The Washington herald., 1920-10-20
Trust Company Section
Splits Up Over Use Of
Life Trusts.
TO ANSWER WILLIAMS
Charges Of Rate Control by
Currency Comptroller
Will Be Denied.

Conferences between various sec
tions of the American Bankers As
sociation yesterday afternoon, fol-
lowing the formal opening of the
Hawes demanding that Congress
make an immediate revision of the
Federal system of taxation and an
improved national budget, marked
the work of last night.
Important developments during
yesterdays sessions of the con-
vention were:
Unanimous adoption of the newly
drafted constitution of the associa-
tiOn, which places the five sections
of the A. p. A under more CEN
traliZed control. as told exclusively
in The Washington Herald Monday.
VIII Answer Comptroller.
Declaration by President Richard
S. Hawes that the charges made last
Monday morning by John SHELTON
Williams, Comptroller OF the Cur
renCy. to the effect that the bankers
of New York are charging excessive
interest rates, was "a challenge to
=
America" The charges are to be
answered within the next few days
by the association.
Move by President Halves to have
the bankers of the nation demand
of Congress an immediate revision
of the Federal system of taxation
and an improved national budget
system.
Decision of convention leaders to
begin Immediately the organization
of a slO0,OOO,OOO foreign financing
corporation to be owned by the
bankers and business men Of the
country-its object to be the solu-
tion of the many problems of inter-
national trade and finance.
stormy Meeting Held.
A meeting of several hundred
members of the trust company sec
tion of the American Bankers Asso-
citation nearly broke up in a row
yesterday over the frank exposition
by several members of how findis-
soluble life trusts" could be used to
eyade the income and Inheritance
tax
one Ser declared that this
form of ut was becoming ex-
ccedingly pr.sIlar, and in the case
OF large estates subject to heavy
inheritance taxes. could be used to
save so to 60 per cent of the total
estate to the trustees.
A Pennsylvania delegate scored
such advice, declaring that IT was
thoroughly dishonest and corrupt,
no matter how onerous the law that
is cvaded." He declared Of the bill
lions of dollars now raised every
year by the government in taxation,
only l $40 per cent represented in
heritance taxes. which, in itself, in
dicated the widespread evasion.
Charges Use of False Light.
Francis H. Sisson, vice president
of the Guaranty Trust Company OF
New York, declared the matter was
being put in false light. Life
trusts, he said, as a means of pre-
serving the inheritances of imma-
turc or irresponsible heirs are an
institution predating all forms OF
income and Inheritance tax by
many years. He declared no honest
trust company would deliberately
give such advice to its clients as
a means of tax lodging.
Another subject discussed by the
trust company representatives was
the fact that billions of dollars in
government certificates of indebted
ness, now held by the people. have
cut deeply into the deposits of saw
ings banks and other institutions
which can pay only n low rate of
interest.
An address by William Hatch
Davis, attorney for the trust sec
tion, which was read at the meet
ing, deplored the fact that the rela-
tons between lawyers and trust
companies were by no means cor
dial and that so far little had been
accomplished toward co-ordinatinr
lega! and trust businesses in har-
monious fashion.