Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-05-10
NO SERVICE CHARGE ON
CAECKSAFTER JUNE IS
BY 7. A. FLEMING.

The service charge now in force
through the federal reserve system Tor
the collection of checgs. amounting to
and IN cents an item. will be sus-
pended on and after June Is.
This applies to checks received from
member banks and other regional re-
serve banks.
The federal reserve board is taking
steps to install special wire connection
between the twelve regional reserve
banks and the board in this city.
This action is evidently designed with
a view to facilitate the settlement OF
balances between regional banks and
for the further advancement and pro-
lection of par collections.
Moreover. it is within the POSSIBLE
tiles that the action is another push IN
the growing shove to force the state
banking institutions over the top into
the federal reserve fold.
The transfer Of credits by wire for
the regional reserve banks free of
charge is another strong argument for
membership in the system.
Chapter Election.
At the annual election of Washing
81 ]. Mcouade was chosen president.
Ross E. Pollok vice president, Fred
erick E. Stenens secretary and A.
Donough. assistant secretary, and A.
A. Savage treasurer. Victor Deyber
was chosen chief consul, all. without
opposition.
From a list of twenty-one candidates
Frank Devereaux. Roy Neuhauser. c. L.
Eckloff, c. L. Gable and Harry P. White
were chosen as members of the board
Of governors.
D. ]. Callahan on Railway Board.
At a meeting of the board of di-
fectors Of the Washington Railway and
Electric Company held yesterday after
noon q. J, Callahan. prominent busi-
ness man Of Washington. was elected
nation Of Clarence P. King. The cleo
ton to the boards Of the Potomac Elec-
trio and subsidiary corporations of the
Washington Railway and Electric Com
pany followed.
Tax Status of the 8 lbs.
The following letter has been re-
ceived from the commissioner of in
ternal revenue:
Reference is made to your letter
requesting a ruling under section 10 (b)
Of the act of September s. 1915. as
amended. relative to undistributed
earnings which have been invested in
first liberty loan 81: per cent bonds.
In reply, you are advised that the net
income of taxable corporation in
vested in 31s per cent liberty bonds is
not subject to the 10 per cent tax on
undistributed income if the amount SO
invested is employed by the corpora
ton in its business or, it can be shown
to have been necessarily retained to
meet the reasonable requirements of
the business of the corporation, but it
does not necessarily follow that the
undistributed net income of a taxable
-Hear if invested in 3s per cent liberty
bonds is not subject to such tax.
II the amount OF the investment in
~ per cent liberty bonds Is not en-
ployed in the business of the corpora
ton, nor retained to meet its reason
able requirements. and remains undis-
tributed six months after the close of
its taxable year. the fact that it is in
vested in 3H per cent liberty bonds
would not relieve the corporation from
the payment of the 10 per cent tax on
undistrfbuted net income.
(sisned) DANIEL C. ROPER.
Commissioner. !.
LAnston Dividend in Script.
Directors of the Lanston Monotype
Company have ordered dividend, pay
able in script. Of IL per cent, the latter
maturing in one year, May 81. 1919, and
bearing per cent interest, payable semi
annually. November 30 and at maturity,
May u, 1919. for the benefit of share
holders OF record May Il. on which date
the books close.
The company reserves the right to call
in the script at any time on two weeks
notice.
Stockholders were somewhat sur
prised BY the declaration. having an
tfcipated no change whatever in the
regular cash distribution for the quar-
ter.
1t is within the probabilities that the
corporation would rather pay interest
on its script for one year than to draw
down Its cash in bank and enter the
market as a borrower 1t is understood
that the manufacture of war material
forms q large part of the business of
the company, and it may be that much
material has to be carried until con-
tracts are finished.
The balance sheet submitted at the
annual meeting week ago showed
cash on hand and in bank as ss37696S
which might have caused some question
regarding the probability of cash
dividend, as each quarterly distribution