Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-24
BOND INCOME TAX
| MAY co TO COURTS
Bankers Association Threat
ems to Bring Action Unless
Efforts Come to End.

Acting on advice of Frank J.
FAgan. counsel for their organiza-
bon. the District of Columbia Bank
hrs Association decided at meet
ing held yesterday afternoon at the
New Willard Hotel that unless the
board of personal tax assessors
bandons efforts to collect taxes on
lacome from liberty bonds and Treas
would carry the contest between the
bankers of Washington and the Dis
krict taxation officials to the courts.
Taxes will be paid under protest. II
Insisted upon by the authorities. and
; test case will be taken to the
courts to decide as to its legality
Payable May. 1921.
II was decided also that banks
bake out their tax returns on uni
FORM blanks. copies of which VIII
b. furnished by the secretary OF the
ssociation. Although tax returns
3re due now. the taxes are not pay
kble until May. 1921.
The fight against paying this tax
Started several weeks ago, when
ocal bankers received forms from
khe board of personal tax assessors
tequesting that banks include as tax
bile income all interest on liberty
bonds and Treasury certificates.
knce the war loan act of September,
39i7. specifically exempts this inter-
kst from local taxation. the bankers
ere surprised at the request.
Test Case for Court.
J Mr.. Hogan was Immediately con-
Quilted and was present yesterday
when il was decided TO fight a test
base out in court.
The District taxing authorities base
! heir action on a decision handed
Eown by the District Supreme Court
n 1905, when the court held that
ak on tax exempt government
bonds was a franchise tax rather
&han a tax on the bonds themselves,
knd was. therefore. a proper tax.
Convention Outlook Bright.
Bookings for reservations for the
Forthcoming bankers convention. to
be held here in October. continue TO
3Dour in. and. according to Thomas
Iirant, secretary of the convention
committee of the District of Column
Ipia Bankers Association. the city Will
Entertain one of the most representa-
live conclaves of banking men ever
Assembled in the country.
indications for rooms from three of
best known bankers in Canada.
nd said that from the looks of the
Isl at present every state in the
Mon would have delegates TO the
congress.
Guaranty Trusts New Company.
Announcement was made today by the
guaranty Trust Company of New York
nat in order to facilitate it's business
investment securities, particularly
utside of New York city, the BOND de-
slrtment of the company has been in
o-porated into a separate company,
rhich will be known as the Guaranty
company of New York. Inc. This new
ompany will have an authorized CAPT
al of IS. 900. 600. All capital stock is to
e issued and subscribed for by the
Guaranty Trust Company, and it is ex-
ected that the new company will be-
in business about October l.
Charles H. Sabin. president of the
Guaranty Trust Company. will be presi-
ent of the bond company. and the Off
ers of the trust company's bond de-
artment will be elected officers of the
ew company The directors will in
ude the managing committee of the
rust company: Albert Breton. W. Palen
conway, Eugene W. Stetson. Harold
tanley and Francis H. Sisson.