Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-01
BANKS ALL At SEA
OVER INCOME TAX
Constant Flood of Questions to
Which No Answer Has
Been Given.
WAITING ON TREASURY
FOR OFFICIAL RULINGS
Lack of Understanding of Law
Makes the Transaction of
Business Difficult.

new income tax law found the banks of
the District of Columbia I'm a greatly
InuddIed state. But this condition Of af-
fairs did not pertain to the local financial
institutions alone. for advices received
by Washington bankers from all sections
of the country told of the utter inability
OF bankers to unrlyel the intricacies Of the
new law.
we are completely muddled, and il
probably will be some time before affairs
pertaining to the collection of the tax on
incomes are made clear said one bank
er. 1T viii be necessary for the Treas
ury Department to issue further instruc-
tons regarding the operation of the law
before We can tell just how to proceed.
New questions are arising every minute
which we viii be powerless to answer
until we get a better knowledge of the
law"
The committee of the Bankers Asso-
citation OF the District which has been
investigating the income tax law is still
lard at work endeavor!ng to prepare in
structions for the guidance of the local
ankerS.
Committee Meets Today.
! meeting of the committee will be
ield in the Office of Charles j. Bell. presi-
dent OF the American Security and Trust
Company. this afternoon to go over the
latest regulations and instructions issued
by the Treasury regarding rents and in
terest. This committee is composed of Nj.
IL. Rosenberg. chairman, representing the
savings banks: George T.. Fleming. rep
resenting the trust companies. and III. II.
Mckee, representing the national banks.
At this meeting the committee will pre-
pare a report concerning the Treasury
regulations and instructions regarding
rents and interest. such as was done in
the case Of the coupon bonds. The date
OF meeting to be called of the entire
membership of the District Bankers AS
socfation probably will be decided at this
meeting. Should the committee decide
that IL now has at hand SUFFICIENT in
formation On which to prepare instruc-
tions for the local bankers the meeting
VIII be held within the next day or so.
Otherw1se. the committee will wait until
additional information is received from
she Treasury Department before calling
the bankers together.
3. T. Saul. president of the Bankers
association, today said that the banks of
New York We're as much muddled regard
ing the income tax as those of Wash
ington.
Lawyers Not Agreed.
ent views are held concerning one phase
or the income tax by each Of three Well
known attorneys employed by one Of the
big New York institutions. said Mr.
saul Il have heard of another instance
wnere TWO attorneys employed by trust
company have made a bet concerning the
interpretation Of one clause They hold
views that are entirely different They
nave decided to wait until final ruling
IS made by the Treasury Department in
order to settle their bet"
Inquiry among the local financial inst.-
tutions today found tine trust companies
IN more OF a muddled state than either
the savings or national banks. In one
Dig trust company a large force of clerks
vas Kept hard at work yesterday up until
II o'clock at night ascertaining just what
trust accounts held by the bank will be
affected by the new law.
At ) o'clock this morning the same
cree OF clerks started to work again
lhey expect to work until l. o'clock to-
night. and probably will spend all of to-
morrow at the work
AZ most OF the banks certain officials
nave been detailed to answer inquiries of
patrons regarding the new tax For the
past three weeks or more such INQUIRIES
nave been received. but during the past
day or so their number has greatly in
creased
we have not received any more in
case for the past several days" said
George w. White, president of the Ma
ttonaI metropolitan Bank, but are look
lng for big day Monday. We will not
Dc able TO give very definite Instructions
or answer Inquiries with any great
amount of accuracy until all the regula-
tons concerning the new tax have been
issued by the Treasury and time has been
had to study them.''
Troubles Begin Early.
Bright and early this morning Presi-
dent Charles J. Bell of the American
Security and Trust Company began to
nave his troubles concerning the new
tax One OF the first pieces of mail
opened by him was letter from a New
York corporation containing two checks
representing interest on debenture GER
tihcates. One was for only 20 cents
and the other for a considerable amount
One was made payable to a citizen of
this country and the other to foreigner
living here. Both checks bore type
written notice that the l per cent tax
corporation. Mr.. Bell was of the opinion
that this deduction should have been
made by the bank to which the checks
were forwarded. He said the matter
was one of the many which will require
a ruling by the Treasury.
Mr.. Bell cited another question concern
ing coupon bond which was puzzltng
He said he had just had called to his at
tention coupon bond held by the bank
for an estate in which three persons
share alike The interest called for by the
coupon is SO. In forwarding II to New
York for collection there was attached
TO II certificate of exemption from
each of the three persons who share in
the estate. He said he did not know
Just what view the New York institution
would take on the matter. as that bank
might be OF the opinion that but one GER
tncate should have accompanied the
coupon. Mr. Bell thought il should be
accompanied by. certificate of exemption
from each of the three persons. A ruling
on this phase OF the new law will have
10 oe mace by the Treasury, he said. be-
fore banks will know just what method
to follow. 1t often happens that as many
as hity persons share in the interest on
bonds held In trust by trust companies.
Jne Treasury may rule that each OF these
5fty people will have 10 file certificate
OF exemption before such interest can be
collected. no said.