RESUME OF 
 HE FEDERAL 
 NCOME TAX 
 AW OF 1913 
 
 PREPARED FOR 
 
 >> lEmptrp (Erust (Cnmpami 
 NEW YORK CITY 
 
 BY PAUL H. HUDSON, C.P. A. 
 
Copyright, 1913 
 By Paul H. Hudson 
 
j'H'b -HJt 
 
 n l 
 
 H8fc8’ f 
 
 INDEX 
 
 
 PAGE 
 
 Foreword 5 
 
 Normal Tax on Individuals 6 
 
 Gross Income 6 
 
 Exemptions 6 
 
 Deductions . . ! 7 
 
 Additional Tax on Individuals . . . . 7 
 
 Returns Required 8 
 
 Assessment of Tax 9 
 
 Payment of Tax 9 
 
 Collection at Source 9 
 
 On Income over $3,000 per annum . . 9 
 
 On Bond Interest, Etc. of any amount 10 
 
 On Foreign Interest and Dividends . . 10 
 
 Exemption — How Secured 11 
 
 Certificate of Ownership .... 11 
 
 Certificate of Collecting Bank . . 11 
 
 Temporary Certificate 12 
 
 Tax-free Covenants 12 
 
 Income Tax on Corporations, Etc 13 
 
 15 
 
 . 16 
 
 Duties of Those Withholding Tax . 
 Illustration of Return of Individual 
 
 4 
 
 * 
 
 IB 
 
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FOREWORD 
 
 On the following pages we give a 
 synopsis of the principal features of the 
 Federal Income Tax Law which became 
 effective on October 4th, 1913, and im- 
 poses a tax upon incomes received from 
 March 1st, last. 
 
 This synopsis is especially designed for 
 perusal by busy people who wish to be 
 informed as clearly and succinctly as pos- 
 sible as to the scope and application of the 
 law, in order to know what, if anything, 
 is required of them or the corporations 
 they represent. 
 
 A study of the full text of the law and 
 the regulations of the Treasury De- 
 partment may be desired by those 
 of large means, or varied interests, or by 
 their attorneys, but such a study may be 
 accomplished with greater ease after read- 
 ing a brief resume of the law such as is 
 presented in this pamphlet. 
 
RESUME OF THE 
 
 FEDERAL INCOME TAX LAW 
 
 The law may be readily divided into 
 two parts, one relating to the tax imposed 
 on individuals, including certain provisions 
 for the collection of this tax at the source, 
 and the other to the tax on corporations. 
 
 THE NORMAL TAX 
 
 ON INDIVIDUALS 
 
 The tax upon individuals is imposed 
 upon three classes of persons: 
 
 A — Citizens of the United States, 
 whether resident or non-resident. 
 
 B — Aliens residing in the United States. 
 
 C — Persons residing elsewhere, but 
 having income from property or carrying 
 on a business, trade or profession in the 
 United States. 
 
 TAXABLE NET INCOME 
 DEFINED 
 
 Taxable net income may be defined as 
 gross income (excluding exemptions) less 
 allowable deductions. 
 
 Gross income includes gains, profits and 
 income from every conceivable source, in- 
 cluding a share of profits of a partner- 
 ship to which the individual would be en- 
 titled if divided, whether divided or not, 
 but does not include the following ex- 
 emptions : 
 
 (1) Property acquired by gift, bequest, 
 devise, or descent. 
 
 (2) Proceeds of life insurance policies 
 received by beneficiaries. 
 
 (3) Amounts returned to an insured at 
 the maturity or upon the surrender of en- 
 dowment or annuity contracts. 
 
 (4) Interest upon obligations of a State 
 or any political subdivision thereof. 
 
 (5) Interest upon obligations of the 
 United States or its possessions. 
 
 (6) The compensation of the President 
 of the United States for the present elec- 
 tive term, and of the judges of the United 
 States courts now in office. 
 
 (7) The compensation of all officers and * 
 employees of a State or any political sub- 
 division thereof, except when paid by the 
 United States Government. 
 
 6 
 
DEDUCTIONS ALLOWABLE 
 
 From the gross income of an individual 
 as above, certain specified deductions are 
 allowed, the remainder Leing the taxable 
 net income upon which the normal tax is 
 levied. These deductions are: 
 
 (1) Necessary expenses actually paid 
 in carrying on a business. 
 
 (2) Interest paid on indebtedness. 
 
 (3) Taxes paid, not including assess- 
 ments against local benefits. 
 
 (4) Losses actually sustained in trade 
 or arising from fires, storms or shipwreck, 
 and not compensated for by insurance or 
 otherwise. 
 
 (5) Debts due to the taxpayer actually 
 ascertained to be worthless and charged 
 off within the year. 
 
 (6) A reasonable allowance for depre- 
 ciation of property used in business and a 
 limited allowance for depletion of mines. 
 
 (7) Amounts received as dividends 
 from taxable corporations. 
 
 (8) Amounts of incomes upon which 
 the tax has been paid at the source, if 
 such amounts exceed $3,000. 
 
 No deduction is allowed for personal, 
 living, or family expenses, but every per- 
 son may deduct from his or her net in- 
 come $3,000 if living alone, or $4,000 if 
 living with wife or husband. Only one 
 deduction of $4,000 is allowed from the 
 aggregate income of both husband and 
 wife when living together. 
 
 ADDITIONAL TAX 
 ON INDIVIDUALS 
 
 Individuals are subject to a normal tax 
 and an additional tax. The normal tax is 
 1 % upon all net income over the specific 
 deduction of $3,000 or $4,000 as the case 
 may be. The additional tax is imposed 
 only when the total net income of a person 
 exceeds $20,000. In computing net income 
 for the purpose of the additional tax de- 
 ductions (7) and (8) above enumerated 
 are not allowable, and the law is not 
 clear as to whether the specific de- 
 duction of $3,000 or $4,000 is allowable. 
 There must be included the share to which 
 a taxpayer would be entitled of the gains 
 and profits whether distributed or not of 
 all corporations, associations, etc., availed 
 
of for the purpose of preventing imposi- 
 tion of the tax by permitting such profits 
 to accumulate instead of being distributed. 
 The additional tax is graduated from one 
 per cent, to six per cent, as follows : 
 
 On the amount by which the taxable net 
 income, as above, 
 
 exceeds 
 
 $20,000 
 
 but 
 
 not $50,000, 
 
 i.e., 
 
 $30,000. . 
 
 ..1% 
 
 ii 
 
 50,000 
 
 U 
 
 “ 75,000, 
 
 i.e., 
 
 25,000. . , 
 
 ..2% 
 
 « 
 
 75,000 
 
 « 
 
 “ 100,000, 
 
 i.e.. 
 
 25,000... 
 
 ..3% 
 
 « 
 
 100,000 
 
 « 
 
 “ 250,000, 
 
 i.e., 
 
 150,000... 
 
 ..4% 
 
 « 
 
 250,000 
 
 u 
 
 “ 500,000, 
 
 i.e., 
 
 250,000. . , 
 
 ..5% 
 
 U 
 
 500,000 
 
 
 
 
 
 
 RETURNS REQUIRED 
 
 Persons having a net income not ex- 
 ceeding $3,000 need make no returns. 
 Persons whose net income is $3,000 or 
 more, but does not exceed $20,000, will 
 not be required to make returns if the 
 whole of such income is derived from divi- 
 dends on stock, or from salary or other 
 items upon which the whole of the tax 
 has been paid at the source. Partner- 
 ships need not make returns of their in- 
 come as the individual partners must ac- 
 count for all income of the partnership, 
 but on request of the Commissioner of 
 Internal Revenue, partnerships are re- 
 quired to report their profits and the 
 names of those who would be entitled to 
 the distribution of the same. 
 
 With the exceptions above enumerated, 
 all persons of lawful age must make re- 
 turns as described below, on or before 
 March 1st. 
 
 Guardians, trustees, executors, adminis- 
 trators, agents, receivers, conservators, 
 and all persons, corporations, or associa- 
 tions acting in any fiduciary capacity, are 
 required to make a return for the person 
 for whom they act, of the net income com- 
 ing into their custody or control and man- 
 agement from March 1, 1913. 
 
 Returns of personal income must be} 
 made in such form as the Commissioner 
 of Internal Revenue shall prescribe, set- 
 ting forth specifically the gross income 
 (but not the “exemptions”) and the de- 
 ductions authorized, on or before March 
 1st in each year, covering the income for 
 the preceding calendar year. The return 
 for the year 1913 shall include only in- 
 come received on and after March 1st, 
 8 
 
1913, and only five-sixths of the specific 
 deductions provided for. 
 
 All persons, firms, corporations, etc., in 
 whatever capacity acting, having the con- 
 trol, receipt, disposal, or payment of fixed 
 or determinable annual or periodical 
 gains, profits, and income, if over $3,000, 
 of another person subject to the tax are 
 required to make and render a return, 
 separate and distinct, of the portion of 
 the income of each person from which 
 they have deducted the normal tax of one 
 per cent, on and after November 1, 1913, 
 containing the name and address of such 
 person or stating that the name and ad- 
 dress are unknown. 
 
 The returns are filed with the Collector 
 of Internal Revenue for the district in 
 which the person making the return re- 
 sides, or has his principal place of busi- 
 ness. Severe penalties are provided for 
 failure to file the return or for making 
 false or fraudulent returns or representa- 
 tions. 
 
 ASSESSMENT AND PAYMENT 
 OF TAX 
 
 After the return is filed with the Col- 
 lector of Internal Revenue it is forwarded 
 to Washington, where the Commissioner 
 of Internal Revenue makes the assess- 
 ment, notice of which is sent to the tax- 
 payer on or before June 1st of each year, 
 and the tax must be paid on or before 
 June 30th. If unpaid after ten days' 
 notice and demand by the Collector a 
 penalty of five per centum on the amount 
 of the tax is added with interest at the 
 rate of one per centum per month, except 
 from the estates of insane, deceased or 
 insolvent persons. 
 
 COLLECTION OF NORMAL 
 TAX AT THE SOURCE 
 
 All persons, firms, co-partnerships, com- 
 panies, corporations, joint stock com- 
 panies or associations and insurance com- 
 panies, in whatever capacity acting, in- 
 cluding lessees or mortgagors of real or 
 personal property, trustees acting in any 
 trust capacity, executors, administrators, 
 agents, receivers, conservators, employers, 
 
and others, having the control, receipt, 
 custody, disposal, or payment of interest, 
 rent, salaries, wages, premiums, annuities, 
 compensations, remuneration, emolu- 
 ments, or other fixed or determinable an- 
 nual gains, profits and income of another 
 person, exceeding $3,000 for any taxable 
 year, other than dividends on capital stock 
 of corporations, etc., are required to de- 
 duct and withhold such sums as will be 
 sufficient to pay the normal tax, and are 
 each made personally liable therefor. But 
 such tax need not be withheld prior to 
 November 1st, 1913. 
 
 If the person whose tax is so withheld 
 desires to receive the benefit of the spe- 
 cific deduction of $3,000 or $4,000, as the 
 case may be, he must file a signed notice 
 with the person or corporation required to 
 withhold the tax, claiming the benefit of 
 such deduction. This notice must be filed 
 at least thirty days before March 1st in 
 each year. If he wishes to obtain the 
 benefit of the other deductions permitted 
 by the law from his gross income he may 
 either file with the person required to 
 withhold the tax, a return of his income 
 from all sources and of the deductions 
 asked for, or he may file such return with 
 the Collector of the district in which re- 
 turn is to be made for him not less than 
 thirty days before March 1st in each year. 
 
 Unless deduction is claimed by signed 
 notice as above stated, the normal tax of 
 1% must be deducted and withheld at the 
 source from fixed or determinable annual 
 income derived from interest on bonds, 
 and mortgages, or deeds of trust, or other 
 similar obligations of corporations, 
 whether such interest is more or less than 
 $3,000. (Not, however, upon the obliga- 
 tions of the United States, or its posses- 
 sions, or of any State or political subdi- 
 vision thereof.) 
 
 The same requirement as to deduction 
 from any amount, great or small, applies 
 to coupons, etc., in payment of interest 
 upon bonds of foreign countries and upon 
 foreign mortgages, or like obligations, not 
 payable in the United States ; also to divi- 
 dends on stock or interest upon the obli- 
 gations of foreign corporations engaged 
 in business in foreign countries. This 
 tax must be deducted by the banker or 
 person who shall sell or otherwise realize 
 10 
 
such coupons, checks or bills of exchange, 
 but applies only when such coupons, etc., 
 are not payable in the United States. Per- 
 sons, firms or corporations undertaking as 
 a matter of business the collection of for- 
 eign payments of such interest or divi- 
 dends are required to obtain a license from 
 the Commissioner of Internal Revenue 
 under penalty of a fine or imprisonment. 
 
 REGULATIONS OF 
 TREASURY DEPARTMENT 
 
 The regulations issued by the Treasury 
 Department require all coupons to be ac- 
 companied by a separate certificate of 
 ownership for each bond issue, executed 
 by the individual, partner or corporation 
 owning the bonds from which such cou- 
 pons have been detached. 
 
 This certificate, if executed by an indi- 
 vidual who is a citizen or resident of the 
 United States, must state the amount of 
 the deduction claimed by the owner as a 
 part of the $3,000 or $4,000 to which he 
 may be entitled or that such deduction is 
 not claimed, as the case may be. 
 
 Care should be exercised by an indi- 
 vidual or member of a firm to see that the 
 total of exemption claimed by such cer- 
 tificates during any one calendar year 
 does not exceed $3,000 or $4,000, as 
 the case may be, or five-sixths thereof 
 during the period ending December 31, 
 1913. 
 
 In the certificate of ownership covering 
 coupons detached from bonds owned by a 
 corporation or other organization or by a 
 non-resident alien, claim is made in every 
 case for an exemption of the whole amount 
 as none of the income from bonds so 
 owned need be deducted at the source. 
 
 Upon receipt of coupons accompanied 
 by certificates of ownership the debtor 
 corporation or its paying agent will be 
 responsible for the deduction and with- 
 holding of such normal income tax as may 
 not be covered by claims to exemption. 
 
 Where coupons are not accompanied by 
 a certificate of ownership, the first bank 
 3 or other agency receiving them for collec- 
 tion or otherwise must execute and attach 
 a certificate giving the name and address 
 of the owner or person presenting such 
 f coupons and acknowledging responsibility 
 
 li 
 
for deducting and withholding the normal 
 tax thereon. 
 
 In respect to fully registered bonds, 
 similar certificates to those above de- 
 scribed must be filed with the debtor cor- 
 poration or its paying agent at least five 
 days before such interest matures. The 
 normal tax must be deducted and with- 
 held from all payments of such registered 
 interest until such time (not later than 
 30 days before March 1st) as proper cer- 
 tificates claiming exemption are filed. 
 
 No tax is required to be withheld on 
 coupons maturing and payable before 
 March 1, 1913, although presented for 
 payment at a later date. 
 
 Coupons, checks, bills of exchange, etc., 
 in payment of interest upon bonds issued 
 in foreign countries and upon foreign 
 mortgages, etc., and for dividends or in- 
 terest of foreign corporations may be 
 purchased or collected only by those 
 licensed by the Commissioner of Internal 
 Revenue, and such persons shall deduct 
 and withhold the normal income tax upon 
 such coupons, etc., and indorse or stamp 
 thereon the fact that the tax has been 
 withheld. If exemption is claimed with 
 respect to these items by means of the 
 certificates of ownership above described, 
 no tax will be withheld and the items will 
 be indorsed or stamped “Income Tax Ex- 
 emption Claimed.” 
 
 A temporary provision for the relief of 
 those presenting coupons on November 1, 
 1913, or within fifteen days thereafter 
 which are not accompanied by certificates 
 of ownership allows the person or bank 
 presenting them to attach a certificate 
 stating the name and address of the 
 owner, or if not known, so stating. The 
 tax on such coupons will be deducted and 
 withheld, but may be recovered by the 
 owner upon his filing with the debtor cor- 
 poration dr its paying agent, on or before 
 February 1, 1914, a certificate of owner- 
 ship claiming the exemption to which he 
 may be entitled. 
 
 The bonds of many corporations con- 
 tain a provision that the interest shall be 
 paid free from all taxes. In such cases 
 it is probable that the debtor corpora- 
 tion, upon receiving coupons accompanied 
 by certificates of ownership claiming no 
 exemption, will pay such coupons in full 
 12 
 
and themselves set aside the amount re- 
 quired to pay the normal tax thereon. 
 
 INCOME TAX ON 
 CORPORATIONS, ETC. 
 
 The corporation tax law of 1909 is re- 
 enacted to cover the first two months of 
 1913, and the new law imposes a tax from 
 March 1st, 1913. in both cases, net in- 
 come is to be determined as provided in 
 the new law, and the income for the first 
 two months will be considered one-sixth 
 of the income for the calendar year 1913. 
 One return, however, may be made cover- 
 ing both the excise tax and the income 
 tax for the year 1913, and one assessment 
 by the Commissioner of Internal Revenue 
 will cover both taxes. 
 
 The scope of the new law, in its appli- 
 cation to corporations, is much broader 
 than that of the old. The only classes of 
 corporations excepted from the applica- 
 tion of the new law, briefly speaking, are 
 labor, agricultural or horticultural orga- 
 nizations, mutual saving banks not having 
 a capital stock represented by shares, fra- 
 ternal beneficiary societies, domestic build- 
 ing and loan associations, corporations 
 organized and operated exclusively for 
 religious, charitable, scientific or educa- 
 tional purposes, business leagues, cham- 
 bers of commerce, boards of trade and 
 civic leagues, when such corporations or 
 associations are not operated for profit 
 and the net income does not inure to the 
 benefit of any private individual. 
 
 Under the old law, certain conditions 
 were necessary to make corporations tax- 
 able — they had to be organized for profit, 
 have a capital stock represented by shares, 
 and be engaged in business. They were 
 entitled to deduct $5,000 from their net 
 income; dividends received by one corpo- 
 ration upon the stock held in other cor- 
 porations also subject to the tax, were 
 permitted to be deducted. The new law 
 does not require that the corporation shall 
 be engaged in business, permits no deduc- 
 tion of net income and permits no deduc- 
 / tion of income received from dividends of 
 other corporations. 
 
 The deductions permitted from the 
 gross income under the new law are prac- 
 * tically the same as those heretofore per- 
 
 13 
 
mitted under the excise tax law. The 
 more important changes are that the law 
 now expressly provides for a reasonable 
 allowance to be made for depletion of ores 
 and natural deposits, not exceeding, how- 
 ever, five per cent, of the gross value at 
 the mines of the output for the year. Also 
 a corporation may now deduct from the 
 gross amount of its income “the amount of 
 interest accrued and paid within the year 
 on its indebtedness to an amount of such 
 indebtedness not exceeding one-half of the 
 sum of its interest bearing indebtedness 
 and its paid up capital stock outstanding 
 at the close of the year, or if no capital 
 stock, the amount of interest paid within 
 the year on an amount of its indebtedness 
 not exceeding the amount of capital em- 
 ployed in the business at the close of the 
 year.” Formerly interest paid on bonded 
 or other indebtedness was deductible only 
 to an amount of indebtedness not exceed- 
 ing the issued capital stock of the com- 
 pany. The law also provides that in case 
 of indebtedness wholly secured by col- 
 lateral, the subject of sale in ordinary 
 business, the total interest secured and 
 paid may be deducted as a part of the ex- 
 pense of doing business. 
 
 Life insurance companies are author- 
 ized to exclude from their net incomes the 
 so-called dividends on policies paid back 
 or credited to the holders thereof or 
 treated as an abatement of premium of 
 such policyholders. 
 
 In the case of bonds or other indebted- 
 ness which have been issued with a guar- 
 anty that the interest payable thereon 
 shall be free from taxation, no deduction 
 for the payment of the tax is allowed. 
 
 Returns by corporations shall be made 
 as heretofore on or before the first day of 
 March in each year, and extensions of 
 'time may be obtained not exceeding thirty 
 days if failure to file the return in time is 
 occasioned by sickness or absence of an 
 officer or other good reason. One import- 
 ant change from the former law is that 
 corporations may, by filing proper notice 
 with the Collector, file their return within 
 sixty days after the close of their fiscal 
 year, and may report income received dur- 
 ing such fiscal year, instead of during the 
 calendar year. 
 
 14 
 
The tax of corporations filing their re- 
 turns of net income on or before March 
 1st shall be assessed on or before June 1st 
 and paid on or before June 30th next fol- 
 lowing. Corporations which have been 
 permitted to make returns within sixty 
 days after the close of their fiscal years 
 are required to pay their taxes within one 
 hundred and twenty days after the days 
 on which their returns of income are re- 
 quired to be filed. 
 
 The law contains provisions applicable 
 to mutual fire and marine insurance com- 
 panies. 
 
 DUTIES OF THOSE 
 WITHHOLDING AT SOURCE 
 
 The attention of officers of corporations 
 and other persons is especially directed to 
 the provisions of this law relating to the 
 collection at the source. On every pay- 
 ment to an individual or partnership of 
 rent or of salary exceeding $3,000 per an- 
 num, on every payment of interest on the 
 bonds or other similar obligations of a 
 corporation regardless of amount, to men- 
 tion only a few specific instances, there 
 must be withheld and paid to the Collector 
 of Internal Revenue an amount sufficient 
 to pay the normal tax thereon. In each 
 case where a deduction is made, the indi- 
 vidual or corporation withholding must 
 list the amount so deducted, and give the 
 name and address of the person from 
 whose income the deduction was made. 
 Failure to so withhold the tax will make 
 the corporation or person liable for the 
 amount. Corporations and individuals 
 will also be charged with receiving and 
 filing notices of exemption and returns 
 of income of employees, bondholders and 
 others who may claim deductions from 
 the taxes paid for them. 
 
 15 
 
ILLUSTRATION OF RETURN OF 
 INDIVIDUAL FOR NORMAL AND 
 ADDITIONAL INCOME TAX 
 
 EXEMPTIONS 
 
 (Which are excluded from Gross Income) 
 
 1. Legacy received $25,000 
 
 2. Received on life insurance policy 
 
 surrendered 10,000 
 
 3. Interest on United States bonds 4,000 
 
 4. Interest on State and Municipal 
 
 bonds 7,000 
 
 5. Salary as officer or employee of 
 
 State or City 3,000 
 
 Total Income Exempted $49,000 
 
 GROSS INCOME 
 
 6. Salary from domestic corporation $12,000 
 
 7. Gross income from own busi- 
 
 ness *, 75,000 
 
 8. Share of profits in firm whether 
 
 divided or not . 5,000 
 
 9. Dividends on stock of domestic 
 
 corporation 18,000 
 
 10. Dividends on stock of foreign 
 
 corporation collected through 
 agent in United States 7,000 
 
 11. Interest on bonds of domestic 
 
 corporation whether “tax 
 free” or not 8,000 
 
 12. Interest on bonds of foreign 
 
 corporation collected through 
 agent in United States 3,500 
 
 13. Rent from tenant of store 7,500 
 
 14. Rents from office building, each 
 
 tenant paying less than $3,000 
 
 per annum 45,000 
 
 Gross Income Returnable.. $181,000 
 
 DEDUCTIONS 
 
 15. Expenses of conducting own 
 
 business $50,000 
 
 16. Expenses of office building 10,000 
 
 17. Interest or personal indebtedness 1,000 
 
 18. Interest on real estate mort- 
 
 gages 2,000 
 
 19. Taxes on business, real estate, 
 
 income, etc., except local as- 
 sessments 1,500 
 
 20. Loss sustained in business, unin- 
 
 sured 5,000 
 
 21. Bad debts charged off 3,000 
 
 22. Depreciation of office building, 
 
 etc 2,000 
 
 23. Repairs but not betterments to 
 
 office building 1,000 
 
 16 
 
DEDUCTIONS — Continued 
 
 24. Dividends received (income 
 
 item 9 only) 18,000 
 
 25. Income taxed at source: 
 
 6. Salary $12,000 
 
 10. Foreign dividends col- 
 
 lected through agent in 
 United States 7,000 
 
 11. Interest on bonds (Reg- 
 istered or Coupon) 8,000 
 
 12. Interest on foreign 
 
 bonds (collected 
 through agent in 
 United States) 3,500 
 
 13. Rent from tenant pay- 
 
 ing over $3,000 per an- 
 num 7,500 
 
 38,000 
 
 26. Specific deduction 3,000 
 
 27. Additional specific deduction if 
 
 living with wife 1,000 
 
 Total deductions for normal tax 
 
 TAXABLE NET INCOME— 
 
 (for normal tax) 
 
 Normal tax to be paid by individual, 1% 
 
 thereon 
 
 Normal tax paid at source, 1% on item 25, 
 $38,000 
 
 ADDITIONAL TAX— 
 
 Taxable net income for normal tax.. $45,500 
 Add deductions not allowable when 
 computing additional tax: 
 
 24. Dividends (Income item 9) 18,000 
 
 25. Income taxed at source (Income 
 
 items 6, 10, 11, 12 and 13).... 38,000 
 
 26. )Specific deductions according to 
 
 27. ) opinion of Deputy Commis- 
 
 sioner of Internal Revenue 
 Speer. See bottom of page 7.. 4,000 
 
 TAXABLE NET INCOME— 
 
 (for additional tax) $105,500 
 
 Computation of additional tax: 
 
 On amount by which $105,500 
 exceeds — 
 
 $20,000 but not $50,000, i.e., $30,000, 1 % 300 
 
 50.000 “ “ 75,000, i.e., 25,000,2% 500 
 
 75.000 “ “ 100,000, i.e., 25,000,3% '750 
 
 100,000 “ “ 250,000, i.e., 5,500,4% 220 
 
 Total additional tax 
 TOTAL INCOME TAX 
 
 i 
 
 $135,500 
 
 $ 45,500 
 
 $ 455 
 
 S80 
 
 $ 1,770 
 $ 2,605 
 
 4 
 
 17 
 
lEmptrr ®ntst (Compang 
 
 •Dfow fork 
 
 CONDENSED STATEMENT OF CONDITION 
 OCTOBER lO. 1913 
 
 RESOURCES 
 
 Cash in Vault and Banks 
 
 $9,321,347.98 
 
 N.y. State and City bonds . 
 
 1,594,565.00 
 
 Other bonds and Stocks 
 
 3,532,471.40 
 
 loans 
 
 11,967,222.27 
 
 Bonds and Mortgages . 
 
 933,134.43 
 
 Real Estate 
 
 519,497.19 
 
 Accrued Interest Receivable and 
 
 
 Other Assets .... 
 
 234,518.57 
 
 
 $28,102,756.84 
 
 LIABILITIES 
 
 
 Capital Stock ..... 
 
 $1,500,000.00 
 
 Surplus and Undivided Profits 
 
 1,579,040.11 
 
 Reserved for Accrued Interest, 
 
 
 Taxes, Rents, etc. . . 
 
 183,579.59 
 
 DEPOSITS 
 
 24,840,137.14 
 
 $28,102,756.84 
 
 This Company is the Fiscal Agent of the State of 
 New York for the Sale of Stock Transfer Tax Stamps 
 
3 0112 061603608 
 
 iEmptr? ®rust (Enmpami 
 
 Nno $nrk 
 
 MAIN OFFICE: 42 BROADWAY 
 
 BRANCH OFFICES: 
 
 580 FIFTH AVENUE 65 CEDAR STREET 
 
 242 EAST HOUSTON STREET 
 
 LONDON, E. C. 
 
 DASHWOOD HOUSE— 9 NEW BROAD STREET 
 
 OFFICERS 
 
 LE ROY W. BALDWIN. 
 President 
 
 WILLIAM H. ENGLISH. 
 Vice-President 
 
 FRANCIS HENDERSON. 
 Vice-President 
 
 W. BARTON BALDWIN. 
 Treasurer 
 
 WILLIAM McKINNY. 
 Trust Officer 
 
 EUGENE MILLER, 
 Asst. Secretary 
 
 EDWARD A. LYON. 
 Asst. Secretary 
 
 HENRY P. TALMADGE 
 Vice-President 
 
 FRED'K L. ELDRIDGE 
 Vice-President 
 
 MYRON J. BROWN. 
 Secretary 
 
 EDWARD C. WILSON. 
 Asst. Treasurer 
 
 PAUL H. HUDSON. 
 Asst. Secretary 
 
 BOYD G. CURTS. 
 
 Asst. Trust Officer’ 
 
 W. H. PARKER. 
 London Secretary 
 
 DIRECTORS 
 
 WILLIAM O. ALLISON 
 JULES S. BACHE 
 LE ROY W. BALDWIN 
 WILLIAM A. BARBER 
 C. VANDERBILT BARTON 
 T. COLEMAN DU PONT 
 WILLIAM H. ENGLISH 
 NEWMAN ERB 
 HENRY S. FLEMING 
 CLEMENT A. GRISCOM, Jr. 
 H. H. HARRISON 
 
 AUGUST HECKSCHER 
 ROBERT E.^JEN NINGS- 
 MINOR C. KEITH 
 PERCIVAL KUHNE 
 PIERRE LORILLARD 
 WARD E. PEARSON 
 HENRY A. ROBBINS 
 H. P. ROBBINS 
 CHARLES M. SCHWAB! 
 THOMAS F. SMITH 
 HENRY P. TALMADGE 
 
 CHARLES H. ZEHNDER