New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-02
NO RUSH FOR INTEREST
SHOWN IN WALL STREET
Apparent Apathy Caused by
Confusion Attending CoIIeC-
ton of Income Tax at Source.
FEW COUPONS PRESENTED
Banks and Trust Companies
Usually Making Largest Pay
ments Say Number Fell
Off 80 Per Cent.

Those who expected TO see a large army
of investors crowding the corridors OF the
big financial institutions of wall street
Yesterday TO present coupons for pay
ment of the $S0OO0.0O0 interest due on NO
vember / were disappointed The con-
fusion attendant on the collection OF the
income tax "at the source" and the igno-
rance Of bondholders regarding the proper
method Of filling out the certificates re-
oulred by the Treasury Department were
the causes that brought about this ap-
parent lack of interest on the part of the
investing public.
Banks and trust companies where ordi-
narily the largest payments are made said
that the number of coupons presented
were 80 per cent below normal. In order
10 facilitate the handling Of the coupons
the certificates issued by the Treasury
Department early in the week were ac-
copied, as we'll as the amended certh-
cate conforming to the latest government
regulation. In some instances, however
a delay in the payment Of the coupons
was advised until tomorrow. This was
the attitude assumed by the Central
Trust Company.
fiscal agent for many out-of-town banks,
said that these institutions had rendered
valuable assistance in depositing coupons
early enough to have the interest checks
ready for payment on schedule time. The
First National Bank has also had little
difficulty in complying with the income
tax regulations. These two banks, as
with several others in the financial dis
trict, are accepting the original ceruh-
Gates to accompany the coupons, and are
not holding out on the exemption clause
subsequently inserted by the Treasury
Department.
Although a majority of the banking
houses acting as fiscal agents are paying
: the November interest without insisting
! on the amended individual certificate. sew
! eral Of them have decided TO pay nothing
| on the coupons unless a certificate is at
I tached. In these institutions the con-
struction Of the law is that the govern
: ment intended to order presentation oil
: the certificate with every coupon so that
, it could be assisted in computing the
amount of the tax.
Difference of opinion exists over the
legality of payment on coupons not &C
companied by a certificate conforming
with the Treasury regulations. The
greater number of the banking houses
however, have decided to pay SO per cent
i'm such cases, Withholding l per cent for
payment of the government
number of corporations have re-
auested their fiscal agents TO insist on
certificate with every payment Of interest
Among these are the United States Steel
CORPORATION and the Lehigh Valley Rail
road. These instructions the banks do
not consider binding. In the cases men
toned. it was stated, the bankers will
pay 90 per cent whether or not ceru-
fcate accompanies the coupon.
The Bankers Trust Company paid in
terest yesterday on every coupon pre-
scented. 1t was said, however. that GER
tihcates Of ownership were received IN
all cases, and where they were not in
accordance with the latest government
regulation the corrected certificates have
been requested, but the payment OF the
bonds was not delayed on this account.
In spite of the fact that the Bankers
Trust had between 10000 and 10000 cou-
pons for payment, no extra help was
taken on.
Corporations which guaranteed their
! bonds free from any deduction for income
tax have notified this trust company that
they will meet the income tax for their
bondholders, and as a result the interest
| on the coupons presented was paid in
! full. The certificates of ownership are
being turned over to the corporations TO
aid them in computing the amount of
tax they will have to pay.
j. P. Morgan & Co. were among those
institutions which have not decided TO
insist upon the presentation of the amend
ed individual certificate as prerequisite
10 payment on coupons due yesterday.