Evening star., 1921-02-14
BANKS T0PROTEST
TAX ASSESSMENT
Income on Non-TaxabIes
Held Exempt-Richmond
Banks Big Year.
BY 1. 4. F-.SA<0eS<x.

odIlk 5 Big tedr.
BY 1. A. F-.SatHe&u.
Local members of the District Of
Columbia Bankers Association re-
ceived protest forms. printed and
ready for signature and affidavit. ad-
dressed to the board of personal tax
appeals setting forth the reasons why
the banks protest the payment OF per
Sonai taxes on Si<~ gross earnings
from state. municipal and kx1.<sJ
bonds, upon >Icn even Ge N9S-s
;o.a.es ~<.-nt does NIX E1eS>>
take to collect a tax. ~ SnAN10<S<A
they are free from all taXea
Further protest is made against
payment of gross profits tax on divi-
dends received from the Richmond
Federal Reserve Bank on its stock
held by the protesting bank, 6 per
cent of the capital of the national
banks of city.
The protest cites that the said divi-
dend is not taxable under the laws of
the United States, and specifically
non-taXable under the specific per-
sonal property laws under which the
board of personal tax appraisers are
assumed to act
The fourth point of protest is found
in the failure of the appraisers to
make any allowance for bad debts, or
for interest paid to it's depositors. or
the income received by this bank from
the investment of its capital, surplus
and undivided profits, the amount OF
which items were set forth In the
banks return.
1.-The premise considered, this bank
respectfully asks reassessment on
its gross earning for the twelve
months next preceding the 3oth day
Of June. 1920. and insists tnat s,s
under the personal property laws OF
the District Of Columbia, amount
.This bank desires to appear by
hearing on this it's said appeal, and
will appear on any dates set by tho
said board for hearing.
F. ]. Hogan, counsel for the Dteertcd
Bankers Association. drew the pro-
test and the association mailed copies
to all banks.
Chesapeake and Potomac Election.
Officers and directors for the Chesa.
peake and Potomac Telephone Com
pany of New York, which operates in
the District of Columbia, were elected
at meetings held this morning in New
York city. The officers of the COM
pany remain: A. E. Berry. president:
NJ F. Buehler. vice president: Burdett
Stryker, general manager; d. s.
Porter, secretary and treasurer, and
P. o. Coffin, general auditor.
The directors are: Charles j. Bell,
A. E. Berry. c. H. Carter. w. S. Gif-
ford John Poole. H. B. Thayer and H
F. Thurber. John Poole was elected
chairman of the stockholders meet
ing.
In the report to the stockholders
from the board it was shown that
the operating revenues for the Dis
trict of Columbia were 1888 .Sl244
and operating expenses were $685.
|115.17, leaving an operating income
of s701. .69727.
Deductions bring this total to net
Income of $502566.44. Dividends OF
s195. 900 were paid on the stock of 1920.
leaving surplus earnings of S501.566. ~.
The directors reported the number
of telephone stations owned by tne
company in Washington, ID. Z;
by 261 1.7O7 miles of wire within the
District of Columbia, operated by
2,675 employees.
Personal Mention.
George w. White. president of the
National Metropolitan Bank, recently
called to ST. Louis by illness in the
family, will return home tomorrow
coming by way of Chicago.
William j. Flather. vice president
of the Riggs National Bank. who 10
convalescing at Atlantic City from
long and serious Illness, is ex-
uected TO resume his business activity
in the near future
Made 100 Per Cent Profit.
1t has been frequently stated that
the federal reserve regional banks. IT
permitted to keep their entire profits
and not pay franchise tax to the
government would in time be able
to go a long distance in wiping out
the national debt.
The Richmond Federal Reserve
Bank is not one of The largest of
the twelve. by any mear.s, and yet il
is~a decidedly prosperous institution.
Its total gross earnings during the
year ended December 81, 1920, were
s6,e09.143. from which expenses of
S1.52i.947 were deducted, leaving net
earnings of S5,23S.5o5.
After paying member banks s per
cent dividends amounting to S293.-
051.90, on it's capital stock. II closed
the year with profit account of s4,- b.
945.45406.
The total surplus of the bank at
the close of the year was sl0.561,-
331.67. ..
The federal reserve act does not
the regional banking in
stitutionS coming> into competition
with member, banks. but during the
last year the Richmond bank pur-
chased $51,711.557 in acceptances, and
handled s1L177,740 of paper day
on an average.
In 1919 the bank discounted for MEM
ber banks $4.132, 942, $40 in bills, but was
less generous last year. as but $3.50
321 .59S in bills was discounted. The
total business of the bank was $685.
o33, ,155, handling 12.020.06S checks of
member banks. government and other
federal reserve district checks.
The capital stock of the bank is 3d.
2s9, 300 Capital and reserve, sl5,S30,-
531.67.
Big Demand for Certificates.
Bankers report that the demand for
Treasury certificates is decidedly urgent.
Indicative of the abundance of money
seeking safe investment The fact that
there have been no very late calls on
banks holding funds for the credit of
the Treasury would seem to indicate
that income taxes were coming in fairly
WELL
Local Securities.
Today's action on the local exchange
was decidedly slow and uninteresting.
The Washington Gas ~ per cent notes
are selling at a slight premium, 100k,
and that price was bide today.
Potomac Consolidated IS were little
irmer at 50.