Among the papers in the Ransom Center are documents related to Houdini's finances. Here is Houdini's––or rather, Ehrich Weiss'––balance sheet for 1911. This shows his total income for that year was $117,851.27. According to the CPI Inflation Calculator, this is equivalent to $3,675,421.35 in 2022. And this is before there was such a thing as income tax. Not too shabby, Ehrich!
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I'm curious what kind of "House Maintenance" cost $7,912.13 ($246,667.73 today). I know at some point Houdini added a new heating system to 278. Maybe this is that?
If you're curious about the names at the bottom of the expense column: W.G. Weiss is Houdini's brother, Bill; Mrs. Cecelia Weiss is his mother; Miss Carrie Weiss is his sister; and Mrs. Rahner is Bess's mother.
Stay tuned for "More Treasures of the Harry Ransom Center."
Was this an average year?
ReplyDeleteThe HRC has several of these from around this same time and from what I remember they are all around this same general amount. The only other one I photographed was 1912 and it shows $120,643.02.
DeleteThis statement shows all income from all sources: Bond value and interest as an example. Also Home value and appreciation as well as expenses. The closest thing to his income as an entertainer is “income” of around $105,000. Perry from NJ.
ReplyDeleteSo the top of the page to the left are Houdinis assets. Home, bonds etc. Assume the balance at the bottom of this list would be their total value at of the balance sheet/income statement date. Top right you are seeing these assets original value when acquired added to these assets appreciation amount as of the balance sheet date. Of course both columns balance.
ReplyDeleteBottom of page is the income statement. Interestingly expenses are considered spent income. On the left bottom they are adding asset appreciation (GAIN) PLUS expenses to determine total INCOME.
Bottom right I assume you are seeing actual income. This is derived from the GAIN and EXPENSE amounts recalculated and recategorized.
Again the interesting thing is that expenses are not a deduction as they are today. Instead expenses are considered spent income. So Houdini earned around $117,000 but spent $32,760 as expenses doing business with a NET Income of around $85,000.
Perry from NJ.
Thanks Perry. You know that "Personal Exp." of $18,097.92 seems unusually large. I wonder if the construction of the Water Torture Cell, said to have cost $10,000, is in here?
DeleteI don’t see another place it could be included so yes.
DeleteI would expect since their were no income tax in those days this is why expenses are not used as deductions. Everything is considered income just categorized as spent income during the year (expenses) or as net income (termed as GAIN). Gain plus expenses equal total income for the year. Perry from NJ.
Perry from NJ, can you do my taxes?
ReplyDeleteHaha. Me too!
DeleteI’m always amazed by your continuous research John ! Thank you and Happy International Escapology Day !
ReplyDeleteThank you Andrew!
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