Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-08

Red Cross.
Immediately following this action
bank examiner of the fifth district.
and presumably those of all other
districts. called the attention of ma
tional banks to the amendment and
suggested that they at once call their
directors together and take action
banks were asked to Immediately
notify ]. Shelton Williams, controller
of the currency, as to the action of
the directors and the amount of sub
scription voted.
Many banks made their contribution
and so notified the official named.
Pay Tax on Donations.
When the time came to prepare in
credit for the contribution to the Red
Cross. Congress having given the per-
nit to donate.
An opinion handed down by the At
torney General. May 10, 1919, sets
forth the fact, that while the action
of Congress in this matter, did allow
deductions for organized charities by
individuals. it did not give this right
to banks or corporations, and that
the reason therefor. as shown by the
debate in Congress. was that lit
would not be wise to permit directors
stockholders. even to such a laudable
purpose as the Rel Cross"
Treasury decision 2S47 followed
corporations are not entitled to de-
duction from gross earnings, of the
amounts donated to religious. scien-
tifc of educational associations. al
though such contributions have been
made to the Red Cross or other war
activities.
Naturally some of the liberal donors
to the Red Cross find that they are
compelled to pay very heavy income
generosity.
Nearly Equal to Gift.
on a $4,000 donation, anonther paid
$4,000 on $4,000 gift and other large
taxes were paid. depending on the
gross earning of the institution, as
the tax mounts to the so per cent
class. where the earnings are very
large.
Some of the large corporations like
the United States Steel Corporation
gave millions 10 organized charity.
1t will take experts to compute its
tax on donations. as also on the
gifts of many other companies. but 1t
appears that the tax will have to be
paid just the same.
Union Pacific's Fine Showing.
Union Pacific system under federal
operation showed in 1918 the largest
it's history. the largest net railway
operating revenue and the largest
percentage of net earnings on in
vestment in road and equipment since
the year ended June 80, 1910. Not
increased nearly $4,000. 00Oy the sys-
tenn earned 8.3 per cent, against "A
per cent in 1917 on the smaller invest
ment. This is not only an excep-
tional showing for Union Pacaf1c, but
it is an unusual showing among all
the railroad systems of the country.
Trying to Figure It Out.
The street is full of talk of bank
consultations. rumor making free
with various fiscal institutions DOM
iciled near the Commercial National
Bank, frequently naming next to impos-
sible mergers and unions.
The only actual development of the
week was the purchase and sale of
5000 shares of Commercial National
Bank stock at 5000 a share, not a
high price for such big block Of
stock, with $1S5 the market price.
block of stock. but Is somewhat at
sea on the buyers. Boston and New
York interests are said to be back of
the purchase on the strength of the
future of Washington and probably
with intent to add to their holdings
and improve their value at the same
time.
Interests identified with the CONT
mental Trust Company of this city
figured in the transaction. but it is
claimed that the action was in the
nature of a temporary accommoda-
personal or trust company interest.
An Encouraging Sign.
Two local savings banks have An
creased their dividends during the
past week. the Security Savings and
Commercial Bank goes on a IL per
cent annual basis. and the East Wash
ington Savings Bank on per cent
basis; one per cent and the other
a l per cent increase.
Bank shares generally give promise
of advancing.
Riding for a Fall.
There is every indication that the
public is riding for a fall and riding
hard in the New York stock market.
Happy, confident, joyous over max
ing large profits in stock speculation,
spectators hesitate to take in their
gains and refuse to take a well
earned rest. pushing on after the last
dollar. History repeats itself. Wild
fifty years in the New York stock
market at least. has always been fol-
lowed by the militant "shake-out"
and this whirlwind generally returns