NEGROES MAKE UP COMPLETE COMPLEMENT OF NURSES AT SAN LUIS OBISPO
Negro nurses now make up the complete complement of nurses on the
Staff of the Station Hospital, Camp San Luis Obispo, California. First
Lieutenant Daisy R. Evans. Wilmington. Delaware, heads the contingent
•>f 19 Negro officers of the Army Nurse Corps. Unusual promptness with
which the new officers have fitted themselves into their varied assign
merits Is emphasized by Colonel Frank W. Pinger, Post Surgeon: ‘‘Readi
7. is on the part of our recently assigned Negro nursing staff in taking j
its immensely important place within our organization is a source ofj
gratification to me personally, and I believe I can speak for all person.'
nel who serve, or are served by, hte hospital.” Left photo shows Chief.
™™™■■■■■■■■™^™■■■■■™^■■■■"^
.Nrse Evans (seated) checking duty assignments with Lieutenant Bar
bara McDonald, Detroit, Michigan. In center photo, Lieutenant Gwyneth
Blessit. Mt. Vernon New York takes the temperature pulse and respir
ation of an orthopedic patient. At right Lieutenant Elgecia Ball (right
Birmingham, Alabama, is shown checking diets with a civilian hospital
i mess attendant. (U.S. Signal Corps photos from BPR)
PUBLIC WANTS MORE AND MORE HEALTH PROTECTION
17,000,000 Blue Cross Plan Members Want To Help You Get
This Security... Will You Let Them?
-— !
Program is “A Vital and Democratic Link
in Social Security emphasizing public service,
But Utilizing Private Initiative.”
“The federal government might make grants-in
aid to the states for the encouragement and assist
ance of voluntary insurance efforts, such as the
Blue Cross Plans,” Louis H. Pink, President of the
Associated Hospital Service of New York, suggests
in The Story of Blue Cross on the Road to Better
Health facilities are least satisfactory. Federal
assistance should be used to enrich hospital and
medical care in every respect, both in the provision
of facilities and encouragement of methods for fin
ancing the care.”
The public wants more and more health protec
tion, the pamphlet finds; it wants its doctor bills
prepaid as well as its hospital bills; it wants pre
ventive as well as curative service; and it favors
the gradual and sould extension of social security.
These demands call for a broad national health
program, Mr. Pink points out—one that “implies a
working partnership between federal, state and lo
~cal government and all efficient and well-directed
voluntary efforts, such as medical schools, dental
J clinics, research institutions, medical societies, Blue
Cross Plans, voluntary hospitals, visiting nurse as
sociations, and fraternal, social, and educational
bodies.”
In a nation-wide health program, the Blue Cross
Plan and other voluntary insurance plans for hos
pital and health care will undoubtedly continue to
play a large part, the author feels, for they are “a
vital and democratic link in social security, .emphas
izing publii servant, but utilizing private initiative.’
According to Mr. Pink, Blue Cross Plans through
out the nation are working for adoption of a nation
al contract so that the heads of national business
__L3
DARK SKIN . . .
BLACKHEADS . . .
PIMPLES
(Externally Caused)
THEN READ EVERY WORD
ABOUT THIS AMAZINC
*»7IWSSS!
DR. FRED PALMER’S
SKIN WHITENER
^LIGHTEN
Whether your complexion is nat- -n- — _
ur:H,ytdari^ ,mea1U!? or 1i,2ht TANNED BJ |l | Ml
ana is tanned too dark as well as r\AOU B I Va
weather-beaten, coarse, blotchy IJrlKK LB II B L «■
or disfigured by externally m^® ™
caused pimples, blemishes and blackheads, here's good news The
original, genuine Dr. Fred Palmer’s Skin Whitener helps lighten
and brighten tanned skin. It starts its bleaching work the minute it is
applied. There is new hope to win a lighter, brighter, softer, smoother
complexion . . . you can loosen blackheads for easy removal. Make
this 7 Days’ test. Leant why thousands of folks depend on Dr Fred
Palmer’s Skin Whitener for skin beauty. Get a 25c box from your
druggist. Use 7 Days as directed. If not satisfied. Your
Money Back.
GALENOL CO., BOX 264, ATLANTA. GA.
Also try Dr. Fred Palmer’s Skin Delight Soap and
Dr. Fred Palmer's Vanishing Cream. Each 25c at
druggists.
>-—
organizations can offer uniform Blue Cross cover
age which will protect their employees in plants
' scattered throughout the country.
Mr. Pink also suggests that “the larger Blue
Cross Plans might well join with hospitals, the med
ical profession, foundations, and other welfare a
| gencies in the financial support of diagnostic cent
ers. If 1 percent of their income were devoted to
preventive medicine, the expenditure would be jus
tified as a practical deterrent to illness and hospit
alization.”
The Blue Cross Plans have grown phenomenally.
In the last eight years, the membership has increas
ed from half a million to 17,000,000 subscribers; and
the number of Blue Cross Plans throughout the
country is now seventy-five. At its present rate of
expansion, Blue Cross expects to double its mem
bership and thus protect more than 35,000,000 sub
scribers within the next six years.
The growth in membership has been accompan
ied by increased payments to hospitals, expanded
benefits, and better service, including X-ray, labor
atory, and other special services. And in addition
to the plans for hospital care, there are now nine
teen plans for prepaid medical care affiliated with
Blue Cross organizations.
The Story of Blue Cross on the Road to Better
Health, by Louis II. Pink, is pamphlet No. 101 in the
series of popular, factual, ten cent pamphlets pub
lished by the Public Affairs Committee, Inc., a non
profit, educational organization at 30 Rockefeller
Plaza, New York 20, N. Y.
i— ■ t'- — 1 — »■— -1' »■ —1» .. . i
I'- . 1 " =r
Accountant*s
P-H WEEKLY
Newsletter
★—if—A
• Facts and Figures
You Should Know
About.
PAYMENTS TO EMPLOYEES IN
ARMED SERVICES! Salary Stabil
ization Unit has ruled on the ques
tion of compensating former em
ployees now serving in the armed
forces (SSU 83, 3-5-45, P-H Labor,
Paragraph 77X9). Employer may
pay, without approval, up to the
higher of:
(a) the amount paid under em
ployer’s practice in effect prior to
Oct. 3, 1942 (salaries over $5,000) or
Oct. 27, 1942 (salaries $5,000 or less)
or
(b) employee’s annual salary im
mediately prior to induction.
• Subject to the above limita
tions, employer may increase the a
mount already being paid to such
employees. Presumably, payment
may be decreased or discontinued
entirely.
Bonuses: SSU also rules that a
bonus may be paid without approv
al if it does not exceed the bonus
to which the serviceman would
have been entitled (under SSU reg
ulations) had he remained in his
job.
Do you suffer
from MONTHLY
NERVOUS TENSION
with its weak, tired feelings?
If functional periodic disturbances
make you feel nervous, tired, restless— |
at such times—try this great medicine '
—Lydia E. Plnkham's Vegetable Com
pound to relieve such symptoms. Taken
regularly—It helps build up resistance
against such distress. Also a grand
stomachic tonic. Follow label directions.
£.0*vnJdumC& compound
WLB rules: Employer may con
tinue without approval all or part
of wages of former employee now
in military service (Interp. Bill.
No. 4). With respect to bonus pay
ments to such employees, no limit
ation is placed upon the amount,
(GO 10. A).
...INCOME TAX: Bureau of Inter
nal Revenue will allow, as an in
come tax deduction., payments to
employees in the armed forces if
such payments are reasonable, ac
cording to its most recent ruling
(Letter, 3-14-45; see also IT 3417).
It is immaterial that employer had
no prior plan of making such pay
ments. This modifies a prior rul
ing that no deduction was allowable
unless payments were made under
plan which did not discriminate in
favor of particular employee.
PAYROLL TAXES: Such salary
payments are not subject to Feder
al social security taxes. Income
tax, however, must be withheld by
the former employer. (Letter, 7-20
-44). In this connection, note that
the old Form W-4 withholding re
ceipt is not effective in 1945. Thus
if former employee has not filed a
Form W-4 (Rev.) for 1945, employ
er must withhold as if no exemp
tions iwere claimed. Presumably,
if a W-4 (Rev.) was filed, it must
be given effect even though the
serviceman is no longer employed.
SALE OF CORPORATE ASSETS—
DOUBLE TAXATION: Where a cor
porator! sells its assets at a profit
and then liquidates, there is a !
double tax:
A. The corporation is taxed on
its gain:
B. The stockholders have a tax
able gain, if the amount received ex
ceeds the bases of their shares.
A favorite device employed to
eliminate the corporate tax is to
transfer the assets to the stock
holders in kind and have them as
individuals make the ale. It v.es
thereby thought that the corporate
tax v'ould be eliminated.
In teh first case on this quest'd
to reach the Supreme Court, cor
poration had orally agreed to sell
but broke off negotiations and tran
sferred its assets to its stockhold
ers. They shortly sold to the pros
pective purchasers nominee upon
terms substantially the same as the
oral agreement. The Court holds
j that the form of the sale will be
I disregarded and the corporation tax
ed where the facts show that in
substance the corporation is the sel
ler (Comm. v. Court Holding Co.,
3-21-45, P-H Fed. Tax, Paragraph
72,020).
The Court had before it only the
question of the corporation’s tax.
It viewed the transaction as a plan
to avoid that tax. The fact that
the transaction “viewed as a whole’
from the standpoint of both corpor
ation and shareholders merely had
for its purpose avoidance of one of
two taxes was not considered.
• The best method of preventing
double taxation of the gain is for
the shareholders to sell their stock
to the prospective purchasers if
this is practicable. This method
results in taxable gains only to
the shareholders. In any case in
which the plan is to sell assets
there is a possibility that the cor
poration will be taxed, as well as
the shareholders, regardless of how
the plan is carried out.
TIME FOR DEDUCTING RETRO
ACTIVE WAGE INCREASES! Bur
eau of Internal Revenue officially
rules (IT 3716. P-H Fed. Tax. Para
graph 76,140):
1. Where an employer is willing
and able to pay retroactive wage
increases requiring the approval of
the War Labor Board, such wage!
are accruable and deductiable in
the year the application for approv
al is filed to the extent that they
relate to services renderd in that
yar and prior years.
2. Where the employer contests
the proposed increases they are ac
cruable and deductible in the year
in which the controversy is settled.
3. The foregoing principles are
equally applicable to wage or sal
ary increases requiring the approv
al of the Salary Stabilization Unit
or the War Foods Administrator.
• Early in 1944, the Bureau is
sued several letter rulings to the ef
feet that in voluntary cases the in
crease should be deducted in the
year in which the services were
rendered. Taxpayers who filed re.
turns on such basis should file a
mended returns; also claims for re
fund for any of the years in which
the deduction is increased under the
principle of the new ruling.
• Of course, a cash basis taxpay
er can deduct such items only in
the year the retroactive wyages are
paid.
FEDERAL TAXATION
Property Dividend—Effect on
Earnings and Profits: Where ac
cumulated earnings exceed the am
ount of a dividend distribution, the
dividends are fully taxable to
stockholders because it is assumed
the dviidends are paid from earn
ings (as distinguished from divid
ends paid from capital which are
nontaxable) (IRC. j 115 (a).
A recent Tax Court decision sug
gests a method of materially reduc.
ing stockholder’s taxes, provided
the corporation has property which
has creased in value Merrill Co. 4
TC No. 115, P-H Fed. Tax, q 74,304
Facts: Earning and profits were
$138,500. Corporation distributed
to stockholders property which cost
it $1 14,000. but which was worth
only $500. Later corporation dis
tributed $00,000 in cash
Held: (1) $00.000 u 1st r bufion , it
dividend only to "he ext -it of $23,
000. (!) Stockholders •■! •• r - • \
ed dividend incoi”“ < f ■' f,0 tie : 1
ue of the property rece■ vt 1.
Reasoning: While the $500 prop
erty dividend is taxable to the stock
holders only to the extent i f the
value of the property at the time
of receipt, earnings and profits un
reduced bv the cost (adjusted
necessary) of the property distrib
uted. Hence at the time the cash
was distributed, the earnings ava..
able for dividends were only $21.
000 ($138,500—$114,000_|_ $500).
• That part of the cash not tax
able as a dividend, i. e., $36,000, is
a recovery of capital, applied to re.
duce the bases of the stockholders’
shares and nontaxable until It ex
ceeds the basis. Any excess is tax
able as a capital gain (IRC, (115 (d
BASIS—EFFECT OF COURT DE
CISION: Not infrequently, a third
party (for instance, a customer or
supplier) makes a contribution to
ward the cost of taxpayer’s plant
or other facilities. Such contribu
tion is not includible in the cost
basis upon which to compute de
preciation (Detroit-Edison, 319 US
98).
Prior to the Detroit-Edison dec
ision, in the case of another taxpay.
er, the Fourt Circuit held (129 F.
(2d) 762) that the basis for deprec
iation did include such a contribu
tion. The decision became final.
Even though such decision is ob
viously erroneous, it is binding on
the Commissoner, the Tax Court
holds. Hence, such taxpayer may
contnue to compute its depreciation
deduction by including the contri
bution as part of its cost (Arundel
Brooks, 4 TC No. 113, P-H Fed.
Tax (jj 74,302). Presumably, the
basis to compute gain or loss on
sale would also include the contri
bution.
• If the unadjusted basis has
been established by a final court
decision, it continues to be the un
adjusted absis in the absence of
new legislation or facts affecting
the situation.
DEATH OF SERVICEMAN—TAX
REI.IEF: Where a serviceman or
woman dies while in active service:
1. His or her Federal income
tax for the year in which death oc
curs is cancelled, and
2. Any unpaid Federal income
taxes for prior years, whether on
military or civilian income, are for
given (IRC, J 421, P-H Fed. Tax, <J
20,102).
A person is In active service if
actually serving In the military or
naval forces. This relief is yriven
whether death results from military
service or front natural causes.
• If the serviceman paid any es
timated tax or had any tax with
held from him tor the year in
which death occurs, his estate is
entitled to a refund. Refund can
be obtained by filing a return with
proof of death during tne taxable
year.
PAYMENTS TO A THIRD PARTY
—WHEN INCOME: Taxpayer (cash
basis) sold property in considerat
ion of the purchaser paying taxpay
er's debt to another. The purchas
er gave notes to the creditor which
h accepted only as further collat
eral for taxpayer's debt. The not
es were not paid until a later tax
year. Tax Court held that taxpay
er constructively received the am
ount of the notes in the year they
were given. Circuit Court, howev.
er, reverses and holds that taxpay
er's gain on the transaction should
not be taken into account until the
taxable year in which the notes
were paid. (D. D. Oil Co., CCA- (5),
P-H Fed. Tax. q 72,391).
WASH SAI.ES—“FITtHEV'iTile
loss on a wash sale is not deduct
ible (except by a "dealer"); a
days before or after a sale taxpay
"wash sale” occurs when within 30
er purchases substantially identic
al stock or “securities" as those
sold (IRC, J 118).
Taxpayer purchased commodity
"futures”. Held: Such contracts
are “securities” and taxpayer's loss
on a sale must be disallowed if he
purchases a substantially identic
al contract within the specified
time (Trenton Cotton Oil Co., Ct'A
(6), P-H Fed. Tax, q 72,371).
I.Alton LAWS AMI PAYKOLL TAV
KS—Wiice-llour Division Invades
Intrastate Commerce: Production
of goods for use within the same
state may be covered by the Wage.
Hour Law. At least, a new inter
pretation of the Wage-Hour Divis
ion so states (Rel. A-14, 2-13-45, F
H. Labor, «J 12,381).
It is the Division’s view that pro
duction of goods used intrastate 1:
nevertheless covered by t£ie Act
if the goods are produced to sup
ply, aid, facilitate or to serve as an
integral part of interstate com
merce. The Division cites as ex
amples the production of:
Ice, electric energy, railroad ties
crushed rock, bituminous aggre
A HUMAN RELATION COLUMN WHEREIN THE TROUBLED
IN MIND AND HEART CAN SEEK COUNSEL AND GUIDANCE
^ote: Don’t worry needlessly ... when your mind is weighted down with worry
•nd you feel the need of guidance, and the counsel of an understanding friend
Pl***e write. Your problem will be analyzed in the paper free . . . just include a
dipping of the column with your letter. For a "private reply” send 25c for
ABBE’S 1944 INSPIRATIONAL READING. With each Reading, you will receive
free a personal letter of sound and constructive advice analyzing three (S) ques
tions. Please send a stamped (Jc) envelope for your confidential reply, and sign
your fuU name, address and birthdate to all letters. Explain your case fully and
confine your problems within the realm of reason. Write to . . .
THE ABBE' WALLACE SERVICE
POST OFFICE BOX II —«• ATLANTA. GEORGIA ,
ABBE’S NEW 1®45 READINGS ARE NOW BEADY
M. C. S. I am a regular reader of(
your column. I have been married
six years. 1 feel bad most of the time ]
and it has gotten to the place that
when I wake up in the morning I
am cross and don't answer my hus.
band as I should. I have two child
ren and their fuss worries me too.
The only time I feel good is when I
am on a job but I haven't been to
work lately. I am 24 years old and it
worries me the way I act and feel.
Help me.
Ans: Untill you acquire self con- I
trol and become master of your
emotions these outburst of temper
will continue to grow more frequent
and more serious. Each time that
you give way to your feelings serv
es to make the habit stronger and
harder to break. If yor are extremly
nervous then there must be a reason
for it. Go to your doctor for a com
plete checkup and follow the in
structions he gives you closely.
Your husband and your children are
essential to your happiness and you
must force yourself, if it does not
come voluntarily, to be agreeable
and pleasant to live with. Put your
family's needs and desires ahead of
your own and in so doing, you will
find happiness for yourself.
W. R. I see where you give lots of
people sound advice. 1 am married
and have been for about 14 years. I
am in love with another lady. I
started with both of them about the
same time but I love the one I am
not married to better than the one I
am married to and she is married
but she said she loved me and acts
like it. Tell me what to do?
Ans: As a husband you have failed
miserably. All of these years you
have divided your affection between
two women and haven't given your
wife a chance to make you happy A
person can't find happiness in mar
——■ ■— —■
gate, ready-mixed concrete tele
phone and telegraph poles, and
similar items used by interstate
railroads, highways, telegraph or
telephone companies, pipelines, air
ports, harbors, and the like.
• Employers affected are given
until April 15, 1945 to modify their
operating methods to conform to
the new interpretation. No gov
ernment enforcement action will be
taken prior to that date.
Legal Status of WMC Directives!
In first court action involving War
Manpower Commission controls.
Federal District Court (Mass.)
holds that WMC directives are not
orders but merely official recom
mendations (England v. Devine, 3
5-45, P-H Labor, <] 2235). Hence,
the Court is without powep to en
join their issuance or declare their
invalidity.
• Other Courts have reached the
same conclusion regarding War
Labor Board “orders".
Employers, however, cannot safe
ly ignore WMC directives. As
pointed out by the Court, if owner
disregarded directive, “some exe
cutive agency might seize the mill,
curtail its supplies or alter its pri
orities”. If workef disregarded
directive, “some executive agency
might induce other employers not
to hire him or might induct him in
to the armed services.”
wage Adjustments Because of
Curfew: Employers may apply for
pay adjustments made necessary by
“midnight curfew" for places of en
tertainment (Rel. B-1986, F. H. I^a
bor, q 7727). National War Labor
Board has authorized Regional
Boards to approve “reasonable and
equitable” adjustments by estab
lishments whose operating hours
have been curtailed by the curfew.
Furthermore, Regional Boards, may
upon securing specific permission
from National Board, issue general
authorization for pay adjustments
by specific groups.
Effect of KeconverKiun on Wage
Scales: WLB notified company no
approval was necessary to continue
high wage scale after reconversion
(Dunbar Furniture Mfg. Co.. Rel.
B-1979, P-H Labor, q 7722). Com
pany had resumed present rates.
Board's ruling was based on find
ing that job content remained sub- !
stantially the same.
Discriminatory Discharge: ( . ».
Supreme Court has refused to dis
turb 6th CCA enforcement of NLRB
order that employer reinstate,
without back pay, employee who
had been discriminatorily dicharg
ed (Ohio Public Service Co., 3-12.
45. P-H Labor, q 15,676.3; 17,439).
Back pay was not ordered because
employee had failed to register at
USES or make other reasonable ef
fort to obtain employment.
Homeworkers in Ebroldery Indus
try: Wage-Hour Administrator stat
es that, following Supreme Court
decision in Gemsco (2-26-46), firms
subject to Embroidery Industry
wage order must stop employing
homeworkers who do not have the
required certificates (Rel. PR-58
P-H Labor, q 12,380). Until April
15, 1945, court proceedings will not
be brought against firms who give
satisfactory assurance of future
compliance.
STATUTE OF' LIMITATIONS: _
Washington State's highest court
rules that Wage-Hour claims are
rlage if he refuses to put into mar
riage that what he expects to get
out of it. You have played a dual
role long enough and you must
make a final decision and stick by it
You loved your wife, else you would
not have chosen her in the beginn
ing. Why not give up the outside
woman and give your wife a chance
for happiness.
O.M.D. I am going with two girls
which I care for Which girl should I
devote my time to? I don't like one
of the girl's disposition but the other
girl has a sweet disposition Advise
me what to do?
Ans: Frown upon the girl with
a sour disposition. People who go
around with a chip on their should
er live a miserable life and make
those around them miserable.
Whether your intentions are ser
ious or other wise, it is always best
to choose your friends from among
those who are congenial to yourself.
G. L. J. Please help me to decide
what to do I am in love with a mar
ried man. We have been going to
gether for 7 months. His wife and I
had a little misunderstanding once.
Now she doesn't like me at all. I
really love him and don't know
.what to do. Give me some advice.
Ans: Would you relish the idea of
sharing your husband with another
woman if you were married? I am
sure that you would not. You may
not intentionally want to break up
this other home but if you continue
this relationship, that is exactly
what you will be doing. Be sensible
and give this man up immediately.
Then make it a point to encourage
only the single men. It won't take
you but a short time to forget this
man entirely.
- 1 ^ ... 1
subject to 2-year restriction im
posed by "catch-all” clause of state
statute of limitations (Cannon v.
Miller, (Wash. Sup. Ct.). P-H La
bor. tj 12,384). Three-year limit
for contract actions does not apply
since, although action is of con
tractural nature, claims arise
strictly under the Wage-Hour sta
tute and would not otherwise exist.
Withholding Receipt—I IMn vers
ion: In our February 26th issue, we
stated that employer must give his
social security identification num
ber on withholding receipts for
wages paid in 1945. While the
form calls for this information, a
letter ruling (1-31-45) of the Bur
eau states that, although the nuni
ber would be helpful to it, the Bur
eau does not require employer to
state it.
GOVERN WENT CONTRACTS
Percentage of Profit Bonuses —
Renegotiation: The Salary Stabiliz
ation Unit has revoked ruling (SSU
69) that payment of a bonus based
on percentage of profits required
the Unit's approval if the profits
were subsequently reduced through
renegotiation (SSU 86, P-H Labor,
6829. Revocation means: employers
are free to pay such bonuses with
out danger that the payment will
be an unlawful salary increase in
the event of reduction of profits
provided the bonus is paid under a
contract or practice in effect prior
an October 3, 1942. Revocation does
not mean: (1) that an employer
who had no such contract or pract
ice may establish a system of per
centage bonuses with approval; (2)
bonus paid under such a contract
will necessarily be an income tax
deduction. The payment to be de
ductible must be reasonable and
necessary within the meaning of
Section 23 (a) of the Code.
PRODUCTION ADJUSTMENT PRO
GRAM:
To carry out Director Byrnes*
broad general policies with respect
to cutbacks and terminations, WPG
1 has established a Production Read
justment Committee (Directive 40
P-H Government Contracets, par.
34,515). The Committee will oper
ate through two subdiary groups,
the Current Production Adjustment
Division (responsible for handling
adjustments required by current
cutbacks) and the Period Adjust
ments Group (responsible for cut
backs expected after V-E Day).
Know Your State
Traffic Laws...
The dice are loaded against you
when you "roll" too close to the ve
hicle ahead. It's a losing game
blind and dangerious drivingf with
everything to lose and nothing to
win.
The state law requires that a
driver of an automobile is not to
follow another vehicle more closjly
that is reasonable and proper. Speed
amount of traffic and condition of
the highway is to be considered in
determining a safe follow distance
When one truck is following an
other on the highway, it must keep
a distance of three hundred feet in
the rear .
Watch for next week's traffic law
tip. as it's smart to be safe.
Nebraska Safety Patrol
