, general merchandise, light and power, lumber manufacturers, 

 mining and milling, railroad and transportation companies, telephone 

 and telegraph and teaming and transfer. 



