Evening star., 1921-05-17
THINK COURT RULE
NOT BROAD ENOUGH
Suggest Decision on Taking
Depreciation-CalIs for
! S57,000,00O Thursday.
By I. A. FLEMING.

The decision of the United State:
Supreme Court refusing to permit in
dividuals and corporations to take
any advantage of appreciation in thu
value Of property in which they hav
invested capital is severe jolt t
those who otherwise might be per
mtted greater returns on their in
vestment. 1t will mean millions te
the government just as reverse de
cision would have meant millions II
taxpayers.
But the decision does not go IA,
enough and it will take still anothe1
ruling by the highest court t.
straighten the matter out to the sat
isfaction of taxpayers.
1t is an old saying that ut is {
poor rule that does not work boti
ways yet this latest ruling of th'
highest court looks only one way.
If an individual. partnership or cor
poration cannot take appreciation o
property mines. etc. into considera
tion in computing invested capital
should depreciation reduction charge:
be enforced. as at present. to de
crease invested capital and increase
taxes?
Many owners of property. in Wash
strongly that there has been no de
probation in their property. that il
is worth much more than the valua
tion of few years ago, but the in
ternal revenue agents enforce the
taking of depreciation charges, anC
probably will until the Supreme Cour,
passes upon the matter, which it will
probably do one of these days. as
there are two or three big cases
pending.
Check on Par Collections.
The decision of the Supreme Court
in the matter of par collections is
something of a disappointment to the
Federal Reserve Board in its efforts to
enforce par collections all over the
country
With the ruling in effect there is
now nothing for the bankers to do. IL
the matter of the banks that insist
on their exchange charges. but te
meet the cost and charge it to the
customer. The Federal Reserve BoarC
might refuse to accept the checks fol
collection, which might or might not
be a hardship on member banks.
Treasury Needs the Cash.
The extremely heavy disbursements
made by the Treasury yesterday in
interest payments and in redemption
of certificates, with other expenses in
cidental to the midmonth settlements
evidently made hole in the surplus
this morning the call came on national
banks holding proceeds resulting from
the sale of Treasury certificates of
April IS to pay into the Treasury not
later than Thursday of this week the
entire amount of such balance.
This means that about s57.000.0o
will be taken from the national banks.
Pay Under Protest.
Local banks will, in all probability
repeat their action of last year in the
matter of paying gross profits tax on
income derived from tax-free securi-
ties
At the meeting of the Bankers AS
eociation held yesterday final con-
Sideration of the matter was post
poned until next Friday, when another
meeting will be held. when counsel
will be present to further advise.
First Call Loan.
On today's call-money call the first
record since the inauguration of the
market ten days ago was made when
a local broker took $4,000 from a
trust company at per cent.
The bid market on call was 6s per
cent
Local Securities.
On todays session of the local stock
exchange a sale of Riggs National
Bank stock was reported at $3.50. the
first transaction of the year. and
around old-time high levels.
East Washington Savings Bank
shares brought 12h. Capital Trac-
tion sold sparingly at SIN and Wash
3ngton Gas at An, about the recent
high point.
Railway general IS were active to
the extent of $4,000, at 93.