Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-15

1918 Amendment to Income
Tax Law Important-Ask
Subscriptions.
ny /. A. FLEMING.


There are thousands Of laymen not
engaged in the stock or BOND business
directly who take more or less frequent
Flyers in the stock and grain markets
for profit. Hundreds of these seem to
be under the impression that the law OF
1916 with regard to profits made and
losses sustained In the stock market is
still in force.
The very heavy selling to take losses
the last few weeks created the impress
sion in some circles that the losses were
to be taken in income tax payments
from profits made earlier in the year
Frequently one would hear the express
sion, "but there were not many profits
made during the early months of the
year. certainly not enough to offset the
losses from March on to date
The amendment to the revenue Law
profit the right to take his losses and
then deduct the same fron%bny income
from whatever source received.
This is why the selling to take
profits has been SO aggressive. Many
holders of securities have not taken
by actual selling of the securities. and
in the event of a desire to continue to
hold the security for the long-expect-
ed Comeback the buying order may
be placed at the time of giving the
selling commission. but the actual
be made.
The amendment will make big diff
ference In the 1920 tax returns, for the
losses, since March 1 have been heavy
and they are being very generally
taken.
Likewise, a business firm, corpora
ton or Individual purchasing a truck
for use in business and selling at a
loss may take loss. less deprecia-
ton. But losses like this. and those
ally, may be taken only after actual
sale of the merchandise or goods OF
whatever character. The loss may be
taken in whatever calendar year sold,
from the gains of that calendar year
Ask stock Subscriptions.
Washington banks were given an
opportunity this morning to subscribe
for stock in the proposed new
500 900 foreign trade bank. now
in process of formation. the result of
the great meeting held in Chicago
on Friday and Saturday of last week.
According to the provisions of the
Edge law, under which the corpora
are permitted to subscribe to the
capital thereof up to 10 per cent of
capital and surplus Of bank.
New York managers Of the enter
prise addressed the Washington Clear
ing House Association with a view
u
be placed in this city, and H. H.
Mckee. secretary Of the association.
today addressed ALI local banks on
the subject.
1t is possible that several Of the
larger institutions may become share
holders in order to help along a prof.
ect 50 much needed and that will go
SO far in aid of foreign trade
With a capital of $10o zoe, 600 it is
possible for such bank to make
loans to the extent of $1,000, 900. 600,
and for long periods
Local Securities.
Business on the local stock ex-
change was exceedingly limited. 1t is
not likely that orders will reach pro-
portions of any importance until after
the event of the New Year. when the
January disbursements may or may
not livens up business.
Capital Traction shares sold at "a
ex-dividend, reasonably cheap for
good per cent dividend payer.
other transactions were entirely in
bonds, with Gas IS at Is. Railway As
at 50 and Capital Traction SIS at 81.
Dividend Declared
Directors of the Union Trust Com
pany yesterday declared the regular
/ u per cent quarterly dividend and an
extra distribution of l per cent. max :
ing per cent for the year. Dividends
Will De palQ January 10 10 SnaFenOiO-
ers of record January l.
All directors of the Potomac Saw
ings Bank were reelected yesterday.
They are George w. Offutt. William
w, Anderson, Samuel Artz. Alphonse
NJ. Baer, Henry w. Onutt. D. B. Ell
gin, Peter J. Clarke, 8. Baker Weaver,
George w. Offutt. jr. Emory H. Bog
ley, NJ Wilson Orutt. J. William
Stohlman, B. A. Bowles, DR.. Anthony
N. Ray and DR.. Michael J. Ready. Of
4. ficers will be chosen at the next
meeting of the board. The expecta-
tion is that all the present officers
will be reelected.
Banks Busy.
This was a busy day at the banks.
Coupons on the first liberty bonds
and on victory. notes matured to the
extent of $4,000, 900 and the cou-
pons were very generally presented
TO banks for payment.
Banks and trust companies gave
the government credit today for
S500.000,000 Treasury certificates
that is. it is expected that they would,
As the So and 6 per cent rates are
expected to make the sale equal the
offerings
Tomorrow the banks holding some
100000. 006-odd balance of the pro-
ceeds of the November Is Treasury
certificates issue will have to have
this fund at the respective regional
reserve banks, as 1t has been called.
Then $3.50, 200, 900 income taxes were
paid into the Treasury, or should have
. been.