EARNINGS: Lo, fhe Poor Stockholder

While many corporations seem superficially to be making big money, there is more than one reason why stockholders see only a fraction of it. First, up to 72% of 1941 earnings on stockholders' property were taken in Federal corporation taxes (a levy from which bondholders escape scot-free). Another large hunk is often set aside for special reserves. Sometimes the desire to escape excess-profits taxes may be behind these reserves, but no man can tell, until he knows how bad the war and post-war world will be, whether corporations are being too conservativeĀ—or not conservative enough.

This table shows the per-share...

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